European Commission approves Germany’s reform of renewables support

The European Commission has approved the prolongation and modification of Germany’s Renewable Energy Act (EEG) designed to support the generation of electricity from renewable energy sources. It also greenlighted reductions in renewable electricity surcharges that apply to energy-intensive companies and shore-side electricity supply to ships while at berth in ports. “The scheme will help Germany reach its renewable energy targets without unduly distorting competition and will contribute to the EU objective of achieving climate neutrality by 2050,” the Commission wrote. The current EEG aims for a 65 percent share of electricity produced from renewable energy sources by 2030 (compared to 40% in 2019). 

“Thanks to this measure, a higher share of electricity in Germany will be produced through renewable energy sources, contributing to further reductions in greenhouse gas emissions and supporting the objectives of the Green Deal,” said Executive Vice-President Margrethe Vestager, in charge of competition policy. “The scheme introduces new features to ensure that aid is kept to the minimum and electricity production occurs in line with market signals, while at the same time ensuring the competitiveness of energy-intensive companies and reducing pollution caused by ships in harbour,” she added.