Germany’s energy management may affect Ireland’s ambition
German domestic energy prices have now risen to around 48% above the EU average.
A key reason for this is Germany’s Renewable Energy Law , which imposes a surcharge on the market energy price to support the cost of expanding renewable energy sources. Some Germans citizens are now voicing opposition to this rising cost.
However, Teagasc bioenergy specialist Barry Caslin has said that many Germans who are opposing the payment for renewable energy will have to realise that according to official figures, some 370,000 people in Germany were employed in the renewable energy sector in 2010, especially in small and medium-sized companies.
“The switch to renewables has been a major boost to innovation in Germany,” said Mr Caslin.
“Germany has the second lowest unemployment rate in Europe at 5.5%. Engineers and scientists up and down the country are busy dreaming up solutions for a new electricity market and a revamped energy system.
Mr Caslin added that renewable already enjoys a 25% share of Germany’s electricity market.
He said the industry exemption change whereby some companies are exempted from paying the surcharge will make it difficult to increase renewable targets even further within Germany.
The European Commission has challenged Germany to justify its renewable energy rebate.
“We are probably going to witness a German divide, whereby some industries will benefit from the removal of subsidies and some will benefit,” said Mr Caslin.
