“The power price trap”

Long-term feed-in tariffs set by the government for wind power in Germany lead to comparably high electricity prices, which could turn out to be a regional handicap in light of fast-falling wind power prices in Europe, writes Klaus Stratmann in the Handelsblatt. “The result of a lack of competition: Electricity consumers in Germany have to pay billions over the coming years, so that wind parks can earn double-digit profits,” writes Stratmann.
In a separate opinion piece, Stratmann writes: “Germany has changed the support mechanisms [away from set feed-in tariffs to an auction-based system for renewables] much too slowly and much too timidly. One result is that Renewable Energy Act (EEG) costs rise year after year. Unfortunately, this will continue to be the case far into the next decade.”

Read the article (behind paywall) in German here.

For background read the CLEW dossier The reform of the Renewable Energy Act.