I have written about renewable energy and showed why it is so expensive for the consumers in Germany. The main reason is the extremely high subsidies for solar power in the last decade for which the consumer has to pay for through a allocation fee, while the producer gets a guaranteed feed-in tariff for a certain time, which depends on size and type of the renewable energy. For example, somebody who installed solar power on a building in 2004 got between 54 €ct/kWh and 57.4 €ct/kWh for 20 years. For onshore windpower the tariff is at a much more reasonable 8.93 €ct/kWh for the first 5 (though that is a theoretical number) to 14 years and 4.87 €ct/kWh therafter for a total of 20 years.
So what does the future production and feed-in tariff situation look like?
- The whole system is a boom and bust machine. First politicians decide to that firms should receive very high tariffs for a certain type of energy. This leads to strong growth in that sector, through high investment.The politicians after a few years suddenly realize that this actually costs money for consumers, which leads to massive cuts. This cycle has happened in the solar power sector. Many of those companies are now insolvent. It is now happening again with offshore windpower.
- The sudden cuts come too late, so the consumers actually don't save any money because of the long period (total of 20 years) of guaranteed fees for installed and planned installations.
- The system burdens the poor, who pay a much higher percentage of their income for energy, while the wealthy, who have solar power installations on their buildings profit. It is a redistribution from the weakest to the strongest.
- Many companies even those that are competing with foriegn companies (e.g golf courses) do not have to pay the allocation fee.
Theoretically, the energy transition is a good idea, but the way it is done at the moment is absolutely unfair, eypensive, almost completely unplanned and leads to unintended consequences everywhere. It seems unlikely that the social democrats who came up with this idea actually wanted to create a redistribution scheme from the poor to the rich, but the complete lack of any skills within German governments has created massive chaos with sectors growing exponentially for a few years before completely collapsing within a even shorter time afterwards. And the consumers have to pay for this incompetence for two decades. Additionally, there is almost no reduction in carbondioxide from electricity production, since Fukushima brought the sudden realization that nuclear energy might actually have a few risks, so today renewables are supposed to substitute nuclear power, which has actually lead to an increase in electricity produced with lignite and coal in the last three years, while new natural gas power stations are being taken off the grid or never start to produce any energy. None of those issues are being tackled.