The role of the EEG levy for low electricity prices and a sustainable energy future
The EEG levy is often controversial, but it has an important effect in the long term: By feeding in electricity from renewable energies, such as wind and solar, electricity prices on the stock exchange are reduced, which leads to lower electricity costs for consumers overall. From 2014 to 2018, the feed-in of renewable energies saved German electricity consumers around 40 billion euros in costs.
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The role of the EEG levy for low electricity prices and a sustainable energy future
A key mechanism behind the savings is the merit order effect . It describes how the various electricity generation technologies position themselves in the price formation on the electricity market: In Germany, power plants with the lowest marginal costs (e.g. wind and solar plants, whose operating costs are almost zero) meet demand first, before more expensive power plants such as coal or gas power plants follow. As renewable energies continuously feed into the grid, the need to resort to the more expensive fossil power plants is reduced, which lowers prices on the electricity exchange.
Long-term cost reduction through decentralized and renewable energies
The EEG levy makes a decisive contribution to ensuring that plant operators for renewable energies receive stable remuneration that is based on market prices and encourages investment. This model not only has a positive impact on the market, but also creates incentives for the decentralized expansion of renewable energies. By widely distributing solar and wind power plants close to consumers, the EEG relieves the burden on the grids in the long term and minimizes transport losses. This creates cost effects that will further stabilize electricity prices and relieve consumers in the coming years.
Conclusion: The importance of the EEG Act for a sustainable and cost-efficient power supply
The EEG Act plays a key role in establishing a sustainable, decentralized energy supply in Germany. It ensures that renewable energies can be fed into the grid at a competitive price, which leads to low stock market prices due to the merit order effect. Without the EEG and the support for renewable energies, German consumers would be increasingly dependent on fossil and more expensive energy sources. The EEG levy therefore acts as a long-term investment that not only protects the environment, but also lowers our future electricity costs and secures a stable energy future.
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