The Bundesrat (Federal Council) today cleared the European Law Alignment Act for Renewable Energies (EAG EE). the act transposes Directive 2009/28/EC on the promotion of the use of energy from renewable sources, but most importantly cuts solar feed-in tariffs and the so-called green power privilege pursuant to the Renewable Energy Sources Act (EEG).
In its 881st plenary session the Bundesrat, the legislative body that represents the Länder (German states) on the federal level, did not object to the EAG EE, which theGerman Bundestag (Parliament) had recently passed. The EAG EE can therefore now be signed by the Federal President and published to become legally effective.
Parts of the regular solar feed-in tariff cuts previously scheduled for the beginning of 2012 are brought forward to 1 July, or 1 September 2011 for freestanding installations. The July/September reductions of up to 15% shall depend on PV capacity installed in March, April and May 2011. As of 1 January 2012 the EEG reallocation charge exemption (so-called green power privilege) for utilities supplying mainly green power will be capped at 2.0 Cent/kWh. The exemption will therefore no longer cover the full EEG surcharge (presently 3.53 Cent/kWh). Thus even utilities covered by the green power privilege will have to partly pay for the difference between market prices for renewable energy and the feed-in tariffs pursuant to the EEG.
The Bundesrat also adopted a (non-binding) resolution asking the government not to endanger future investments and jobs in the solar sector, and to strengthen its innovation capability. Long-term planning and continuity were essential for businesses and customers alike, the resolution points out. The Bundesrat therefore suggests not to cut feed-in tariffs at only one fixed point of time, but to provide for staggered cuts to obtain regular and timely adjustments to market developments. For the planned 2012 amendment of the EEG, the Bundesrat recommends to ensure investment certainty by providing foreseeable feed-in tariffs while guaranteeing the priority for energy input from renewable energy sources.
The Bundesrat also demanded that the government considerably raised funding for the CO2 renovation programme of the state-owned KfW development bank.
Written by Matthias Lang
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