KfW Bankengruppe is a German government-owned development bank, supporting projects related to the environment as well as other areas.
Program incentives are complemented by the SME Energy Efficiency Advice program of the Federal Office for Economic Affairs and Export Control (BAFA), which subsidizes small and medium enterprises that identify energy savings potential and reduce costs by improved energy efficiency.
High-volume loans are available for large-scale investment projects in Germany in the areas of energy efficiency, innovative projects in the areas of energy conservation, electricity generation, storage and transmission, as well as the use of renewable energy.
The Federal Ministry for the Environment, Nature Conservation, Building and Nuclear Safety (BMUB) funds major industrial pilot projects in environmental sectors such as climate protection and resource efficiency. KfW is responsible for the administrative and financial side of the program, while the Federal Environment Agency manages environment technology issues. Funding is available as an interest subsidy or as a loan with interest grant from the BMUB.
Generally, projects shall be operated in accordance with their designated purpose for 5 years.
Applications must be filed, via credit institution, with the governmental-owned bank KfW or, in the case of the SME Energy Efficiency Advice program, with the BAFA.
Sources: KfW, BMWi Förderdatenbank
The EEG 2014 became effective on 1 August 2014. Remuneration is available for electricity produced. All tariffs and ranges in principle apply to plants commissioned as of 1 August 2014. Plants approved prior to 23 January 2014 that began operations by 31 December 2014 will still be governed by the provisions of the previous EEG 2012.
The most important objectives of the EEG 2014 include the integration of renewable energies into the electricity market by mandatory direct marketing and a focus on cost-effective technologies.
Current regulations pave the way for another revision of the EEG expected by the end of 2016. By the beginning of 2017 at the latest, financial support for all technologies shall be determined by auctions. This transformation process will be structured in light of experience gained through a pilot project testing a tender scheme for ground-mounted solar plants. The pilot tender project was initiated in February 2015.
The percentage of renewable energies is to be expanded within specific corridors:
These targets are to be achieved by individual corridors laid down for the specific technology.
Consumption of self-generated electricity from new plants is charged with 30 percent (until the end of 2015), 35 percent (in 2016) or 40 percent of the EEG surcharge (from 2017). Existing plants and in exceptional cases new plants (for installations without grid connection, auto-generation without electricity purchasing source as well as small plants with an installed capacity up to 10 kW) are exempted.
Plants are to market their power directly. Compulsory direct marketing is being introduced in stages:
In addition to the revenue from directly sold electricity a market premium can be claimed. The market premium consists of a fixed statutory payment (anzulegender Wert) differentiated by technology and rated power minus a technology-specific monthly market value (Monatsmarktwert).
In order to receive the market premium, plants must be remote-controllable as of 1 January 2015, including plants already commissioned.
Fixed statutory payment for plants being commissioned as of 2016 will be reduced to zero if the value of hourly contracts at the EPEX Spot in Paris is constantly negative for at least six hours.
Exemptions from Mandatory Direct Marketing
Exemptions from mandatory direct marketing exist for small plants and in case of so called ‘default marketing‘:
In and on buildings
Ground-mounted plants in open spaces
Support of plants in open spaces was shifted from feed-in tariffs to a support involving a competitive tender process. The pilot project of tendering an average of 400 MW in three annual rounds was launched by the Federal Network.Agency. Details are regulated in a separate ordinance (FFAV). In the first round, a total of 150 MW was put out for tender, with the maximum rate set at ct11.29/kWh. The highest awarded bid amounted to ct9.43/kWh, while the average successful bid was ct9.17/kWh.
Duration of subsidized market premium: Up to 20 years plus the year of initial operation.