Press Release on the Abolition of the Surcharge Under the Renewable Energy Sources Act

Laws and Policies

CCLW

CCLW national policies

Law for the expansion of renewable energies (Renewable Energy Sources Act - EEG 2017)

Easter Package of Renewable Energy Legislation

Information on renewable energies in Germany

Law for the expansion of renewable energies (Renewable Energy Sources Act - EEG 2023; consolidated version)

Amended

Law passed

Amendmed

Last amended

This Act (introduced in 2000, amended since) replaced the law on feeding electricity from renewable resources into the public grid of 1990. The Act has set a goal of generating 80% of electricity supply from renewable energy resources by 2030. Below, the main features of some of the last major amendments are specified:&nbsp; The 2012 amendment (Act amending the regulatory framework for electricity from PV)&nbsp;introduced monthly tariff degressions in the national feed-in tariff (FiT), replacing the annual FiT cut that typically occurs in January. A EUR 50m (USD62.7m) research and development programme for PV storage solutions was also established, starting in January 2013.&nbsp; The EEG 2014 introduced four major changes:<ul><li>A deployment corridor for wind, photovoltaics and biomass was set to avoid overshoots;</li><li>Direct marketing is now mandatory for all new installations (with minor exceptions);</li><li>It lays the foundation for tendering of support from 2017 onwards; and</li><li>It removes several subsidies and exemption for energy-intensive consumers and 'prosumers'.&nbsp;</li></ul> The EEG 2017 introduced several new key features: <ul><li>Introduction of an auction system for nearly all renewable energy sources (onshore wind, offshore wind, photovoltaic and biomass);</li><li>Installations of 750kW (for biomass of 150kW) will be exempt from auctions and remunerated as previously; </li><li>The already existing auction scheme for ground mounted PV solar systems will be extended to also cover rooftop plants and installations on other structures;</li><li>The permitted areas for PV solar installations will now also include commercial and industrial property, areas with a plan approval decision or projects which are, subject to further requirements, located in 'disadvantaged areas'; </li><li>Onshore wind: in 2017, 2018 and 2019, 2,800MW and from 2020, 2,900MW (gross) will be auctioned each year;</li><li>Offshore wind: up to 2030, offshore wind farms will be installed with a total capacity of 15,000 MW; and</li><li>The "central 'Danish' target model" will be introduced (the Government examines in advance the sites to be auctioned for wind farms to ensure optimal dovetailing with the grid connections and avoid a stock of grid connections having to be built and resulting in significant extra costs).</li></ul> The EEG 2023 (latest amendment) contains the following key elements: <ul><li>The expansion target for 2030 will be raised to at least 80% of Germany’s gross electricity consumption; </li><li>Priority for renewable energies is made a basic principle; </li><li>To reach the 2030 expansion target the expansion paths have been raised significantly; </li><li>The maximum values in tenders for onshore wind turbines and for PV systems can be adjusted by up to 25% subject to market developments; </li><li>The expansion of PV systems is simplified;</li><li>Provides incentives for accelerated expansion of onshore wind energy;</li><li>Focussing biomass use on highly flexible peak load power plants;</li><li>Increased support for citizens’ energy</li><li>Further development of financial contributions by municipalities; </li><li>Increased support of green hydrogen;</li><li>The EEG levy is abolished by the new Energy Finance Act and will be financed through federal funds;</li><li>New regulation of energy levies; and</li><li>Special equalisation scheme in the area of EEG subsidies will be part of the new Energy Finance Act.</li></ul>

Renewable Energy Sources Act (EEG, latest version EEG 2023)

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Press Release on the Abolition of the Surcharge Under the Renewable Energy Sources Act

Policy instrument

Renewable energy

Economic sector

Finance