ErneuerbareEnergienGesetz

Erneuerbare-Energien-Gesetz (EEG) is the German Renewable Energy Sources Act, originally enacted in 2000 as a core component of the Energiewende, Germany’s transition to a low-carbon energy system. The law provides the framework to promote electricity generation from renewable sources, including wind, solar, biomass, hydro, and geothermal. Its central objective is to increase the share of renewables in electricity consumption and to provide stable investment conditions.

The EEG has evolved from an emphasis on guaranteed feed-in tariffs to a more market-oriented approach. Support is now delivered through a combination of mechanisms, including a market premium for renewable generators that sell on the wholesale market, while the overall subsidies are financed by the EEG surcharge paid by electricity customers and collected by network operators. The act also guarantees priority grid access for renewable producers and defines eligibility, capacity targets, and the regulatory procedures for project development. Technologies and project sizes are governed by a mix of tariff levels, auctions, and administrative rules.

Amendments have repeatedly refined remuneration, introduced auctions for new capacities, and adjusted financing and deployment rules to reflect market developments and cost considerations. The most recent reforms aim to accelerate expansion, improve cost control, and maintain investor certainty.

Implementation is overseen by the Federal Ministry for Economic Affairs and Climate Action (BMWK) and the Federal Network Agency (Bundesnetzagentur), with cooperation from transmission and distribution system operators, project developers, and energy suppliers. As a central instrument of Germany’s energy policy, the EEG shapes investment, operation, and integration of renewable electricity into the national grid.