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Reiche Pulls Back on Sharp Cuts to Renewable Support in New EEG Draft

The economics ministry’s revised texts offer phased transition payments and softer grid‑curtailment rules to limit disruption while the plans still need cabinet sign‑off, parliamentary approval and EU clearance.

Overview

  • Late on Friday the Bundeswirtschaftsministerium circulated softened Referentenentwürfe that replace a planned abrupt end to feed‑in tariffs for small rooftop solar with staged transition payments of up to 36 months and stepped size limits for 2027–2030.
  • The draft raises the threshold for declaring network areas 'capacity‑limited' to more than 5 percent curtailed output and cuts the maximum non‑compensation period for curtailed plants from ten years to six years.
  • Small producers would be moved to mandatory direct marketing after the transition payment and receive a temporary direct‑marketing bonus for several years, while onshore wind auction volumes are increased by 12 GW to 2029 to steer build‑out.
  • The texts entered a short Länder and association consultation with responses due around 22 July and are reported to be scheduled for cabinet consideration at the end of July, after which Bundestag debate and an EU state‑aid approval are required.
  • Industry groups and opposition parties warn the changes will raise investor uncertainty and risk jobs by making revenues more volatile and bank loans harder to secure for small projects that must hire intermediaries to sell power at wholesale prices.