Germany

Germany

German renewables levy rises by 2%

GERMANY: Germany's four transmission system operators have announced its renewables levy is to rise by less than 2%, in a move welcomed by the industry.

The levy is set to rise to €0.03592/kWh in 2012 compared with €0.0353/kWh in 2011. "Good news," was the response of German wind energy association BWE.

But the levy would fall further were it not for more special treatment for industry, BWE pointed out.

Household customers are left to shoulder an ever large share of the costs of Germany's energy transformation to a renewable-based system even though industry is enjoying considerable benefits, it complained.

The reason lies in the increasing amount of renewables generation traded on the electricity exchange which reduces the price of wholesale electricity, from which industry can profit.

As the wholesale price of electricity falls, the renewables levy rises to cover the difference between renewables generation costs and the market price of electricity.

Industrial companies with large electricity consumption benefit thanks to a "hardship arrangement" limiting their renewables levy to just €0.0005/kWh.

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