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EC approves German renewable energy scheme

Shiva Singh by Shiva Singh
28 September 2022
in European Commission News
Renewable,Energy,And,Environmental,Impact.,Countryside,With,Wind,Generators

renewable energy and environmental impact. Countryside with wind generators

Belgium, (Brussels Morning Newspaper) The European Commission approved Germany’s measures aimed at supporting production of electricity from renewable sources.

In a statement released on Tuesday, the EC pointed out that the measures supplement the country’s Renewable Energy Act and will help it to achieve EU’s Green Deal objectives.

Margrethe Vestager, European Commissioner for Competition, pointed out that Germany’s plan will “prevent overcompensating producers in times of high electricity prices and help increase grid stability by, for example, maximising the contribution from small rooftop solar panels.”

“These additional measures will further strengthen the objectives of the Renewable Energy Act scheme, while contributing to the reduction of greenhouse gas emissions and supporting the EU Green Deal objectives,” she concluded.

The EC pointed out that Germany’s plan is tailored for different renewables and added that the country is committed to “more market-oriented mechanisms for supporting green electricity production.”

The measures include a switch to a sliding market premium for innovation tenders aimed at making sure that producers are not overcompensated, with the EC stressing that “producers receive the market premium for the electricity they produce on top of the market price of this electricity.”

Balanced measures

The body noted that a sliding premium varies depending on market prices and stressed that it only covers the difference between market price and cost of energy production.

It added that Germany’s plan also includes financial incentives for consumers to install solar panels, which is aimed at increasing production from renewables.

A new round of tenders for solar panels is also part of Germany’s plan, with the Commission noting that “the new measure improves the competitiveness of the tenders by adjusting the volume of electricity tendered for the additional round.”

The EC pointed out that Germany’s scheme is appropriate and necessary to promote investments in renewable energy and cut greenhouse gas emissions, which is in line with the EU’s Green Deal and will help Germany to reach its environmental targets.

The body added that the measures are proportionate as they limit the amount of aid to the minimum necessary and stressed that expected positive environmental effects outweigh competition distortions.

The Commission concluded that proposed measures are in line with EU rules.

Related News:

  • Renewable Energy Directive: EU Aims for Energy Independence and Climate Resilience
  • EC approves German aid scheme for Deutsche Bahn
  • EU Commission Approves French Funding for Biomass and Renewable Hydrogen Development
  • EC wants to increase renewable energy production
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