The disastrous effect of subsidies in a few charts
Look at this…Wholesale power prices in Germany 2008-2012: -53% (all-time lows), -33% from 2007 levels
Tariff to consumers in same period +25%.
In Spain the situation is the same: Tariffs have increased 34% while wholesale prices have fallen more than 12%, just as renewable subsidies multiplied by 4x, reaching 8bn euro per annum, or 39% of the overall costs of the system.
Spot power prices have remained well below historical levels… despite gas prices, coal and oil price increasing in euros.
While subsidies became almost 40% of the costs
By the way, most of the increase in grid costs comes from the excess need of transmission infrastructure generated by renewables.
Support of renewables by country (CNE):
Thank you, subsidies!
More on the excess cost of subsidies: http://energyandmoney.blogspot.co.uk/2012/11/fossil-and-renewable-subsidies-careful.html
- Potential delays in subsidy payments to new generators may, if measure is needed, reduce costs by EU500m
- Altmaier says “we need planning security” for power price to help private consumers, Mittelstand cos.
- Altmaier says wants to limit increase of renewable surcharge to no more than 2.5% a year from 2015.
- EARLIER: Germany to freeze clean-energy fee to slow power price increase.