EEG surcharge remains stable during strong growth in renewables

Röttgen: Renewable energies becoming increasingly important as an economic factor

In the first half of 2011, renewable energies were able to increase their share in electricity consumption from 17% to over 20%. Nevertheless, apportionment under the Renewable Energy Sources Act (EEG) for 2012 remains stable. “Conversion of our energy supply to renewable energies has been considerably accelerated by the transformation of our energy system. Stable development of the EEG surcharge, or apportionment, shows that our objective of a further increase to at least 35% by 2020 is feasible and that the measures we have taken to limit costs are effective,” Federal Environment Minister Norbert Röttgen commented when the EEG surcharge for the coming year was announced. According to the four German grid operators, the EEG surcharge for 2012 will remain almost unchanged at 3.59 cents per kilowatt hour (ct/kWh) compared to the current value of 3.53 ct/kWh. For an average household of four using 3,500 kilowatt hours per year, this only equates to additional costs of less than 18 cents per month.

The Federal Environment Minister emphasised that, for the first time, the surcharge includes a liquidity reserve for transmission system operators. “Without this special item, the surcharge for 2012 would be even lower than the current level of 3.53 cents per kilowatt hour,” said Minister Röttgen.

The new reserve is intended to ensure that payment of the EEG tariffs does not lead to cash flow problems for transmission system operators.

The review of energy policy earlier this year laid the foundations for transformation of the entire energy system. As a guarantor of the dynamic growth of renewable energies in the electricity sector, the EEG has been made more cost effective. At the same time, incentives have been given to gradually bring renewable energies onto the market. The new EEG aims to achieve a more dynamic growth of the renewable energy sector, while making it affordable for electricity consumers.

Norbert Röttgen commented: "The significance of renewable energies as an economic factor continues to grow. Investments in renewable energies are vital and sound investments in our future." This statement is backed up by the following facts:

• Renewable energies create long-term jobs. Even now, over 370,000 people are already employed in this sector. About two thirds of these jobs can be attributed to the impact of the EEG.
• Last year, investment in the renewable energies sector in Germany rose to a record high of almost 27 billion euros. The EEG accounted for around 90% of this. According to studies conducted by the Federal Environment Ministry, the planned expansion of renewable energies means that over 200 billion euros of investments in facilities for the use of renewable energies can be expected during this decade alone.
• Germany’s strong economic position on the global market derives from its capacity for innovation and from the expertise to be found especially in small and medium-sized businesses which is repeatedly used to open up and successfully serve new markets. These certainly include the energy sector in general and the renewable energies sector in particular. German companies working in these fields are well positioned on the global market.
• Furthermore, renewable energies reduce Germany’s dependency on energy imports and associated economic risks. In 2010, the power generated from renewable energy sources alone made it possible to save approximately 2.5 billion euros on fossil fuel imports; around 80% of this is due to the EEG. These savings are accompanied by an enormous contribution to climate protection. Overall, renewable energies reduced greenhouse gas emissions by around 118 million tonnes last year.

Current surveys indicate that this is also how the majority of the population see the situation. Just a few weeks ago, a representative survey conducted by TNS Infratest on behalf of the Renewable Energies Agency showed that almost 80% of all respondents consider an EEG surcharge of 3.5 cents per kilowatt hour for the promotion of renewable energies to be appropriate, or in some cases, even too low. Further growth of the renewable energy sector, including cost trends, will periodically be observed and evaluated as part of a monitoring process.