EEG support
TransnetBW GmbH
EEG & Umlagen
Pariser Platz
Osloer Straße 15-17
70173 Stuttgart
Germany
Financing under the German Renewable Energy Act (EEG)
Renewable Energy Act
The Renewable Energy Act (EEG) regulates the feed-in and remuneration of electricity from renewable sources and is therefore a driver for the expansion of renewables in Germany. The purpose of this law is to enable the sustainable development of the energy supply, reduce the economic costs of the energy supply, conserve fossil energy resources and promote the further development of technologies for the generation of electricity from renewables.
The key to a sustainable energy supply
Renewables have become the foundation of a future energy supply in Germany. German legislators have developed various instruments to promote them, first and foremost the EEG. The principal aim of this law – in the interests of climate and environmental protection – is the transformation into a sustainable and greenhouse gas-neutral power supply based entirely on renewables. To achieve this goal, their share of electricity generation must be increased to at least 80 per cent by 2030.
In addition, the legislators are promoting the generation of electricity in combined heat and power plants via the Combined Heat and Power Act (KWKG), since the simultaneous generation of electricity and heat is very efficient and therefore environmentally friendly.
As a transmission system operator, we are responsible for implementing these legal requirements and are therefore a key player in the promotion of renewables.
EEG Support
How does EEG funding work?
Put very simply, EEG electricity is supplied via a multi-stage system by EEG plant operators to the upstream transmission system operator (TSO), which markets the EEG electricity it receives on the electricity market. If the prices achieved on the market were below the legally stipulated payment entitlements, the difference was reimbursed to the TSO until 30 June 2022 via the EEG levy, which was passed on equally to all electricity consumers. The EEG levy was therefore part of the electricity price and an essential part of the promotion of renewables.
From 1 July 2022, the EEG levy was reduced to zero c/kWh and completely abolished by law with effect from 1 January 2023. Funding for the promotion of renewables, i.e. the difference between the income and expenditure of the TSOs, will in future be financed from the special assets of the “Climate and Transformation Fund” (KTF). The resources of this state fund come primarily from emissions trading and federal subsidies.
This is how the EEG subsidy costs are passed on vertically:
- The distribution system operators (DSOs) are generally obliged to purchase, transmit and distribute electricity from renewables. Operators of renewable energy plants can feed the electricity generated into the grid of the competent DSO. The system operators are entitled to a fixed “grid feed payment” from the DSO for the electricity fed into the grid. This is guaranteed for a certain period, usually 20 years.
Electricity generation from hydropower, wind energy, solar energy, geothermal energy and biomass is eligible for subsidisation. The amount of the subsidy generally depends on the type of energy, the time of commissioning, the output of the system and other criteria (e.g. installation location for solar systems).
- The DSOs immediately forward the electricity received to the competent TSO for balancing. The TSO responsible for control accepts the electricity and reimburses the DSO for the surcharge and subsidy payments.
- The electricity from renewables is marketed by the transmission system operators on the electricity markets. The proceeds generated are used to finance renewables in Germany.
- In addition, under the provisions of the EEG, plant operators also have the option of marketing the electricity generated directly on the electricity markets via what is known as the market premium model. The amount of the market premium is based on the current market price, whereby a minimum remuneration is always guaranteed. In addition to the market premium as subsidised direct marketing, plant operators also have the option of selling electricity on the electricity markets via non-subsidised “other direct marketing”.
EEG/StromPBG portal
The EEG/StromPBG portal is used to record relevant data for the market partners in the TransnetBW control area. You can report and view your data here. Access is centralised via our market partner portal.
TAM reporting portal
The TAM reporting portal is used to fulfil the reporting obligations for subsidy and relief amounts in accordance with the EEG, EnFG and StromPBG. The joint reporting portal of the four German transmission system operators (TSOs) is the central point for submitting TAM reports. The TSOs collect data on support and relief totals to fulfil transparency obligations under European law (Transparency Award Module -> “TAM reports”).