Invitation to the Networking Event Renewable Energies in Bavaria and Hungary

09.10.2024

Council of Ministers approves first round of draft legislation to introduce mandatory financial participation by citizens and municipalities in new ground-mounted wind energy and photovoltaic installations.

"With this participation, we are strengthening acceptance for renewable energies."
Hubert Aiwanger, Bavarian State Minister for Economic Affairs, Regional Development and Energy

MUNICH On the initiative of Bavaria's Minister of Economic Affairs Hubert Aiwanger, the Council of Ministers has approved the introduction of mandatory financial participation by citizens and municipalities in new wind energy and ground-mounted photovoltaic installations. The draft law will now go to the association hearing. Aiwanger: "After I presented the key points back in July, we have now adopted a comprehensive regulation on the participation of municipalities and citizens in new wind and PV projects. This will strengthen public acceptance of renewable energies and increase the projects' chances of success."

The obligation to participate financially applies to operators of wind turbines requiring approval with a total height of more than 50 meters and to ground-mounted PV systems with an installed capacity of more than 5 megawatts. All municipalities within a 2.5 kilometer radius of the wind turbines are entitled to participate, as are residents whose main place of residence is in these municipalities. This means that not only the local and neighboring communities benefit, but also the citizens affected. In the case of PV systems, the respective local communities and their residents also benefit. Special photovoltaic systems such as agri-PV or floating PV are exempt from the obligation.

The operators of the plants are obliged to agree an individual participation agreement with the municipalities. A variety of participation options are available, such as participation in the project company, an offer to purchase one or more plants or plant components, discounted electricity tariffs, direct payments to municipalities or citizens, financial participation via investment products. The possible options are not exhaustive and can be selected individually or in combination. A payment in accordance with Section 6 of the Renewable Energy Sources Act (EEG) is also possible.

Aiwanger: "It is important to us that all affected municipalities and residents benefit financially from renewable energy systems. The various options for participation enable tailor-made solutions for every project in Bavaria."

The offer that the project developer must submit according to the draft law must correspond to a total value of 0.3 cents per kilowatt hour. Of this, 0.2 cents per kilowatt hour must be provided for the municipalities and 0.1 cents per kilowatt hour for residents. If no participation agreement is concluded within one year, an application can be made to the Bavarian State Ministry of Economic Affairs, Regional Development and Energy to oblige the project developer to pay a compensatory levy. The funds received by the municipalities must be used for the specific purpose of increasing acceptance among their residents.

Example calculation:

• For a modern 5 MW wind turbine with an average of 2,000 full load hours per year, 0.3 cents per kilowatt hour corresponds to a sum of 30,000 euros per year, of which the municipalities are to receive 20,000 euros and the residents 10,000 euros.
• For a 5 MW ground-mounted photovoltaic system with an average of 1,000 full-load hours per year, 0.3 cents per kilowatt hour corresponds to a sum of 15,000 euros per year, of which 10,000 euros are to go to the municipalities and 5,000 euros to the residents.

Source: Press release no. 396/24, Bavarian State Ministry of Economic Affairs, Regional Development and Energy