The German Federal Council recently passed the energy package, which includes five amendments to the renewable energy law and two amendments to strengthen and expand preventive measures, followed by the Bundesrat's approval of the bill.
The amendment pointed out that considering the shortage of energy supply, the carbon neutrality target before 2035 will be temporarily withdrawn, but the target of renewable energy generation will be increased to 80% in 2030. At present, the proportion of renewable energy generation in Germany is less than 50%. . The amendment states that renewables are expected to generate up to 600TWh of electricity per year by 2030, a 1.5-fold increase from the current level, due to increasing electrification.
As coal is phased out, the country will generate electricity almost entirely from renewable sources. The amendment plans to expand solar from the current 60 GW to 215 GW by 2030, increasing the share of solar in the electricity mix from 10% today to 30%. Achieving this target requires an annual increase of 22 GW of solar capacity, according to the European Solar Energy Industry Association’s plan, 88 GW will be installed by 2024, 128 GW two years later, 172 GW by 2028, and the 2040 target of PV installations Capacity 400GW.
Regarding the new changes in rooftop photovoltaics: rooftop photovoltaic owners can choose to generate their own electricity for their own use, and the surplus electricity will be connected to the grid, and will receive a smaller amount of on-grid tariff subsidies; cents/kwh, the electricity price of the full-scale on-grid project will reach 0.094-0.134 euros/kwh, and it is estimated that the static payback period can be about 8 years. And allow individuals or companies to install photovoltaic systems with two different electricity price subsidies on the same house; increase the size limit of energy communities from 1MW to 6MW. In addition, schemes to simplify taxation and speed up the grid connection process have been introduced. Due to concerns about future energy supply, Germany has temporarily withdrawn its goal of achieving carbon neutrality by 2035, which is completely incompatible with the development of new energy sources. We believe that the current core is to increase energy supply in various aspects, reduce energy costs, and enhance energy independence. At present, it is more urgent to accelerate the development of new energy.
