IWR says German power prices are falling thanks to renewables
Jun 16, 2014 - Renewable power plants in Germany have helped bring electricity prices to the lowest levels in 10 years, German renewable energy institute IWR said Friday.
Soon after the Fukushima nuclear accident in Japan in March 2011, the event that changed Germany’s attitude towards nuclear energy, the price per kWh of base-load electricity on the electricity exchange was over EUR 0.6 (USD 0.81). Today, however, large and industrial consumers can buy power for delivery year 2017 at only EUR 0.32/kWh, IWR calculates.
The institute explained that the increased share of renewables in Germany’s energy mix, driven by the Renewable Energy Act (EEG), is one of the reasons for the constant decline in power prices. This is happening even though many expected that electricity prices will jump after the shut down of eight nuclear reactors in August 2011.
IWR’s head Norbert Allnoch pointed out that paradoxically renewable electricity on the energy exchange is not labeled as such. It trades as grey power so consumers are not aware where it comes from.