Act on Granting Priority to Renewable Energy Sources
(Renewable Energy Sources Act - EEG)

operative since 01.04.2000

The Act on Granting Priority to Renewable Energy Sources (EEG) was passed in the lower house of the German Parliament (Bundestag) on Feb. 25, 2000. It regulates the purchasing and compensation of energy which has been produced exclusively from renewable sources. This is controlled via power companies which operate grids for general electricity usage.

The upper house of Parliament (Bundesrat) passed the act on Friday, March 17, 2000.
The states ruled by the SPD or the Red-Green coalition voted for the law. The city-states Berlin, Bremen, and Hamburg agreed -- governed by a coalition of SPD and CDU -- and Thuringia, governed by the CDU. States governed by the CDU/CSU and the FDP voted against the law. The Rhineland Palatinate abstained.
After the signature of the German president and the publication in the Federal Law Gazette, the EEG went into effect on April 1, 2000.

For your information we offer the complete Text as well as the Explanatory Memorandum of the government coalition of SPD and Bündnis90/the Green Party.

Compensation Rates at a glance:

  • Wind power between 6,19 Eurocent and 9,10 Eurocent/kWh (12,1 Pfennig/kWh and 17,8 Pfennig/kWh)
  • Electricity from photovoltaic systems:
  • from 2002: min. 48,1 Eurocent/kWh (94 Pfennig/kWh)
  • Hydroelectricity min. 7,76 Eurocent/kWh (15 Pfennig/kWh)
  • Electricity from biomass between 8,70 Eurocent and 10,23 Eurocent/kWh (17 and 20 Pfennig/kWh)
  • Geothermal power between 7,16 Eurocent und 8,95 Eurocent/kWh (14 Pfennig/kWh and 17,5 Pfennig/kWh)

The Law in Detail:

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