The RES surcharge in Germany will decrease by 3.8% in 2020

16 Oct 2020

The four German power transmission system operators (TSOs), namely 50Hertz, Amprion, TenneT and TransnetBW, have published the update for the 2021 German renewable energy surcharge (EEG-Umlage, a levy on end-consumer power prices to support the expansion of renewable energies). The EEG surcharge will be reduced by 3.8% to €6.5c/kWh in 2021 thanks to federal support payments. In 2020, the EEG-Umlage had increased by 5.5% to €6.756c/kWh, from €6.405c/kWh in 2019. The fee will drop to €6c/kWh in 2022. The country will use income from national emissions trading to relieve the EEG surcharge on electricity bills. In addition, the government will unlock around €11bn from the federal budget to stabilise the levy at €6.5c/kWh in 2021.

The four TSOs anticipate the installation of 5 GW of renewable energy capacity in 2021 and a renewable power production increase by 3 TWh to 228 TWh (corresponding to a total annual subsidy volume of €26.4bn after deducting the forecast stock market prices). This corresponds to a surcharge of around €7.7c/kWh, including €2.8c/kWh for solar PV, €1.8c/kWh for biomass, €1.7c/kWh for onshore wind and €1.3c/kWh for offshore wind. In addition, amended offshore grid expansion levy will decrease by 5% to €0.395c/kWh in 2020.

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