Renewables squeeze wholesale power prices and boost electricity exports
According to TenneT, average wholesale power prices fell 12 percent in 2014, to less than 33 euros. 鈥淭he growing share of renewable energies, as well as declining power consumption, which fell despite economic growth, put pressure on wholesale prices,鈥 TenneT said in a .
Even though European power markets have become more integrated, price differences between countries remain significant: The average price in the Netherlands was more than 41 euros, the grid operator's study found.
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鈥 shows that exports from Germany rise when an abundant supply of听power from renewable energy sources听brings prices down. For example, Germany exports more power when solar generation is up,鈥 according to TenneT.
听A 鈥榞olden end鈥 to the Energiewende?
German consumers on basic supply contracts paid on average听0.3 cent less per kWh in early 2015 than a year earlier, according to . 鈥淟ast year鈥檚 reforms are showing their effect,鈥 said Sigmar Gabriel, Minister for Energy and Economic Affairs. He also encouraged consumers to compare different suppliers鈥 prices in order to save on electricity bills,听adding that reform of the renewable energy act last year 鈥渂roke the trend鈥 of a rising energy surcharge.听
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Still, think tank Agora Energiewende said in a new study that the surcharge consumers pay to finance renewables 鈥 currently around 6.2 cents per kWh 鈥 is likely to rise by one or two cents per kWh between 2017 and 2023听, if wholesale prices remain unchanged and the current financing system remains in place.
Having reached a peak in in 2023, Agora predicts that the surcharge will fall, as the guarantees on the highest feed-in tariffs from the early years of the renewable energy act expire after 20 years. 鈥淭he 鈥榞olden end鈥 of the Energiewende is in sight, but we have to cross a mountain first,鈥 said Agora director Patrick Graichen.
Graichen argues that German politicians must make a choice.听Either they explain clearly听to consumers why the rising surcharge is necessary to bring the Energiewende to a successful conclusion, or they switch to a new the system using public money to bring down consumer power bills.
For many consumers, however, there are other ways to cut electricity costs, according to听. Switching from the basic supply contract - which consumers are signed up to by default if they don't make an alternative choice - to the cheapest renewable energy provider saves a family of four an average of 437 euros per year, according to Check24. During the last two years, 63 percent of consumers using the website to change their power supplier chose a green energy tariff.
According to听, a website that provides infographics of German energy market data, German consumers had a choice of almost 13,000 electricity tariffs from more than 1,190 suppliers in early 2015. The market share of the five largest suppliers has shrunk to around 50 percent.听Still, 40 percent of Germans say they are unhappy with electricity prices, according to the price portal.
See Tennet鈥檚 market review in English .
See 威力彩玩法鈥檚 Factsheet 鈥淲hat households pay for power鈥 here.