German measures to support renewable energy production granted EU approval

That includes an additional round of ground-based and rooftop solar tenders in 2022

The European Commission has approved three additional measures for Germany to support production of electricity from renewable energy sources.

The adoption of the measures are in context of its EEG 2021, which aims at increasing climate protection and expanding renewable energy.

They include a change from a fixed to a sliding market premium in the payment structure for innovation tenders, which ensures electricity producers are not overcompensated in times of high power prices; and the introduction of financial incentives for consumers to invest in small rooftop solar installations with a view to feeding more power into the grid instead of only using it for self consumption.

In addition, the measures include an additional round of ground-based and rooftop solar tenders in 2022.

The Commission found the aid is “necessary and appropriate” to promote the use of renewable energy sources and reduce greenhouse gas emissions, in particular related to solar power, as well as contribute to better grid stability.

Executive Vice President Margrethe Vestager, in charge of competition policy said: “The measures approved today will supplement the German Renewable Energy Act scheme which was designed to support environmentally-friendly electricity production, in line with EU rules.

“The new measures will prevent overcompensating producers in times of high electricity prices and help increase grid stability by, for example, maximising the contribution from small rooftop solar panels. These additional measures will further strengthen the objectives of the Renewable Energy Act scheme, while contributing to the reduction of greenhouse gas emissions and supporting the EU Green Deal objectives.”

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