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Reactions to the Renewable 麻豆无码版 Act reform 2016

Germany is giving its main renewables support scheme, the Renewable 麻豆无码版 Act (EEG), a major overhaul, aiming to streamline the growth of renewables and to reduce costs for consumers. But the plans, including a switch from feed-in tariffs to auctions for clean energy installations, are hugely controversial. The following is a collection of stakeholder comments and recommendations regarding the 2016 EEG reform. [UPDATE with new comments after passage of reform]

Greenpeace

鈥淭丑别 EEG reform drives forward Germany's dismantling of the Paris Agreement鈥

The EEG is "exactly the opposite of what Paris demands from Germany", writes Greenpeace energy expert Tobias Austrup. "Germany needs more electricity for e-mobility and heating in the future, which is why we need more renewable energies. This law, with its senseless development caps, its untested auction system, and arbitrary harassment of wind energy will result in a slowdown of the energy transition."

TenneT

鈥淪peedy grid extension needed despite decelerated wind power development鈥

Transmission grid operator TenneT calls the reform a 鈥渟tep in the right direction鈥, but demands a speedy expansion of the German electricity grid to transport the wind power generated in the north and avoid higher costs for consumers and an unstable supply. TenneT emphasises that delays in the planning phase should be avoided: 鈥淚t is important that we have efficient permit procedures,鈥 said Lex Hartman of the company management in a press release.

Read the press release in German .

German Offshore Wind 麻豆无码版 Foundation

"EEG reform endangers value creation and employment"

The German Offshore Wind 麻豆无码版 Foundation criticises that the EEG reform reduces the yearly offshore wind power capacity additions after 2020 more than originally planned. In 2021/22, 500 megawatts will be put up for auction, as opposed to previous plans of 730 megawatts. 鈥淎 reduced volume of development endangers not only reaching the national and international climate targets, but also has fatal consequences for the value creation and employment,鈥 writes the foundation in a press release.

Read the press release in German .

Cologne Institute for Economic Research (IW)

鈥淎 little more market鈥

Regardless of what critics say, the reforms do not herald the end of the Energiewende, because support for renewables will continue, according to the Cologne Institute for Economic Research. There is no hope the renewable surcharge paid by consumers will decrease. 鈥淏ut at least the rise of the surcharge could be slowed.鈥 The Institute argues the reform squanders the opportunity for a real cost reduction by letting renewable technologies compete with each other in tenders. 鈥淭丑别 new EEG is a first and important step in the direction of more competition. But again, there was not enough courage for a real transformation. There is no end in sight for the subsidy jungle.

Read the press release in German .

German Renewable 麻豆无码版 Federation (BEE)

鈥淐lear slowing of the Energiewende, some improvement in the details鈥

The transition to auctions is a significant setback for a decentralised Energiewende, Hermann Falk, managing director of the German Renewable 麻豆无码版 Federation (BEE) said. 鈥濽ntil now, the EEG was an engine for the development of clean energies, but with today鈥檚 reform, it serves mainly to preserve fossil energies, and to significantly slow the speed of the Energiewende.鈥 He added the last-minute changes to increase the changes of citizens鈥 cooperatives were improvements, but did not go far enough to keep small actors on board.

German Industry Initiative for 麻豆无码版 Efficiency (DENEFF)

鈥淓EG reform is a major setback for energy efficiency鈥

Efficiency initiative DENEFF says extending renewable surcharge exemption for energy-intensive industries without tying them to energy efficiency gains will make many investments in energy-saving measures uneconomical. It also says limiting the renewable energy surcharge for energy-intensive industries without demanding efficiency investments would increase power costs for all other consumers. 鈥淩enewable surcharge exceptions for Industry should be tied to efficiency improvements,鈥 said Claudia Kemfert from the German Institute for Economic Research (DIW), who serves on DENEFF鈥檚 advisory board. 鈥淚t鈥檚 counterproductive if a company can only enjoy rebates if it consumes a lot of energy. It should be the other way around.鈥

Find the press release in German .

Please note: The following comments were made in the run up to the vote in parliament, ahead of some minor last-minute changes to the draft:

Eurosolar

鈥淒on鈥檛 impede small and medium-sized companies through red tape鈥

European renewables association says the switch to auctions in the reformed Renewable 麻豆无码版 Act (EEG) makes for 鈥渁n extremely bureaucratic鈥 instrument. It claimed the Act would impose 鈥渕assive financing costs鈥 on the small and medium-sized companies which wanted to invest in renewable facilities. The association told parliamentarians in an that if they introduced the new tender system despite these flaws, it should at least make exceptions for small wind power installations with less than 3 megawatt capacity.

