The Renewable Energy Sources Act built a platform for the expansion of renewables, enabling them to become one of the mainstays of Germany’s power supply.
The figure in 2000 was only around six per cent. The Act had the aim of enabling young technologies such as wind and solar energy to enter the market with support provided by fixed tariffs and a purchase guarantee.
The 2014 revision of the Renewable Energy Sources Act
- stipulated a binding expansion corridor
- sharply reduced the costs via a concentration on the cheap technologies of wind power and photovoltaics
- stipulated that new large-scale installations are responsible for marketing the electricity they generate (better integration into the electricity market)
- halted the rapid rise in electricity prices
The price of electricity is a major factor in the level of competitiveness of energy-intensive industries facing international competition. These companies are covered by the special equalisation scheme, which in certain circumstances provides for a reduced . Also, the Renewable Energy Sources Act grants self-suppliers and self-generators certain privileges under certain conditions.
The 2014 Renewable Energy Sources Act prepared the ground for the introduction of competitive auctions. A total of six pilot auctions were held for large ground-mounded PV installations. The average amount of the award dropped from 9.17 ct/kWh in April 2015 to 6.90 ct/kWh in December 2016. .