News / Economy

Green Energy Expansion in Germany Comes at a Hefty Price

FILE - Wind turbines produce green energy in Nauen near Berlin, Germany.
FILE - Wind turbines produce green energy in Nauen near Berlin, Germany.
Ana Hontz-Ward
Germany is one of the top producers of renewable energy in the world. Since the year 2000 the country’s production of clean electricity jumped from a modest 6 percent to 25 percent last year in an effort to shift the German economy from nuclear power and fossil fuels towards wind and solar energy. Despite the progress, German consumers pay among the highest electricity prices in the European Union.  

Lissy Ishang started turning off appliances to save energy when she moved away from home a decade ago. Back then, Lissy’s family was paying half the price Germans pay today for electricity and this year German consumers are expected to pay even more.
 
Today an average family of four in Germany spends about $107 a month for electricity. This year, their monthly bill will be $129, almost three times more than a family in the United States.
 
“I always make sure that things are turned off when I leave home. I pull plugs and shut down appliances. I am trying to be careful how much we use because electricity is really, really expensive,” Ishang said.

The price hike is due to an increase in the Renewable Energy Surcharge. The surcharge is one of many government fees, taxes and subsidies that are passed on to average consumers and fund Germany’s renewable energy sector.
 
Niels Schnoor is a policy officer with the Federation of German Consumer Organizations in Berlin. He said Germany’s aggressive expansion into green energy, expensive off shore wind farms and generous subsidies will continue to drive up energy prices.
 
“Partly, the high energy prices are due to mistakes made by the government. If we had focused from the very beginning on the cheap technologies maybe the energy prices would not be as high as they are at the moment,” said Schnoor.
 
A recent government study found that eight percent of Germany’s electricity comes from wind farms, mostly in Northern Germany and the North Sea where winds are strong. Over four percent comes from solar energy, especially from Southern Germany and Bavaria where many homes and public buildings are covered with solar panels. The rest of the renewable energy is generated by hydropower, biofuels and biomass plants.

Paul Hockenos is an energy expert and journalist based in Berlin. He said building a green energy infrastructure like wind and solar parks, is expensive but once in place, Germans can expect not just lower prices but also greater energy independence.
 
"Don’t forget, what Germany is doing right now. It’s changing its power supply. The last time when an energy supply was changed was the industrial revolution; this is something that has never been done before. And Germany is not any country when it comes to heavy industry and exports power. Yes, there are price increases but Germany is still competitive on the international market," he explained. "Last year it exported more goods than it did in its history, it also exports electricity.”
 
In the aftermath of the Japanese tsunami and Fukushima disaster in 2011, Chancellor Angela Merkel renewed Germany’s pledge to abandon nuclear power and shut down eight of its 17 nuclear reactors. Germany plans to completely phase out its nuclear energy production in the next decade.

The government’s goal is that by 2050, 80 percent of electricity will come from renewable sources. Niels Schnoor said that will be possible only if Germany abandons its costly approach for a more cost effective green energy industry.
 
“We need a new start, we have to focus on the very cost effective technologies which in my opinion are wind power and solar power. We don’t need other technologies, other renewable in order to achieve the goals of the energy transition in Germany,” Schnoor stated.
 
Some would say Germany’s transformation from a fossil fuel to a green economy is a success. But consumers and industries have found the transition to an alternative source of energy has come at a hefty price. Peter Altmaier, the German minister of the environment, says the total cost of the energy transition in Germany will eventually amount to $1.3 trillion.

You May Like

Multimedia Obama, Modi Break Nuclear Deal Deadlock

Impasse over liability issues had been stalling bilateral civilian nuclear cooperation; deal reached at start of US president's three-day visit to India More

WHO's Late Efforts in Tackling Ebola Highlight Need for Reform

Health experts debate measures to reform agency’s response to global public health emergencies in special one-day session on deadly outbreak More

One Tumultuous Year in Power for CAR's President

As sectarian violence raged across Central African Republic, interim President Catherine Samba-Panza has Herculean task: to end civil war and put country back on right track More

This forum has been closed.
Comment Sorting
Comments
     
by: Takahshi Minamin from: AKB, Tokyo
February 28, 2014 9:00 PM
New technology will expand when that is cheap and reliable, but these renewable energy such as wind turbines and solar power are hight cost due to low energy efficiency and they depend on weather condition.


by: Ray Del Colle
February 26, 2014 10:22 AM
"The cost of clean energy has dropped dramatically in recent years — even faster than experts expected.


by: Bob Wallace
February 25, 2014 8:03 PM
Germans pay about the same per kWh as people in New York and Connecticut for electricity and distribution. Less than people in Hawaii.

Added on to German's electricity bill is a stack of tax. Taxes that go to the general fund and to cover renewable subsidies.

In the US we pay those taxes via income tax.



Let's look at how costs break out for retail customers in Germany...

In 2013 the average household electricity rate is about 29 € cents / kWh according to the BDEW (Energy industry association).

The composition:

8.0 cent - Power Generation & Sales
6.5 cent - Grid Service Surcharge

5.3 cent - Renewable Energy Surcharge
0.7 cent - Other Surcharges (CHP-Promotion, Offshore liability,...)

