According to German online business daily Handelsblatt here, German electricity are set to get significantly more expensive in 2019 due to the power grid becoming 8 percent more expensive to use. This will make already painfully high electricity prices even more excruciating.
The Handelsblatt cites calculations by German think tank “Agora Energiewende”, which reports that revenues for the network operators total 24 billion euros this year.
According to Agora, “Costs previously referred to as grid costs are expected to rise by a total of six to eight percent.” For household customers the grid already amounted to 7.17 cents per kilowatt hour in 2018, which compared to 6.79 cents per kilowatt hour levied for the renewable energy feed in tariffs. This year it was 6.41 cents.
According to the Handelsblatt, “The EEG levy and grid fees thus add up to amounts of over 50 billion euros” annually. The rising grid fees are due to “massive investment in grid expansion to integrate renewable energies into the grid”. And because Germany’s Energiewende (transition to green energies) still finds itself in the early stages, the costs are projected to keep rising.
In Germany, electricity prices of around 30 cents per kilowatt hour for private consumers are among the most expensive worldwide, and are in fact “the highest in Europe” Handelsblatt reports.
What is especially warped about Germany’s electricity market is that one kilowatt-hour of electricity “is available in wholesale for less than five cents”, reports the Handelsblatt. This shows how grotesquely distorted the price structure has become since renewable energies have been mandated and nuclear power plants taken offline. .
The high end-user prices have become a huge burden on private individuals and energy intensive companies alike. German think tank Agora is demanding reforms and more transparency in the country’s murky electricity pricing structure.