New provisions announced for biogas support from 2012
Today the Federal Cabinet confirmed the early measures on cost containment regarding support for renewable energies. Proposals include a further reduction in the tariff for electricity from solar energy, limiting the so-called green electricity privilege and restructuring biogas support.
The expansion of solar power in Germany continues to be very dynamic. The 2010 expansion rate again far exceeded expectations. Currently installed photovoltaic capacity in Germany is around 17,000 MW, of which more than 7000 megawatts were installed last year. These figures illustrate the success of support for photovoltaics in Germany, and prove the major cost-saving potential this market offers. Support must be adapted in a flexible way to this rapid market development in the interests of electricity consumers. This is why part of the additional tariff reduction originally planned for 1 January 2012 will be brought forward and become effective on 1 July 2011. For free-standing installations, the reduction will take effect on 1 September 2011. A tariff reduction is proposed on the basis of the market development in the months March, April and May 2011. This means that the reduction can total up to 15 percent by mid 2011, depending on the market development.
The so-called green electricity privilege, i.e. the privilege granted to electricity from renewables, is becoming increasingly important in terms of cost development. Energy utilities currently do not have to pay the EEG surcharge if at least 50% of the electricity delivered is from renewable sources and the power delivered was marketed directly rather than receiving the tariff laid down under the Renewable Energy Sources Act (EEG). The total amount of electricity supplied is then exempt from the surcharge. The increase in the EEG surcharge since the beginning of the year means it has become disproportionately rewarding to use this green power privilege, triggering windfall profits to the detriment of other electricity consumers. The proposal therefore prescribes that from 1 January 2012, exemption from the surcharge for companies using the green electricity privilege is limited to the level of the 2010 EEG surcharge.
The provisions regarding the green electricity privilege and photovoltaics will also be revised in the framework of the EEG progress report, along with all other provisions contained in the EEG. The results of this evaluation of the entire support system for electricity from renewable energies will be implemented by the planned amendment to the Renewable Energy Sources Act, which is due to enter into force on 1 January 2012.
The upcoming amendment to the Renewable Energy Sources Act also aims to correct certain unwanted developments resulting from the tariff structure for electricity from biogas. In certain regions the significant rise in demand for maize as a raw material for biogas installations has led to excessive cultivation of maize. The result: the lease prices for agricultural land are rising drastically, thus intensifying competition over land use. Additionally, these monocultures can have a negative impact on landscapes and biological diversity.
Federal Environment Minister Norbert Röttgen and Federal Agriculture Minister Ilse Aigner are united in their goal of countering this regionally developing trend by undertaking an appropriate adaptation of the tariffs for electricity from biomass as part of the EEG revision. At the same time, it is important to ensure that the positive contribution of biomass in the expansion of sustainable and climate-friendly energy production in Germany continues to be taken into account in future. Operators of new installations generating electricity from biomass under the EEG must be prepared for an appropriate adaptation of the tariff provisions from 2012. This implements a commitment laid down in the coalition agreement regarding a revision of the EEG to prevent excess support. The EEG progress report will provide the basis for amendments to the tariff system for biomass. This report will be presented by the middle of this year and further decisions will be taken accordingly.