In addition there are some taxes & fees that go straight into the governments budget:

2.1 cent - EcoTax (federal government)
1.8 cent - Concession fees (local governments)
4.6 cent - Value added tax (19% on all of the above) - (federal, state & local governments)

So 8 + 6.5 or 14.5 euro cents go to electricity purchase and delivery. About 19 US cents. That's higher than the US 12.5 cent average, but less than a penny higher than New York and Connecticut.


by: Brunswig from: Harvard
February 25, 2014 12:31 PM
it is always amazing to see how idiotic Leftist propaganda infect so called "enlightened" nations... I am still waiting to hear the Left proclaim the benefits of Eugenics and the extermination of undesirables... you think i am kidding..?? who will be the "undesirables" this time, I wonder...

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Worldwide Photo Workshops Empower Youthi
X
Julie Taboh
January 23, 2015 11:08 PM
Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video Worldwide Photo Workshops Empower Youth

Last September, 20 young adults from South Sudan took part in a National Geographic Photo Camp. They are among hundreds of students from around the world who have learned how to use a camera to tell the stories of the people in their communities through the powerful medium of photography. Three camp participants talked about their experiences recently on a visit to Washington. VOA’s Julie Taboh reports.
Video

Video US, Japan Offer Lessons as Eurozone Launches Huge Stimulus

The Euro currency has fallen sharply after the European Central Bank announced a bigger-than-expected $67 billion-a-month quantitative easing program Thursday - commonly seen as a form of printing new money. Henry Ridgwell reports for VOA from London on whether the move might rescue the eurozone economy -- and what lessons have been learned from similar programs around the world.
Video

Video Nigerian Elections Pose Concern of Potential Conflict in 'Middle Belt'

Nigeria’s north-central state of Kaduna has long been the site of fighting between Muslims and Christians as well as between people of different ethnic groups. As the February elections approach, community and religious leaders are making plans they hope will keep the streets calm after results are announced. Chris Stein reports from the state capital, Kaduna.
Video

Video As Viewership Drops, Obama Puts His Message on YouTube

Ratings reports show President Obama’s State of the Union address this week drew the lowest number of viewers for this annual speech in 15 years. White House officials anticipated this, and the president has decided to take a non-traditional approach to getting his message out. VOA White House correspondent Luis Ramirez reports.
Video

Video S. Korean Businesses Want to End Trade Restrictions With North

Business leaders in South Korea are calling for President Park Geun-hye to ease trade restrictions with North Korea that were put in place in 2010 after the sinking of a South Korean warship.Pro-business groups argue that expanding trade and investment is not only good for business, it is also good for long-term regional peace and security. VOA’s Brian Padden reports.
Video

Video US Marching Bands Grow Into a Show of Their Own

The 2014 Super Bowl halftime show was the most-watched in history - attracting an estimated 115 million viewers. That event featured pop star Bruno Mars. But the halftime show tradition started with marching bands, which still dominate the entertainment at U.S. high school and college American football games. But as Enming Liu reports in this story narrated by Adrianna Zhang, marching bands have grown into a show of their own.
Video

Video Secular, Religious Kurds Face Off in Southeast Turkey

Turkey’s predominantly Kurdish southeast has been rocked by violence between religious and secular Kurds. Dorian Jones reports on the reasons behind the stand-off from the region's main city of Diyarbakir, which suffered the bloodiest fighting.
Video

Video Kenya: Misuse of Antibiotics Leading to Resistance by Immune System

In Kenya, the rise of drug resistant bacteria could reverse the gains made by medical science over diseases that were once treatable. Kenyans could be at risk of fatalities as a result if the power in antibiotics is not preserved. Lenny Ruvaga has more on the story from Nairobi.
Video

Video Solar-Powered Plane Getting Ready to Circumnavigate Globe

Pilots of the solar plane that already set records flying without a drop of fuel are close to making their first attempt to fly the craft around the globe. They plan to do it in 25 flying days over a five month period. VOA’s George Putic reports.
Video

Video How Experts Decide Ethiopia Has the Best Coffee

Ethiopia’s coffee has been ranked as the best in the world by an international group of coffee connoisseurs. Not surprisingly, coffee is a top export for the country. But at home it is a source of pride. Marthe van der Wolf in Addis Ababa decided to find out what makes the bean and brew so special and how experts make their determinations.
Video

Video Yazidi Refugees at Center of Political Fight Between Turkey, Kurds

The treatment of thousands of Yazidis refugees who fled to Turkey to escape attacks by Islamic State militants has become the center of a dispute between the Turkish government and the country's pro-Kurdish movement. VOA's Dorian Jones reports.
Video

Video World’s Richest 1% Forecast to Own More Than Half of Global Wealth

The combined wealth of the world's richest 1 percent will overtake that of the remaining 99 percent at some point in 2016, according to the anti-poverty charity Oxfam. Campaigners are demanding that policymakers take action to address the widening gap between the ‘haves’ and the ‘have nots’, as Henry Ridgwell reports for VOA from London.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid

World Currencies

EUR
USD
0.8930
JPY
USD
117.98
GBP
USD
0.6673
CAD
USD
1.2445
INR
USD
61.498

Rates may not be current.