On 29 July 2026, the federal government adopted two draft bills that could mean substantial changes for wind energy projects from 1 January 2027: the draft of the Renewable Energy Sources Act (Erneuerbare-Energien-Gesetz) 2027 (EEG 2027 (draft)) and the draft of the so-called Grid Package (Netzpaket). Wind farm operators can still use the upcoming parliamentary process to engage with policymakers and advocate for their interests.
The proposed legislation aims to bring the expansion of renewable energy more into line with market conditions and actual grid requirements. At the same time, there is also a need for action from an EU state aid perspective, as Commission approval of the current EEG subsidy regime expires at the end of 2026. Rather than simply updating the existing framework, the federal government is using this opportunity to implement a structural reform of the renewable energy subsidy regime.
Redispatch reservation: Restriction of compensation in grid areas with limited capacity
The redispatch reservation is one of the key elements of the draft Grid Package. Operators currently receive financial compensation when the power generation of their installations is curtailed as a result of redispatch measures. The amount of compensation is based on the notional volume of electricity that would otherwise have been fed into the grid. The draft bill proposes to limit this compensation. Grid operators may designate substations and connecting line sections as grid areas with limited capacity for up to six years if active power generation from connected installations was reduced by more than 5% in the preceding year (section 14(1d) Energy Industry Act 2027 (draft) (Energiewirtschaftsgesetz2027 Entwurf, “EnWG 2027 (draft)”)). The designation must be notified to the Federal Network Agency (Bundesnetzagentur) and published together with an explanation of the underlying reasons.
Grid operators will still be required to offer installation operators a grid connection agreement without undue delay for new installations in designated areas. However, operators will have to waive their entitlement to compensation for redispatch measures (section 8(4), sentence 3 EEG 2027 (draft)). This waiver is capped at 20 % of annual electricity production. For onshore wind turbines situated in acceleration areas under section 2, no. 1 Wind Energy Area Requirements Act (Windenergieflächenbedarfsgesetz), the cap is reduced to 18 %. Installation operators remain entitled to compensation for curtailments exceeding these thresholds. Once the six-year designation period ends, the grid operator’s obligation to pay compensation is reinstated in full. Where the conditions for designation continue to be met, the waiver will be extended once by up to 18 months, provided that the grid operator bears no responsibility for the delay in grid expansion (section 13a(6) EnWG 2027 (draft), section 8(4) EEG 2027 (draft)). If the grid connection point had already been determined before the designation, the connection obligation – and the obligation to pay redispatch-related compensation – will continue to apply in full. It is unclear, however, when exactly a grid connection point is deemed to have been determined (e.g., when the connection is reserved).
Whether this provision will survive the parliamentary process remains to be seen. The earlier ministerial draft, which already contained the redispatch reservation, attracted significant criticism from industry stakeholders. While the current bill contains a watered-down version of the proposal, concerns remain about its compatibility with EU law, in particular the Electricity Market Regulation ((EU) 2019/943).
- Practical implications: Where projects are located, when the grid connection point is determined and whether a grid area is limited in capacity will all become much more important under the proposed framework. Installation operators and investors should factor potential revenue losses from a waiver of redispatch compensation into their financing structures and PPA pricing at an early stage. This may prove challenging in practice, however, as areas can only be designated as limited in capacity if capacity restrictions occurred in the previous year, whereas wind energy projects typically require substantially longer development lead times.
New “peak shaving” rules for system-friendly grid connections
The federal government’s draft makes the grid connection entitlement under section 8 EEG subject to a new peak-shaving mechanism from 1 January 2027. The maximum connectable capacity will be limited to 280 W/m² of rotor swept area at the grid connection point, which for larger wind turbines means a reduction to roughly 70 % of active power. The restriction is to apply irrespective of whether the relevant grid connection area is affected by capacity constraints.
If adopted in its current form, the proposal would substantially restrict the existing feed-in guarantee and create considerable uncertainty for investors. The draft also raises potential constitutional concerns because it ties the new restriction solely to the date of actual grid connection and would therefore also impact projects that have already obtained both the necessary approval and an EEG award, but have not yet been connected to the grid. Investments already made in project development would therefore be called into question retrospectively.
- Practical implications: Installation operators and investors are well advised to engage with the parliamentary process at an early stage to ensure that their interests are adequately represented. Should the provision enter into force, an early dialogue with the relevant grid operator is recommended, as grid operators may voluntarily continue to connect installations at full capacity.
