Under three extra strategies, Germany has increased its support for renewable energy
According to the EU national aid rules, the European Commission has approved three additional measures to support Germany's installation and adoption of more renewable energy.
These measures include changing the bid payment structure that promotes innovation from a fixed market premium to a variable sliding market premium. Its purpose is to ensure that the electricity provided by power generation facilities will not be overcompensated when the price of electricity is high. The generator will obtain market premium on the basis of market price.
However, under the original fixed market premium model, even if the energy price rises or falls, the premium remains unchanged, resulting in excessive compensation for power producers. The sliding market premium is based on the changing market price, which makes up the gap between the power generation cost and the market price.
Germany will also introduce financial incentives to encourage consumers to invest in small rooftop solar systems to encourage more power output to the grid, rather than limiting consumers' self consumption.
Germany plans to hold another round of bidding activities for ground mounted photovoltaic and roof mounted photovoltaic this year to purchase more photovoltaic power. The move is a response to the insufficient subscription of two rounds of bidding earlier this year. A round of auction held in July this year was under subscribed, and only 714MW photovoltaic system was tendered, while the installed capacity of photovoltaic system planned to be tendered was 1.126GW.
Therefore, according to a new measure, if the number of bidders is insufficient, all bids can be accepted according to their bids.
These three measures are aimed at strengthening Germany's commitment to the market-oriented mechanism to support green power production and providing tailored measures for the deployment of different renewable energy sources.
It is expected that these three measures will supplement the German Renewable Energy Law and further promote the realization of Germany's environmental goals and the EU's strategic objectives related to the EU Green Agreement.
Margrethe Vestager, Executive Vice President of the European Commission in charge of competition policy, commented that "the new measures will prevent excessive compensation for power generators in the period of high electricity prices and help to improve the stability of the power grid. These additional measures will further strengthen the objectives of the renewable energy bill program, help reduce greenhouse gas emissions and support the objectives of the EU green agreement."
According to the law passed by the Bundestag of Germany, by 2030, Germany's renewable energy power generation must reach more than 80% of the total power generation to ensure energy security. In addition, Germany plans to install 215GW of photovoltaic system by 2030.
