The European Commission has approved, under EU State aid rules, the modification of a German scheme to support the production of electricity from renewable energy sources. The scheme reflects a recent amendment by Germany to its Renewable Energy Act (EEG 2023). The EEG 2023 support scheme, with an overall budget of €28bn, aims at achieving a share of 80% of electricity produced from renewable energy sources by 2030, with a view to achieving climate neutrality by 2045.
Under the scheme, the aid will generally take the form of a market premium paid by the network operator to the producer on top of the market price for the electricity. In the case of very small installations, the aid will take the form of feed-in tariffs. Beneficiaries will be selected through competitive, transparent and non-discriminatory bidding processes.
Tender procedures are modified to make them more competitive, further limit the risk of overcompensation and keep costs to a minimum for consumers and taxpayers. In particular, the scheme introduces an effective volume control mechanism for innovation, solar PV and biomethane tenders on top of the existing safeguards for onshore wind and biomass. Consequently, there is a mechanism that allows to adjust the volumes tendered for each technology and avoid undersubscription.
Interested in Global Energy Research?
Enerdata's premium online information service provides up-to-date market reports on 110+ countries. The reports include valuable market data and analysis as well as a daily newsfeed, curated by our energy analysts, on the oil, gas, coal and power markets.
This user-friendly tool gives you the essentials about the domestic markets of your concern, including market structure, organisation, actors, projects and business perspectives.