Source: Energy & Management Powernews,March 10, 2022
Several energy associations have demanded assistance from the German government against the high energy prices and for the accelerated expansion of renewable generation already in the "Easter package".
The Federal Ministry of Economics and Climate Protection (BMWK) presented a 267-page draft bill of the "Easter Package" on March 4. It contains a law on immediate measures for an accelerated expansion of renewable energies and further measures in the electricity sector. According to the German Wind Energy Association (BWE), the draft "basically points in the right direction". The federation of local enterprises (VKU) demands in view of extremely risen energy prices "fast direct and noticeable assistance" for the households and enterprises particularly concerned.
Also the Federal association of the energy and water economy (BDEW) demands apart from the deletion of the EEG apportionment starting from 1 July further relief steps for households and economics. Kerstin Andreae, Chairwoman of BDEW's Executive Board, said, "All other options should also be examined, such as reducing the value-added tax on energy from 19 to seven percent and lowering the electricity tax to the minimum level permitted by European law." For low-income households, further social policy support should be provided.
BDEW rejects energy embargo
A call by the President of the European Commission to save energy is also seen as the right impulse by Andreae. "For efficiency in buildings and transport, as well as in business and industry, government support such as renovation programs and specifications for new construction and public buildings also makes sense," Andreae said. BDEW rejects an embargo on Russian energy supplies because of the negative effects for Germany. However, becoming more independent in the long term also means setting all the course now for the expansion of renewables and removing the obstacles at federal, state and municipal level. In addition, the conditions for grid expansion and hydrogen ramp-up must be improved as quickly as possible, Andreae said. The BWE would like to include in the draft EEG law the priority of renewable energies in the consideration of protected goods, in order to obtain permits more easily.
Criticism from the wind association of the draft law
The surprising limitation of the addition of wind energy on land to 160 GW provided for in the draft is not comprehensible," criticized the wind association. He considers 200 GW of wind on land nature-compatible possible. "But much more important will be the upcoming summer package, which will hopefully finally loosen the shackles for the wind industry in area and approval procedures," hoped Hermann Albers, BWE president. A significantly facilitated repowering at accepted sites should also be quickly into law, he demanded.
The chief executive of the VKU, Ingbert Liebing, said, "The relief measures taken so far by the federal government are far from sufficient, however, to noticeably dampen the extent and consequences of this development in the upcoming annual and budget billing." For average households, the additional burdens in the energy sector could amount to several thousand euros. This will no longer be bearable for people. In order to avoid social frictions, politics must therefore act quickly and effectively.
Liquidity loans instead of price caps
Market interventions such as price caps should, however, be avoided, because in a tight market, regulated prices could not change anything about the shortage situation. What is needed now, therefore, are large-volume measures that create confidence before the situation escalates further. The VKU therefore proposes reducing electricity and value-added taxes on energy as much as possible. In addition to heating cost subsidies, the energy cost portions in the standard rates of basic security would have to be reviewed for low-income households, and housing allowances would have to be dynamized on the basis of warm rents.
Commerce and industry, especially in the case of small and medium-sized enterprises and energy-intensive businesses, also needed support against the high energy prices. Since, in addition to large suppliers and energy traders, municipal utilities are also system-relevant, they would have to be jointly protected against imbalances due to short-term price swings. It concerns above all liquidity safety devices, for example by bridging loans of KfW and national promotion banks.
The financial resources for it could be contested according to VKU from the national tax increase incomes in consequence of the price increases. If this is not enough, they should not be taken from the climate and transformation fund under any circumstances, as this is needed for urgent investments. These funds should flow into an energy system that is independent of fossil fuels. This would include promoting the expansion of district heating, CHP or the ramp-up of the hydrogen economy, he said. "These measures are a contribution to Germany's energy sovereignty," Liebing concluded.
Author: Susanne Harmsen
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