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German Electricity Prices Soar To Record Highs. Blame Green Energy

by Pierre Gosselin
February 10, 2022, 1:44 PM
in News and Opinion
Reading Time: 3 mins read
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german power gridGermany’s power supply, once mostly made up of a mixture of coal and nuclear power, used to be among the most stable and affordable in the world. Power outages were rare and grid interventions (pictured) were infrequent.

Greens and socialists then tried electrical power engineering

But then in the 1990s, environmental activists and politicians got involved, believing they could manage and design a grid and power supply that would be technically and environmentally superior to what the leading power generation and electrical engineers and experts themselves had in place.

Sun and wind were the way to go, the environmentalist Greens and SPD socialists declared. After all, the wind and sun don’t send electric bills and are “free for the taking”.

They somehow managed to convince the public. And so the greening of the grid began.

2000 EEG feed-in act

In 2000, the coalition government of the Socialists and Greens, led by Chancellor Gerhard Schroder, introduced the EEG renewable green energies feed-in act.

What followed was a green energies construction frenzy with hundreds of megawatts of volatile wind and solar capacity being added to the grid every year while nuclear power was shut down.

Now comes the EED’s price shock. Wind and solar are not free after all. In fact, they are outrageously expensive, and they are even more volatile in terms of supply than the country’s Corona policies!

Unstable grid, record-high prices

Today, German weekly news magazine FOCUS here reports how Germany’s electricity prices have now reached “record” levels:

“Germany is the world champion in electricity prices – no country pays more for electricity. According to new data from the German Association of Energy and Water Industries, German households paid an average of 36.19 cents for a kilowatt-hour in January 2022.”

That’s over 40 US cents per kilowatt-hour!

Three times higher than the international average

“Never before have German consumers had to pay so much,” writes FOCUS. “Germans have to pay almost three times as much for electricity from the outlet compared to the international average. This is mainly due to unusually high taxes and eco-taxes in this country.”

Volatile grid teeters on collapse

What’s worse, the country now teeters on power grid collapse, meaning blackouts are a real threat.

Moreover, high-tech computer-controlled production machines and plants rely on a steady supply frequency to operate.

As grid frequency becomes increasingly unstable due to the volatile wind and solar power input, the equipment risks costly unplanned production shutdowns.

In total, this makes Germany a less attractive place to invest, despite its highly skilled labor force.

Half price in some neighboring countries

According to FOCUS, consumer electricity costs significantly less in neighboring countries like Italy, where the price is 25 euro cents, or in Switzerland, Austria, and Luxembourg where it is about 23 cents.

In France, a kilowatt of electricity is 21 cents, and “in the Netherlands and Poland only 19 cents. In large countries like the USA (16 cents) or Brazil (14 cents), electricity costs less than half as much as in Germany.

In Canada (12 cents) or South Korea (11 cents), consumers pay only a third, in India (8 cents) and China (9 cents) only a quarter of the German price level.”

50% increase in just 2 years!

German industry, which gets a lower price than consumers do, is now paying “an average of 26.64 cents per kilowatt-hour”, up from just 17.76 cents in 2020 – that’s a roughly 50% jump!

Industrial associations are warning that these astronomical prices are rapidly making Germany unattractive as a place to do business, reports FOCUS.

According to Holger Lösch, Deputy Managing Director of the BDI industry association. “Energy-intensive industries in particular (steel, metals, paper, glass, aluminum, cement) are threatening to move out of Germany.”

No wonder not long ago The Wall Street Journal dubbed it the “world’s dumbest energy policy”.

Read more at No Tricks Zone

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Comments 5

  1. Spurwing Plover says:
    3 years ago

    G

  2. Colin Harkin says:
    3 years ago

    Well if Germany is this bad, Australia mustn’t be too far behind….

    Last week, one of the largest electricity suppliers AGL, advised it is advancing the closure dates of two of the countries largest coal fired power stations. Another is to close April 2023. The problem with that is, nothing is being built to replace them, except for one gas plant intended to be back-up for when renewables fail to produce, which is often.

    In The Australian newspaper today, ( Feb 2) Bjorn Lomborg’s article explained the cost of renewables today and into the future. The news here is really frightening, but in Australia, nothing is being done to prevent blackouts and corresponding massive electricity price increases. It’s as if political leaders are too afraid to tell us the bleeding obvious.

    Looking more broadly, western countries are (currently) led by lemmings . We are all going over a “blackout cliff” within a few years and it seems there is no-one who can stop it.

  3. james says:
    3 years ago

    And all in the name of 100ppm more or less CO2 in the air; 100ppm being 0.01%. Did any of these politicians ever learn their 3Rs, Reading Writing and Rithmatic? Let’s not mention mass effect, far too abstruse for such simple minds. But we know:
    King James Version: “For the love of money is the root of all evil: which while some coveted after, they have erred from the faith, and pierced themselves through with many sorrows.”

  4. Spurwing Plover says:
    3 years ago

    Go Green Go Broke paying for the pipedreams of Starie eyed Simpletons from Greenpeace, NRDC, EDF, Sierra Club and the rest of the Eco-Freak/Idiots

  5. Steve Bunten says:
    3 years ago

    The Greens and Socialists tried to do Electric Power Engineering without any kind of degree in that field of engineering, hence the troubles the country is now running into. You can’t depend on unreliable energy sources to provide a reliable grid. That’s just simple engineering.

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