German regulator cuts FiT for fifth consecutive quarter

GERMANY: The federal energy regulator will cut the feed-in tariff (FiT) for onshore wind farms by 2.4% after the 5.3GW installed last year exceeded the government's annual target of 2.5GW.

Wind projects with a combined capacity of 5,308MW were installed in 2017 (pic: Petra Klawikowski)

From 1 October 2018, the Bundesnetzagentur (BNA) will pay operators €66.4/MWh, down from €71.4/MWh, the agency announced.

It marks the fifth consecutive quarter in which the BNA has cut the subsidy under Germany’s Renewable Energy Source Act (EEG). Since the beginning of 2017, the rate has been cut by about 17%, the BNA pointed out.

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.

Wind projects with a combined capacity of 5,308MW 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.

From 2019 onwards, sites smaller than 750kW and pilot projects will not have to participate in auctions and will instead receive a €45.60/MWh feed-in tariff. The €45.60/MWh rate is an average of the highest successful bid of auctions in 2017, the BNA stated.