With the amendment to the Renewable Energy Sources Act (EEG), the Federal Government is planning a fundamental overhaul of the support scheme. On 29 July 2026, the draft bill for the 2027 Amendment to the EEG (EEG-2027-E) was approved by the Federal Cabinet. In its explanatory notes to the Cabinet draft, the Federal Government emphasises that, from 2027 onwards, expansion is to be driven more by market forces (page 1 of EEG-2027-E). For landowners, project developers and plant operators, the planned skimming of excess revenues and a lease cap for onshore wind turbines are of particular significance.
A key reason for this amendment is the need to secure state aid approval under EU law. The European Commission’s current approval for the EEG 2023 is valid until 31 December 2026 (State Aid SA.102084, Section 2.6). The legislative process for the 2027 EEG amendment must therefore be completed in good time to enable the European Commission to approve it under state aid rules before the end of this year.
I. Requirements under European law and their implementation in the current draft bill
The legal basis under European law for the 2027 EEG amendment is essentially Regulation (EU) 2019/943 (EU Internal Electricity Market Regulation) and Regulation (EU) 2024/1735 (EU Net-Zero Industry Act).
1. Contracts for Difference (CfD)
The EU Internal Electricity Market Regulation provides, amongst other things, for the introduction of so-called Contracts for Difference (CfDs), which are bilateral contracts based on the difference in price. In the case of the EEG, this mechanism is to be based on a production-dependent refinancing contribution (p. 213 EEG-2027-E). In future, EEG-subsidised plants with an installed capacity of at least 100 kW are to not only receive state protection against low electricity prices, but in return contribute to the financing of the subsidy scheme with revenues exceeding a reference value to be determined.
The amount of the refinancing contribution is calculated annually on a retrospective basis, in cents per kilowatt-hour, based on the electricity directly marketed and actually fed into the grid, in accordance with Annex 1, No. 4.1 of the EEEG-2027-E. In accordance with Section 21d(1), first sentence, of the EEG 2027-E, the applicable value and the annual market value of the plant are decisive for determining the individual refinancing contribution. The applicable value normally corresponds to the bid at which the plant was awarded the contract in the EEG tender (Section 3(3) of the EEG 2027-E).
Whilst biomass plants are exempt from the levy, quantities of electricity that have previously been temporarily stored are taken into account (p. 215 EEG-2027-E). Consequently, green electricity storage facilities can now only enable a more flexible feed-in schedule and a higher overall feed-in volume. However, the plant operator no longer benefits from the higher market prices regularly associated with time-delayed feed-in.
2. Resilience tenders
Under Article 26 of the EU Net-Zero Industry Act, EU Member States are obliged to include qualitative criteria – relating to sustainability and resilience – alongside price in tenders for renewable energy. Under the 2027 Amendment to the Renewable Energy Sources Act (EEG-2027-E), this requirement is to be met through the introduction of resilience tenders with qualitative award criteria for onshore wind turbines and solar installations in the first segment (Section 39n EEG-2027-E). The details of these tenders are to be set out in accordance with Sections 28e EEG-2027-E and in a regulation yet to be adopted.
II. Other key provisions of the current draft bill
Arguably the most drastic change is the lease cap for onshore wind turbines, which is being introduced for the first time. The provision in Section 36d EEG-2027-E currently stipulates that the total annual remuneration for land-based uses may not exceed 3.5 per cent of the wind turbine’s annual achievable site yield, as determined prior to commissioning.
A breach of Section 36(1) would result in the operator being required to pay the relevant grid operator a penalty of EUR 50.00 per kW of installed capacity for the respective calendar year (Section 53a EEG-2027-E).
Section 36d of the EEG-2027-E is not, as yet, expressly limited to EEG-subsidised installations. However, the explanatory notes to the Cabinet draft refer to a cap on area-based usage fees for onshore wind turbines subsidised under the EEG and subject to tendering (pages 4, 239 EEG-2027-E).
Furthermore, in addition to changes to the tender segments and an increase in individual tender volumes, the 2027 EEG Amendment provides that the operator may, within the first ten years following a plant’s commissioning, declare on a one-off basis that they are waiving their right to EEG support (Section 21e EEG-2027-E). It is not intended to be possible to re-enter the support scheme thereafter.
III. Conclusion
The government’s draft bill has been the subject of parliamentary proceedings since September. Due to the urgent need for state aid approval under EU law, the process is subject to considerable time pressure. The current draft suggests far-reaching changes. The new instruments may have a significant impact on the economic viability and feasibility of projects. At the same time, it must be borne in mind that, particularly in the case of the EEG, experience shows that key provisions may still change before the legislation finally comes into force.
One thing is already clear: the new framework conditions will place greater demands on legally sound, balanced and economically viable concepts in the field of renewable energy. This makes it all the more important to take a forward-looking approach to contract and investment structuring.