2017 Amendment of the Renewable Energy Sources Act (EEG 2017)

Country / jurisdiction: Germany · Year: 2017 · Status: In force · Level: National · Type: Voluntary

On 8 th of July 2016 Germany adopted amendment to the Renewable Energy Act (further: EEG 2017). The amendment will enter into force on 1 st of January 2017.

The reform introduces public tender procedures for onshore wind, offshore wind, solar and biomass projects in country’s efforts to shift from FIT support renewable energy deployment to market orientated price finding mechanism. With that, projects will no longer be eligible for statuary feed-in tariff remuneration but will have to bid for it in public auction organised and monitored by the Federal Network Agency (Bundesnetzagentur). Successful projects will receive contracts for duration of 20 years for sell of the produced electricity at the price that they bid during the auction process.

Germany aims to increase its renewables share to 40%-45% by 2025, to 55%-60% by 2035 and to reach a minimum of 80% by 2050, as set in EEG 2014. EEG 2017 replicates those targets. The amendment stipulates capacity corridors for technology deployment in order to control capacity volumes commissioned each year, similarly as EEG 2014 did.

Specific tender rules and legal requirements apply to different technologies:

Renewable technology

Tender volumes

Tender technology specific rules

Onshore wind

2.8 GW per year until 2019;

2.9 GW per year from 2020;

First tender May 2017;

3-4 tenders per year;

Price ceiling EUR cents 7/kWh;

Required permits must be submitted 3 weeks before the start of the auction round;

Offshore wind

Total of 15 GW by 2030;

3.1 GW in period 2015-2025;

4.2 GW in period 2026-2030;

First two tenders 2017/18 for existing projects;

Tenders for new projects from 2021 to be commissioned by 2026;

Price ceiling for tenders 2017/18 EUR cents 12/kWh;

Price ceiling for later tenders determined by the lowest bid price;

Solar PV

0.6 GW per year from 2017;

First tender February 2017;

3 tenders per year;

Price ceiling EUR cents 8.91/kWh;

Open space units up to 10 MW; other types of projects up to 750 kW;

Biomass

150 Mw in 2017-19;

200 MW in 2020-22;

First tender September 2017;

1 tender per year;

Price ceiling EUR cents 14.88/kWh with 1% of degression per annum starting as of 2018;

Projects under 150 kW capacity not allowed for tender participation;

Required permits must be submitted 3 weeks before the start of the auction round;

Official source: https://www.bmwi.de/DE/Themen/Energie/Erneuerbare-Energien/eeg-2017-wettbewerbliche-verguetung.html