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Tender law was delayed as parties were split on details

Agreement was for 4 GW wind and 4 GW solar by 2020

Coalition also confirms 65% RES by 2030 target

London — Germany's coalition parties agreed to pass the law for 8 GW additional wind and solar tenders this October after months of debate about the details for the subsidized measures.

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Additional tenders for 2019 and 2020 were first included in the coalition treaty in February but with the caveat that the grid needs to be able to absorb the additional capacities, leading to speculation the tenders would get delayed because of slow progress on the grid expansion.

In a framework agreement between party leaders reached overnight into Tuesday, mainly focused on the diesel car compensation compromise, the coalition parties agreed to "quickly realize" the additional tenders with details to be passed by cabinet before the end of October.

It follows appeals by wind lobby groups warning of a sharp slowdown in wind turbine growth in 2019 and 2020 as fixed feed-in-tariffs end this year.

The measures would add 4 GW onshore wind and 4 GW ground-based solar projects to the already planned 6 GW of tenders for 2019 and 2020, it said.

It also includes an as yet undefined contribution by offshore wind maximizing already available onshore grid links before 2025.

In total, the additional renewables would reduce Germany's CO2 emissions by 8-10 million mt/year, the statement said adding that this would help to reduce the gap to the 2020 climate targets, which were scrapped in February.

The new statement also eased the grid caveat saying "more attention will be paid to a better synchronization between grid and renewables expansion" as well as promising measures to improve "public acceptance of onshore wind" amid planning delays for new projects due to new spatial planning rules.

The coalition parties also confirmed the higher 65% target for renewables' share in the power mix by 2030 to be made legally binding.

Chancellor Angela Merkel's coalition of CDU/CSU and SPD has struggled to progress any policies this year amid internal strife ahead of regional elections in the CSU's core region of Bavaria on October 14 with migration and the diesel compensation issue dominating the political debate.

--Andreas Franke, andreas.franke@spglobal.com

--Edited by Maurice Geller, maurice.geller@spglobal.com