A legislative proposal to stimulate the system integration of 100% renewable energy through sector coupling in Germany has been put forward by Berlin-based think tank Energy Watch Group (EWG).
EWG said the purpose of the policy proposal is to allow renewable energy to assume responsibility for system security of the power supply – to cover the required energy demand at every hour of the year.
The proposal consists of a combined power plant fixed-feed-in-tariff based on techno-economic cost estimates and a legal examination of EU regulations.
EWG proposes a fixed-feed-in-tariff of 8 euro cents a kilowatt-hour, supported by a sliding market premium.
It said the proposal will provide a legal basis to enable the market penetration of reliable and adequate 100% renewable energy systems.
EWG president Hans-Josef Fell and co-author of the legislative proposal said: “The newly proposed Sector Coupling and Innovation Act for Renewable Energy is intended to become a major impetus to overcome the current challenges of the coronavirus recession and the climate crisis.
“More than ever, it is necessary to find solutions that both stimulate the economy and protect our climate.”
EWG said the proposal 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 storage, digital controls, green power generation and sector coupling, but do not yet have a viable market environment to generate large-scale privately financed investments”.
It said that a legal examination of the proposal has shown compatibility with EU regulations.
“A distinction is made between a fixed feed-in tariff per kWh fed into the grid for small plants and a floating market premium for larger plants that participate in electricity competition via direct marketing,” EWG said.
EWG chief research officer and co-author of the legislative proposal Thure Traber said: “The advantages of low, decentralised and transparent energy production costs can now be shared with those of climate protection and security of supply, especially since integration comes also from the regional level in support of the transmission network.
“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 decentral system responsibility.”
World Wind Energy Association secretary general Stefan Gsanger said: “Renewable energy ultimately can, must and will assume responsibility for system security. Today, wind and solar power have become the cheapest forms of energy.
“As a next step, the investments in the optimised integration of all renewable energy sources must be massively increased.
“The EWG’s new policy proposal shows how this can be achieved effectively and deserves wide attention.”