Germany’s EEG reform draft and Netzpaket draw sharp industry and political criticism
Germany’s EEG reform and Netzpaket drafts, softened by the Economy Ministry, face industry and Green criticism over curtailment, compensation, rooftop support.
The Federal Ministry for Economic Affairs released amended drafts for the Netzpaket and the EEG reform late Friday, prompting immediate protest from industry groups and opposition parties who say the changes jeopardize the energy transition. The draft softens some of the most contested measures but keeps core provisions that would shift market responsibilities onto small producers. Critics warned the revised EEG reform could slow investments, cost jobs and leave household solar owners with new burdens.
Ministry presents revised drafts and opens rapid consultation
The Economy Ministry under Katherina Reiche circulated the updated reference drafts for the Netzpaket and the EEG reform and launched a Länder and associations hearing process. Officials framed the adjustments as targeted compromises to avoid immediate disruption while keeping measures intended to manage grid congestion. The ministry set a compressed consultation timetable that requires states and industry groups to respond within days.
Curtailment and compensation rules partly rolled back but remain central
The new draft removes the most extreme proposal to allow uncompensated shutdowns of renewable plants during network bottlenecks, but it does not restore full prior compensation levels. Payments to affected generators are now proposed to be reduced rather than eliminated, and the Netzpaket introduces mechanisms to steer new wind and large photovoltaic capacity to limit potential grid stress. Those measures aim to make curtailment an instrument to protect network stability while lowering state costs.
Small producers face self‑marketing duties and limited transition support
Under the EEG reform still on the table, small renewable installations would be required to sell their power directly on the market rather than receiving a state-guaranteed feed‑in tariff. The draft envisages a time-limited transition payment, with the very smallest new units eligible for support through 2029, but the phased removal of guaranteed remuneration from 2027 remains intact. Industry groups warn many small operators already struggle to find direct marketers, a problem that would intensify if the self‑marketing obligation takes effect.
Solar industry warns of job losses and stalled investment
The solar sector has described the proposals as out of step with market realities and said they risk reversing recent growth in renewables deployment. Trade associations warned that the changes would prolong household reliance on fossil fuels and could imperil tens of thousands of jobs across installation, manufacturing and services. Renewables groups also pointed to the broader scale of the sector, noting hundreds of thousands of jobs and billions in annual investment at stake if investor confidence weakens.
Greens and BEE say curtailment caps and market shifts will undermine expansion
Renewables advocates, including the German Renewable Energies Federation, criticized planned performance limits for wind and solar and the proposed reduction of compensation during temporary bottlenecks. Green Party energy spokespeople called the Netzpaket effectively a set of rules serving grid operators that would permit up to 20 percent targeted curtailments, a step they say could dampen expansion. Critics argue that shifting the burden of market integration onto small producers and promoting curtailment without parallel acceleration of grid expansion will slow the renewable build‑out, particularly at times of extreme heat and high demand.
Short consultation window draws ire from states and utilities
State governments and major energy associations protested the timeframe for the hearing process, saying it is far too brief for substantive responses on changes of this magnitude. The national association of energy and water utilities joined industry calls, calling the deadline unacceptable for measures that would reshape market rules and investment conditions. Political opponents from the Left and other parties also described the package as only a minor correction of earlier plans and said it fails to create new incentives for small-scale systems such as balcony and rooftop installations.
The consultation period will determine whether the ministry’s softened draft is adjusted further before it proceeds through legislative steps, but stakeholders warn that delays or contentious revisions could have immediate implications for project planning and investor confidence. As the debate intensifies, industry groups and political actors will press for clearer timelines and stronger safeguards to protect deployment targets, jobs and household‑level access to clean energy.
