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Taxes and renewable energy surcharges raises the amount of electricity bills in countries increasingly relying on renewable energy sources such as wind power

On 22 April, it’s international Earth Day. The concept is to boost consciousness of the want to depend on renewable energy. The EU calls for its member states to supply a a 27% proportion of renewable energies via 2030—up from a 23.three% proportion of the general electricity generated in Europe in 2012. Thus, wind power is on the upward push. But its good fortune is dependent on European countries’ renewable energy insurance policies, that have a knock on impact on elevating electricity bills.

There are quite a lot of the reason why some countries prioritise wind power. “Of course, there needs to be wind,” says Poul Erik Morthorst, head of the control engineering department at the Technical University of Denmark, in Roskilde. Moreover, “When it all began, there was strong local interest for wind power in some countries,” specifically in Denmark, Spain or Germany, he provides.

Meanwhile, there used to be political will to financially make stronger those actions. Germany and Spain have thus the greatest put in wind energy capability in Europe. This creates a divide in Europe between countries who’ve a wind power coverage and the ones which don’t.

In flip, a rustic’s renewable energy coverage has an affect on folks’s electricity invoice. As a outcome, customers in Denmark, Germany and Spain pay the best possible electricity costs in Europe.  In Denmark, “a large part of the retail prices is tax”, says Morthorst. “Wind power has not yet reached grid parity everywhere. In these cases, it is still more costly than fossil fuel based power,” says Barbara Breitschopf, professional for energy coverage at the Fraunhofer Institute for Systems and Innovation Research in Karlsruhe, Germany.

Moreover, the renewable energy surcharges added to customers’ bills to make stronger subsidies equipped to builders of inexperienced energy, building up the electricity value for ultimate customers, Breitschopf explains. Yet, when there’s a lot of wind power this would possibly measurably cut back the electricity value at the inventory marketplace. But in Germany, for instance, “This price decreasing effect does by far not compensate the increase of electricity prices from the surcharge,” she provides.

An professional consents. “Customers do not feel the benefits of declining wholesale prices because they are wiped out by increasing taxes and policy support costs,” says Giuseppe Lorubio, head of the unit retail consumers at the union of the electricity trade in Europe Eurelectric, in Brussels, Belgium. He believes, as renewable make stronger rises, coverage make stronger prices will most likely exceed taxes in some countries quickly and, subsequently, requires “marketplace based totally and price efficient” make stronger schemes.

While acknowledging that make stronger for wind energy must be “marketplace suitable”, Morthorst  stresses that such benefits together with no native air pollution, no CO2 emissions and the safety of provide are generally “not calculated into the price”. Overall, “The advantages of wind power are better than the drawbacks,” he concludes.

Photo Credit: Sebastiano Pitruzzello

Image 1: Source of information: Eurostat. The map presentations distinction of costs of electricity in other countries in 2014. From gentle to darkish, the colors point out costs from a minimal of zero.0552€/kWh to a most of zero.3042€/kWh (with out taxes).​

 

Image 2: European Member State marketplace stocks for overall put in capability (GW). Source EWEA, 2014.

 

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