Key points of a legislative initiative for reliable and adequate renewable energy supply
Stimulating investments in sector coupling and innovation: Energy Watch Group proposes new law for reliable and adequate renewable energy systems
On the occasion of this year’s 20th anniversary of the German Renewable Energy Sources Act (EEG), the Berlin-based Think-and-Do Tank Energy Watch Group (EWG) presents a legislative proposal to stimulate the system integration of renewable energy. The underlying purpose of the policy proposal is to allow renewable energy sources to finally assume responsibility for the system security of the power supply – i.e. to cover the required energy demand at every hour of the year. With a so-called combined power plant tariff, the instrument intends to stimulate investments for full demand coverage by 100% renewable energy. Based on own techno-economic cost estimates and a legal examination of EU regulations, the EWG proposes a fixed-feed-in-tariff of 8 cents/kWh, supported by a sliding market premium.
While renewables keep setting records in terms of their shares of national electricity mixes – Germany has recently hit the 50% mark –, a full transformation to an entirely renewable-based energy system is not yet widely regarded to be a tangible reality. One of the main reasons is the prevailing mistrust of the ability of renewables to provide year-round supply. Many scientific studies have already shown that a complete conversion to renewables is not only critical for reasons of climate protection, but also that it is technologically feasible (in combination with storage technologies and digital control technology) at any hour of the year and at cost-effective prices. What is still missing, however, is a legal basis to enable the market penetration of reliable and adequate 100% renewable energy systems.