Effect of electricity taxes on renewable energy business models in Germany

Arepo, in cooperation with FÖS and IZES, analysed tax deficits resulting from tax reductions for electricity produced for own consumption and electricity transfer in spatial context (§ 9 Abs. 1 Nr. 1 and 3 of the electricity tax law) and calculated impacts of a possible additional electricity tax on electricty production for own consumption with renewable energies and cogeneration of heat and power. The client was the Federal Ministry of Finance Germany.

The main tasks of Arepo were the presentation of the support for renewables and cogeneration of heat and power in Germany, the calculation of scenarios for the cost effectiveness of investments in photovoltaics, wind and hydropower and the formulation of options how to administer the additional tax.