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The EEG surcharge will decrease for the second year in a row (Germany)

The four main German transmission system operators (TSOs), namely 50Hertz, Amprion, TenneT and TransnetBW, have published the update for the 2019 German renewable energy surcharge (EEG-Umlage, a levy on power prices to support the expansion of renewable energies). It will stand at €6.405c/kWh, which is 5.7% lower than in 2018. In 2018, the EEG-Umlage stood at €6.792c/kWh, which was 1.3% lower than in 2017 (€6.880c/kWh) due to an increase in the wholesale electricity price.



The four TSOs also predict the installation of 6 GW of renewable energy capacity in 2019 and a renewable power production increase by 13 TWh (corresponding to a subsidy volume of approximately €27.3bn, or €24.8bn after deducting the forecast stock market prices). This corresponds to an allocation of around €7c/kWh, including €2.5c/kWh for solar PV, €1.7c/kWh for biomass, €1.6c/kWh for onshore wind and €1.1c/kWh for offshore wind. In addition, amended offshore grid expansion levy will stand at €0.416c/kWh in 2019.



The German electricity production from renewable energies has been regulated by the Renewable Energy Sources Act (EEG, Erneuerbare Energien Gesetz) since 2000 and it has been amended several times (2004, 2009, 2011, 2012 and 2014 and 2016). The rapid development of renewable capacities since 2000 has significantly raised the EEG surcharge, from around €1c/kWh in 2006 to €6.24c/kWh in 2014. It declined to €6.17c/kWh in 2015, before increasing again up to €6.35c/kWh in 2016. However, it has remained quite stable while the renewable power production has been soaring.

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