September 28 (Renewables Now) - The European Commission (EC) on Tuesday approved three measures Germany is planning to introduce to support green electricity production through more market-oriented mechanisms.
The additional measures include a change from a fixed to a sliding market premium for innovation tenders that should prevent overcompensation of power producers in times of high electricity prices; the introduction of financial incentives that should encourage consumers to invest in small rooftop solar installations and feed electricity into the grid; and an additional round of ground-mounted and rooftop solar tenders in 2022.
With the third measure, Germany plans to offer a revised mechanism and more competitive terms of the tenders after the two rounds of auctions for ground-mounted and rooftop solar this year were undersubscribed.
After assessing the planned measures, the EU regulator concluded that the aid is necessary and appropriate to support green electricity generation and its positive effects outweigh its negative impact on competition, the Commission said on its website.
"The new measures will prevent overcompensating producers in times of high electricity prices and help increase grid stability by, for example, maximising the contribution from small rooftop solar panels," said Executive Vice-President Margrethe Vestager.
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