The levy to finance the expansion of renewables in Germany – the EEG surcharge – is expected to nudge lower for a second year in a row on higher prices for CO2 certificates in the EU’s emission trading system, the country’s renewable energy federation (BEE) said.

The EEG surcharge will likely fall to €0.0651 ($0.07527) per kilowatt hour of electricity in 2019, down from the €0.06792/kWh paid by most consumers as part of their power bills this year.

“The emission trade this year is unfolding a steering effect, improving the economical marketing of renewable energies and thus honouring clean energy generation. Wholesale market prices are recovering, the EEG surcharge is falling,” says BEE managing director Peter Röttgen.

Germany’s four transmission system operators (TSOs) later this month are slated to reveal the levy’s exact level for next year.

Steep rises in the surcharge in the years to 2017 had led to bitter disputes about the cost of the country’s Energiewende – its transition from nuclear and fossil to renewable generation.

The EEG surcharge finances the difference between wholesale electricity prices and the level of support granted to operators of renewables. The levy has been instrumental in boosting the share of renewable energy as part of Germany’s gross electricity generation to 36% in the first half of 2018, up from about 6% in 2000.

The BEE said that fallen prices for new renewable energy generation mean price is no longer an impediment for the RE expansion. But the federation called for an end to an exemption for heavy industries for paying the surcharge, which would lower it by €0.015/kWh for all consumers.

Transition

German renewables surcharge seen falling on higher CO2 price