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ENERGY

Green energy surcharges to spike next year

The development of Germany’s renewable energy sources will mean record green electricity surcharges for consumers in 2011, increasing power bills by up to €112 per year, according to industry experts.

Green energy surcharges to spike next year
Photo: DPA

High solar energy subsidies are the main reason for the surcharge increase – which will go up 71 percent from €0.0205 to €0.035 per kilowatt hour.

According to consumer online portal toptarif.de, this could add up to €112 to an average household’s annual energy bills. Three-person families will likely see an additional €10 tacked on to their monthly bills.

Critics have recently attacked renewable energy subsidies as a waste of money, but on Friday Environment Minister Norbert Röttgen defended the measures.

“The economic value of renewable energy far exceeds the costs,” he told daily Financial Times Deutschland. “Effective and climate friendly energy security is a virtue that also has a price.”

The conservative Christian Democrat also said that the green energy industry has created some 340,000 jobs, which adds value to the subsidy.

Much of the additional subsidy payments passed on to consumers stem from solar energy development, a branch that Röttgen said he supports.

“In the long-term we all need available technologies to reach secure and climate friendly energy generation,” he said, admitting that solar companies still need to work on improving their competitiveness.

“It is now up to the sector to minimise their dependence on the German market through innovation, lower costs and working in new markets,” he said.

The German Renewable Energy Federation (BEE) also warned consumers against bad-mouthing the subsidies.

“Every euro invested in the renewables has a high economic use – even this high surcharge,” BEE leader Björn Klusmann told German news wire DPA. “It is a misconception that there would be no surcharges if renewable energy development were stopped.”

Instead of paying for green energy, consumers would then pay for the development of conventional power plants that would also cost billions and harm the environment, he explained.

DAPD/DPA/ka

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BUSINESS

France’s EDF hails €10billion profit, despite huge UK nuclear charge

French energy giant EDF has unveiled net profit of €10billion and cut its massive debt by increasing nuclear production after problems forced some plants offline.

France's EDF hails €10billion profit, despite huge UK nuclear charge

EDF hailed an “exceptional” year after its loss of €17.9billion in 2022.

Sales slipped 2.6 percent to €139.7billion , but the group managed to slice debt by €10billion euros to €54.4billion.

EDF said however that it had booked a €12.9 billion depreciation linked to difficulties at its Hinkley Point nuclear plant in Britain.

The charge includes €11.2 billion for Hinkley Point assets and €1.7billion at its British subsidiary, EDF Energy, the group explained.

EDF announced last month a fresh delay and additional costs for the giant project hit by repeated cost overruns.

“The year was marked by many events, in particular by the recovery of production and the company’s mobilisation around production recovery,” CEO Luc Remont told reporters.

EDF put its strong showing down to a strong operational performance, notably a significant increase in nuclear generation in France at a time of historically high prices.

That followed a drop in nuclear output in France in 2022. The group had to deal with stress corrosion problems at some reactors while also facing government orders to limit price rises.

The French reactors last year produced around 320.4 TWh, in the upper range of expectations.

Nuclear production had slid back in 2022 to 279 TWh, its lowest level in three decades, because of the corrosion problems and maintenance changes after
the Covid-19 pandemic.

Hinkley Point C is one of a small number of European Pressurised Reactors (EPRs) worldwide, an EDF-led design that has been plagued by cost overruns
running into billions of euros and years of construction delays.

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