Green-Energy Levies and Surcharges

Reforming green-energy levies and surcharges to improve the incentives created by electricity prices

  • Project Duration: 07/2015 - 04/2017

The Energiewende is changing cost structures in the energy system. The current system of levies and surcharges for promoting renewables is not fit for the challenges posed by the energy system of the future, and needs to be reformed. At present, the prices paid by end customers do not reflect the flexibility requirements of an energy system with a large share of renewables. Furthermore, electricity is at a disadvantage as a source of energy for the heating and transportation sectors, as end-customer prices for electricity are considerably higher than that for natural gas, heating oil and fuels, due to green-energy levies and surcharges. Last but not least, numerous reforms have been implemented over the years, making the existing system increasingly complex and unwieldy.

Against this backdrop, this project is devoted to the following questions: What is the current design of the system of levies and surcharges for promoting renewables? What problems will result over the near- to mid-term as a result of this system? What requirements does the Energiewende place on the design of the system? How can the current system be reformed in order to meet the challenges associated with the energy system of the future? And what effects will the reform of the current system of levies and surcharges have on actors involved in the Energiewende?

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