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Study: Up to EUR 187 Billion EEG Induced Extra Costs by 2030?

Posted By Mutthias Leng On September 11, 2014 @ 14:24 In Emission Trading,Environmental Politics,Renewable | Comments Disabled

The EEG surcharge consumers have to pay in support of renewable energy sources will rise further, a study by Ifo Institute for Economic Research on behalf of the Association of Family Businesses (Die Familienunternehmer) concludes. The study calculates EEG related extra costs arising because the European Emissions Trading System (EU ETS) is supplemented in Germany by the EEG that promotes renewable energy sources. Extra costs are in the range of EUR 114 to 187 billion by 2030, not including costs incurred in the past and without saving one additional gramme of CO₂, the study says.

1. Set-up and Findings of the Study

The Ifo study on EEG related additional costs of CO2 reduction compares the costs for two scenarios, a “status quo” scenario and a scenario in which the EEG no longer applies (so-called “Without EEG” scenario), in the period from 2014 to 2030, assuming equal CO2 reductions by the emission trading system. Additional costs for the “status quo” scenario are estimated to range between EUR 114 to 187 billion in the period from 2014 to 2030. This showed that even after the EEG reform that entered into force in August 2014 [1] and amended financial support costs would be rising for businesses and their employees, the Association of Family Businesses said.

2. Recommendations by Association of Family Businesses

They supported the energy policy shift towards a renewable energy supply, but not the EEG, the association declared, saying the EEG had been useful in providing start-up funding for renewables, but was meanwhile counterproductive. The association demanded to strenghthen market mechanisms in what it called “the planned energy economy”, namely the EU ETS.

If Economics and Energy Minister Sigmar Gabriel (SPD) wanted to stick to the EEG he should introduce a technology-neutral auction model based on the principles of a market economy as of 2017, the association recommended.

Please note that by 2017 at the latest the amount of financial support under the new EEG 2014 shall be determined by auctions, including bids of at least 5% of newly installed capacity from European countries under certain conditions, e.g. the principle of reciprocity (cf. Section 2 paras. 5 and 6 EEG 2014 [2]; Overview EEG 2014 [3]). To this end the EEG will have to further revised.

Source: Association of Family Businesses [4]

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URLs in this post:

[1] August 2014: http://germanenergyblog.de/?p=16464

[2] EEG 2014: http://www.gesetze-im-internet.de/eeg_2014/__2.html

[3] EEG 2014: http://germanenergyblog.de/?page_id=283

[4] Association of Family Businesses: http://www.familienunternehmer.eu/presse/pressemitteilungen/detail/article/familienunternehmer-gutachten-bis-zu-187-mrd-euro-mehrkosten-durch-das-eeg.html

[5] EUR 442 Million August Profit on Renewable Surcharge Account – 1 Billion EEG 2014 Cost Reduction between July and August?: http://germanenergyblog.de/?p=16836

[6] EEG 2.0: Package Published Today in Federal Law Gazette: http://germanenergyblog.de/?p=16288

[7] EEG 2.0: Commission Approves EEG 2014 Paving Way for Entry into Force in August: http://germanenergyblog.de/?p=16273

[8] EEG 2.0: Consultation on Auctioning Procedure for Photovoltaic Projects: http://germanenergyblog.de/?p=16209

[9] EEG 2.0 passes Bundesrat: http://germanenergyblog.de/?p=16198

[10] EEG 2.0: Legislative Process on Track: http://germanenergyblog.de/?p=16191

[11] EEG 2.0 – Something to Run Away From?: http://germanenergyblog.de/?p=16134

[12] EEG 2.0: Bundestag Passes Länder Opening Clause for Minimum Wind Turbine Distances: http://germanenergyblog.de/?p=16121

[13] EEG 2.0: Bundestag Passes EEG 2014 Reform Bill After Lively Debate: http://germanenergyblog.de/?p=16117

[14] Länder Opening Clause to Stipulate Minimum Wind Power Distances Passes Bundestag’s Environment Committee: http://germanenergyblog.de/?p=16109

[15] EEG 2.0: Proposal for Last Minute Changes to EEG 2014 Reform Bills: http://germanenergyblog.de/?p=16088

[16] EEG 2.0 Status: Last Minute European Law Based Change Requests?: http://germanenergyblog.de/?p=16079

[17] EEG 2.0: ManyElectronics Blog/Bird & Bird EEG 2.0 Status Update Webinar – Slides and Video: http://germanenergyblog.de/?p=16019

[18] FAZ: Uniform Renewables Surcharge of 40% for Self-consumed Power of New Renewable Power Plants?: http://germanenergyblog.de/?p=16011

[19] EEG 2.0: Bundestag Expert Hearing On Revision of Renewable Energy Sources Act – Including Live Broadcast: http://germanenergyblog.de/?p=15940

[20] EEG 2.0: ManyElectronics Blog/Bird & Bird Webinar (and Seminar and Breakfast): http://germanenergyblog.de/?p=15883

[21] EEG 2.0: Ministerial Draft on Special Equalisation Scheme for EEG Surcharge Regime for Energy-intensive Companies: http://germanenergyblog.de/?p=15777

[22] EEG 2.0: Additional Background Information for EEG Revision on Federal Energy Ministry Website: http://germanenergyblog.de/?p=15714

[23] EEG 2.0: Cabinet Adopts Renewables Law Amendment Bill – Agreement with Brussels on EEG Surcharge Reductions for Industry: http://germanenergyblog.de/?p=15647

[24] EEG 2.0: Federal Government and Federal States Reach Agreement on Important Issues of EEG Reform: http://germanenergyblog.de/?p=15603

[25] EEG 2.0: Updated Ministerial Draft for EEG Reform Published – Comments Requested by 2 April 2014 17:00 CET: http://germanenergyblog.de/?p=15590

[26] ManyElectronics Agency: New Website Pools Information on Reform of Renewables Law (EEG): http://germanenergyblog.de/?p=15559

[27] EEG 2.0: Ministerial Draft Bill for EEG Reform – Update: http://germanenergyblog.de/?p=15421

[28] EEG 2.0: BMWi Working Draft for Revision of Renewable Energy Sources Act: http://germanenergyblog.de/?p=15302

[29] EEG 2.0: Further Information on Key Points of Reform of German Renewables Laws: http://germanenergyblog.de/?p=15159

[30] First Information on Key Points of Reform of German Renewables Law: http://germanenergyblog.de/?p=15138

[31] Possible Timetable for Speedy Reform of Renewables Law: http://germanenergyblog.de/?p=15090

[32] Commission Opens State Aid Investigation into German Renewables Surcharge Reduction for Energy-intensive Companies and Green Electricity Privilege: http://germanenergyblog.de/?p=14984

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