Meeting in a company symbolizes tenders for the promotion of renewable energies; Source: BMWi/Maria Parussel

© BMWi/Maria Parussel

The continued expansion of renewable energy is and continues to be one of the key pillars of the energy transition. According to preliminary data, renewables accounted for roughly 32% in 2016, a figure which is to rise to 45% by 2025. The 2014 Renewable Energy Sources Act (RES) paved the way for expanding renewables in a way that is both reliable and can be planned, and that makes them fit for the market. The 2017 Renewable Energy Sources Act (PDF, 737KB) heralds the beginning of a new stage of the energy transition.

Promoting renewable energy in a continuous, controlled and cost-efficient manner

The 2017 Renewable Energy Sources Act brings in a change in the way that renewable energy is funded. Since the start of the year, the level of payments for electricity from renewable energy is now determined by auctions. This is because renewables have matured and are now fit enough to compete on the market. The basic principle is that funding will go to those who demand the least for operating new renewables installations in a way that is economically viable. The idea is that auctions will be open to as many different operators as possible – from large companies to citizens' energy undertakings.

For further information on auctions at national and European level, please click here.

Linking the expansion of renewable energy with that of the power grid

The 2017 version of the Renewable Energy Sources Act will ensure that the pace at which renewables capacity is added corresponds to the pace at which the grids are developed. The growing shares of renewable energy are creating new challenges for the grid as, in some cases, getting electricity from generators to consumers means transporting it over long distances. In order to tackle this problem, Germany needs an efficient grid infrastructure. On top of this, the continued expansion of renewable energy needs to be well coordinated. The 2017 Renewable Energy Sources Act therefore restricts the expansion of onshore wind power in certain areas of northern Germany that suffer from grid congestion in a bid to reduce this. In addition, the 2017 RES also introduces an instrument designed to make use of electricity that is otherwise curtailed, based on the use of ‘connectible loads’.

For more information on grid expansion, please click here.

Offshore Wind Energy Act (WindSeeG)

The Offshore Wind Energy Act (PDF, 246KB) (WindSeeG) (reference: p. 53, Federal Law Gazette) entered into force on 1 January 2017 as part of the 2017 Renewable Energy Sources Act. The Act stipulates that the level of funding for offshore wind-power installations is also to be determined itself by means of competitive auctions. It additionally ensures dovetailing between site planning, regional planning, approval of installations, funding under the Renewable Energy Sources Act, and grid connection. This will improve the system and render it more cost-effective. The aim is to boost the installed capacity of offshore wind energy installations to a total of 15 gigawatts between 2021 and 2030, following a set plan and in a cost-efficient manner.

On 14 November 2016, the Federal Ministry for Economic Affairs and Energy concluded the hearing of the Länder and associations on the draft schedule of fees for offshore wind auctions. Where authors have given permission for publication of their comment, the comments have been published (in German) (comments of 9 November 2016). The ordinance entered into force on 4 January 2017. It serves to levy fees on bidders who take part in the offshore wind auctions of the Federal Network Agency during the transitional period of the Offshore Wind Energy Act.

Revision based on an extensive consultation process

The RES 2017 is the result of an extensive consultation process, which means that the new auction scheme was discussed with the German Länder and a wide range of associations and companies.

  • A comprehensive agreement between the Federal and Länder governments was reached in June 2016. The draft legislation was then presented to the Bundestag on 21 June 2016, which adopted it on 6 July 2016 following several amendments.
  • In April 2016, the Economic Affairs Ministry launched the hearing of the Federal Government and the Länder regarding the draft Renewable Energy Sources Act. Subject to the author’s consent, the comments from the Länder and the associations have been published here.
  • The Ministry had presented the main substance of the draft act in a ‘key issues paper (PDF, 135KB)’ (in German), which set out the details of the competition-based auction scheme and explained how these details were to feed into the draft legislation amending the Renewable Energy Sources Act. The paper set out proposals and measures for maintaining the diversity of stakeholders, particularly for funding auctions for onshore wind energy installations.
  • This key issues paper was based on a consultation. The Federal Ministry for Economic Affairs and Energy had invited comments from the Länder, business associations, and companies on a previous version of the paper over a two-month period at the end of 2015. A total of 177 comments were received from the Länder, associations and businesses; these were then evaluated by the Ministry.
  • In the key issues paper entitled ‘Auctions for the funding of renewable energy installations (PDF, 346KB)’ (in German) the Federal Ministry for Economic Affairs and Energy had presented the broad parameters of the auctions in July 2015. The key elements were taken from recommendations in a scientific report drawn up by Ecofys, Fraunhofer ISI, Consentec, the Centre for Solar Energy and Hydrogen Research Baden-Württemberg (ZSW), Takon, and two law firms: Görg and BBG und Partner.

The key elements of the Bundestag’s decision can be found in this presentation (PDF, 552KB) and this paper (PDF, 87KB) (in German). The text of the Act can be found here.

Promotion of landlord-to-tenant electricity

Landlord-to-tenant electricity is power generated in a block-type combined heat and power station or in a PV system installed on the rooftop of a residential building and supplied to final consumers (particularly tenants) in that building. This has the advantage of eliminating certain costs, such as grid charges, grid surcharges, electricity tax and concession fees. In order to make landlord-to-tenant electricity more commercially attractive, the Economic Affairs Ministry is currently drafting legislation under which direct funding would be available for landlord-to-tenant electricity. The key details are summarised in a key issues paper. Further information (in German) can be found here.