FACTBOX-Changes to German energy law due for 2021
Germany’s parliament is due to pass new renewable power rules (EEG) this week to help the country meet its goal of producing 65% of its electricity from carbon-free sources by 2030. The new law cuts financial burdens on consumers and gives electricity generators some incentives to build new capacity, but more detailed specifications will be required next year.
The new law cuts financial burdens on consumers and gives electricity generators some incentives to build new capacity, but more detailed specifications will be required next year. Green lobbies and some opposition politicians said it did not go far enough.
The law kicks in on Jan. 1, 2021.
WIND POWER
Local communities will be incentivised to support new onshore wind projects by obtaining a share of their revenue, and by benefiting from reduced business tax. Existing turbines whose 20-year rolling subsidy schemes are ending will receive some follow-on support payments.
Operators can also opt for auctioning or direct marketing schemes under power purchase agreements (PPA) signed by consumers.
SOLAR POWER
Apartment dwellers participating in smaller-scale solar generation or procurement will benefit from favourable tax rules. The law increases the size of rooftop installations that exempt operators from paying charges to support the expansion of renewable energy, which apply to all households receiving power from grids.
Smart meters will not become mandatory for small operators below 30 kilowatt (kW). Prospective operators of large-scale solar plants on commercial buildings will have to compete in auctions for permission to build.
The size above which the auctions become mandatory was raised to 750 kW from 500 kW. This way, there will be more capacity to spur electric car charging activity at home and purchases of electric heat pumps to replace gas and oil in heating.
OTHER ENERGY SOURCES
The law promotes biomass and geothermal energy.
EXPANSION TARGETS
Capacity targets will be raised. Details will be worked out in the first quarter of 2021.
Technology costs are falling, allowing new capacity to run on the basis of market prices.
Source: reuters
