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Germany Moves to Rework EEG to Make Renewables 'System‑Serving'

The cabinet has advanced a draft that reframes support so clean power bears more grid and market responsibility to cut rising system costs before an EU deadline.

Overview

  • The Wirtschaftsministerium under Katherina Reiche has put a ministerial draft to the cabinet that would force a shift in the Renewables Act toward requiring more market participation and grid responsibility from generators.
  • The draft would let grid operators designate regional 'Hot Spots' where Redispatch compensation is limited or capped and where networks must be prioritized for upgrade to reduce costly curtailment.
  • From 2027 the plan would end permanent feed‑in tariffs for new rooftop PV under 25 kW, require mandatory direct marketing, provide a 36‑month transitional payment and a temporary direct‑marketing bonus thereafter.
  • The proposal has split stakeholders: renewable trade groups warn of a sharp drop in solar rollout, job losses and investment risk while industry associations welcome steps to lower the EEG bill and industrial power costs.
  • Final approval still requires Bundestag passage and sign‑off by the European Commission because current state‑aid clearance expires at the end of 2026, leaving parliamentary negotiations and EU review as the immediate next steps.