Germany plans 32GW of new wind and solar a year to meet 2030 renewables target

Expanding renewable power generation capacity in Germany will become an overriding public interest, more space will be given to solar PV and wind power installations, and licensing and construction accelerated after the three-party coalition government reached a compromise on the largest energy transition package in years.

The coalition of Social Democrats (SPD), the Green Party and the pro-business Free Democrats (FDP) fought hard over details until a last-minute agreement on the over 20 laws and ordinances was reached on 5 July, just days before the parliamentary summer recess begins.

The draft of the energy reform package seen by Clean Energy Wire is designed to put Germany on track to climate neutrality by 2045 and wean it off Russian fossil fuels and will be voted on in parliament on 7 July.

“We are unleashing solar energy and ensuring enough areas for more wind turbines,” said Green Party parliamentary group’s vice chair Julia Verlinden. By 2030, the share of green electricity in the grid will be raised to 80 per cent, she stressed.

“Since the introduction of the Renewable Energy Act (EEG) in 2000, we have never made such a big step forward in the expansion of renewables,” said the Social Democrats (SPD) vice chair Matthias Miersch.

“With this comprehensive package, we are creating the basis for a climate-neutral energy supply in Germany,” he added.

Instead, there will be “contracts for industry” – a special electricity price for industrial consumers that is to provide energy intensive companies with sufficient renewable electricity.

In some areas, parliamentarians created more favourable rules for renewables – for example by giving more space to solar PV installations next to motorways and to floating PV installations on lakes, and by permitting agri-PV installations also on permanent grassland (if not otherwise protected).

Solar industry association BSW said the EEG 2023 is an important first step, but the government now need to tackle investment barriers for PV operators  by creating a better regulatory framework and cutting red tape.

The government-proposed expansion targets for the various renewable technologies remained untouched, meaning that tender volumes will be geared to achieving a doubling of the country’s onshore wind capacity to 115 gigawatts (GW) and 215 GW of solar PV as well as 30 GW of offshore wind capacity by 2030.

There will be a higher auction volume for so called “innovation tenders”, to incentivise the construction of more energy storage facilities. For the first time, there are going to be tender volumes for green hydrogen. In 2023, some 800 megawatt (MW) will be auctioned, followed by 200 MW annually until 2026.