As a substitute of imposing a hard and fast price on latest renewable energy, Germany is pushing to permit it to be purchased on the open market.
The German government on Thursday approved energy reforms that might require operators of latest wind and solar energy plants to sell power independently available on the market, relatively than selling it to the grid at a hard and fast price. Nonetheless, it’s unclear whether this bill will pass inside the current legislative period as a result of the collapse of the coalition government.
The reform plan applies to latest facilities of a minimum of 25 kilowatts (kW), and is an element of Germany’s goal to expand the proportion of renewable energy to 80% by 2030. Currently, the share of renewable energy in Germany’s electricity demand is about 58%.
This measure is predicted to unravel the ability surplus problem brought on by overproduction of solar energy generation throughout the midday summer and forestall negative electricity prices resulting from it.
Until now, small and medium-sized power plants under 100kW could sell electricity at a hard and fast, guaranteed price for 20 years. The brand new regulations only apply to latest installations, leaving exceptions for small-scale residential solar installations reminiscent of rooftop solar and balcony installations.
Under the bill, subsidies would stop if market prices turn negative, which is predicted to extend investment in storage systems that may store power and sell it when prices are favorable.
“These changes will contribute to reducing the burden on the ability grid, promoting market integration of renewable energy and increasing the efficiency of the energy system,” the German government said.
Reporter Jaeseung Lee energy@aitimes.com
