Despite adjustments to energy laws proposed by the Federal Ministry of Economics, industry associations and the opposition view the energy transition as being at risk. Over the weekend, the German Solar Association warned of job losses and a slump in investment, while the German Renewable Energy Federation (BEE) noted “significant overall deterioration” for the renewable energy sector. Federal Economics Minister Katherina Reiche (CDU) had previously initiated consultations with the federal states and industry associations—though the fact that the consultation period is scheduled to end as early as Wednesday drew criticism.
On Friday evening, the Federal Ministry of Economics presented its draft proposals for the so-called “grid package” and the reform of the Renewable Energy Sources Act (EEG). These drafts significantly soften the minister’s controversial plans for new energy legislation.
Under the revised plans, new renewable energy installations will no longer be subject to curtailment without compensation during grid bottlenecks. While payments will not be eliminated entirely, they are set to be reduced. The grid package aims primarily to manage the expansion of wind farms and large-scale photovoltaic systems in order to prevent grid bottlenecks.
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Under the EEG reform, the new draft continues to stipulate that operators of small-scale systems must market the electricity they generate themselves rather than receiving a state-guaranteed feed-in tariff. However, a “time-limited transition payment” is included; very small new systems can benefit from this until 2029.
The solar industry criticized, above all, the planned elimination of subsidies for small solar systems starting in 2027 and the requirement for operators of such systems to market their own electricity. “These plans are completely out of step with the times,” complained industry association head Carsten Körnig. “They keep private households dependent on fossil fuels for longer and jeopardize tens of thousands of jobs in the solar sector.”
Furthermore, many operators are already struggling to find a direct marketer. He dismissed the legislative amendments as “ineffective stopgap measures.”
The renewable energy association BEE criticized the planned capacity limits for wind and solar installations, the sweeping elimination of compensation payments during temporary grid bottlenecks, and the removal of feed-in tariffs for small solar systems. “Instead of reliable investment conditions, the federal government is creating new uncertainty,” stated BEE President Ursula Heinen-Esser. The measures affect an industry comprising more than 436,000 jobs and an annual investment volume of around 37 billion euros.
The German Farmers’ Association (DBV) described the situation as a mix of “light and shadow” and is pinning its hopes on the parliamentary process—particularly regarding biogas. Secretary General Stefanie Sabet criticized the planned tender volumes as insufficient “to generate more investment in flexible biogas plants that support the grid.”
Federal states and industry associations now have until Wednesday to submit their comments. Associations criticized this timeframe as far too short—a view shared by the German Association of Energy and Water Industries (BDEW), which deemed such a deadline “unacceptable” for regulations of this magnitude.
The SPD considers the new drafts inadequate for achieving the target of sourcing electricity from renewables. “Ultimately, the draft laws regarding the grid package and the amendment to the Renewable Energy Sources Act (EEG) must facilitate an accelerated transition to renewable energy,” explained energy policy expert Nina Scheer. “As things stand, that is not yet the case.”
The Green Party described the proposal as a “grid package for grid operators.” Green Party energy expert Michael Kellner told AFP that the planned curtailment of up to 20 percent—meaning the targeted reduction of electricity feed-in during periods of overload—”undermines the expansion of renewables and stifles grid expansion.”
“Rooftop solar systems are the losers here; instead of retaining incentives, people will in future have to handle direct marketing themselves,” Kellner added. He called this a “brake on progress during heatwaves and their tragic consequences,” noting that the government is leaving people to fend for themselves in this regard.
Criticism also came from Left Party politician Janine Wissler, who dismissed the measures as merely a “minor correction.” “No incentives whatsoever are being created for small-scale systems like balcony solar units; on the contrary, operators will in future have to manage direct marketing themselves,” she explained. The “core problem” remains that the changes to the Renewable Energy Sources Act (EEG) make renewable energies less economically viable.
Author: AFP – hcy/ran
Sources: AFP Press Portal