Germany's Federal Constitutional Court has upheld the legality of the government's decision to partially seize excess profits from renewable energy producers during the energy crisis.

This ruling comes after 22 operators of wind, solar, and biomass plants challenged the measure, arguing it was unconstitutional.

The court found that the temporary measure, which ran from December 2022 to June 2023, was justified due to the extraordinary circumstances caused by the energy market disruptions following the Russian invasion of Ukraine.

The seized profits, amounting to approximately 750 million euros, were used to fund a price cap on electricity to alleviate the burden on consumers facing soaring energy costs.

The court emphasized that the measure was not a tax or levy, but a redistribution among private entities to balance the benefits gained by energy producers from high gas prices.

This decision spares the government from potentially having to repay the seized funds.