Positive Renewable Surcharge Account Balance Rises Slightly – Almost 25% More EEG Cost in First Five Months

Due to the smallest monthly surplus this year (EUR 37,707,689.59) the positive balance on the Renewable Surcharge Account (EEG account) further rose to in May 2014, the four German transmission system operators (TSOs) informed. Compared with May 2013 costs for transfer payments to renewable power plant operators, i.e. feed-in tariffs or direct marketing premiums, were almost 25% higher.

In total renewable power in the amount of 5,663GWh was fed into the grids and had to be sold by the TSOs at the EPEX Spot power exchange, less than a year before (May 2013: 5,906 GWh), but more than in April 2014 (5,136 GWh). Solar input marketed by the TSOs was the highest with 3,747  GWh, up from 3,173 GWh in April 2014 (May 2013: 3,315 GWh). Wind power input sold by the TSOs increased to 526 GWh (April 2014: 457 GWh; May 2013: 500 GWh), while input from other renewable energy sources more or less remained on the level of the previous months. The first five months of 2014 saw total renewable input of 23,368 GWh, compared to 23,178 GWh in 2013.

The average price obtained by the TSOs at the power exchange in May 2014 dropped from EUR 33.05/MWh in April to EUR 28.31/MWh (January EUR 38.20/MWh, February EUR 35.64/MWh, March EUR 27.07/MWh). In May 2013 the average price was EUR 32.57/MWh.

So far EEG costs in the EEG surcharge account add up to EUR 8,662,143,746.86 by end of May 2014. Compared with costs of EUR 6,945,891,682.14 at the same time in 2013, this means that costs have risen by almost 25%. The coming months – with its weather – will show whether or to what extent the positive balance of EUR 1,690,533,607.38, will be enough to cover costs, which can be expected to rise in the summer months due to more solar input.

Under the Renewable Energy Sources Act (EEG) renewable power input into the German grids is supported by transfer payments such as feed-in tariffs or direct marketing premiums paid in addition to the revenue obtained by the sale of renewable energy that is effected by renewable power plant operator themselves. The so-called EEG account balances the expenses for renewable transfer payments to renewable power plant operators against the revenue obtained from the sale of the renewable energy at the EPEX Spot power exchange by the TSOs and the so-called EEG surcharge, which electricity consumers have to pay in support of the EEG transfer payments.

Source: www.netztransparenz.de

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7 Responses to “Positive Renewable Surcharge Account Balance Rises Slightly – Almost 25% More EEG Cost in First Five Months”

  • Dear Matthias,

    In 2013, the average EEG cost was 6,945,891,682.14 euro/23178 GWh = 299.69 MWh
    In 2014, it was 370.68

    In 2014, the average sell price was about $32.45/MWh

    The cost is 11.43 times the sell price? That is incredible.

  • Mutthias Leng

    Willem, I think looking at it this way does not take into account that the MWh figure only reflects the quantities that are marketed by the TSOs. It does in particular not include direct marketing quantities, which are particularly high for wind. On the other hand, the costs published by the TSOs for the EEG account also cover costs (in particular markteing premiums) paid by the TSOs for energy sold through direct marketing (i.e. not marketed by the TSOs). Between January and May 2014, direct marketing premiums amounted to EUR 3,515,435,381.25, while feed-in tariff payments were 5,059,961,633.70. Dividing the latter by the TSO marketed quantities would arrive at 216.53 EUR/MWh. The more direct marketing we have, the less meaningfull it is to divide total EEG surcharge costs by the electricity quantities marketed by the TSOs.

  • Matthias,

    Thank your for your explanation.

    I used the numbers of your post to make up a spreadsheet. It gives a good overview of the numbers.

    Would it be possible for you to prepare such a spreadsheet and have it as a link to your future posts.

    Selling at about 32.45 euro/MWh, after subsidizing at 216.53 euro/MWh, a ratio of 6.67, is still incredible.

    In the near future, Germany will run out of foreign connection capacity, MW, for exporting and balancing its excess energy, and increased curtailments will be required, unless Germany builds out its own grid.

    I doubt foreign lands will build out their grids to accommodate those greater future flows.

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