Germany’s economy ministry is advocating for a fair distribution of network costs for expanding renewable energies among the country’s federal states. This comes as a dispute between the northern and southern states has escalated, with residents in the northern states expressing dissatisfaction with higher electricity prices despite cheaper wind power production in their region.
The higher prices in the north can be attributed to the connection costs for wind turbines to the power grid, which are passed on to residents in the turbine’s vicinity. The lower population in the north means that these costs are borne by fewer consumers, resulting in higher prices. The premiers of the northern states have voiced concerns that the price difference is impeding local support for the construction of new wind turbines.
The economy ministry spokesperson stressed the importance of the federal states working together to achieve a fair distribution of costs. However, the ministry did not provide specific details on how electricity prices might be adjusted.
Once a draft bill passes through the lower house of parliament, Germany’s network agency will be responsible for redistributing the costs more equitably. The agency’s head, Klaus Mueller, acknowledged the need to incentivize the expansion of renewables and expressed understanding for the frustration felt by citizens and regions. The network agency will propose reforms after the bill’s passage.
Overall, the German government seeks to address the disparity in electricity prices and ensure a fair distribution of network costs as the country continues its transition towards renewable energy sources.
