Investment and expensive electricity

In 2010, the electricity sector are accounted for around € 23.7 billion investment in renewable energy. The presentation suggests that any evil powers, probably “market forces” of the road have come invest in the power sector and they are misdirected. However, this is not so.http://www.dreamstime.com/-image4420477 Here we can introduce you to several different interpretations of these issues. The problem is homemade.

It is a problem only of political control. The story begins with the compensation structure in the Renewable Energy Sources Act. The EEG is not only the amount of compensation is regulated, which is guaranteed to producers of renewable energy. In the EEG of a purchase obligation because of renewable energy is regulated and the corresponding current.

The renewable energy lobbyists for their clients have created this unique shelter. An investor, who invests in the production of renewable energy, has no business risk. The product is removed at a guaranteed price in almost any quantity. Rational actors populate the economy. For renewable energy, the question of how to maximize its benefits, already regulated by the EEG, by the compensation structure. Those who invest in solar energy, receives more than four times as much per kWh of energy does.

Nevertheless, solar power is the most expensive option of electricity generation and with a share of 4% (2011) rather a marginal phenomenon among the types of renewable energy production. The investment in solar power is thus a misallocation of resources, which in turn must be paid by someone. The difference in cost by the guaranteed price for solar energy is 28.74 CT / kWh, less the market price that is traded on the current example of the EPEXSPOT Paris Stock Exchange.

The difference in price that is charged to end users amounts therefore to 24.74 cents / kWh. The price difference alone is already five times the market price.

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