Germany’s new 2030 goal of 65 percent renewables to make power prices more volatile

The provision in Germany’s coalition agreement that the country will source 65 percent of its power consumption from renewables by 2030 is likely to make power prices “more volatile and lower” than previously thought, Aurora Energy Research says in an analysis of the treaty agreed by the conservative CDU/CSU alliance and the Social Democrats (SPD). Compared to the initial goal of 50 percent renewables by the end of the next decade, the new goal will “depress” prices, and could lead to a 20 percent reduction of coal-fired power production by 2030, the researchers say. Aurora argues that Germany can reach its 2030 climate target by pursuing this policy, but would become a net power importer again by 2025. According to the analysis, Germany is expected to close its first coal plants in the 2020s, and the very last plant will likely be shut down between 2040 and 2045.

See the CLEW interview with government energy policy advisor Andreas Löschel for more information.