Renewable Energy Sources Act (EEG, latest version EEG 2021)

Passed in 2000
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 35% of electricity supply from renewable energy resources by 2020 (amended from 30% after the Fukushima disaster). Longer term targets include the share of renewable electricity at 40-45% by 2025, 55-60% by 2035 and 80% by 2050.
 The main features of the last three amendments are specified below:
 The 2012 amendment (Act amending the regulatory framework for electricity from PV) introduced monthly tariff degressions in the national feed-in tariff (FiT), replacing the annual FiT cut that typically occurs in January. A EUR50m (USD62.7m) research and development programme for PV storage solutions was also established, started in January 2013.
 The 2014 amendment introduced four major changes:

  • A deployment corridor for wind, photovoltaics and biomass was set in order to avoid overshoots;

  • Direct marketing is now mandatory for all new installations (with minor exceptions);

  • It lays the foundation for tendering of support from 2017 onwards;

  • It removes several subsidies and exemption for energy-intensive consumers and 'prosumers'.

 The EEG 2017 (entered into force on 1 January 2017, full details can be found here) introduces several key new features:

  • introduction of an auction system for nearly all renewable energy sources (onshore wind, offshore wind, photovoltaic and biomass); installations of 750kW (for biomass of 150kW) will be exempt from auctions and remunerated as previously;

  • the already existing auction scheme for ground mounted PV solar systems will be extended to also cover rooftop plants and installations on other structures;

  • 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';

  • onshore wind: in 2017, 2018 and 2019, 2,800MW and from 2020, 2,900MW (gross) will be auctioned each year; and

  • offshore wind: up to 2030, offshore wind farms will be installed with a total capacity of 15,000 MW; 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).

  • 2,800 MW renewable energy added annually by 2019, then 2,900 by 2020
    Energy | Trajectory target | Target year: 2020 | Base year: 2017
  • 6,500 MW increase in sea wind capacity by 2020, then 15,000MW by 2030
    Energy | Trajectory target | Target year: 2030 | Base year: 2014
  • 40-45% increase in proportion renewable electricity in gross electricity consumption by 2025 (from 18% in 2020), then 55-60% in 2035, then at least 80% by 2050.
    Energy | Trajectory target | Target year: 2050 | Base year: 2014
  • 150 MW annual increase in biomass capacity, then 200 MW annual increase by 2019, 2022 against a 2017 baseline
    Energy | Fixed level target | Target year: 2022 | Base year: 2017
  • 2,500 MW annual incrase in solar capacity by N/A against a 2014 baseline
    Energy | Fixed level target | Target year: 0 | Base year: 2014
from the Grantham Research Institute
from the Grantham Research Institute
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