Germany changes two fundamental principles of the renewable energy subsidy scheme

Germany changes two fundamental principles of the renewable energy subsidy scheme shutterstock

Anna Velyka

There is also a detailed plan for the construction of standby power plants

From 2025, Germany replaces the guaranteed profit for renewable energy sources (RES) with a one-time investment subsidy. The remuneration for electricity produced by RES during negative prices, when excess electricity is already supplied to the network, is also canceled.

It is reported by Euractiv.

Currently, state support is related to the production of electricity and ensures that renewable energy developers can provide a minimum level of income from each unit of electricity produced. Since 2025, this area is transferred to subsidize investment costs.

The government also promised to stop supporting renewable energy sources as soon as coal ceases to be burned for electricity generation – no later than 2038.

Another important component in the country's energy transition will be the construction of new gas-fired power plants, some of which can run on hydrogen.

"Construction of new power plants will ensure a gradual abandonment of coal," explained Robert Habek, Minister of Economy and Climate Protection.

This is what the park of German standby power plants will look like:

  1. During the year, Germany intends to tender for the construction of 5 GW of new gas-fired power plants for immediate construction. At the same time, the country abandons plans for a fully hydrogen vehicle fleet.
  2. After that, there are plans to build another 5 GW of installations, which should work on hydrogen, but only from the eighth year of their operation.
  3. 2 GW of old gas stations are planned to be modernized.
  4. 0.5 GW of first-day special hydrogen power plants will also be built later, as well as another 0.5 GW of long-term energy storage.

This entire complex should be operational from 2028.

However, the "ideal" plan of the German government to abandon coal by 2030 is considered unattainable by most experts.

In April, EcoPolitic told that Germany closed 7 TPP after the end of the heating season.

Related
Rome and Prague will call for a relaxation of the EU’s climate regulations
Rome and Prague will call for a relaxation of the EU’s climate regulations

This concerns emission permits and regulations relating to methane

Ukraine is set to approve emission standards for facilities producing titanium dioxide
Ukraine is set to approve emission standards for facilities producing titanium dioxide

The draft covers emission limits for air and water bodies

Millions of tonnes of food go to waste: how much food does the average EU resident throw away?
Millions of tonnes of food go to waste: how much food does the average EU resident throw away?

Most food waste is generated in households – it is thrown away by residents themselves, rather than by restaurants or supermarkets

How much water and energy do AI centres ‘consume’? The EU has been accused of concealing data
How much water and energy do AI centres ‘consume’? The EU has been accused of concealing data

Even based on incomplete data for the year, data centres in the EU consumed as much energy as the whole of Croatia