New funding program strengthens citizen wind projects

Better support for citizen energy companies

Source: Energy & Management Powernews, April 25, 2022

With several measures, the German government wants to promote citizen participation in the expansion of renewable energy plants. They are included in the Easter package of the Federal Ministry of Economics.

According to the coalition agreement, the traffic light government wants more diversity of actors for the energy transition. Also for the higher acceptance of wind turbines and Photovoltaik(PV) modules therefore locally acting citizen energy companies are to get better conditions. State Secretary at the German Federal Ministry of Economics and Technology (BMWK), Sven Giegold, explained, "In our Easter package, we exempted citizen energy companies from tendering obligations for small and medium-sized wind and PV projects." He added that this was possible within the framework of EU state aid rules.

In addition, citizen wind projects would be relieved of the high planning costs with a subsidy. "Only successful projects pay back the subsidies to the state," Giegold explained. The costs for the planning and approval phase of onshore wind turbines are subsidized. Eligible measures include all measures in the preliminary planning of a project. These include 

  • feasibility studies, 
  • site analyses and 
  • economic feasibility calculations as well as 
  • other necessary expert opinions that contribute to the realization of the wind turbines. 

Up to 200,000 euros for project planning

The funding program is aimed at citizen energy companies, as defined by paragraph 3 number 15 EEG 2023. To avoid straw man constructs, as there were some years ago, are the societies, which consist of at least ten natural persons as voting members or voting shareholders, in which at least 51% of the voting rights are with natural persons, who have their reported main residence in the location county or city district for at least one year before the bid submission according to the bid. In addition, for corporations, no member or shareholder may hold more than 10% of the voting rights. 

This also applies to legal entities or partnerships. The project may comprise a maximum of six onshore wind turbines with a total installable capacity of not more than 18 MW. The planned subsidy amount is up to 70% of the costs for planning and approval of wind energy projects, but not more than 200,000 euros as a maximum subsidy limit under the de minimis regulation within three fiscal years. 

According to the bill, the subsidy is mandatory repayable if an EEG subsidy has been registered or if an award has been made in an EEG tender procedure. The bill goes to the Bundestag in May and could also pass the Bundesrat in June. In this case, the subsidy directive should start in the third quarter of 2022.

Author: Susanne Harmsen