EEG Revision: BSW on Curtailment and Compensation

In a press release issued yesterday, Bundesverband Solarwirtschaft (BSW-Solar), the interest group of the German solar energy industry, responded to plans announced by the ruling government in their coalition agreement concerning amendments of the provisions on curtailments of renewable power plants and their compensation as part of the planned reform of the Renewable Energy Sources Act (EEG). Proposals for amendments were not part of  the key point paper presented recently by the government.

PV power plants could help reduce the need for grid expansion if they reduced input in cases of grid congestion to a small degree, BSW Solar said. This required fair conditions and a full compensation, besides curtailment should only be possible if grid stability was in danger (bei drohender Netzinstabilität), BSW Solar demanded.

The relevant passage in the coalition agreement reads:

“To ensure the stability of the system, we want new power plants to be controllable by grid operators and direct marketers. Peak power from new plants can be curtailed without payment to a limited degree (less 5% of the annual output), provided this reduces costs for grid expansion and helps to avoid negative prices at the electricity exchange. Besides we will modify the provision on compensation (cf. Section 12 EEG – hardship clause) so as to provide more incentive to consider the grid situation when choosing a location for a new plant. The compensation set out in the existing hardship clause will be lowered if input is not possible due to grid congestion. The feed-in priority for renewable energy (cf. Section 8 EEG) will not be amended.”

Source: BSW Solar

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