An Attractive Legislative Framework

A Bonus for the Future of Our Environment

The German government intends to double the share of renewable energy used for electricity generation in Germany by 2010 to at least 12.5% and increase this figure to at least 20% by 2020. Much more biomass will be used alongside wind, water and solar power, because bioenergy has enormous potential for generating renewable energy. Experts believe that in the long term bioenergy will be the major renewable energy source, both in regards to quantities used and competitiveness. In passing the Erneuerbare-Energien-Gesetz, last amended in the summer of 2004, the German parliament has paved the way for "more green energy in Germany".

The amendment to the EEG, which came into force on 1st August 2004, has particularly improved the legal framework for bioenergy. The Act not only provides graded basic and minimum remuneration levels according to output classes, but also envisages a series of bonus payments designed to create additional incentives to use the potential that biomass offers.

If nothing but renewable raw material is used, the minimum remuneration levels are increased by what is known as a "renewable raw materials bonus" of 6 cents/kWh up to an electrical output of 500 kilowatts or 4 cents/kWh up to 5 megawatts.

A "technology bonus" has been introduced to cover the use of innovative plant technology that is energy-efficient and therefore environmentally-friendly and climate-friendly. The minimum remuneration level available is increased by a further 2 cents/kWh for output up to 5 megawatts.

In the case of bio-energy plants up to 20 MW, where electricity is generated and the heat is extracted for commercial purposes, an additional combined heat and power bonus of 2 cents is allowed.

From 1st January 2005, the minimum remuneration available for plants that come online is digressively reduced by 1.5% each year.
The minimum remuneration valid in the start-up year, including any possible bonus payments, then applies for a further full 20 years.