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E.on calls for renewables levy cap in Germany

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May 12 (Renewables Now) - German utility E.on SE (ETR:EOAN) is urging German policymakers to cap the renewables levy at EUR 0.05 (USD 0.054) per kWh, reduce the electricity tax and cut red tape for regional energy infrastructure and climate projects.

In today’s presentation of the company’s first-quarter results, chief executive officer Johannes Teyssen said these moves would offer economic relief to businesses and the public across the country. He also announced that E.on will be investing an additional EUR 500 million in climate-friendly upgrades of energy infrastructure.

According to Teyssen, the renewables levy in Germany, or the green energy surcharge in consumers bills, may rise to EUR 0.08/kWh because of the coronavirus crisis as fossil fuel wholesale prices have been on the slide and electricity demand is depressed, while wind and solar parks reached record feed-in in early 2020. This, the CEO warns, could push electricity prices up in spring 2021, which would hit the already battered business sector. 

Instead of allowing the levy to rise, the federal budget should cover the revenue shortfall, he said.

Teyssen also called for a reduction of Germany’s high electricity tax to the European target rate of EUR 0.5/MWh, and for a revamp of planning and consents processes, especially those concerning regional energy infrastructure and the modernisation of towns and municipalities.

“No grid modernization or climate project should be allowed to languish in a consents process for longer than three years. This is an area where Germany can learn from the corona crisis: digitalize consultation processes and use online technology to speed up administrative processes,” said Teyssen.

(EUR 1 = USD 1.08)

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Browse all articles from Tsvetomira Tsanova

Tsvet has been following the development of the global renewable energy industry for almost nine years. She's got a soft spot for emerging markets.

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