Germany mandates open market sales of new wind and solar plants

The German cabinet approved Wednesday plans that will require the majority of operators of new solar and wind power plants to independently sell their electricity on the open markets. This is to improve the integration renewables in the country's system.

According to a new energy policy, even small facilities of 25 kilowatts must self-market instead of selling their power to the grid with guaranteed prices.

Germany wants to reach 80% of its current electricity demand through renewable sources by 2030.

The plans announced on Wednesday are intended to help manage the electricity surpluses that often occur at midday in summer, resulting in negative electricity prices.

After the fall of the German coalition government, the proposed reform faces an uncertain future in the current legislative session.

Up until now, small and medium-sized power plants below 100 kilowatts were able to sell electricity to grid operators for fixed rates, guaranteed over a period of 20 years.

Solar installations on rooftops or balconies, for example, and very small ones, would be exempted from the new regulations.

Berlin wants to reduce the burden on the grid of excess solar energy, which can lead to negative electricity prices. It will do this by forcing more renewable operators self-market.

The draft law would stop paying subsidies when the market price falls, which will encourage investors to invest in systems that store excess energy until prices rise. (Reporting by Markus Wacket and Riham Alkousaa Editing by Miranda Murray, Alexandra Hudson)

(source: Reuters)