New Compensation Rates Guaranteed for Green Energy Producers in Germany
Written by Dr. Christian Hullmann (Berlin) and Mirko Zorn (Berlin).
Being "green" has never had a higher profile. Under the German Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz - EEG) producers of electricity from renewable energy sources are entitled to compensation for electricity fed into the grid. The grid system operator must accept all respective offers and pay a fixed price guaranteed under the law. For almost every kind of green energy the guaranteed price is higher than the market price.
The advantage is obvious: Producers of green energy and investors in this market segment can rely upon such prices and find a sound base to calculate investments on.