EEG subsidy regime: new clawback mechanism for high electricity prices
While the EEG 2027 (draft) retains the market premium model for subsidised direct marketing, it adds a clawback mechanism based on a two-way contract for difference (CfD). Under the new regime, if the annual market value exceeds the installation’s reference value, operators will be required to make a refinancing contribution to the grid operators (section 21d EEG 2027 (draft)). The contribution is calculated annually on a retrospective basis and corresponds to the difference between the actual annual market value and the reference value determined in the auction process. In periods of low market prices, a cap applies (spot market price less a technology-specific minimum revenue amount, Annex 1, no. 4.1 EEG 2027 (draft)). The payment obligation applies across all technologies to installations with an installed capacity of 100 kW or more, regardless of whether they receive a market premium under the direct marketing model or participate in another form of direct marketing.
- Practical implications: The clawback mechanism only applies to installations that receive subsidies under the EEG. Operators should therefore decide at an early stage whether they intend to claim such subsidies. The draft provides for a one-time opt-out only: The payment obligation ceases to apply if the operator waives the market premium no later than by the end of the tenth calendar year following the commissioning of its installation (section 21e, sentence 2 EEG 2027 (draft)). Once that decision has been made, switching between EEG subsidies and purely market-based participation is no longer possible. While opting out exposes operators to the full revenue risk for the remainder of the subsidy period, it also allows them to take full advantage of market opportunities.
Increased auction volume
The draft provides for an additional auction volume of 12 GW between 2027 and 2032 (section 28 EEG 2027 (draft)). In total, auctions would cover 15 GW of installed capacity in both 2027 and 2028, 10 GW in 2029, and 12 GW per year from 2030 to 2032.
Municipal participation: higher levy, but limited reimbursement
Section 6 EEG 2027 (draft) adjusts the framework for the financial participation of municipalities hosting wind energy projects. In future, their share will be based on the amount of electricity actually generated as opposed to fed-in electricity and notional electricity volumes as under the current regime. This means that electricity used on-site or stored before being fed into the grid will also count towards municipal participation payments. At the same time, the maximum participation payment will increase from 0.2 to 0.3 ct/kWh (section 6(2) and (3) EEG 2027 (draft)).
- Practical implications: Reimbursement from the EEG subsidy account remains capped at 0.2 ct/kWh and continues to apply only to electricity fed into the grid, not to the volume of electricity generated (section 6(5) EEG 2027 (draft)). Installation operators must bear the 0.1 ct/kWh difference for electricity fed into the grid, as well as all municipal participation payments attributable to electricity that is not fed into the grid, such as self-consumed or stored electricity.
Cap on lease payments for wind energy sites
For the first time, section 36d EEG 2027 (draft) caps the fee that operators of onshore wind turbines may pay to landowners or other parties holding rights to use the land. For the year of commissioning and each of the following 19 years, the total fee payable for the turbine site, ancillary installations located within a 2,500-metre radius of the turbine hub, and the statutory setback areas may not exceed 3.5 % of the product of the site-specific yield and the reference value. Any payments made before the installation is commissioned will be spread evenly over the 20-year period. When submitting a bid in an EEG auction, operators must declare that their lease payments do not exceed the cap. Contracts providing for fees in excess of the cap will nevertheless remain valid. If there are indications that the cap has been exceeded, the grid operator may review compliance and request submission of an auditor’s certificate. If the cap is exceeded, a penalty of EUR 50 per kW of installed capacity is payable for each calendar year (section 53a EEG 2027 (draft)). The penalty becomes payable from the year in which the breach is identified and remains payable until compliance has been verified by means of an auditor’s certificate. Excluded from the regime are, in particular, installations benefiting from the subsidy opt-out under section 21e EEG 2027 (draft) and installations awarded a contract before 1 January 2028.
- Practical implications: For the purpose of assessing compliance with the 3.5 % cap, all payments must be taken into account on an aggregate basis, including lease payments, fees for ancillary installations, fees for setback areas and one-off payments. If the cap is likely to be exceeded, operators should consider approaching the lessor at an early stage, assuming the current draft is enacted in its present form. The penalty for the year in which the breach occurred cannot be cured retroactively and continues to accrue until compliance has been demonstrated by means of an auditor’s certificate. Operators are therefore strongly advised to conduct annual compliance monitoring.
Construction cost contribution
Under section 17 EEG (draft), grid operators may require grid users to make a reasonable construction cost contribution towards the partial financing of grid optimisation, reinforcement and expansion measures. Such contributions may only be imposed following a determination by the Bundesnetzagentur (section 29 EnWG), which may specify lump-sum amounts or region-specific rates.
- Practical implications: Construction cost contributions can have a significant impact on the economics of wind energy projects. Depending on how the mechanism is applied regionally, sites that place less strain on the grid may become less costly, whilst those that increase grid load may become more expensive. The projected contribution should therefore be factored into site assessments and economic feasibility studies at an early stage.
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