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The German Renewable Energies Act (EEG), costs and reform plans

24.01.2014



According to the German Association of Energy and Water Industries (BDEW), the share of renewable energies in the power generation in Germany climbed to the record value of 23.4 percent in 2013 (2012: 22.8 percent).

While the power generation of photovoltaic plants went up 7.3 percent to a new high, the share of wind energy dropped 3.5 percent due to the weather. Broken down by technologies, wind accounted for a share of 7.9 percent of the power generation (2012: 8.0 percent), biomass reached a value of 6.8 percent (2012: 6.3 percent), photovoltaics accounted for 4.5 percent (2012: 4.2 percent), water contributed 3.4 percent (2012: 3.5 percent) and municipal waste made up 0.8 percent (2012: 0.8 percent).

This development comes at a price. In reference to an interpellation of the Greens in the German parliament, "ZfK" magazine reports that the compensation that plant operators subject to the German Renewable Energies received last year amounted to €22.9 billion. Back in 2002, this figure had amounted to only €2.2 million. The report states that the total amount paid over the last 11 years adds up to €120.4 billion.

In view of these costs and the need for further expansion of renewable energies, the German Association of Energy and Water Industries (BDEW) considers the upcoming reform of the German Renewable Energies Act (EEG) to be one of the core duties of the new federal government. The Association holds that the understanding reached in the coalition agreement is not sufficient and that more courageous action is necessary, e.g. by putting clear emphasis on cost efficiency when subsidising renewable energies.