Germany's EEG reform faces industry backlash over renewable energy targets

The German Bundestag has begun the first reading of the draft amendment to the Renewable Energy Sources Act (EEG) for 2027. The reform aims to improve market integration and grid stability but has faced significant criticism from various industry associations.

Bioenergy, solar, and citizen energy groups warn that the proposed changes could create investment hurdles and lead to the decommissioning of thousands of existing plants. Specifically, the Biogasrat+ e. V. emphasized that the reform must support the system function of biogas and biomethane plants to ensure energy security and provide a controllable backup for fluctuating renewables.

The Bundesrat committees have also recommended extensive changes, including approximately 120 pages of amendments. Key areas of concern include the remuneration for small photovoltaic systems, potential caps on lease payments for wind energy, and the mandatory direct marketing of electricity. While the government seeks a more market-oriented expansion of renewables, associations like the eaD argue that the current draft may undermine investment security and jeopardize the goal of reaching an 80 percent renewable share in gross electricity consumption by 2030.