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Clean energy for EU islands

Abbreviated form of legal source(s)

  • EEG 2021
  • BiomasseV 2001
  • WindSeeG 2020

Description of support scheme

The Market premium supports electricity from renewable energy sources. Plant operators of smaller plants (plants with a capacity up to 750 kW), hydro-power, and geothermal energy are entitled to receive the market premium from the grid operator for a period of 20 years. Other projects have to participate in a tendering procedure in order to receive the premium. The exact amount of the subsidy per kWh is calculated through the difference of a given value and the monthly market value of electricity (Annex 1 EEG 2021).
A plant operator benefiting from the market premium cannot use the electricity for self-supply and must sell it directly to a third party or a stock market (§ 20 par. 1 EEG 2021).

Amount

The amount of the subsidy per kWh is calculated through the difference of a given value (“Anzulegender Wert”) and the energy technology specific market value, which differs according to used technology (Annex 1 EEG 2021).

Addressees

Plant operators are entitled to receive the market premium for the amount of electricity fed into the grid (§ 19 par. 1 EEG 2021).

Procedure

Power plant operators are entitled to receive the market premium from the grid operators (§ 20 EEG 2021)

Competent authority

The Federal Government evaluates the implementation (EEG 2021, para. 99). Regional Governments are entitled to monitor the implementation (EEG 2021, para. 98).

Technologies

Wind energy onshore

Wind power plants with a capacity up to 750 kW are entitled to the premium tariff. Plants with higher capacity must participate in the tendering procedure (§ 22 EEG 2021).
Pilot wind power plants on sea and a total amount of 125 MW of electricity from pilot wind power plants on land will be subsidised outside the tendering procedure (§ 22 par. 5 EEG 2021).

Wind energy offshore

Wind power plants with a capacity up to 750 kW are entitled to the premium tariff. Plants with higher capacity must participate in the tendering procedure (§ 22 EEG 2021).
Pilot wind power plants on sea and a total amount of 125 MW of electricity from pilot wind power plants on land will be subsidised outside the tendering procedure (§ 22 par. 5 EEG 2021).

Solar energy

Solar power plants with a capacity up to 750 kW are entitled to the premium tariff. Plants with higher capacity must participate in the tendering procedure (§ 22 EEG 2021).

Geothermal energy

Eligible

Biogas

Biogas is eligible for the premium tariff and is defined as any gas obtained through anaerobic fermentation (§§ 3 and 19 EEG 2021). Biogas plant operators producing electricity from landfill waste and sewage must fulfill the requirements of a highly efficient heat and power cogeneration (§ 44b EEG 2021).

Hydro-power

Eligible

Biomass

Biomass is defined in the biomass directive (BiomasseV 2001). Biomass plants with a maximum capacity of 150kW are eligible. Biomass plants that are already in use must participate in the tendering procedure (§§ 30 and 39g EEG 2021). Biomass plants must fulfill the requirements of a highly efficient heat and power cogeneration, except if they can prove that it would not be economically feasible (§ 39 par. 3 EEG 2021).