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Germany calls for renewable quota system

Calls for renewable energy quota systems in Germany are amassing and becoming louder, particularly from the country’s Free Democratic Party (FDP). Under Economy Minister, Sven Morlok (FDP), the Saxony Government yesterday presented a report, which suggested an alternative funding model.

The FDP has suggested a new renewable energy quota system.

FDP

Pressure is mounting on Germany’s renewable energy law, or EEG. In particular, the FDP is calling for a quota system. Among the authors of the report presented yesterday, September 10 is Justus Haucap, professor at the University of Düsseldorf and chairman of the monopolies commission.

In the presentation, the authors said the establishment of a quota model is required instead of the current remuneration system under the EEG. Specifically, they argue that a green electricity quota for electricity suppliers should be established, instead of them receiving a set tariff for renewable electricity over 20 years.

They say the quotas should be introduced in 2015 and then rise steadily, according to the Federal Government’s renewable energy objectives. Furthermore, they should be traded like CO2 certificates.

Individual technologies, like photovoltaics should be particularly encouraged, and the aim of the system should be to reduce renewable development costs. Under such a system, electricity traders would have to buy a certain percentage of renewably generated electricity, from the cheapest providers.

Hans-Josef Fell, spokesman for the German parliamentary group, Bündis 90/Die Grünen, however, calls for reliable conditions for the renewable sector and the constructive development of the EEG, instead of the current attacks on the energy law.  

Translated by Becky Beetz.