Whereas industry associations Germany’s energy and economy minister Peter Altmaier begun his term with a promise to reduce the power price burden for small and medium-sized industrial companies, but industry representatives The Clean Energy Wire produces and enables first-class journalism about the energy transition in Germany and beyond. However, market observers say that power costs are often not even high enough for customers to look for cheaper alternatives. The average power price for households and small businesses in Germany stood at 30.43 cents per kilowatt hour (ct/kWh) in 2019, Nearly one quarter of the 2019 price (7.39 cents) resulted from regulated The profit margin and supplier’s cost of purchasing power on the wholesale market - 7.06 ct/kWh.Charges for the use of the power grid, set by the Federal Network Agency (The sales tax is 19 percent on the pre-tax price of electricity. This is because Germany mainly finances the roll-out of wind turbines and solar arrays, as well as the modernisation of the grid, with numerous fees and levies that are added to wholesale power prices and paid by consumers with their bills - except for the companies that benefit from exemptions of various degrees.The following two graphs illustrate these opposing effects of the energy transition on power prices in Germany. In effect, they can even benefit from price swings that have accompanied the roll-out of intermittent renewable power by ensuring that energy-intensive processes coincide with strong renewable generation, and thus lower prices. Source Eurostat/DG ENER The energy transition's effects on industry prices of electricity lend support to both views.In a nutshell, the roll-out of renewable energies on a huge scale has had two opposite effects on power prices in Germany.
German customers can choose from at least 20 different providers that cover the entire country, and from more than 50 providers that cater to 85 percent of all households, according to the However, there also seems to exist a certain inertia among German consumers.
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Pie charts on electricity generation; Percentage of full load; Renewable shares; Storage filling level; Import and export in Germany/Europe; Emissions. Germany, December 2019: The price of electricity is 0.374 U.S. Dollar per kWh for households and 0.232 U.S. Dollar for businesses which includes all components of the electricity bill such as the cost of power, distribution and taxes. Furthermore, electricity is only one component of companies' energy costs – prices for gas, oil and coal are also decisive for many businesses. Most comparisons underline the earlier finding that average German industry prices are high, while wholesale prices are relatively low.Another example for international comparisons is the following graph from the EU's Agency for the Cooperation of Energy Regulators (ACER) 2019 Some illustrations also aim to capture the wide spread of German industry power prices in an international comparison.
The CLEW Journalism Network brings together international reporters covering the global energy transition story. For example, power makes up Producers of aluminium, basic chemicals, paper and steel are particularly sensitive to rising power prices, mainly because they use a lot of power to produce standardised goods that are traded internationally, according to an analysis conducted by think-tanks But the case of aluminium smelters also illustrates that large industrial consumers are not completely helpless in the face of shifting wholesale power prices. Our daily news articles and newsletters offer comprehensive coverage of the latest developments in Germany’s energy transition.CLEW's Dossiers and Factsheets provide in-depth information, figures and background on key energy transition topics.
We can help you find interviewees, background info, research locations and reporting opportunities.CLEW covers all aspects of the energy transition – browse through our topic pages to find news and background on:The power prices paid by industry are one of the most contentious aspects of Germany's energy transition and its economic impacts.
Due to a complex system of taxes and levies, they depend on how much power companies need, when they need it, how they source it, whether they compete with rivals abroad, and many other factors. This and more is presented in the 2018 Annual Market Update from TenneT, the electricity transmission system operator in the Netherlands and Germany.
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