The European Commission has opened an investigation into two questionable provisions of the German Renewable Energy Act. Matthias Lang summarizes the reasons for the inquiry and how it might affect the German Energiewende. As previously expected, the European Commission has opened an in-depth investigation to examine whether the reduction granted to energy-intensive companies on the surcharge promoting renewable energy sources in Germany (“EEG-surcharge”) is compatible with EU state aid rules. The Commission will also investigate the reduction on the EEG-surcharge granted to suppliers that source 50% of their electricity portfolio from domestic renewable electricity (“green electricity privilege”). 1. EEG and State Aid The Commission examined the Renewable Energy Source Law as applicable since 2012 (EEG-Act 2012) during a preliminary investigation triggered by numerous complaints received from consumers and competitors. The substantial amendments of the EEG that entered into force in 2012 “changed the structure of the German support mechanism to electricity from renewable sources in such a way that it constitutes state aid in the meaning of EU rules, because it is financed by a resource under the … Continue reading Commission Opens State Aid Investigation into German Renewables Surcharge Reduction for Energy-intensive Companies and Green Electricity Privilege