Ordinance Cutting Management Premium Pursuant to Renewable Energy Sources Act Promulgated

The Ordinance that cuts the management premium (Managementprämienverordnung – MaPrV) pursuant to the Renewable Energy Sources Act (EEG) for  solar and wind power as of 1 January 2013 has been promulgated in the Federal Law Gazette.

The management premium is an element of the market premium that producers of renewable energy receive if they do not claim feed-in tariffs, but market the electricity themselves (Section 33g EEG). It covers transactional costs like the cost for the listing at the energy exchange and other trading related costs as well as the costs for forecast errors regarding the actual amount of energy fed into the grid.

When introducing the market premium with the EEG 2012 amendment, the government anticipated lower costs than have actually arisen. According to data from www.eeg-kwk.net (an internet site of the German Transmission System Operators (TSOs) showing EEG related payments and revenue), the TSOs paid EUR 2,285,603,086.55 in the first 10 months of  2012 for the premiums pursuant to Sections 33g EEG (market premium) and 33i EEG (so-called flexibility premium for biogas) in connection with 35 para. 1a EEG (the latter stipulates that TSOs have to reimburse the distribution grid operators for payments pursuant to Sections 33g and 33i EEG).

As of 2013 the ordinance will reduce the management premium by 0.35 ct/kWh for solar power as well as onshore and offshore wind power. The reduction applies to renewable power plants that already market directly as well as plants that decide to market directly in the future. Further reductions will take effect in the following years, so that the premium will amount to

  • 0.65 ct/kWh in 2013;
  • 0.45 ct/kWh in 2014;
  • 0.30 ct/kWh as of 2015.
For remote-controlled wind and solar power plants the premium is only reduced by 0.25 ct/kWh, providing an incentive to install remote controls, which facilitate a demand-based operation of the plants. The premium will amount to
  • 0.75 ct/kWh in 2013;
  • 0.60 ct/kWh in 2014;
  • 0.50 ct/kWh as of 2015.

Source: Federal Law Gazette