Photo: Dr. Klaus-Peter Krause. Source: freiewelt.net
Today at the Freie Presse here economics expert and veteran journalist Dr. Klaus-Peter Krause slams the EEG act, saying “it belongs in the dustbin”: “Too expensive, and too unstable.”
Increasingly as energy poverty in Germany mounts, companies close their factories due to soaring electricity prices, power supply becomes too unstable, and one renewable energy company after another bite the dust, the pressure for the government to scrap renewable energies is growing. Yet the German government obstinately refuses to admit it the act is mortally flawed.
Krause writes that although the share of renewable energy in Germany’s energy-mix has increased, “it has done so at an enormous cost.” According to Krause the costs of the feed-in subsidies have risen form €883 million per year in 2000 to a whopping €23 billion in 2013. Meanwhile over the same period the share of renewable energy rose from 7% to 23%.
Worse, Krause writes that the EEG law has done nothing to reduce CO2 emissions across Europe. Germany’s coal consumption has actually risen over the last few years. “The EEG has not delivered more climate protection, rather only higher electricity costs.” Krause cites Prof. Helmut Alt of the University of Aachen, who calls the EEG act “the most gigantic subsidy law of the postwar period.”
Krause also believes that the EEG act is dividing the country:
The EEG act has created a two-class society of those exploiting the act, and the losers. Those exploiting it are going all out in securing their financial advantage.“
Krause ends by quoting a government official who wishes not to be named:
The EEG must be regarded as an instrument of abuse by state power and especially contradicts the social-civic responsibility of the legislators.”
Dr. Klaus-Peter Krause studied economics in Kiel und Marburg and was an editor for the Frankfurter Allgemeine Zeitung from 1966 to 2001. He has been an independent journalist, publicist and author since 2004.