PV and Wind Energy: New legislative Promotions expected to be enacted in July 2023!

In order to achieve Germany’s ambitious renewables expansion targets (i.e. 80% by 2030), the Federal Ministry of Economic Affairs and Climate Action (Ministry) is gearing up its efforts to promote the production of energy from PV and Wind (onshore) resources.

In March 2023, the Ministry invited representatives of the respective stakeholders to specific summits (PV and Wind). The Ministry presented its preliminary expansion strategy and kicked off a public consultation. The responses to such consultation shall be used to finalize the Ministry’s strategy for PV and Wind this April. The outcome will be presented on two further summits scheduled for April/May 2023. In parallel, legal acts implementing the new strategy into the current legislative framework will be drawn up by the Ministry's legal department. Time is of essence, as the entire legislative package shall be resolved by the Federal Parliament prior to the Parliament’s summer vacations (i.e. first week of July 2023).

The two consultation papers issued by the Ministry identify the following fields of action:

PV:

1. Stronger expansion of open space PV (in particular by easing zoning law)^[1]
2. Granting reliefs for roof top PV (e.g. for small installations and buildings in undeveloped outskirts)^[2]
3. Simplifying PV installations for tenants ("Mieterstrom"; e.g. by extending reliefs for own consumption)
4. Granting reliefs for balcony PV installations (e.g. by reducing registration requirements)
5. Accelerating grid access of PV installations (e.g. by imposing obligations on the DSOs to tolerate access)
6. Enhancing public acceptance (e.g. by promoting residential power associations)
7. Harmonizing energy law and tax law (e.g. by granting tax privileges for smaller PV installations)
8. Securing supply chains and promoting production in Europe
9. Increasing the number of qualified employees
10. Improving R&D
11. Promoting the envisaged PV roll-out with instruments at European level.

Wind:

1. Expansion of wind power under the Renewable Energy Act (e.g. by increasing maximum bidding prices and volumes)^[3]
2. Promoting PPAs (e.g. by removing legislative obstacles for Corporate PPAs and enhancing the bankability of PPAs)
3. Retaining on-grid installations and accelerating repowering (e.g. by adapting zoning law, emission law and natural protection law)
4. Mobilizing additional land areas in particular for industrial usage (e.g. by granting reliefs for close-by grid usage, empowering municipalities to permit local wind installations, easing zoning law in less attractive areas such as adjacent to highways or railways)
5. Accelerating BImSchG permitting process (e.g. by streamlining the permitting process and limiting interference rights of local and environmental stakeholders)
6. Simplifying the process of land securing (e.g. by granting additional inspection rights into the land book, imposing tolerance obligations on land owners of land required for cabling)
7. Enhancing local participation (e.g. by improving the participation of municipalities)
8. Strengthening of local/EU sourcing and production
9. Increasing the number of qualified employees
10. Facilitating the land transport of turbines and related infrastructure (e.g. by amending road laws)
11. Improving R&D
12. Enhancing synchronization for expansion of grid distribution system

We expect further details to be disclosed in the upcoming two summits scheduled for April and May respectively.

In addition to Germany's national efforts to accelerate the expansion of renewable energy, the EU commission, the EU Parliament, and the EU Council resolved significant changes to the Renewable Energy Directive (RED III). The EU's renewable expansion target 2030 was raised from 32,5% to 45% and the permitting process shall be permanently facilitated.^[4]

Dr Christof Aha

• ^[1]Maximum bidding prices have already been raised from 5.9 ct/kwh to 7.37 ct/kwh in January 2023.

• ^[2]Maximum bidding prices have already been raised from 8.91 ct/kwh to 11.25 ct/kwh in January 2023.

• ^[3]Maximum bidding prices have already been raised from 5.88 ct/kwh to 7.35 ct/kwh in January 2023.

• ^[4]The respective reliefs already specified in the EU emergency regulation dated 19 December 2022 (2022/2577) will expire by 30 June 2024.