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Germans Feel the Burden of Its Shift to Renewable Energy

(Take note of which countries make up 2 of the top 3 in terms of electricity prices in Europe.  The ones most heavily into wind. Coincidence??? — DQ)

Stratfor Enterprises — February 5, 2015



Germany is experiencing deflation for the first time since 2009. Though other factors have certainly contributed to the economic decline, Germany’s transition from coal and nuclear energy to renewable energy sources is partially responsible. The transition has been costly, with industries and consumers paying the bulk of the price. However, the financial burden of shifting to renewables will not last forever.

The overall spending underlying this shift has been gargantuan. A tariff program that essentially forsakes market forces and setts an annual tariff to guarantee returns for renewable energy producers has cost more than 348 billion euros ($393 billion) to date, with some estimates predicting that total program costs could reach 680 billion euros by 2022. The way the program is structured puts the burden on the consumers, turning the Renewable Energy Act subsidy into a levy paid by the taxpayer. As production has increased and the subsidy has followed, rising from 8 billion euros in 2010 to 24 billion euros in 2014, the levy has also risen accordingly, tripling from 2.05 eurocents (2 cents) per kilowatt-hour in 2010 to 6.24 eurocents in 2014.  Continue reading here…..

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