Germany Renewables Report Q4 2017
We expect growth in the German non-hydropower renewables sector to slow under the newcompetitive capacity procurement scheme introduced under the EEG2017. The scheme will enableGermany to better regulate growth in relation to grid bottlenecks and ensure that new projects are costcompetitive.This transition will, in turn, ensure the long-term economic sustainability of the expansion, andinforms our upbeat outlook for the German renewables sector over the next decade.
Latest Updates And Structural Trends
Germany is on track to transition in non-hydropower renewables sector to a competitive auctions-basedcapacity procurement system over 2017 under the EEG2017. This represents a substantial shift from theformer system, which revolved around feed-in-tariffs. The transition is indicative of the Germangovernment's intent to regulate renewables growth, and ensures that new capacity is cost-competitive.
This is particularly pertinent, given the fact that Germany has the second highest retail electricity pricesin Europe, and struggles with substantial grid bottlenecks for its north-south electricity flows
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