Friday, February 8, 2013

Germany EEG distribution data shows regressive character of feed-in tariff

The German Energy Blog reports that the richest state in Germany is the largest net benefactor of the renewables' feed-in tariff (FIT) scheme.
While Germany's richest states lament the transfer of funds to poorer jurisdictions (particularly the capital city-state), Bavarians look to be more than compensated by the transfer of wealth from electricity ratepayers to their feed-in contract recipients, presumably primarily wealthier landowners.
The largest loser in the renewables game is, predictably, the most densely populated state of North Rhine-Westphalia (NRW).
Bavaria regularly has periods where solar output exceeds demand, yet solar only supplies about 8% of it's annual demand, while nuclear power currently supplies over 50%.  Despite the transfer of wealth to wealthy Bavarian solar FIT holders, greenhouse gas emissions won't be positively addressed as natural gas use in the generation of electricity is expected to soar due to the nuclear phase-out.

BDEW: Bavaria Greatest Receiver of EEG Tariff Payments, NRW Greatest Payer « German Energy Blog:

Latest data on feed-in tariffs payments for renewable power plants eligible for financial support under the Renewable Energy Sources Act (EEG) showed strong differences between the sixteen federal states. Renewable power plant owners in Bavaria received the highest payments, while consumers in the densely populated state of North Rhine-Westphalia (NRW) had to bear the highest EEG surcharges on the electricity prices, the Federal Association of the Energy and Water Industry (BDEW) informed."
Bavarian renewable power plant owners received approximately EUR 3.5 billion in feed-in tariff payments pursuant to the EEG, while Bavarian electricity payers (only) had to pay EEG surcharges added to the electricity costs amounting to EUR 2.3 billion in total. Hence the surplus amounted to EUR 1.2 billion (2011: EUR 950 million).
In contrast, renewable power plant owners in NRW got payments of less than EUR 1.3 billion, while the state’s electricity consumers paid more than EUR 3.1 billion in EEG surcharges (covering the difference between the fixed EEG payments and the sale of the renewable energy at the energy exchange by the transmission operators). Electricity consumers in the state of NRW therefore paid EUR 1.8 billion in support of renewable energy to other states, BDEW pointed out.
Continue Reading at the German Energy Blog

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