Tuesday, October 15, 2013

German Renewables Surcharge Increases by 19%

Germany's "renewables surcharge" will go up almost 20% for 2014, despite the combined output from wind and solar generators reportedly being lower over the first 9 months of the year.

German Renewables Surcharge Increases by 19% to 6.24 ct/kWh in 2014 | German Energy Blog:
The renewables surcharge will amount to 6.24 ct/kWh in 2014. This is an increase of 19.38% from the 5.227 ct/kWh in 2013.
With the renewables surcharge pursuant to the Renewable Energy Sources Act (EEG), the so-called EEG surcharge, consumers pay for the difference between the fixed feed-in tariffs paid pursuant to EEG for renewable energy fed into the grids and the sale of the renewable energy at the EEX energy exchange by the TSOs. According to data by the TSOs renewable energy renewable energy fetched on average 32.99 EUR/MWh in September.
Continue reading at the German Energy Blog

Wind is down, but solar is up - partly explaining the rise.  Elsewhere some of the blame for the latest increase is being placed on the growing number of electricity consumers exempt from paying the surcharge, and the simple fact that wholesale market pricing is down (much of the EEG being the difference between contracted rates with suppliers and the sale price on the market)

German renewables surcharge unofficially announced | Renewables International
German consumers will probably be more concerned about a different price hike anyway. This week, consumer advocates announced that heating prices (oil and natural gas) are expected to rise by a whopping 16-18% this winter. Keep in mind that low fossil fuel prices are not a goal of the Energiewende – more renewables and efficiency are. (Craig Morris)
Efficiency can be a funny word (ie. Germany blocks EU car emissions law | the Guardian )

I've yet to see an explanation of how much of the increase will be due to reimbursing generators that are prevented from closing - but it seems likely the key drivers of the latest increase in Germany's renewables surcharge are grid stability, market instability/destruction, more exemptions, and more capacity payments.

related original content blog: Electricity Sector Lessons from Ontario and Germany | Cold Air

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