Germany’s Latest Renewable Energy

Germany’s Latest Renewable Energy Act 2021 Sets the Path for Foreign Investments

As energy independence became increasingly important to Germans, solar PV installations recorded a 25% increase in 2020. According to the German Solar Association, significant raises in solar energy expansion targets are necessary to achieve climate goals and avoid power shortage. Setting the path for further renewable energy investments, Germany has proposed new changes to its Renewable Energy Act (EEG).

Germany’s Latest Renewable Energy
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The solar industry is currently booming due to several key factors, such as the increasing climate awareness and the consumers’ push for lower solar power costs, more grants to improve the heating systems, and acceleration of electromobility.

New Investment Potentials

New Investment Potentials
Source: Unsplash

The newly-revised German Renewable Energies Act 2021 (EEG) officially took effect on 1 January 2021. Some significant reforms from the viewpoint of investors are as follow:

  • Well-aligned to the EU Climate Goal

The European Union (EU) members have agreed to raise the 2030 climate target, which, for Germany, means changing its national targets to reduce pollution. To achieve this goal, it would require a faster growth of renewable energy sources. 

  • Ambitious Expansion Path for the Energy Industry

There are slight increases under the revised EEG 2021, for instance, the rise in biomass to 8.4 GW, offshore wind to 20 GW, onshore wind to 71 GW, and solar PV capacity to 100 GW. Intended to reach the Climate Action Programme 2030, this amendment ensures the power is consistent with the 65% renewables target. 

  • Digitized Energy Industry

The energy industry nowadays is very much driven by innovative digital solutions. For example, virtual power plants that rely so much on technical equipment to advance the use of renewable energy plants.

As a matter of fact, digital opportunities in the energy sector are increasing more than ever. To support this, the EEG 2021 proposes the power plants operator commissioned from 1 January