December 14, 2016
Does the “energy transition” live up to its promise?
Now for the fifth time since 2012, vbw presents its monitoring report on the progress of the energy transition. The monitoring goes back to research completed by PROGNOS AG.
The results are mixed.
Energy supply is secured
In order to secure reliable energy supply in Germany, last year, several new laws were passed such as the Power Grid Expansion Act (“Energieleitungsausbaugesetz”) and the Electricity Market Act (“Strommarktgesetz”). The Grid Reserve Ordinance (“Netzreserveverordnung”) was extended, and the Capacity Reserve (“Kapazitätsreserve”) was introduced. Due to delays in the planning of transmission grid capacities, the grid operators are more and more forced to take additional actions for stabilizing the systems such as the expansion of the feed-in management and redispatch measures. This way, a high level of electricity supply security is guaranteed.
Energy costs on the rise
The monitoring report also indicates that energy costs remain at a high level. It expects that by 2020 the expenses for grid stability measures will amount to four billion euros per year. These costs as well as the costs for expanding the existing grid structures will be passed on to the consumer. In addition, the increasing share of renewable energy, subsidized under the Renewable Energy Act Surcharge (“EEG-Umlage”), will contribute to high energy prices. Therefore, an additional price increase is expected.
Climate protection targets not met
Despite all efforts – like for example a massive reduction of greenhouse gas emissions in the German industry sector (36 percent between 1990 and 2014) – the actual targets of emission reduction remain largely unachieved.
Altogether, the energy transition has not yet lived up to its promise.