BERLIN (dpa-AFX): The Association of Municipal Utilities (VKU) is calling for a statutory limit on land lease rates for wind energy turbines within the Renewable Energy Sources Act (EEG). "Developments in the land market have spiraled out of control," stated Ingbert Liebing, Managing Director of the VKU. The sharp rise in lease prices over recent years threatens the economic viability of projects and, consequently, the expansion of renewable energy. Municipal utilities and other long-term market participants are increasingly being left at a disadvantage.
According to the VKU, competition for suitable sites has led to a surge in lease demands in recent years. "When landowners demand up to 30 percent of revenue, it is neither sustainable nor economically sensible. Ultimately, these costs are borne by the general public through the federal budget," Liebing continued.
Benchmark Proposal: Three to Five Percent of Wind Farm Revenue
In a position paper, the VKU suggests a potential benchmark of three to five percent of a wind farm's annual revenue.
The association pointed to an agreement in the coalition contract between the Union and SPD, which states: "We will limit the permissible level of land leases for plants subsidized under the EEG." The VKU argues that any legal regulation must be nuanced and legally secure. "A flat cap falls short. We need a solution that accounts for regional differences and continues to enable investment," said Liebing. Basing the cap on local revenue is therefore the correct approach.
The VKU represents more than 1,600 municipal utilities and local government-owned companies in the sectors of energy, water/wastewater, waste management, and telecommunications./tob/DP/zb
