German regulator cuts wind feed-in tariff again

GERMANY: Grid regulator Bundesnetzagentur (BNA) has cut the feed-in tariff for onshore wind farms by a further 2.4% from July 2018 after last year's installation capacity exceeded the government's targets.

by Craig Richard 1 March 2018

The German regulator applies the tariff cut when installations exceed the country's onshore cap of 2.5GW by 1GW or more.

From 1 July 2018, operators will receive €7.14/MWh, down from €7.31/MWh, in accordance with the German Renewable Energy Act (EEG).

German wind energy association BWE said the legislation is aimed at "achieving an overall cost regression for different sources of renewable energy".

It is applied when installations exceed the German onshore cap of 2.5GW by 1GW or more.

More than 5.3GW of wind projects were installed in 2017 — more than double the government’s ambition of 2.5GW.

Under the EEG, electricity rates for onshore wind turbines are adjusted quarterly, and any changes are published four months before the amendment comes into force, the BNA advised.

Tariff cuts of 2.4% — the maximum reduction in support payments — had previously been enforced for the quarters starting 1 October 2017, 1 January 2018 and 1 April 2018 following booming installation figures.

The latest tariff cut applies to projects approved in 2016 or earlier, the BNA added.

The BWE does not expect the 2.4% cut to have any negative effect on 2018 construction figures, a spokesman told “uåX˜äŠÊ˜·³Ç.