Alterric Criticizes EEG Amendment and Grid Connection Package – Wind Industry Warns of Increased Regulation at Expense of Competition

Aurich/Berlin – Following the cabinet's approval of the 2027 EEG amendment and the grid connection package, wind farm developer Alterric has warned of a fundamental shift in course for renewable energy expansion in Germany. According to the company, the planned regulations shift control over new wind energy projects away from the competitively organized market and toward regulated grid operators, increasing investment risks for project developers.

The criticism reflects a fundamental policy conflict. The German government intends to steer renewable energy expansion more strongly through regulated grid operators going forward. The wind industry, however, fears that state intervention and regulatory requirements will weaken competition as a driver of investment and innovation, slowing the pace of expansion.

Alterric Criticizes: Grid Connection Package Changes Investment Conditions

The criticism centers on planned rules governing capacity-limited areas and so-called system-serving connection capacity (SAL). According to Alterric, both instruments fundamentally alter the framework for investment in new wind farms. While project developers have so far generally been able to rely on a statutory right to grid connection, new wind energy projects are in future to align much more closely with available grid capacity.

The government has softened the cabinet draft in several respects compared with earlier versions, shortening the maximum duration for designating capacity-limited areas and limiting compensation-free curtailment. Alterric considers these changes insufficient. The company fears greater planning uncertainty, is calling for mandatory prior review of such area designations by the Federal Network Agency (Bundesnetzagentur), and has criticized the planned January 1, 2027 start date for system-serving connection capacity as impractical. Alterric took a more favorable view of planned relief measures for co-location projects, while calling for faster, more digitalized grid connection procedures.

EEG Amendment: More Tenders, Criticism of Market Design

Alterric's assessment of the EEG amendment is similarly mixed. The company welcomed the planned 12 GW increase in the onshore wind tender volume as well as further development of the reference yield model. It was more critical of the planned two-sided contracts for difference (CfDs) without a market value corridor, the absence of statutory support for long-term power purchase agreements (PPAs), and the planned cap on lease payments at 3.5 percent of plant revenues. According to the company, these provisions could complicate investment and slow the availability of land for new wind energy projects.

The parliamentary legislative process now begins following the cabinet decision. The federal government is aiming to complete the process within 2026, as EU state aid approval for the EEG expires at the end of the year. Alterric has appealed to the Bundestag and Bundesrat to substantially revise the planned provisions during the further legislative process.

Source: IWR Online, 31 Jul 2026