Germany: EEG levy increases in 2014

The EEG levy climbs to 6.24 Euro cents per kWh in 2014. This has been made public by the TSOs who are obliged to independently determine the EEG surcharge based on forecasts. The new levy is an increase of almost 20%. At the moment the EEG levy is 5.2777 cents per kWh. This also translates to a total allocation of €23.6 billion in 2014. The sum of €2.2 billion to make up for 2013’s difference between the previous forecast and actual revenues and expenditures is also included in this allocation sum. This alone increases the EEG levy by about 0.6 cents per kWh.

It has been predicted that there will be a significant increase in the generation of electricity from photovoltaic, wind and biomass plants in the upcoming year. The capacity has been expected to increase from 135 TWh to 150 TWh next year. This is mainly attributable to the increasing supply from PV systems and wind turbines on land and at sea, the TSOs further added.

Minus the exchange transactions, around €19.1 billion is awaited in EEG costs, rounding up the levy in 2014 to 5 Euro cents per kWh. Of this, around 2.4 cents per kWh is attributed to PV, 1.3 cents/kWh to biomass, 1 cent/kWh to onshore wind, 0.3 cents/kWh to offshore wind and less than 0.1 cents/kWh to other energy sources according to the TSOs.

Consumer protection groups have therefore demanded that the costs for "old" PV and biomass plants be taken out of the EEG levy, and be included as technology funding under the federal budget. The TSOs did not mention in their communications though that the sinking market prices for electricity is leading to a substantial increase in the cost of the EEG levy. And the ever expanding privileges for industries and their impact on the levy amount was also not mentioned.

Translated and edited by Shamsiah Ali-Oettinger