The Renewable Energy Sources Act (EEG)
More detailed information
Renewable energy is to form the cornerstone of Germany’s future energy supply. The German government’s goal is for 80% of the country’s electricity to be generated from renewables by 2050. The legislature has developed a range of measures to support this aim, most notably the Renewable Energy Sources Act (EEG).
In addition, the Combined Heat and Power Act (KWKG) promotes the generation of electricity by combined heat and power plants. This is because producing heat and power at the same time is extremely efficient and therefore environmentally-friendly. As a TSO, we are responsible for implementing these legal requirements, making us a key player in the promotion of renewable energy use.
The principles behind the Renewable Energy Sources Act
The Renewable Energy Sources Act (EEG) is based on two fundamental principles:
- Feed-in of electricity generated from renewable energy sources must be prioritised over all other production sources – such as traditional power stations – and the grid operator is obliged to accept it (purchase obligation).
- The EEG specifies fixed tariffs for electricity from renewable sources. The rate paid is generally subject to degression; in other words, the amount received by new plants is reduced by a certain percentage each year. The rate is fixed for a certain term from the year of commissioning; this is almost always 20 years.