Germany Risks Higher Power Prices If Green Goals Are Cut: Study
(Bloomberg) -- Germany would see significantly higher electricity prices if it backtracks from its renewable energy expansion targets than if the government keeps pursuing them, think tank Agora Energiewende said.
Berlin is in the process of reassessing the nation’s electricity needs after major utilities — including RWE AG, EON SE, and EnBW Baden-Württemberg AG — challenged official demand projections by 2030, arguing consumption has been overestimated. The government plans to review its projections by summer, which could be a precursor to adjusting its green energy goals.
If the current expansion of solar and wind energy proceeds as planned, wholesale power prices might be up to 23% lower by 2030, Agora’s report said. While the new government has promised to cut energy prices by slashing grid fees and electricity taxes, investing in renewables is a more sustainable way to cut costs in the medium and long term, it said.
“The German government should therefore absolutely stick to its chosen expansion path,” said Markus Steigenberger, managing director of Agora Energiewende.
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