On Thursday 29 April, the European Commission approved the extension and modification of a German aid scheme to support the production of electricity from renewable energy sources and mine gas.
The scheme also reduces the charges to fund support for electricity from renewable energy sources. Reductions in charges may be granted to energy-intensive companies and to shore-side supply of power to ships.
The scheme is part of the German Renewable Energy Act. It will help Germany meet its renewable energy targets without unduly distorting competition and it will contribute to the EU’s objective of reaching climate neutrality by 2050. Payments under this scheme for 2021 are expected to amount to around €33.1 billion. The new measure will apply until the end of 2026.
According to Executive Vice-President Margrethe Vestager, who is responsible for competition policy, “the scheme introduces new features to ensure that aid is kept to the minimum and electricity production occurs in line with market signals, while at the same time ensuring the competitiveness of energy-intensive companies and reducing pollution caused by ships in harbour”.
The German scheme aims to increase the share of electricity produced from renewable energy sources to 65% by 2030 (compared to 40% in 2019). Beneficiaries will receive support in the form of a sliding premium on top of the market price of electricity, except for very small installations, which will be eligible to receive feed-in tariffs.
The calls for tender are organised per technology and include a newly introduced separation of rooftop and ground-mounted solar photovoltaics, and separate tenders for biomethane.
The Commission’s assessment found: - that the aid is necessary to further develop renewable energy generation in order to meet the country’s environmental goals; - that the aid is proportionate and limited to the minimum necessary. (Original version in French by Lionel Changeur)