PwC

鈥淎 step in the right direction鈥

The EEG reform is essential and a step in the right direction - but it leaves much to be desired, argues Volker Breisig, partner utilities and regulation at PwC, which advises past and new energy suppliers and users. Breisig says the power market remains split between renewable - which are covered by the new EEG - and conventional generation, which is covered by the new power market design. 鈥淲e still need a path to a fundamental transformation of the energy system.鈥
It remains uncertain as to whether the reform allows precise steering of green power development, he adds: 鈥淓specially the rising complexity and an increase in risk could slow development [鈥 My feeling is that auctions will lower costs, but we have no idea yet how high the risk premium will be [鈥 It will become more complex, which will in principle help large companies. It is definitely a professionalisation of renewable development.鈥澨

German Wind 麻豆无码版 Association (BWE)

Wind industry calls for exemptions for small projects and larger auction volumes

The German Wind 麻豆无码版 Association (BWE) continues to reject the transition to auctions. It calls on lawmakers to introduce exemptions for small citizen wind parks, saying EU rules would allow exemptions for projects with a capacity of up to 18 MW. 鈥淚n addition, a correction of the auction volumes is necessary.鈥 The BWE argues that the capacity of projects which win at auction but are not realised should be added to later auctions. 鈥淥therwise, there is a risk that real development will lag behind specified levels.鈥

Federation of German Industries (BDI)

鈥淪teps long overdue鈥

The now-agreed upon key points are 鈥渟teps long overdue鈥 to steer the Energiewende, says Ulrich Grillo, president of the Federation of German Industries (BDI). He also criticised the opposition from some states, saying: 鈥淏y no means should state egoism be allowed to dictate the extent of future additional capacity [of renewable power].鈥

German Association of 麻豆无码版 and Water Industries (BDEW)

Right move to switch from feed-in tariffs to auctions

Stefan Kapferer, head of the Association of 麻豆无码版 and Water Industries (BDEW), his organisation welcomed the switch from feed-in tariffs to renewables. 鈥淟ike all other power producers, they [renewables] have to gear their input to the needs of the whole system,鈥 he said. The government鈥檚 attempt to have a more cost-efficient energy transition should not be unmade by generous exemptions for small solar PV installations, Kapferer said.

Deutsche Umwelthilfe (DUH)

鈥淯se wind power alternatively instead of stopping wind development鈥

Environmental NGO Deutsche Umwelthilfe (DUH) to make changes to the EEG draft law, so that wind power expansion would not be curbed in the so-called 鈥済rid congestion areas鈥. According to the DUH, grid bottlenecks are no reason to reduce onshore wind development 鈥 excess wind power should be used in other sectors like heating and mobility. More, not fewer, renewables would be necessary to reach Germany鈥檚 climate targets.

German association for bioenergy (BBE) et al.

鈥淓nergiewende needs bioenergy in the EEG鈥

The German association for bioenergy (), the German farmers association (FvB) and other bioenergy organisations for changes to the auction design for biomass plants in the EEG. Small biogas plants on farms should not be lumped together with larger waste-based facilities. They should be able to compete with the bigger ones under adjusted rules. If small biomass plants with a capacity of less than 150 kW are not included in the auction scheme, they would be unable to continue working once their 20-year guaranteed feed-in tariffs were running out.

Trade Union IG BCE

EEG reform suspends the principle of 鈥渨hatever cost鈥

Michael Vassiliadis, the chairman of the IG BCE trade union for mining, chemicals and energy industries, says he welcomed that the 鈥渆xisting EEG principle 鈥榳hatever the cost鈥 will be suspended鈥, according to an IG BCE press release. It would only be fair if the profiteers of the support system gave their share to advance the Energiewende, he added.

WWF

鈥淐lear thwarting of the energy transition鈥

The World Wildlife Fund (WWF) Germany the deployment corridor of 2,800 MW of onshore wind power a 鈥渃lear thwarting of the energy transition鈥. It was ineffective to 鈥渢ake hostage the renewables development for a dragged-out grid expansion鈥, writes the WWF.

German Chemicals Industry Association (VCI)

First step for more efficiency in the Energiewende

The key points on the EEG reform are a first step for more efficiency regarding the Energiewende, writes the German Chemicals Industry Association (VCI) . 鈥淯p until now, renewable energies in Germany were driven forward regardless of costs, supply security and grid development. Germany cannot afford a 鈥楰eep it up!鈥欌 said VCI managing director Utz Tillmann.

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