After Fukushima: German electricity rates drop by 50 percent

Muenster - The downward trend of Germany’s electricity rates continues unabated. Following the shutdown of eight German nuclear power plants, electricity rates have bucked most projections – instead of substantially increasing, they have actually dropped to almost half – this according to IWR, a renewable energy institute, Muenster. Soon after the nuclear accident in Fukushima in 2011, the cost of base load power on the electricity exchange was clearly above 6 Cents per kilowatt hour (kWh). Bulk buyers and industry are presently buying their electrical power on the futures market for the 2017 supply year for only 3.2 Cents per kWh. Electricity rates have not been this low since more than 10 years ago. To compare: in the 2008 peak year, industry was still paying up to 9.5 Cents per kWh for electrical power.

One reason for the low cost of electricity is the increased share of “green” electricity based on the Renewable Energy Act (EEG) in Germany. Ironically, this electrical power is not allowed to be marketed on the electricity exchange as electricity from renewable resources, but only as unidentifiably neutral grey electricity. “The electricity consumers are misled about the actual physical sources of the electricity supplied by their power company, since the green EEG electricity identified on their electricity bill cannot currently be bought as such on the exchange”, says IWR Director Dr. Norbert Allnoch. “Even after the current plans for reform, the EEG less and less serves the development of renewable energies or the promotion of a regenerative industry in Germany. The EEG, or sales of EEG electricity on the exchange, is in fact used to lower the cost of electrical power to bulk buyers and industry and therefore constitutes a politico-economic instrument to ensure the location and jobs of German companies in the face of global competition”, continues Allnoch.


Download press graphic:
- https://www.iwrpressedienst.de/iwr/strompreis_terminmarkt_alle_Jahre.png
Caption: \"EEX futures market prices for the supply of electrical power in 2015 - 2020\"


Muenster, 30 June 2014


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Attention editorial offices: For further questions please contact Mr.
Dr. Norbert Allnoch, International Economic Platform for Renewable
Energies (IWR).

Soester Str. 13
48155 Muenster
Germany
Phone: +49 (0)251 / 23 94 6-0
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