The act introduces the use of auctions for selecting onshore wind installations above 750kW, offshore wind, and other renewable electricity projects that will be eligible for aid.
The German government notified the new arrangements to the EC for assessment under EU state aid rules in July 2016.
The EC indicated that it preferred auctions in which all types of renewables technology competed against each other. But noted that Germany had "demonstrated that specific auctions of each technology would ensure a more cost-efficient result" due to particular conditions of the country’s electricity market.
Germany has to take targeted actions to deal with grid instability and renewables integration issues, "which could only be implemented effectively if auctions for offshore wind, onshore wind and solar energy are kept separate," the Commission said.
The first evaluation report on the effectiveness of the auction schemes is scheduled for June 2020.