Cabinet approves accelerated development of renewable energies 

Renewables legislation updated Cabinet approves accelerated development of renewable energies 

By amending the Renewable Energy Sources Act (EEG), the Federal Government aims to generate almost all power from renewable energy sources by 2035. The share of renewable energy sources in gross electricity consumption is to increase to at least 80 percent by 2030.

The Federal Government has updated the legislation on renewable energy sources. This is one of the most comprehensive amendments to the Renewable Energy Sources Act (EEG) since its inception. For the first time, the new law will be consistently geared towards achieving the 1.5 degree pathway as set out in the Paris Climate Agreement.

It will also help reduce Germany’s dependence on imports of fossil fuels – a key factor against the backdrop of the Russian war of aggression in Ukraine.

EEG levy to be abolished

The law will also help ease the financial burden on households and businesses so to cushion the impact of increased energy costs, as well as cutting red tape.

To this end, renewable energies will in future be financed out of the Federal Government’s specially earmarked “Energy and Climate Fund”; there will no longer be a levy on the price of electricity to fund renewables. This responds to a core concern set out in the coalition agreement.

Higher tender volumes

In order to achieve the new expansion target for wind and solar energy by 2030, tender volumes for the period until 2028/29 will be increased. Planning and approval procedures are to be accelerated as well.

Increasing local acceptance of projects

The law also provides new incentives so that more is done to ensure the energy transition becomes locally accepted and established. Wind and solar projects run by citizens’ energy cooperatives will be exempted from the tenders, for example, thereby cutting red tape.

In addition, more will be done to promote the financial participation of municipalities in wind and solar projects.

The Renewable Energy Sources Act – The Renewable Energy Sources Act was passed in Germany more than 20 years ago. It came into force in 2000 with the aim of promoting the development of renewables in Germany.