Home » Energy transition leads to rising electricity prices

Energy transition leads to rising electricity prices

by admin

Many people remember that the government promised that the energy transition would actually help lower energy prices. “Sun and wind don’t send you a bill,” goes the popular saying. A piece of wisdom that may turn out to be a boomerang. Because energy prices not only don’t seem to be falling, they actually seem to be rising.

EnBW and EWE want to increase tariffs

Leonard Birnbaum, CEO of E.ON, announced weeks ago that the energy transition would lead to rising prices. Now the time has come. The price development can be “comprehensive”, that was Birnbaum’s word represent.

There could be significant increases in costs and that probably means prices if the government does not take “appropriate measures”.

The investment costs would rise because the key interest rates are so high and had already risen. Companies simply have to offer investors more money. At the same time, however, energy companies also need more money in order to invest more – this is necessary because of the energy transition. Above all, it is about “integrating” the increasing amount of green electricity, i.e. solar and wind energy, into the power grid. And that costs money, especially since the reserve capacities would also have to be expanded.

The energy transition would not be cost-neutral. That was unrealistic from the start, says Birnbaum. For this reason alone, the political leadership must react.

Industry in particular needs help now, as it is particularly affected by rising electricity costs. If politicians don’t react, Birnbaum expects massive economic consequences – which would be unfavorable since the country is already at the bottom of the economic rankings.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Privacy & Cookies Policy