German business groups are increasingly vocal in opposing the country’s renewable energy structure, which heavily subsidizes suppliers, substantially pushing up the price of electricity for business and private consumers.
The latest focus of criticism of the country’s Renewable Energy Law, or EEG, is Kriegers Flak, a massive offshore wind field stretching across the Baltic Sea from Germany to Denmark and into Sweden. Projects in the area allows for direct comparison between prices in Germany and elsewhere. This week Vattenfall won a tender for the Danish part of the scheme, bidding just €0.0499 per kilowatt-hour (around $0.054), an all-time low price. But on the German side of the project — where prices are guaranteed and tendering still very limited — the government is locked into long-term contracts paying suppliers up to €0.194.
The German government has recognized this problem, and announced a new bidding system early this year. But the planned phase-in of market-based tendering will be slow. Industry bodies complain that this saddles German business with high energy prices for the foreseeable future.