The amended German Renewable Energy Act ("REA") takes
effect on August 1, 2014 and will cause significant changes to
Germany's renewable energy landscape, including increased
electric generation production targets from renewable energy
sources, increased plant capacity, replacement of feed-in tariffs
for a market premium system, and the implementation of a surcharge
to aid utilities.
The REA extends the targets for the generation of electric power
from renewable energy sources so that the share of the energy
generated from renewable energy sources increases from 40 to 45
percent until 2025, from 55 to 60 percent until 2035, and to 80
percent until 2050.
The photovoltaic plant capacity should increase by 2,500
megawatts ("MW") (target corridor between 2,400 MW and
2,600 MW, "Target Corridor") per year. The Federal
Network Agency (Bundesnetzagentur) will establish a
renewable energy power plant register in order to register all
plants and will monitor the increase.
Currently, operators of photovoltaic plants, for example,
receive a statutory feed-in tariff of 13.5 cents per kilowatts per
hour ("KW/h"). This fixed tariff will be replaced by a
direct marketing system. From August 1, 2014, the owners and
operators of renewable energy power plants with an output of more
than 500 kilowatt peak ("kWp") (100 kWp starting in 2016)
will be obliged to directly market the energy generated by their
plants. They have the choice between independent direct marketing
or via a direct marketer.
The direct marketing is supported by a so-called market premium
("Market Premium") that must be paid by a direct marketer
in addition to the agreed feed-in remuneration for the energy
generated if (i) the energy generated is subject to direct
marketing, and (ii) the energy is generated from renewable energy
sources. The Market Premium is the difference between a
hypothetical feed-in tariff for photovoltaic plants and the average
price for energy generated by photovoltaic plants at the European
Power Exchange ("EPEX Spot SE") in Paris for the
Germany–Austria area per kW/h, and it will be calculated each
month. The hypothetical feed-in tariff will be 9.23 cents per kW/h
as of August 1, 2014, and will decrease by 0.5 percent per month
starting as of September 1, 2014, as long as the increase of energy
generated by photovoltaic plants lies within the Target Corridor.
If the increase of electric power generated by photovoltaic plants
does not lie within the Target Corridor, the decrease will change.
If, for example, the amount of energy generated by photovoltaic
plants within a certain year exceeds 2,600 MW by up to 900 MW, the
hypothetical feed-in tariff will decrease by 1 percent instead of
0.5 percent per month.
In addition, 0.4 cent per kW/h will be paid as a compensation
for the marketing efforts.
The feed-in tariff for photovoltaic plants in operation as of
August 1, 2014 will not change.
Usually, grid operators are unable to sell electricity at the
EPEX Spot SE for the same price paid to electricity producers and
instead must sell at a significantly lower price. The difference is
covered by the so-called REA Surcharge that has to be paid by the
end user and is part of the electricity tariff. The utility
companies will forward the REA Surcharge received from the end user
to the grid operators.
Industries with a significant consumption of electricity are
released from this REA Surcharge or pay a lower REA.
The same was true for users who produced energy for their own
consumption. This will change: Starting as of August 1, 2014, end
users that generate the power they use by themselves will have to
pay the REA Surcharge, which is initially 30 percent, 35 percent in
2016, and 40 percent starting as of January 1, 2017.
Beginning in 2017, the financial support for renewable energy
projects will no longer be determined by law but will become
subject to a bidding process.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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Turkey has amended the Electricity Market Law numbered 6446 to promote use and security of domestic energy resources. Under the amendments, planned capacity mechanisms must give priority to local energy sources.
Turkey's energy regulator previously ruled (decision numbered 5709, dated 30 July 2015) that a total capacity of 2,000 MW would be reserved in the period up until 2020 for wind power pre-license applicants to connect to the grid.
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