A feed-in tariff is a policy that supports the growth of renewable energy. It determines the prices per kilowatt hour of a system over its lifetime, plus a return on investment.
Entries tagged with "Offshore wind"
Changing the entire energy system isn’t easy – here’s why.
Germany began auctioning off renewable energy projects in 2017, a fundamental shift from its previous policy of feed-in tariffs. Citizen cooperatives can also bid on projects, but are at a competitive disadvantage to corporations, who are now the chief owners bigger projects such as of offshore wind farms.
The energy transition will need an expanded, adapted grid to cope with more renewable power. Neither has been progressing fast enough, so the German Parliament has passed the Act on Accelerating Grid Expansion. Official plans are in place, but several of the projects remain contested.
This law is the basis for Germany’s Energiewende and specifies 1. priority dispatch for renewable power and 2. floor price for that electricity. The resulting high level of investment security and the lack of red tape are the main reasons why the EEG has brought down the cost of renewables.
Energy utilities are responsible for the generation and distribution of energy. In Germany, due to the energy transition, these companies have been undergoing huge changes.
Germany began switching to renewables in the early 1990s. Nowadays, onshore wind power is the cheapest source of new renewable power and made up around 20 percent of the country’s power production in 2018.
The energy transition boosts green innovations, creates jobs, and helps Germany position itself as an exporter of green technologies. Half of the world’s solar production equipment is made in Germany.