BREAKTHROUGH FOR RENEWABLE ENERGY SOURCES – PRIORITY LAW IS PASSED

– by Federal Environment Minister Jürgen Trittin –

A decisive breakthrough in the development of sustainable energy provision has been achieved with the adoption of the Renewable Energy Sources Act (“Act on Granting Priority to Renewable Energy Sources”). Having been passed by the German Bundestag on February 25, 2000, the act received the approval of the Bundesrat (upper chamber) on 17 March.

Although the previous law, the Electricity Feed Act (Stromeinspeisungsgesetz; StrEG), was successful, it had to be replaced. There were a number of reasons for updating the legislation: the growth of the green electricity output beyond the five percent ceiling previously set for support entitlement, the need for a national distribution of costs beyond the regions, the lack of planning and investment security, and the adjustments required for compliance with EU directives. The Federal Government had to act fast as more and more renewable energy investment projects were being shelved.

Replacing the Electricity Feed Act, the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz; EEG) regulates the prioritisation of grid-supplied electricity from renewable sources. It specifies mechanisms for implementing the option of granting priority to renewable power generation envisaged in the EU Directive on the internal market in electricity. Energy utilities will also now benefit from the compensation for supplying the grid with electricity from renewable sources.

By guaranteeing compensatory payments down to the last pfennig per kWh, the act restores a secure climate for investment.