“Cheap heating oil, expensive electricity: Current energy levies and fees prevent Energiewende success”
Germany’s current system of levies, taxes, and fees on energy is unsuitable for the next phase of the country’s energy transition, according to an analysis by energy think tank Agora Energiewende*. For heating oil, these add up to a mere 0.6 cents per kilowatt hour, compared to 18.7 cents per kilowatt hour for electricity. The current system “punishes climate-friendly energy consumption, while rewarding climate-damaging behaviour,” according to a press release.
The think tank’s director Patrick Graichen said at a press conference a fundamental reform of the system was one of the central challenges for the next government but essential to encourage the use of electricity in heating and transport. “Otherwise a comprehensive energy transition won’t work.”
Find the press release in German here.
For background, read the CLEW factsheet Germany ponders how to finance renewables expansion in the future.
*Like the Clean Energy Wire, Agora Energiewende is a project funded by Stiftung Mercator and the European Climate Foundation.