State Governors Urge Lower Electricity Prices

East German state premiers are pushing for lower electricity prices. “Electricity prices are still too high and must finally come down,” warns Brandenburg’s Minister-President Dietmar Woidke (SPD). Climate protection remains important, adds his Saxon counterpart Michael Kretschmer (CDU). But the costs of transforming the economy and maintaining competitiveness must also be kept in mind.

An analysis by the comparison portal Verivox recently found that electricity in Germany is the most expensive among the G20 group of leading industrialized and emerging economies. While a kilowatt-hour of electricity costs 35.6 cents for private households in Germany, the average across G20 countries is just 16.3 cents. According to the data, taxes and levies—which account for more than 60 percent of the electricity price—are the main drivers of this cost. 

Renewable energy must be consumed more where it is generated, Woidke emphasizes. This requires more grid and storage infrastructure. Saxony-Anhalt’s Minister-President Sven Schulze (CDU) is also pushing for faster grid expansion. It does not help anyone if electricity cannot be fed into the grid due to a lack of grid capacity.

“For me, the winner of the energy transition is not automatically the one who produces a particularly large amount of renewable energy,” Schulze states. What matters, he says, is whether this also leads to new industry, innovation, and good jobs.

Kretschmer Calls for a Change in Course on Wind Energy Expansion

Meanwhile, Kretschmer is calling for a change in course regarding the expansion of wind energy. Instead of dictating to municipalities and states what percentage of their land they must set aside for wind turbines, the focus should be on actual energy output. “If climate goals and the need for renewable energy can be achieved using less land but with more efficient or modern facilities, this should be the priority.”

The heads of government made their remarks in anticipation of the East German Energy Forum. The forum, titled “Security in Uncertain Times,” will take place on September 30 and October 1 in Leipzig.