Renewable energies produce significantly cheaper electricity than conventional energy sources. The Green Party leader plans to benefit more from this in the future.
Federal Economics Minister Robert Habeck (Greens) wants to curb prices for consumers with a fundamental reform of the electricity market. A spokeswoman confirmed a corresponding report by the “Handelsblatt”. It is a medium-term project.
The aim is for consumers and industry to benefit more from their electricity bills because renewable energies are produced so cheaply. To this end, the resulting “excess profit effects” in the electricity market, which arise from the so-called merit order for power plants with very low production costs, should be addressed.
This is the merit order
The merit order is the order in which the power plants that are offered on the electricity exchange are used. Power plants that can produce electricity cheaply are used first to meet demand. These are wind turbines, for example. In the end, however, the price depends on the power plant that was switched on last and is therefore the most expensive, in order to cover the demand – these are currently gas-fired power plants due to the high gas prices. As a result, electricity prices have also risen significantly. With a reform, the electricity and gas prices could be decoupled.
“In view of this complexity, this reform is a medium-term and complex one, since European partners and the European level must also be involved,” said the spokeswoman. In the short term, the focus will therefore continue to be on an “excess profit tax” and on timely relief for consumers and aid programs for the economy, according to spokeswoman Habecks. The FDP, however, rejects an “excess profit tax”.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
