Feed-in tariffs in Germany

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Feed-in electricity tariffs have been introduced in Germany to encourage the use of new energy technologies such as wind power, biomass, hydropower, geothermal power and solar photovoltaics. Feed-in tariffs are a policy mechanism designed to accelerate investment in renewable energy technologies by providing them a fee (a "tariff") above the retail rate of electricity. The mechanism provides long-term contracts to renewable energy producers, typically based on the cost of generation of each technology.[1] Technologies such as wind power, for instance, are awarded a lower per-kWh price, while technologies such as solar PV and tidal power are offered a higher price, reflecting higher costs.

As of February 2012, feed-in tariffs range from 3.4 ct/kWh (4.5 ¢/kWh) for hydropower facilities over 50 MW to 24.43 ct/kWh (32 ¢/kWh) for solar installations on buildings up to 30 kW. In 2012, the tariff for new solar installations dropped to 18.36 ct/kWh (24 ¢/kWh).[2] The aim is to meet Germany’s renewable energy goals of 12.5% of electricity consumption in 2010 and 35% in 2020. The policy also aims to encourage the development of renewable technologies, reduce external costs, and increase security of energy supply.[3]

In 2011, 20% of electricity in Germany came from renewable sources BDEW breakdown of electricity production by source and 70% of this was supported with feed-in tariffs. The Federal Environment Ministry estimates that this will save 87 million tonnes of carbon dioxide by 2012. The average level of feed-in tariff was €0.0953 per kWh in 2005 (compared to an average cost of displaced energy of €0.047 kWh). The total level of subsidy was €2.4 billion, at a cost per consumer of €0.0056 per kWh (3 per cent of household electricity costs).[3] The tariffs are lowered every year to encourage more efficient production of renewable energy. By 2012, the EEG surcharge - which pays for the additional costs through feed-in tariffs - had increased to 3.592 ct/kWh.[4] As of 2008, the annual reductions were 1.5% for electricity from wind, 5% for electricity from photovoltaics, and 1% for electricity from biomass. In the first quarter of 2011, 19.2% of Germany's electricity was produced by renewable sources.[5] This is compared to 17.1% in the first quarter of 2010, an increase of 2.1%.

There are about 340,000 people working in the renewable energy sector in Germany,[6] which has an industry turnover of €8.7 billion.[3]

Feed-in tariffs in €-ct/kWh from April 2012[7]
Year Month Degression Rooftop mounted Ground mounted
up to 10 MWp
up to 10 kWp up to 40 kWp up to 1 MWp up to 10 MWp
2012 April - 19.50 18.50 16.50 13.50 13.50
May 1.0% 19.31 18.32 16.34 13.37 13.37
June 19.11 18.13 16.17 13.23 13.23
July 18.92 17.95 16.01 13.10 13.10
August 18.73 17.77 15.85 12.97 12.97
September 18.54 17.59 15.69 12.84 12.84
October 18.36 17.42 15.53 12.71 12.71
November 2.5% 17.90 16.98 15.15 12.39 12.39
December 17.45 16.56 14.77 12.08 12.08
2013 January 17.02 16.14 14.40 11.78 11.78
February 2.2% 16.64 15.79 14.08 11.52 11.52
March 16.28 15.44 13.77 11.27 11.27
April 15.92 15.10 13.47 11.02 11.02
May 1.8% 15.63 14.83 13.23 10.82 10.82
June 15.35 14.56 12.99 10.63 10.63
July 15.07 14.30 12.75 10.44 10.44
August 1.8% 14.80 14.04 12.52 10.25 10.25
September 14.54 13.79 12.30 10.06 10.06
October 14.27 13.54 12.08 9.88 9.88
November 1.4% 14.07 13.35 11.91 9.74 9.74
December 13.88 13.17 11.74 9.61 9.61
2014 January 13.68 12.98 11.58 9.47 9.47
February 1,0 % 13.55 12.85 11.46 9.38 9.38
March 13.41 12.72 11.35 9.28 9.28
April 13.28 12.60 11.23 9.19 9.19
May 13.14 12.47 11.12 9.10 9.10
June 13.01 12.34 11.01 9.01 9.01
July 12.88 12.22 10.90 8.92 8.92
Maximum remuneration part[8] 100% 90% 90% 100% 100%

References[edit]

  1. ^ Policymaker's Guide to Feed-in Tariff Policies, U.S. National Renewable Energy Lab, www.nrel.gov/docs/fy10osti/44849.pdf
  2. ^ German Energy Blog German Feed-in Tariffs 2012
  3. ^ a b c HM Treasury (2006). Stern Review on the Economics of Climate Change p. 367.
  4. ^ German Energy Blog 2012 EEG Surcharge Increases Slightly to 3.592 ct/kWh
  5. ^ Böhne, D. "Development of Renewable Energy Sources in Germany". Development of Renewable Energy Sources in Germany. Retrieved 19 July 2011. 
  6. ^ Berliner Zeitung
  7. ^ Feed-in tariffs in €-ct/kWh
  8. ^ BMU: Germany: Feed-in tariffs 2013