Greentech started to develop its business in Germany in the wind sector in 2001, owning today one wind farm with a total gross installed capacity of 23.4 MW.
Current tariff system
In Germany, Greentech is applied a Power Purchase Agreement (PPA ), which grants the plant a fixed price for 20 years.
Greentech installation is regulated under the German Government’s legislation on renewable energy sources in the electricity sector (EEG) (2000) and the amendments issued in 2008.
The German Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz (EEG) sets the basic parameters of the tariff system which apply equally to all types of renewable energy sources, set out below:
> The commencement and duration of the tariffs paid: 20 years plus the commissioning year from the start-up of a new installation. After the first 20 years of operation counting from the commissioning date, the energy produced is sold at the daily market price per kWh;
> The calculation of the tariffs in accordance with the capacity of the installation in relation to the threshold value to be applied in each case (principle of gliding tariffs);
> Degression: different feed-in tariffs and degression rates apply to each renewable energy source. Since May 2012 monthly degression has applied to PV energy while for all other types of renewable energy the tariffs change only with the start of a new calendar year. The PV feed-in tariffs are basically lowered monthly by a percentage of 1%. This degression rate is not fixed, but varies depending on the amount of newly installed capacity.
The EEG is normally reviewed every three to four years, but due to the rising of energy costs, the version of the EEG entered into force in August 2012 was reviewed, and a new Renewable Energy Reform took place already in April 2014.
Regulatory changes in the renewable energy sector since 2014.
In August 2014, the new Renewable Energy Sources Act (EEG) moved from a FiT scheme to a mandatory direct selling for all newly commissioned plants, where the operator sells the produced power to a third party and receives as remuneration the agreed contract price.
The new EEG also initiated a transition to competitive bidding, which will be completed with the next reform in 2017.