Get Email Updates!

Concentration of CO2 in the Atmosphere

Renewable Energy driving Down Electric Prices in Germany – in spite of Nuclear Shutdowns!

Germany Continues Exporting Electricity–Renewables Driving Down Power Prices–Despite Closing Reactors

September 27, 2011
By Paul Gipe
pgipe@igc.org, www.wind-works.org

Recent data shows Germany continues to export electricity despite closing seven nuclear reactors.

Meanwhile Bloomberg reports that continued renewable energy expansion in Germany is driving down power prices.

Germany’s bureau of statistics reports that the country exported more electricity than it imported during the first half of 2011. This puts the lie to widespread rumors circulating in North America that Germany is closing its nuclear power plants by relying on imports of electricity from its neighbors.

Though the bureau of statistics notes that the margin of exports over imports has decreased from 2010, Germany sold 4 TWh more electricity than it bought during the period. Germany consumes more than 300 TWh every six months. The surplus for export represents about 1% of consumption.

In the first half of 2010, Germany exported nearly 11 TWh more electricity than it imported.

Bloomberg reports that Germany is expected to add 7,000 MW of wind and solar generating capacity in 2013, exceeding the installations projected for 2012. This massive expansion of renewable energy generating capacity is affecting the futures market for fossil-fuel fired generation.

Bloomberg quotes their own in-house expert as saying “The installed solar base in Germany is growing rapidly thanks to continued feed-in tariff support,” according to Jenny Chase, an analyst at Bloomberg New Energy. “We expect this to weigh on power spot prices, particularly because renewable energy has priority grid access and near-zero marginal cost,” she added.

Deutschland verkauft noch immer mehr Strom als es einkauft
Bloomberg: Germany’s Green Drive Subdues 2013 Power Prices: Energy Markets:

Excerpts from Bloomberg: link above:

“Germany is installing more wind turbines and solar plants to offset halted atomic production while limiting emissions from fuels such as coal and gas, which typically determine power prices.”

“Germany is installing more wind turbines and solar plants to offset halted atomic production while limiting emissions from fuels such as coal and gas, which typically determine power prices.”

“A surge in renewable energy in Germany is pushing power prices for 2013 below next year’s level even as natural gas, coal and emissions rise.”

“Electricity for 2013 was 45 euro cents (61 cents) a megawatt-hour cheaper than next year’s contract today after the gap widened to as much as 1.25 euros at the start of last week, broker prices on Bloomberg show. The country, Europe’s biggest power consumer, will build 7,000 megawatts of solar and wind capacity in 2013, 32 percent more than the additions planned for next year, according to Societe Generale SA.”

“Germany is installing more wind turbines and solar plants to offset halted atomic production while limiting emissions from fuels such as coal and gas, which typically determine power prices. Industrial users in Europe’s biggest economy are buying supply for next year as Germany’s biggest utility EON AG has already sold almost all of its electricity for the period, helping keep 2012 prices at a premium.”

Germany will build 9,600 megawatts of power generation capacity in 2013 and retire 3,200 megawatts of thermal plants fueled using coal and natural gas, Societe Generale’s head of energy research Emmanuel Fages said in slides e-mailed Sept. 15.

Solar, Wind Share

The country got a record 20.8 percent of its electricity from renewable sources such as wind, solar, biomass and hydro in the first half of the year, the country’s BDEW utility association said Aug. 29.…

Solar Panels

“Some of the country’s 40 million households are installing solar panels on rooftops that earn more than five times the wholesale day-ahead power price under so-called feed-in tariffs. The nation will add 6,000 to 7,000 megawatts of solar power this year, on top of last year’s install of 7,400 megawatts, according to Bloomberg New Energy Finance.”

“The installed solar base in Germany is growing rapidly thanks to continued feed-in tariff support,” Jenny Chase, a solar analyst at Bloomberg New Energy, said today by e-mail. “We expect this to weigh on power spot prices, particularly because renewable energy has priority grid access and near-zero marginal cost.”

Leave a Reply

You can use these HTML tags

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>