Rape, solar systems and wind turbine symbolize the energy transition; source: BMWi/Holger Vonderlind

© BMWi/Holger Vonderlind

The German Cabinet today adopted the revised Cross-Border Renewable Energy Ordinance (GEEV). This is to implement the requirements of the 2017 Renewable Energy Sources Act (EEG 2017), according to which 5% of new renewables capacity to be installed each year (approx. 300 megawatts) will be opened up to installations in other EU Member States in auctions. This is the result of an agreement with the European Commission in the context of the state aid approval procedure for the Renewable Energy Sources Act.

The opening of auctions has so far been possible only for photovoltaic installations in the framework of a pilot phase. On this basis, Germany last year successfully launched opened pilot auctions for ground-mounted photovoltaic installations with its cooperation partner Denmark.

The revised Cross-Border Renewable Energy Ordinance (GEEV) that was adopted by the Cabinet today also makes possible cross-border auctions for onshore wind energy installations.

State Secretary Baake underlined the significance of the Ordinance: "The partial opening is an essential element of the integration of renewables in the European market. The cooperation with our neighbours is the right approach to anchor the energy transition across borders and to gradually adjust the funding systems. In the future, the partial opening can also contribute to diversifying the expansion of renewables and benefitting from the fact that fluctuations in wind and solar power generation can be better offset in larger regions."

According to the Renewable Energy Sources Act, three requirements must be fulfilled for cross-border opening: the opening must be based on the principle of reciprocity, i.e. the German funding system can be opened to installations from other EU Member States only if the other Member States also open their funding systems to installations in Germany. For this purpose, intergovernmental agreements need to be concluded between the cooperation partners. Furthermore, it must be possible to physically import the electricity to Germany, i.e. a real impact on the German electricity market must be guaranteed.

The Cross-Border Renewable Energy Ordinance (GEEV) implements these requirements, It is based on the proven concept that was developed in the context of the first pilot auction with Denmark.

Additional information about the revised Cross-Border Renewable Energy Ordinance (GEEV) can be found in the accompanying document on the hearing of the Länder and associations.

The Ordinance is to enter into force as soon as possible. Further cross-border auctions are planned to be carried out. This is subject to the successful conclusion of negotiations with partner countries.

You can find out more about current German energy policy in the fortnightly Newsletter "Energiewende direkt".