Criticism of energy policy
German electricity prices – Norway and Sweden are angry
Updated 12/13/2024 – 3:34 p.mReading time: 3 min.
the lull in wind causes electricity prices to rise. This doesn’t just affect German companies. European partners are also angry.
The wind is subsiding in the North Sea and cloud cover over Germany is reducing the production of solar power. The so-called dark lull means an increase in the price on the electricity exchanges. On Thursday the price briefly rose to 936 euros/MWh, which has not been this high since June. In Germany,many companies are affected by the high costs,especially if,as in the steel industry,they have to purchase electricity at short notice.
But European neighbors are also feeling the effects of the increase – and are angry. Swedish Energy Minister Ebba Busch complained on Platform
And she also identifies a culprit: “This is the result of the shutdown of nuclear power plants. When the wind doesn’t blow, electricity prices in this failed energy system rise, like electricity prices in Germany of about 10 kroner (87 cents, editor’s note .) per kilowatt hour.” Sweden now wants to bring more nuclear power plants online. The country receives its electricity from both its own sources and from neighboring countries. Germany is one of the largest non-Scandinavian exporters.
Sweden would like to see the German electricity market divided into several areas so that prices are balanced. “Germany has a lot of production in the northern parts, and prices there would be reduced with an electricity zoning that compensates for national imbalances,” Fredrik Olovsson of the ruling Social Democrats told Sweden’s aftonbladet.
Norway is also suffering from the slump. The lack of wind in Germany and the North Sea will drive electricity prices in southern Norway to 13.16 NKr (1.09 euros) per kilowatt hour on Thursday afternoon, the highest since 2009 and almost twenty times last week’s level, the ” Financial Times”. “It’s an absolutely shitty situation,” Norway’s Energy Minister Terje Aasland told the newspaper. Consideration is being given to switching off the lines with Denmark, through which Norway also receives electricity, and renegotiating with Great Britain and Germany. In the country itself,calls are becoming louder to use the electricity generated from hydropower first and not to export it.
That in turn could be difficult. In Europe there is an integrated energy market in which electricity is exchanged between countries depending on production and demand. Norway not onyl exports electricity, but also buys it – but now at rising prices. Consumers are largely protected because the government subsidizes electricity prices.
In Germany, it is primarily those companies that buy electricity on the spot market that suffer from high prices. These are industrial companies, but also municipal utilities. The Saxon company Feralpi’s electrical steelworks in Riesa even stopped production entirely because of this, reported “Bild”. Wolfgang Große Entrup, general manager of the Chemical Industry Association (VCI), told the newspaper: “It’s desperate. Our companies and our country cannot afford fair-weather production. We urgently need power plants that can step in safely.”
What are the key challenges facing Germany’s energy policy and its impact on neighboring European countries?
Time.news Interview: The Impact of German Energy policy on Europe
Editor: Welcome to Time.news! Today, we’re diving deep into a pressing issue affecting not only Germany but the entire European energy landscape.We’re joined by Dr. Lisa Andersen, an energy policy expert and lecturer at the University of Berlin. Dr. Andersen, thank you for joining us.
Dr. Andersen: thank you for having me! It’s a pleasure to discuss such an significant topic.
Editor: Let’s get right into it. Recently, we’ve seen strong criticism aimed at Germany’s energy policy from neighboring countries like Norway and Sweden. What are the main concerns regarding the high electricity prices for exported German electricity?
Dr.Andersen: The core of the criticism revolves around the increasing electricity prices, wich have been exacerbated by a lull in wind energy generation.as demand surges and production slows, the prices rise, impacting not only German consumers and businesses but also our European partners who rely on German electricity.
Editor: Sweden’s Energy Minister, Ebba Busch, has been vocal about this issue. How does Germany’s energy pricing affect its relationships with countries like Sweden and Norway?
Dr. Andersen: Germany, as a central hub in the European energy market, holds significant influence. When prices spike, it creates strain on relationships. Both Sweden and Norway produce their electricity primarily through hydropower and are sensitive to fluctuations in energy costs. If exported German electricity becomes prohibitively expensive, it puts pressure on neighboring countries, leading to frustrations and demands for re-evaluation of existing agreements.
Editor: Would you say that this situation is a temporary issue, or could it signal deeper structural problems in the European energy market?
Dr.Andersen: I believe it highlights underlying vulnerabilities in our energy infrastructure and policies. The transition to renewable sources, while necessary, has its drawbacks. We’re transitioning away from fossil fuels but require a stable backup when renewables like wind and solar are inconsistent. This isn’t just a German problem; it reflects on collective energy policies across Europe.
Editor: So, in your view, what steps should be taken to address these challenges in the energy market?
Dr. Andersen: A multifaceted approach is essential. First,enhancing cross-border energy infrastructure would improve the resilience of our energy systems. Second, fostering cooperative agreements on energy prices and sharing resources could help mitigate any volatility. Lastly, investing in energy storage solutions and improving grid versatility will be key to managing future shortages and reducing prices.
Editor: With the current geopolitical and economic climate, do you foresee any changes in the public or political will to tackle these issues?
Dr. Andersen: Absolutely. The urgency is now more pronounced than ever. With rising energy prices and geopolitical tensions, policymakers are increasingly motivated to seek enduring solutions that ensure stability and fairness in energy pricing. Additionally, the public’s awareness and concern over energy security will likely drive demand for more comprehensive policies.
Editor: Thank you, Dr. Andersen, for sharing your insights with us today. Your expertise shines a light on a complex issue that affects many.
Dr. Andersen: It was my pleasure! Thank you for shedding light on this important topic.
Editor: And thank you to our readers for tuning in. Stay informed and engaged as we continue to explore the evolving energy landscape in Europe and beyond.