Germany Invites Comments on 2016 Renewable Energy Sources Act

Germany’s Federal Ministry for Economic Affairs and Energy (BMWi) has invited the federal states and associations to provide comments on the 2016 Renewable Energy Sources Act (EEG 2016) which includes a draft bill for the development and promotion of offshore wind energy – WindSeeG.

The EEG 2016 proposes that the level of funding would no longer be fixed by the state, but rather be determined on the market by way of competitive auctions. The auctions are expected to provide a level playing field for all of the players involved.

The expansion of renewables will take place within the deployment corridor and will be cost-efficient, i.e. the remuneration which is required for the installations to operate economically will be paid, the ministry said.

Sigmar Gabriel, German Federal Minister for Economic Affairs and Energy, said: “For the first time, the 2016 Renewable Energy Sources Act treats renewables as established, mature technologies and creates the basis for stabilising costs, thereby boosting public acceptance of the energy transition. On the basis of the 2016 Renewable Energy Sources Act, we will improve the integration of renewables into the market and expand their use in a targeted way. This is how we will continue to ensure the very high level of security of supply in Germany and at the same time ensure cost efficiency and diversity of market players.”

The EEG 2016 is an omnibus act consisting of two articles, the Amendment of the Renewable Energy Sources Act, and the WindSeeG, which proposes two offshore wind tenders with a total capacity of 2.92GW to be held in 2017.

The 2.92 GW of new offshore wind capacity would be delivered between 2020 and 2024, and is some 500MW more compared to what was proposed for the same period in earlier drafts.

Both tenders are for the projects that already have a license and have reached a certain level of development. The calls for bids would be issued on 1 March and on 1 December 2017.

WindSeeG plans for 7.7GW of offshore wind capacity to be installed in German waters by 2020, a 1.2GW increase compared to the previously projected 6.5GW of the installed capacity for the same period.

However, as the 15GW target to be reached by 2030 has remained unchanged, Germany has reduced annual offshore wind installed capacity from 2020 onward from 800MW to 730MW.

Renewables currently cover around 32 % of electricity consumption in Germany, and this share is to rise to at least 80 % by 2050. The EEG 2016 is seen by the ministry as the key instrument that will enable Germany to meet these targets in an orderly fashion.