German Energy Prices “Going Through The Roof”, Supply Tightens As Leaders Botch Energy Policy

Political energy mismanagement in Germany now risks inflicting tremendous pain on citizens as energy shortages intensify and prices skyrocket.  Coming winter of discontent?

Energy prices going through the roof

By Fritz Vahrenholt, first published at Tichys Einblick
(Translated/edited  by Pierre Gosselin)

Prices for natural gas, coal, oil and electricity have been rising massively since the middle of the year. The price of a kilowatt hour (kWh) of electricity has almost tripled to 13 euro cents per kWh on the Leipzig wholesale electricity exchange.and the price of natural gas has increased fivefold.

Politics in Germany are not entirely uninvolved in the development of prices. The reasons are:

– Coal power phase-out between 2017 and 2021 throughout Europe and especially in Germany

– Tripling of CO2 certificate prices since 2020 from 20 to over 60 euros per ton of CO2. This also affects gas-fired power generation

– The switch from coal-fired power to more expensive gas-fired power

– Global increase in demand for gas as a result of the post-pandemic economic recovery

– Extremely weak German wind year from January to September 2021

Although Russia has delivered exactly the volumes of gas as ordered by gas importers, obviously not enough gas has been ordered, as even Chancellor Merkel admitted.


Electricity prices are also shooting up

Electricity prices for industry have tripled, and household electricity will rise from 31 euro-cent/kWh to around 40 euro cent/kwh. Well over half of the electricity price is taxes, surcharges and levies. There would be plenty of opportunity for the German government to reduce costs.

There won’t be electricity to power electric cars

Another serious problem will soon be the shortage of secure power generation because of Germany’s nuclear and the coal phase-out, which has already begun. Not only is this driving up prices. There will be risks of power supply outages during the winter, with possible targeted or involuntary shutdowns to keep the grid from collapsing.

By 2030, there will be neither power for a single additional electric car nor additional CO2-free power for industry. Never mind the heat supply.

Source:Fraunhofer ISE

Original article in German at Tichys Einblick

12 responses to “German Energy Prices “Going Through The Roof”, Supply Tightens As Leaders Botch Energy Policy”

  1. Tom Anderson

    “Worser and worser,” as Alice said in Wonderland. Does anybody really believe anymore that CO2 is a climatic menace? … Apparently, or it is a simple example of pure mindless momentum.

  2. bonbon

    Putin accurately identified the problem at the Socchi Conference – Spot-Pricing instead of long-term contracts.

    Gas under long-term contracts 4 times cheaper for EU than spot contracts — Putin

    Who in the Ranch at the Crooked EU imposed the discredited Enron model, the Ranch at the Crooked E of Houston TX infamy? Everyone knows how this played out?

    Free-market Milton Friedman ideology knows no bounds. Problem this ideology is worse than COVID19, all parties are infected, and masks do not work. A vaccine does exist, and long term contracts are better than ventilators!

  3. John Hultquist

    No one saw this coming.

    ” There would be plenty of opportunity for the German government to reduce costs.”

  4. oebele bruinsma

    Self inflicted wounds alas. One gets what one payed for. One more “platitude” : choices have consequences.

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  6. Billy

    The desired result is being achieved. Nothing to see here.

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  8. Karen

    My daughter lives in Germany and is appalled at their energy policies and prices. Since weather is uncontrollable and every-changing, why would we possibly depend on wind and solar for our sole sources of energy? It’s completely illogical and impracticable! This insanity is based on a BIG LIE! We have many sources of potential and renewable energy at our disposal—why not use them all? You will find the answer if you read Agenda 21—renamed Agenda 2030.

    1. Josh

      I lived in Germany in 2019 and can only agree with what your daughter says. Unfortunately, Germany is not the land of eternal sanity.

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  10. Peter

    Isn’t this want they want/need: high price for fossil fuels? Now wind and solar are becoming “affordable” (i.e. the least expensive option when the sun is shining and the wind is blowing).

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