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ENERGY

German government moves to ramp up wind power

The German government approved a draft law on Wednesday aimed at covering two percent of the country's land area with wind turbines by 2032, by setting fixed regional targets and easing some administrative burdens.

Wind turbines in Brandenburg
Wind turbines in Brandenburg. Photo: picture alliance/dpa | Patrick Pleul

The push to accelerate the expansion of wind power comes as Germany is scrambling to wean itself off Russian fossil fuels following the war in Ukraine.

“Independence from fossil energies and from Russian fossil energies must be advanced at full speed,” Energy Minister Robert Habeck told reporters.

The draft law adopted by Chancellor Olaf Scholz’s cabinet still needs to approved by parliament.

The goal is for Germany’s 16 states to collectively dedicate two percent of the nation’s surface area to wind power generation by the end 2032 — up from 0.5 percent currently.

READ ALSO: Germany races to stockpile gas before winter

The installation of wind turbines regularly runs into “not in my backyard” resistance in Germany and objections from residents have often blocked such projects in the past, as have concerns about endangering local wildlife.

Habeck said the proposed legislation would take away some of the leeway that regional governments currently have, and force them to abide by fixed targets that vary according to a state’s size and specific criteria such as wind conditions and areas reserved as nature protection zones.

Under the bill, most states would have to set aside 1.8-2.2 percent of their land for wind turbines, while the city states of of Berlin, Hamburg and Bremen would only have to reach a 0.5-percent target.

Should regions fail to meet the objective, the federal government could override local rules on maintaining a minimum distance between homes and windmills. 

‘Concerns’

Regional states unable to meet their target would be allowed to negotiate with other states that they build more wind turbines to make up for the difference, in return for financial compensation.

The federal government also pledged to simplify species protection rules in an effort to remove another frequent hurdle on the path to more wind turbines.

Habeck said he understood the proposed measures would be met with opposition or even fear in some regions, but “there is a difference between taking concerns seriously and allowing those concerns to become a political blockade”.

Scholz’s Social Democrat-led government, which also includes Habeck’s Green party and the liberal FDP, aims for Europe’s top economy to get 80 percent of its electricity from renewables by 2030.

After years of increasing the share of renewables in its energy mix, the proportion of renewables fell last year for the first time since 1997, to 42 percent compared with 45.3 percent in 2020.

READ ALSO: Bavaria demands share of revenues for residents living near wind farms

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PRACTICAL TIPS

How German households can save on their electricity bills

Customers can save a high three-digit sum on their household electricity costs, according to calculations done by German price comparison portals. Here's why you may want to switch your tariff.

How German households can save on their electricity bills

German households are overpaying for electricity by billions of euros each year, according to calculations carried out on the Verivox price comparison portal.

This is because nearly a quarter of households in Germany purchase electricity via the most expensive tariff group from their local supplier – the so-called ‘basic supply’, or Grundversorgung in German.

But in Germany, customers have energy tariff options, and saving hundreds on your energy bill can sometimes be as simple as checking your current tariff online and switching to a cheaper one in a matter of minutes.

Based on approximately ten million households consuming electricity from the basic supply, Verivox calculates that Germans are overpaying by about €5.5 billion annually. That’s because the average difference between basic supply rates and the cheapest local energy rates currently amounts to 20 cents per kilowatt hour (kWh).

What is the ‘basic supply’ for household energy?

Household electricity in Germany is purchased through different tariffs (Stromtarifs). Through these various tariffs, local energy companies offer different prices for electricity, depending on customer contracts.

The basic supply tariff for electricity can be thought of as the default. When a new house is connected to the energy grid, for example, its electricity will be provided via the basic supply unless the homeowner chooses another tariff option.

READ ALSO: How to change electricity and gas providers in Germany

The basic supply is intended to ensure that everyone has access to electricity, even if they haven’t shopped around for an energy provider on their own. It can also be advantageous in the short term because it can be cancelled at any time, as opposed to other tariffs which typically come with longer contracts.

But the basic supply is comparatively expensive. According to Verivox, basic supply electricity currently goes for an average of 44.36 cents per kilowatt hour (kWh), whereas the cheapest available rates on average come to 24.7 cents/kWh across Germany.

How much can you save?

At current rates, you can expect to save about 44 percent on your electricity bill if you switch from basic supply to the cheapest option with a price guarantee. 

That amounts to significant savings, considering that annual electricity costs regularly come to a few thousand euros in German households.

The Hamburger Abendblatt reported that a three-person household consuming 4,000 kWh would save an average of €786.

These prices will vary from provider to provider and from region to region. 

Keep in mind that choosing other tariff options often comes with some additional fees. Still, in many cases taking a look at different electricity tariff options can save households some money.

Also, switching tariffs is different from switching your energy provider. If you currently get basic supply electricity from Vattenfall, for example, you could potentially switch to a different tariff option while maintaining your business with them. But if you are between contracts, or currently on basic supply, you could also consider switching providers.

In this case, a comparison portal like Check24 can be useful to get an idea of which companies offer the best rates.

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