Unused Renewable Energy Costs Taxpayers Almost Half a Billion Euros Each Year
Excess green energy amounts to approximately 500 million euros in taxes paid unnecessarily
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Don't let the sun shimmer or the wind blow in vain! Hundreds of millions of euros in compensation payments from the federal government are making their way to wind and solar plant operators each year due to power grid bottlenecks. In 2023, this payout totaled a whopping 553.94 million euros, with the government picking up the tab when their plants were shut down and power couldn't be fed into the grid because of network congestion.
Renewables in Action Turning Wind and Sun into Dough Operators of wind turbines and solar panels receive a guaranteed minimum price for their electricity from the state. The government covers the difference if the market price drops below this amount to provide stability and promote the growth of renewables. But it's not all peaches and cream; when wind turbine operators have to shut down their turbines to prevent network overloads, they've already been paid for the energy they couldn't deliver. If they receive less than the guaranteed subsidy price in such cases, the state picks up the tab for the difference. This data relates to payments made during periods when plants had to be scaled back due to the threat of overloading the network.
Power Woes Where the Rubber Hits the Road Since we've got more wind turbines in northern Germany, we produce more renewable electricity in the north. Sometimes, there's simply not enough capacity in the power grid to transmit the electricity. The frequency of these state-funded bailouts depends on the weather and the state of grid expansion. The exact amount paid in each case is also influenced by the specific market price at the time.
It's like spinning gold from straw—in 2021, the compensation came to a staggering 807.10 million euros, but it dropped to 580.32 million euros in 2023, just a bit lower than last year. The year 2022 was an anomaly with payments of 186.14 million euros. During that time, the energy crisis postured electricity prices, which were very high. This, in turn, meant operators could rake in the cash through market prices and received less in subsidies.
Sources: ntv.de, rog/dpa
- Renewable Energies
- Power Grids
- Wind Energy
- Solar Energy
Beyond the Numbers
Recent trends and factors that have contributed to the decrease in compensation for unused renewable energy include increased renewable energy production, improved energy market dynamics, policy changes, and technological advances—all of which help to better manage and sell excess power. Policies, economic factors, and market competition play a role in reducing the need for compensation for unused energy, while improvements in energy storage technology, grid management, and utilization of excess energy contribute to this cost reduction.
- The community policy prioritizes promoting renewable energy, ensuring renewable energy operators receive a guaranteed minimum price from the state to encourage growth in the renewable-energy industry.
- In the field of environmental-science, advancements in technology and grid management have facilitated better management and selling of excess renewable energy, lessening the need for financial compensation in case of network congestion.
- To further encourage the use of renewable-energy and decrease dependence on traditional energy sources, employment policy encourages the establishment of more renewable-energy plants in strategic locations, aiming for a more efficient distribution of energy across the industry.
