- Germany’s Federal Network Agency has reduced the renewable energy levy
- The tax to be paid next year is nearly 43 per cent lower than the levy in 2021, which was capped at EUR 0.065 per kWh
Germany’s Federal Network Agency has reduced the Renewable Energy Levy (EEG). Consumers will pay with their electricity bills in 2022 to a ten-year low of EUR 0.0372 (USD 0.043) per kWh amid increasing spot prices of electricity.
The tax to be paid next year is nearly 43 per cent lower than the levy in 2021, which was capped at EUR 0.065 per kWh, the Bundesnetzagentur said on Friday. The levy was below the EUR 0.04 per kWh threshold in 2012 for the last time when it stood at EUR 0.0359.
The reduction is not surprising as the increasing spot price of electricity reduces the need for subsidies for renewables. The reduction is also meant to dampen the effect of rising prices partly.
The EEG-levy is meant to support the expansion of renewable energy in Germany and cover the difference between the market price and the market premium paid to electricity producers. The reduction will be financed with proceeds from the introduction of a carbon price.
Next year, the EEG-levy and federal subsidies will total EUR 20.1 billion, covering the difference between what the country’s transmission system operators will need to pay for renewable energy – EUR 33.7 billion and the expected electricity exchange revenues EUR 13.6 billion.
According to the operators, the renewable energy capacity to be installed in 2022 will total 8.2 GW, driven mainly by solar power, while green electricity generation is expected to grow by almost 5 per cent to 239TWh.