The General Court of the European Union has today declared that the German Renewable
Energy Sources Act from 2012 (EEG 2012) involves State Aid. The court’s decision thus
confirms the view of European Commission as expressed in November 2014. The Federal
Republic of Germany argued for annulment and against this view. In its reasoning, the court
stresses the exemptions for the heavy industry, which is exempt from paying the EEG
surcharge, and similarly confirms the view of the Commission that the German support
mechanism makes use of state resources. Still, the court recognizes that the support
mechanism for renewables can be designed in a way that does not involve State Aid.
Dr. Dörte Fouquet, Managing Director of the European Renewable Energies Federation
(EREF), believes the impact of the decision is limited: “Today’s ruling has no implications for
the current Renewable Energy Sources Act and renewable energy producers. The current
legislation for supporting renewable energy has already been deemed compatible with the
internal market by the European Commission.”