German minister proposes EEG overhaul that cuts payouts for idle renewables
Economy Minister Katherina Reiche introduced a draft amendment to the Renewable Energy Act that would sharply reduce compensation for wind and solar operators when their plants are forced to stop due to grid constraints.
Bundeswirtschaftsministerin Katherina Reiche presented a bill to revise the Renewable Energy Act, targeting the compensation scheme for wind and solar plants that are forced to halt output when transmission lines are full. The draft seeks to align renewable growth with the rollout of new high-voltage corridors, thereby shielding grid owners and investors like the Dutch pension fund APG, M31, and sovereign funds from Norway and Singapore.
While the law still obliges Germany to cut greenhouse-gas emissions by 2030, it eliminates one outlet subsidies that pay operators for unused capacity. The amendment comes as increasing demand from heat pumps, electric vehicles and industrial electrification strains the existing grid, leaving turbines idle in windy northern regions while southern factories rely on gas plants. Opponents warn that without accelerated grid expansion, the country will miss its renewable electricity targets.
