"The ongoing expansion of renewable energy has been secured," a spokesman for the Berlin-based group told Reuters.

"The big energy utilities' hopes of a return to a conservative policy have been shattered. Now they have to adjust and start investing more into modern, decentralized energy sources."

The coalition agreement unveiled on Saturday reaffirmed earlier statements that existing renewable legislation will be left unchanged up until a mandatory review in 2008.

The huge overall package paves the way for a grand coalition of Christian (CDU) and Social Democrats (SPD).

The SPD enforced pledges to expand renewables to a share of at least 20 percent of the overall energy requirement by 2020 although the CDU had only wanted to commit itself to an already realistic rate of 12.5 percent by 2010.

The SPD also secured control of the environment ministry which will be headed by Sigmar Gabriel, former premier of Lower Saxony state, a leading wind power producer.

A spokeswoman for the VDEW power industry association whose members predominantly represent conventional thermal power stations said: "Unfortunately, there has not been a change to the present (SPD/Green Party-led) policy. We'll see if the coalition has the power to implement changes later on."

VDEW had lobbied strongly to change the renewable energy funding law (EEG) in favor of an efficiency-based quota system.