Germany proposes renewables incentives cap

Share on facebook
Share on twitter
Share on linkedin
Share on reddit
Share on email

A cap of 2.5% should be applied to inreases in renewable energy incentives levy in Germany,  according to the country's Environment Minister, Peter Altmaier.

In a report published yesterday the minister said the cap would ensure “predictability, reliability and affordability of Germany’s renewable energy act (EEG)”. The EEG levy will remain as it currently stands at €0.0528 (US$0.072) per kWh, and will increase by a maximum of 2.5% each year from 2015.

In just seven years, the EEG levy of €0.0088/kWh (US$0.1192) rose to €0.0528. According to Altmaier’s report, household electricity prices rose by 4.5% in 2006 to 18.3% in 2013. At present electricity prices cost €16 billion a year, with the feed-in tariff accounting for €1.5 billion (US$2.03 billion).

However, in a statement the German solar industry body BSW said Altmaier’s proposal was “not only absurd, it is also legally questionable”.

Instead the BSW said: “Instead of requiring operators of solar and wind power plants to pay more, the financing of the Energiewende [EEG] should finally be distributed on broader shoulders again. The environmentally harmful industrial on-site electricity generation from fossil fuels should be more involved in the financing of the Energiewende, for example. At the same time, there needs to be a restriction of the industrial privilege, which transfers a significant measure of burden from industry to the population at large.”

By delaying and cutting FiT payments for new systems, reducing the number of energy-intensive companies that are supported by the levy, and calling for the industry to support itself, Altmaier believes that the EEG levy would result in a cost saving of up to €500 million (US$677 million) due to reduced electricity prices.

The BSW believes this would send the wrong message to new investors by “adding to the already high degree of uncertainty created by the freezing of the EEG apportionment”.

An article by Ulli Gericke from German press Borsen-Zeitung yesterday calls Altmaier’s proposals an “election manoeuvre”. According to the article, Almaier knows perfectly well that he has no chance to push his proposals through parliament before the elections in September this year, due to opposition from the Social Democrat Party, Die Grünen (Greens) and Die Linke (the Liberals).

His predecessor Norbert Röttgen, who was fired in May last year, failed to pass similar proposals, therefore there is no guarantee that Altmaier would fare any better, concludes the article.

The BSW also states that, “Citizens who are taking the Energiewende into their own hands by consuming clean electricity generated on their own rooftop must not be asked to pay the price for misguided policies.”

18 October 2021
Intersolar South America, South America’s largest exhibition and conference for the solar industry, takes place at the Expo Center Norte in São Paulo, Brazil on October 18–20, 2021, and has a focus on the areas of photovoltaics, PV production and solar thermal technologies. At the accompanying Intersolar South America Conference, renowned experts shed light on hot topics in the solar industry.
19 October 2021
This year’s EV World Congress will hold a special role, not only as the first live EverythingEV event in over a year – a chance to renew your connections and re-engage with the EV sector face to face – but also as a chance to share insight and inspiration as world starts to look towards move on post COVID towards hitting ambitious decarbonisation goals in 2030 and beyond. As ever, we will be bringing world leading organisations, cities, and technology providers to the UK to inspire EV innovators, and delve into the challenges facing the sector as the UK looks to revolutionise road transport.
20 October 2021
Utility-scale solar is evolving, shaped by higher power modules and demand for increasingly lower levelised cost of electricity (LCOE). Those trends are also changing project requirements elsewhere, with inverters capable of delivering high power density and power capacity in strong demand. In this webinar, FIMER will detail how its innovative high-power, multi-MPPT string inverter and modular conversion solution can both meet those demands and transform the utility-scale solar sector for the better.
20 October 2021
The race is on but we need to sprint… With global climate talks fast approaching and time running out to prevent the most disastrous impacts of climate change, now is the time to act. The Summit will explore the opportunities that emerge from taking action on climate change and provide a clear pathway forward for governments, citizens and companies. Taking place just 10 days before the G20 meeting in Rome, on 30-31 of October, and in the lead up to the critical COP26 meeting in Glasgow from 31 October–12 November, this event will be instrumental in influencing ambitious global action.
10 November 2021
The solar tracker market continues to mature at breakneck speed, with designs and component selections becoming ever-more complex in the pursuit of better project economics. But a more simplistic design could deliver a triple benefit of lower Capex, EPC and Opex costs. This webinar will set out the ideal single axis tracker design for utility-scale solar farms. The design leapfrogs from decades of experience, with a comprehensive understanding and attention to the three cost structures of Capex, EPC and Opx. Sun and Steel Solar has prototyped a single axis tracker designed to deliver up to US$0.03/W in real savings compared to existing single axis trackers on the market. That’s US$30 million for every gigawatt deployed.
15 November 2021
The 10th edition of the famous Metallization and Interconnection Workshop, MIW2021, will take place in the Thor Central venue in Genk, Belgium, on Monday, November 15, and Tuesday, November 16, 2021 as a face-to-face meeting. We are longing for direct exchange of knowledge and ideas after a long time. Hopefully you can be part of it! But of course, the organizors will keep an eye on the evolution of the Covid pandemic. It will be assess carefully, whether the workshop can be held without major risks or excessive restrictions. We are looking forward to exciting talks, discussions and meetings and to welcoming you in Genk!

Read Next

October 18, 2021
Heterojunction cell and module manufacturer Meyer Burger has appointed a new CFO just one year after incumbent Jürgen Schiffer took on the role.
October 18, 2021
Italian grid operator Terna has acquired Italian solar O&M provider LT in a €24 million (US$27.8 million) transaction.
October 18, 2021
Recent solar wafer and cell price increases from both LONGi Solar and Tongwei, which have seen prices rise by between 5.6 – 7.7%, have underscored heightened volatility in the solar supply chain.
October 18, 2021
Canadian pension investor OMERS Infrastructure has acquired a 49% interest in the Australian renewable energy platform of utility-scale solar developer Fotowatio Renewable Ventures (FRV).
October 18, 2021
US independent power producer Silicon Ranch has acquired Clearloop, a start-up that helps companies offset their carbon emissions by funding new solar projects.
PV Tech Premium
October 18, 2021
PV Tech Premium speaks with a global shipping analyst to discuss the industry's sky high prices, delays to delivers and when the situation may improve

Subscribe to Newsletter

Upcoming Events

Solar Media Events
October 19, 2021
Upcoming Webinars
November 10, 2021
8am (PST) | 5pm (CET)
Solar Media Events
December 1, 2021