Germany’s increased renewables goal could harm wind and solar’s competitiveness
The government’s goal of increasing the share of renewables in Germany’s power mix from 50 percent to 65 percent by 2030 could substantially delay the point at which solar and wind power installations can become fully competitive, the consultancy Aurora Energy Research says in a report. The target “cannibalises market revenues of renewable plants”, as the rapid increase in the number of plants means that very productive locations become scarce quicker, resulting in a lower overall productivity, the report says. More renewable energy plants also mean that wholesale power prices become more dependent on weather conditions, which is why a carbon price floor and power purchase agreements with customers could be used to improve investment security for renewables.
Find the report in English here.