Germany is dealing with the fallout of its exit from the nuclear power game, with the country’s new energy minister looking to cut renewable subsidies to save money.

German Chancellor Angela Merkel has formed a "grand coalition" with the Social Democrats party. In the new cabinet, Social Democrat Sigmar Gabriel has taken on the roles of vice-chancellor, Energy Minister and Economy Minister.

Gabriel has reportedly tabled suggestions for Germany to trim its generous state incentives for solar, wind and biofuel.

Energy prices have shot up after Germany’s surprise decision to end its nuclear power use after the Fukushima disaster in 2011. The government believes its subsidies are too much to sustain without the price reduction provided by cheap nuclear energy.

“Falling electricity prices there will not be, but we will finally put the brakes on the increase,” Gabriel told the ‘Berlin Direkt’ programme on ZDF public television.

Wind energy subsidies will be reduced, while biofuel handouts will be cut almost entirely.

Another possible injunction will be the order for energy producers to sell green energy competitively on the market from next year. The proposal seeks to end their reliance priority treatment with guaranteed prices.

Germany still aims to have 80 per cent of its electricity produced by renewable energy in 2050, a considerable but by no means unachieveable goal considering 25 per cent is already accounted for.