New German Renewable Energies Law Strengthens Sector Investment

    BERLIN, June 6 /CNW/ - The German parliament (Bundestag) has agreed to
new laws that strengthen conditions for renewable energies investments. The
laws are part of the government's "Climate Package," the goals of which are
saving 250 million metric tons of CO2 by 2020, with renewable energies
contributing to 30% of electricity production by the same year. These legal
changes strengthen Germany as an investment location for renewable energies
and energy efficiency technologies.
    One element of the reform is an amendment to the Renewable Energies
Sources Act (EEG). This change calls for a higher "feed-in tariff" for wind
energy. The feed-in tariff is the compensation paid to owners of renewable
energies systems when energy from their systems is sold to the public grid.
The new law raises the feed in tariff for wind energy to a range of 9.2-15
    The parliament also reformed the EEG for electricity from solar energy.
Photovoltaic (PV) systems will receive a feed-in tariff of 33-43 EURcent/KWh,
depending on the amount of electricity sold to the public grid. According to
the new law the tariff will decrease between 8 and 10% in 2010 and then 9%
annually after 2011.
    These two reforms are important for investors. For wind energy, the
increased tariffs provide further incentive for wind energy companies to enter
the world's largest market in wind energy (measured in accumulated capacity).
    The falling tariffs in PV energy are evidence to investors that Germany
is making significant progress in reducing the cost of electricity generation
from PV sources, therefore making subsidized prices less necessary to attract
investment. This progress has been made thanks to highly qualified workers in
the PV sector in Germany, the location of top research institutes, and leading
suppliers. These conditions make Germany an attractive location for production
or R&D in the PV sector.
    Germany's legal reforms also promote biomass. Investors in this sector
can receive feed-in tariffs of 7.79-11.67 EURCent/KWh for electricity from
biomass. There are also bonus incentives to encourage the use of sustainable
raw materials, or the simultaneous use of biomass in a combined heat and power
(CHP, or co-generation) plant.
    The legal reforms further add to Germany's attraction to investors in the
biomass sector. An increased domestic demand for biomass technology and
products is bringing major investors to Germany.
    The climate package also calls for the promotion of heat from renewable
sources. These laws require that new buildings have heating systems deriving
heat from renewable sources. Financial incentives will be made available to
equip older buildings with such technologies. These laws provide a ready made
market, plus EUR500 million of available funding, for investors in energy
efficient heating technologies such as solar thermal heating.
    Germany is already Europe's largest market for solar thermal technologies
and offers foreign investors many possibilities.
    Investors in heat-producing technologies also have growth possibilities
in CHP systems. Here the federal government has made EUR750 million available
annually to support CHP projects. The government has set the specific goal of
having 25% of energy and heat coming from efficient parallel-production
technologies by 2020.
    All of these legal reforms, plus others that encourage energy efficient
technologies, e.g. "intelligent electricity meters," make it clear that
Germany is consolidating its position as world leader in renewable energies
and offering many possibilities for foreign investors to enter its growing
    Invest in Germany is the inward investment promotion agency of the
Federal Republic of Germany. It provides investors with comprehensive support
from site selection to the implementation of investment decisions.

For further information:

For further information: Invest in Germany: Eva Henkel, Tel:
+49-30-200099-173, Email:

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