The four main German power transmission system operators (TSOs), namely 50Hertz, Amprion, TenneT and TransnetBW, have published the update for the 2020 German renewable energy surcharge (EEG-Umlage, a levy on end-consumer power prices to support the expansion of renewable energies). The EEG surcharge will increase by 5.5% to €6.756c/kWh in 2020. In 2019, the EEG-Umlage declined by 5.7% to €6.405c/kWh, from €6.792c/kWh in 2018.
The four TSOs also anticipate the installation of 6 GW of renewable energy capacity in 2020 and a renewable power production increase by 8.6 TWh (corresponding to a total annual subsidy volume of approximately €26.2bn, or €24.2bn after deducting the forecast stock market prices). This corresponds to an allocation of around €6.8c/kWh, including €2.5c/kWh for solar PV, €1.6c/kWh for biomass, €1.4c/kWh for onshore wind and €1.2c/kWh for offshore wind. In addition, amended offshore grid expansion levy will remain stable at €0.416c/kWh in 2020.
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. Since 2014 it has been in a stable range between €6.2 and €6.9c/kWh. At the same time, electricity generation from renewable energies has risen by 50% since then.
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