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Cabinet Approves Reiche’s Energy Laws – EEG and Grid Package

The German cabinet has approved the controversial energy laws proposed by Minister Katherina Reiche (CDU), including amendments to the Renewable Energy Sources Act (EEG) and a grid package.

Cabinet Approves Reiche’s Energy Laws – EEG and Grid Package
Photo: zdfheute.de

The German cabinet has approved the controversial energy laws proposed by Minister Katherina Reiche (CDU), including amendments to the Renewable Energy Sources Act (EEG) and a grid package.

The amendment to the Renewable Energy Sources Act (EEG) and the grid package were passed by the cabinet. After lengthy negotiations within the federal government, the cabinet has set in motion fundamental reforms in energy policy. If passed by the Bundestag, they could have far-reaching consequences – for citizens wanting to install solar panels on their roofs or operators of wind turbines. Energy and environmental associations criticize that Minister Katherina Reiche (CDU) is slowing down the energy transition.

The Renewable Energy Sources Act is to be improved. According to a draft, a transitional regulation is intended to mitigate cuts in subsidies for small solar systems up to 25 kilowatts. One of Reiche’s goals is to reduce costs. Subsidizing renewable energies, mainly from wind and solar, costs a lot of money every year, borne by taxpayers. The 2027 federal budget allocates around 16.5 billion euros for this purpose.

Reiche believes that renewable energies have become “adult” and must take on more financial responsibility as well as responsibility for the power grid – the buzzword for this is “system-friendly.” The goal: the Renewable Energy Sources Act (EEG) should no longer be an “all-inclusive package,” as sources from the Economy Ministry put it.

Renewable energies covered a record 58 percent of German electricity consumption in the first half of the year. Wind energy in particular contributed to the increase.

Within the federal government, negotiations took place for months, primarily between Reiche’s ministry and the Environment Ministry under Minister Carsten Schneider (SPD). Shortly before the cabinet meeting, both sides agreed on the final details of the new subsidies for green electricity.

More than half of the electricity currently comes from renewable energies – by 2030, it should be 80 percent. Reiche is sticking to this target. But adjustments are planned. Currently, plants are being built in grid areas that cannot absorb the electricity produced during many hours. To avoid grid bottlenecks, wind and solar plants are repeatedly curtailed – their output is reduced or switched off. These interventions are called redispatch and cost billions every year due to compensation payments.

Reiche therefore wants to synchronize the expansion of renewable energies and grid expansion. As part of the energy transition, thousands of kilometers of new power lines are planned to transport wind power, mainly produced in the north, to major consumption centers in the south. Despite great progress in the pace of expansion, there are still “obstacles” in grid expansion that often lead to realization times of eight to twelve years, according to the draft law: “Grid expansion can thus often not keep pace with plant construction.”

Specifically, better regional control of expansion is planned. Grid operators

Source: www.zdfheute.de