Does the Phase-out of Public Support for Existing Renewable Energy Plants Jeopardise Germany’s Energy Transition?

Abstract

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Energiewende @ Risk: On the Continuation of Renewable Power Generation at the End of Public Policy Support

“…21a). With commercial PV systems, the spot market is the main option after 20 years of public support; in contrast, here, lower earnings compared to EEG subsidies are expected [16].…”

“…The discussion about the future of these power plants after the EEG expiration is of interest not only to researchers but especially to their owners and operators. Lehmann et al [16] describe what can happen with the installed capacity of renewable energy technologies after 20 years of support policy and ask which consequences there are for the aims of Germany's Energiewende. They notice that, according to the new EEG regulation from 2017 [11], the increase in installed capacities of wind, photovoltaics (PV) and biomass is regulated and based on the auction procedure.…”

“…The further economic operation of wind power plants, especially onshore power plants after the expiry of EEG-subsidization, is doubtful. Lehmann et al [16] compare the expected O&M costs (inclusive of increased repair costs of power plants at the beginning and towards the end of a so-called 'bathtub curve') of these power plants after 20 years with the average electricity spot price from the last few years. From this perspective, they conclude that a continued economical operation will no longer be guaranteed.…”

“…When is repowering of a power plant with lower long-term O&M costs the better decision? Moreover, Lehmann et al [16] notice that the development of electricity and CO 2 prices can influence the competitiveness of existing renewable power plants but that this development is determined also by the political framework conditions for fossil power plants. Nevertheless, with the increase of CO 2 prices since mid-2017, a slight increase in electricity prices can be noticed (see Figures 3 and 4), which can affect the profitability of renewable power plants traded on the spot market.…”

Energiewende und Megatrends

“…Sehr bald werden die ersten der durch das Erneuerbare-Energien-Gesetz für 20 Jahre gesetzlich garantierten Einspeisevergütungen auslaufen (vgl. Lehmann et al 2017). Die letzte Umstellung der Förderlogik auf ein Ausschreibungsmodell, das mehr Wettbewerb und Chancengleichheit erzeugen sollte, war wenig erfolgreich, da kleinere Unternehmen tendenziell benachteiligt werden (vgl.…”