“The power price trap”
Long-term feed-in tariffs set by the government for wind power in Germany lead to comparably high electricity prices, which could turn out to be a regional handicap in light of fast-falling wind power prices in Europe, writes Klaus Stratmann in the Handelsblatt. “The result of a lack of competition: Electricity consumers in Germany have to pay billions over the coming years, so that wind parks can earn double-digit profits,” writes Stratmann.
In a separate opinion piece, Stratmann writes: “Germany has changed the support mechanisms [away from set feed-in tariffs to an auction-based system for renewables] much too slowly and much too timidly. One result is that Renewable 鶹 Act (EEG) costs rise year after year. Unfortunately, this will continue to be the case far into the next decade.”
Read the article (behind paywall) in German .
For background read the 鶹 dossier The reform of the Renewable 鶹 Act.