May 14, 2020: The Energy Watch Group, a Berlin Germany think-tank, announced a legislative proposal to stimulate the system integration of renewable energy on May 14. Effectively the proposals would allow renewable energy sources to assume full responsibility for the system security of the power supply.
“This would cover the required energy demand at every hour of the year,” says an EWG official. “With a so-called combined power plant tariff, the instrument intends to stimulate investments for full demand coverage by 100% renewable energy. Based on own techno-economic cost estimates and a legal examination of EU regulations, the EWG proposes a fixed-feed-in-tariff of €0.08/kWh ($0.09)supported by a sliding market premium.”
The law would create a market for the large number of start-ups and established companies that are in the starting blocks with innovative system developments — for energy storage in particular as well as digital controls, green power generation and sector coupling.
“These firms do not yet have a viable market environment to generate large-scale privately financed investments,” says the EWG.
“Further innovations and growth markets can certainly develop if technologies such as batteries, hydrogen, heat pumps and heat storage in combination with solar and wind energy are dynamically developed towards a decentralized system responsibility, says Thure Traber, chief research officer at the EWG and author of the legislative proposal.
While renewables keep setting records in terms of their shares of national electricity mixes — Germany has recently hit the 50% mark — a full transformation to an entirely renewable-based energy system is not yet widely regarded to be a tangible reality.
One of the main reasons is the prevailing mistrust of the ability of renewables to provide year-round supply. “Many scientific studies have already shown that a complete conversion to renewables is technologically feasible (in combination with storage technologies and digital control technology) at any hour of the year and at cost-effective prices,” says EWG.
“What is still missing, however, is a legal basis to enable the market penetration of reliable and adequate 100% renewable energy systems.”
The full policy paper is available at: http://energywatchgroup.org/wp-content/uploads/EWG_Key-points-of-a-legislative-initiative-for-reliable-adequate-renewable-energy-supply.pdf