Virtual study tour : The German Energy Transition Act

A virtual study tour was organised on 5 May 2021 to facilitate an exchange between the Algerian Ministry for Energy Transition and Renewable Energies (MTEER), German Ministry of Economics and Energy (BMWi), the Algerian Commission for Regulation of Electricty and Gas (CREG), the German Corporation for International Cooperation (GIZ) and the German Energy Agency (DENA) on renewable energy governance.

The main objective of this specific event was to present a detailed overview of the similarities and differences between the Algerian and German electricity market design. In addition, regulation and tendering mechanisms as well as direct marketing for renewable energy projects were discussed.

DENA experts explained the basis of the German Renewable Energy Act (EEG) and its role in the deployment of renewable energies. This law was inaugurated twenty years ago in the year 2000.

Since then, German electricity production and market has undergone a process of liberalisation, which has led to a division of labour between the different players. Today there are several system operators covering different regions, a regulatory agency, a spot market and a futures (options) market. This law provides measures for the deployment of renewable electricity in an efficient and safe way based on :

  • Guaranteed access to the network and priority allocation for renewables
  • An annual corridor for the built-up of each technology (wind, solar etc.)
  • Payment: from feed-in tariffs in the beginning to auctions today
  • An EEG supplement paid by all consumers to offset support costs
  • Regular monitoring and evaluation by state agencies