While FreedomWatch has covered the UK’s current struggles with renewable energy, we mustn’t forget Germany, the so-called home of renewables.
German newspaper Die Welt reported on Sunday that a leading German transmission grid operator will spend €500 million in 2015 on “stabilization measures” when the wind blows too much. Yes – while not enough wind is a perennial problem, so is too much wind, as some needs to be taken offline (though still paid for) and balanced with imported fossil fuel power from elsewhere.
Wind power is also playing havoc with the viability of Germany’s energy companies. EON recently reported a quarterly loss of €7.25 billion, and RWE is also losing money, as government policies and low wholesale electricity prices continue to destroy electricity industry economics.
Not that low wholesale prices mean low consumer prices. German power bills are among the highest in the world because they are half taxes and fees, with the costs of renewables recovered through taxing consumers. Over one million Germans have had their electricity cut off over the last three years, unable to pay bills that have doubled since 2002.
Yesterday’s Australian cited a 2014 study which found that nearly one in three Australians had missed an electricity bill payment in the previous twelve months. Given the German experience, this problem will likely become even more acute as renewables take a greater share of the Australian market.