Energy policy: Reach to the energy transition: “Costs have to go down”

Economic and Energy Minister Katherina Reiche is aiming for a change of course at the energy transition. “The total costs have to be down,” said the CDU politician of the German Press Agency in Berlin. “In recent years, the political goal was solely fixed on the extension. However, the energy transition will only be successful if we consistently bring the expansion of renewable and cost efficiency together. This must be the goal.” From a rich perspective, operators of green electricity systems should participate in the financing of the power grid expansion from a rich perspective.

At the end of summer, Reiche wants to present a “reality check” for the energy transition. “We necessarily need more controllability to be able to compensate for the volatility of electricity generation through renewable energies. Even memory play a role. They are part of the solution, but are not enough. We will take a closer look at the results, and then we will draw the necessary conclusions from it.”

Rich predecessor Robert Habeck (Greens) had pushed the expansion of the green electricity primarily from wind and sun with various measures. Renewable energies should play a key role so that climate goals can be achieved. However, the expansion of the power grids does not keep up. Due to the lack of networks, renewable systems must be throttled again and again. Compensation measures against network passes cost a lot of money. In order to transport the wind power produced, especially in the north, to large consumption centers in the south, thousands of new kilometers are to be laid. Much of it is not yet finished.

With a view to the planned relief of power customers in the network charges, with which, among other things, the network expansion is financed, the minister said: Costs are currently postponed by electricity customers to public budgets and thus to taxpayers – in an order of around 30 billion euros. “We do not solve the fundamental problem. The relief for electricity tax, the abolition of the gas storage levy, the partial takeover of the network costs and the transfer of the EEG costs, which have long been relocated to the household, make up around 30 billion euros.” The energy transition must become more cost -efficient. “And that works too.”

The forecast power consumption is an essential parameter, said Reiche. “The last government assumed that the electricity consumption will increase up to 750 terawatt hours as early as 2030, and there are forecasts of 1,000 terawatt hours by 2035.” That would be an increase of almost 50 percent within a few years. “Serious studies doubt whether these increase in reality.

Operator of green electricity systems

The expansion path of renewable energies and network expansion would have to be synchronized, said Reiche. Operators of systems of renewable energies would have to take on more system responsibility. You should participate in the financing of the network expansion.

“System responsibility means that the costs for network expansion no longer only have to be paid for by the network operators and the general network charges from power customers,” said Reiche. The cost of network expansion has so far been fully with the network operator and are paid by power customers via the network charges.

The Federal Network Agency is responsible for the reform of the network charges. In a discussion paper, there is also talk of a widening of the financing base by participating “feeding” in the network costs.

“We have to get a fair distribution of responsibility,” said Reiche. “We need the renewable for decarbonization. We also need them because they are innovative technologies. But risk and costs must not be transferred to customers unilaterally. The renewable skills and need to take on more system responsibility. And that also means taking responsibility for the costs of the entire system and making a contribution to network stability, regularity and controllability.”

Reiche continued: “The previous system, which partially remunerates renewable energies, regardless of whether they feed in or not, require a revision as soon as possible.” The expansion path could be maintained if system responsibility is perceived by the renewable.

Rich: climate goals very ambitious

The minister said she expressly known herself to the 2045 climate goals. “But the goals are very, very ambitious. Anyone who deals with the question will agree.”

Germany should be climate -neutral by 2045. Climate neutrality means that greenhouse gases are no longer being expelled than can be bound again.