Creating more renewable energy is pointless unless it reduces/replaces the use of fossil fuels. Having more energy than we need is useless, and there's an environmental footprint to even the greenest wind farm.
The point the article is making is that because of the way the renewable industry is being funded (from taxes on electricity consumption), consumers are opting to continue burning fossil fuels rather then use electricity.
This means that the supply of electricity is greater than demand for it, and prices go below zero.
This has two knock-on effects:
1. Investment in electricity production is guided by government policy goals and support, rather than actual demand. The only source of revenue is government redistribution of energy taxes, and that can change quickly depending on government policy. This is not sustainable, there is no incentive here to produce efficient, long-lasting energy production infrastructure. There is only an incentive to maximise government subsidy payouts in the short term.
2. Germany is producing more energy than it needs, and producing energy (from any source) has a negative environmental impact. These policies that were intended to preserve the environment and reduce fossil fuel use are actually causing more environmental damage and preserving fossil fuel use.
Of course, this only considers domestic consumption, and specifically heating. It may be that the policies do better in other areas.