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Green Energy Fiasco: German Electricity Prices To Double

A recent study estimates that the Germans will soon have to reckon with dramatic price rises in their electricity bills. According to the study, electricity cost for households will doubled in ten years. The rising costs are due to the expansion of renewable energy as well as the necessary grid expansion and the subsidisation of solar and wind power.

Electricity prices in Germany will rise by 70 percent by the year 2025 according to a study.

The costs are due to the green energy transition and the planned phase out of nuclear power, according to a new report by the Karlsruhe Institute of Technology (KIT). The study was commissioned by the Chamber of Commerce and Industry of Baden-Wuerttemberg.

The experts see this as a threat to Germany’s economy: “If electricity prices are rising so dramatically, we have concerns about the competitiveness of German companies,” said Chamber of Commerce and Industry President Bernd Bechtold.

The price increases were calculated for large customer contracts according to the study. “For households, prices are expected to increase even more because they cannot negotiate such high discounts,” said engineer Karl-Friedrich Ziegahn, who coordinated the study.

German power prices highest in the EU

The rising costs are due to the expansion of renewable energy as well as the necessary grid expansion and the subsidization of solar and wind power. In early May, a study by energy experts at McKinsey suggested that electricity consumers would face 21.5 billion Euros in costs in 2020 caused by the transition to renewable energy.

“We already have the highest electricity prices in the EU today,” said Bechtold. In France, the cost of electricity is about 40 percent lower.

The German industry could not afford such a price difference in the long run.

Full story (in German)