Expert: Renewable energies cause electricity prices to fall
According to experts, renewable energies will increasingly dampen electricity prices. "The more renewable energy plants with their low prices are in the electricity system, the less often expensive gas-fired power plants will determine the wholesale electricity price," said electricity market expert Fabian Huneke from the think tank Agora Energiewende to the German Press Agency.
Renewables are already lowering the future price of electricity. "You can see very clearly on the electricity exchange: forward market prices for deliveries in a few years' time are significantly lower." For example, if you order electricity in advance for next year or the year after next, the longer away the delivery is, the lower the wholesale electricity price will be. "This can be clearly attributed to the influence of renewable energies, because the electricity price is significantly lower than the development of fossil fuel prices or CO2 prices."
Huneke recalled another price-reducing effect: the abolition of the green electricity levy (EEG levy) last year. However, this was largely overshadowed by the rising electricity prices in the wake of the energy crisis. "Due to the price increases, we didn't even notice the effect," said the expert. The green electricity levy of 3.72 cents per kilowatt hour to promote renewable energies was reduced to zero on July 1, 2022 in order to relieve the burden on electricity customers.
Huneke: Investment offensive in the grids
On the other hand, Huneke expects the rising grid fees for electricity distribution grids at regional level to have a price-increasing effect. These strictly regulated usage fees for the lines are passed on to electricity consumers by the grid operators via their electricity bills. "Electrification with the connection of electric cars and heat pumps, but also the increasing decentralized generation of electricity in solar and wind power plants require an efficient infrastructure," explained the expert. An investment offensive in the grids is needed for the energy transition.
According to the German Energy Industry Association BDEW, the average electricity price for households was 46.27 cents per kilowatt hour in the first half of the year. At 9.52 cents, around a fifth of this was accounted for by grid fees. According to the comparison portals Check24 and Verivox, grid fees will rise by an average of eleven percent nationwide in the coming year. However, they will also fall in some federal states, such as Brandenburg and Mecklenburg-Western Pomerania.
According to Huneke, the development of electricity prices this winter will continue to be heavily dependent on the price of natural gas. The price of natural gas will depend on how cold it gets and whether, for example, the nuclear power plants in France deliver more reliably than last winter.
Renewable energies, such as solar and wind power plants, are not only reducing the future price of electricity but also contributing to a decrease in CO2 emissions, helping combat climate change. As Fabian Huneke pointed out, the electricity exchange shows significant lowering of forward market prices for deliveries in a few years due to the influence of renewable energies.
Despite the advantages of renewable energies in reducing electricity prices and promoting climate action, Huneke also emphasized the potential increase in grid fees for electricity distribution grids, which can be attributed to electrification and the increasing decentralized generation of electricity. These grid fees are passed on to electricity consumers, which may result in an overall price increase, although some federal states might experience a decrease.
Source: www.dpa.com
