German green energy surcharge to rise 47 %

Germany's surcharge on renewable energy will rise by 47 percent in 2013, Germany's four leading grid operator said on Monday, forcing its citizens to pay more for the country's promotion of green energy. According to the four grid operator, the additional cost on electricity bill for renewable power would be increased from 3.6 cents per kilowatt hour this year to 5.3 cents in 2013. Under the new surcharge scheme, a German household with annual consumption of 3,500 kilowatt hours will have to pay 60 euros more for its electricity bill, and the total surcharge next year will amount to about 20.36 billion euros, said the operators, attributing the surcharge increase to the boom in solar energy and increase of construction costs. Berlin decided last year to replace the nuclear power with renewable energy following the Fukushima disaster in Japan. According to the German government, by 2050, 80 percent of Germany's electricity will be produced by green power sources. Under the German Renewable Energy Act (EEG), grid operators have to pay an above-market electricity price to solar, wind and other renewable energy producers to guarantee their profitable operation. Ultimately, the gap between the purchasing price and market price is covered by consumers in the form of surcharges. "The EEG is not sustainable," said Kurt J. Lauk, Economic Council president of Germany's ruling party CDU, in an emailed statement last week. "It's out of control, German industrial electricity prices have already been among the highest in Europe, " said Lauk, "Instead of permanent subsidies, we need a speedy economic integration of renewable energy, so that energy transition can be successful". German Environment Minister Peter Altmaier urged on Thursday last week an EEG reform, accusing the Act of focusing too much on quantity development and citing a lack of coordination. He suggested to make the growth rate of renewable energy plants "constant and reliable," and to set a limit for number of plants allowed to be built in certain areas. Altmaier also wished to offer consumers free consultation on energy efficiency.