Germany’s parliament adopted on July 8 an amended Renewable Energy Sources Act (EEG 2016), which replaces feed-in tariffs with competitive auctions and caps wind energy deployment to allow for the grid development to catch up.
Legislators agreed on Friday to limit the annual auctions for onshore wind at 2.8GW and offer fluctuating tenders for offshore wind in an effort to impose greater cost controls on the country’s rollout of clean energy over the next decade.
The limit is expected to increase after 2020 to 2.9GW a year. The offshore cap, which will apply from 2021-2030, will vary from year to year to ensure that Germany achieves its 15GW wind energy target in the next 15 years.
In 2015, Germany accounted for 44 per cent of all wind installations in Europe, installing 3.7GW and 2.3GW of onshore and offshore wind respectively. The new tendering procedure will allow for a bidder with the lowest offered price to be awarded the contract.
The EEG 2016 makes part of Germany’s overall plan, known locally as the Energiewende, to phase out fossil fuels from its energy mix and replace them with renewable energy sources.