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German renewable energy developments are frequently quoted around the world. Often the same circumstances are used as either good or bad examples, depending on individual points of view. This article sheds some light on the latest 2014 revision of the German Renewable Energy Sources Act (EEG), commonly referred to as EEG 2014. The EEG 2014 represents a major shift from support that was mainly granted in the form of fixed-feed tariffs to mandatory direct marketing that is promoted by market premiums. Furthermore, the EEG 2014 lays down the foundation for the next step of promoting renewables, in which financial support will be established through competitive bidding.
Keywords: German Energy Renewable Source Act; EEG; EEG 2014; feed-in tariffs; direct marketing; competitive bidding; EEG surcharge; solar power; photovoltaics; wind power; onshore; offshore; biomass; geothermal energy; hydro power; renewables; legislation; Germany
Do not expect light reading. The precursor of the German Renewable Energy Sources Act (EEG) was the very lean 1991 Grid Feed-In Law (Stromeinspeisungsgesetz - StromEinspG).1 It had only five sections and did not even cover two pages in the Federal Law Gazette. By 2000, the Stromeinspeisungsgesetz was replaced by the Renewable Energy Sources Act (EEG 2000),2 then containing 12 sections on 3.5 pages in the Federal Law Gazette.
After several revisions in the meantime, the most recent substantial reform of the EEG is the EEG 2014 revision. It was also called 'EEG 2.0' during the legislative process3 as it is a major update. As a result, we now have 104 sections and four annexes, covering 55 pages in the Federal Law Gazette. Its transitional provisions alone are longer than the original EEG (and of course the StromEinspG).4 In terms of complexity and rate of revision, the EEG 2014 is starting to look like tax law. Therefore, if some of the provisions outlined below appear complicated - that is because they are.5
In any event, just looking at the increase in renewable generation, the EEG is a success story. Since the entry into force in 2000, the share of renewable energy in the gross electricity consumption has risen from 6.2 per cent to 25.3 per cent in 2013.6 According to preliminary figures from the Federal Association of the Energy and Water Industry (BDEW) the share of...