The EEG levy (Renewable Energy Sources Act levy) is a financial instrument that was introduced in Germany to promote renewable energies. Its main aim is to support the expansion of wind, solar and biomass plants and to drive forward the energy transition. This levy is paid by electricity consumers and is added to the electricity price. It is a key component of the cost structure for households and companies and therefore has a direct impact on the competitiveness of the economy.

In Germany, the EEG surcharge is set annually and is based on the cost of feed-in tariffs and the amount of renewable energy fed into the grid. The more renewable energy is fed into the grid, the higher the surcharge can be, as the subsidy costs increase. In recent years, the growing share of renewable energy in the electricity mix and the falling costs for its production have also led to some adjustments that have reduced the surcharge.

Although the EEG surcharge is only levied directly in Germany, it also has an impact on the European energy market. Austria, which is highly dependent on hydropower, benefits indirectly from developments in Germany. A reduced EEG levy can strengthen the competitiveness of German industry and thus also influence the Austrian market, as both countries are strongly interlinked and operate in a common electricity market.

The European electricity market is characterised by the exchange of electricity between the member states, and the EEG surcharge can therefore also influence import and export relationships between Austria and Germany. In addition, Austria has developed its own approaches to financing and promoting renewable energy through its own legal framework for promoting renewable energy.

The challenges and opportunities arising from the EEG levy and its impact on the energy market will continue to play an important role in the coming years, particularly in the context of the European climate targets. A well-regulated and flexible electricity market is crucial to the success of the energy transition in Europe. The exchange of best practices and a joint approach can help to drive forward the integration of renewable energies and secure the region's energy supply in the long term.