Compensation for electricity from renewable resources in Germany – system changes based on EEG 2017
> September 2016
Significant changes were made to the Renewable Energy Act (EEG) on 08 July 2016. The introduction of the new 2017 version of the EEG has led to a change in the system for Germany. Following a transitionary period, compensation for electricity from wind power will no longer be defined by law. Instead, it will be based on a tendering process. This article deals with the amendments to the EEG for onshore wind energy.
The 2017 EEG will result in the adoption of a tender competition process. Operators will only be entitled to compensation if their facilities have successfully participated in a call for tenders. Onshore wind facilities with an output of 750 KW or more are obliged to take part in the bidding process. 2,800 MW will be available for bidding for onshore wind energy facilities in 2017, 2018 and 2019. 2,900 MW will be available each year from 2020. Onshore wind energy facilities can take part in the bidding rounds if they have the relevant permit under the Federal Immissions Control Act (BImSchG). This does not apply to “citizen energy projects”, which can take part in bidding rounds without the permit being issued.
Bids in the bidding rounds are based on the “reference value”. The “reference value” is the basis for calculating the market premium which the operators receive every month. The reference value is then multiplied by a specific factor depending on the quality of the site in conjunction with the new single-stage reference yield model. The multiplication factor for a 100% site is 1.00, 1.29 for a 70% site, and 0.85 for a 130% site. The result of this multiplication (reference value for which a surcharge existed, multiplied by the relevant factor) is the compensation for a period of 20 years for the facilities. The “reference value” for which operators received a surcharge is adjusted at the beginning of the sixth, 11th and 16th year following commissioning if the actual quality of the site deviates from the quality calculated at the outset.
The maximum value which can be used to bid for power from onshore wind energy facilities is 7.00 cents per kWh for a 100% location in 2017. The maximum value for each bidding round from 2018 onwards is derived from 8% of the average value for the highest bid from the last three bidding rounds which charges are applied to. The first bidding data is 01/05/2017, on which 800 MW will be available for bidding. A further 1000 ME will be available for bidding on two further bidding dates in 2017 (01/08 and 01/11), while there will be four bidding dates in 2018.
Onshore wind facilities which were provided consent to set up the facilities in accordance with the Federal Immissions Control Act before 01/01/2017, were commissioned before 01/01/2019 and registered their permit properly in the facility register before 01/02/2017 are able to apply the regulations of the 2014 EEG. There will be a special cut of 1.05% per month between March and August 2017 in order to prevent anticipatory effects in the transitionary period.
