Graph of the Day: Coal, nuclear subsidies vs renewables in Germany

greenpeace subsidies

This graph comes from a newly released report from the Germany-based Greenpeace Energy, and highlights the extent of subsidies paid out to various technologies in the German energy market since 1970.

There is a huge controversy about the level of subsidies in Germany towards renewables as it undertakes its “energiewende” – energy transition – but the fact is that these subsidies pale in comparison to what has been paid to conventional technologies.

Conventional base-load technologies such nuclear (atomenergie in yellow) and black coal (steinkohle in black) have received more than twice the subsidies of renewables (erneuerbare in green) over time. The accumulated amount given to renewables only overtook brown coal (braunkohle in brown) in 2013. Very little in subsidies has been given to gas, the report says.

So how does this translate into household costs? If the subsidies to coal and nuclear were recognised in the same way as the subsidies to renewables, it would present a very different picture.

This graph shows how. The first on the left is the normal household cost, including standard charges – cost of generation, transmission and distribution, and the renewables subsidy (EEG-Umlage in green).

The household cost is pushed a nearly a third (second column) with the addition of subsidies to conventional fuels – coal and nuclear, with grants and tax breaks in red, and climate and other environmental costs in grey. The cost of subsidies to conventional fuels is budgeted to rise in 2015, while the cost of the green energy scheme falls slightly.

greenpeace household

 

Comments

5 responses to “Graph of the Day: Coal, nuclear subsidies vs renewables in Germany”

  1. Billy Bangle Avatar
    Billy Bangle

    I’m a bit skeptical. Can we have some specific references, like particular lines in the budget, that show this is more than a beat-up?

    1. john Avatar
      john

      I do not think this is a beat-up.
      Look at the Aussie perspective subsidy no tax on fuel for off road use.
      Just one area of help extended.

  2. Graham Anderson Avatar
    Graham Anderson
  3. GreenGenie Avatar
    GreenGenie

    From the second graph, the major cost contributor is the nebulous “climate and other environmental costs” which are notoriously arguable in their calculation and can weaken a green-side argument.

    Given also that the up-tick in Germanys solar has been compromised by a corresponding increase in coal fire energy production (and CO2 emissions) further muddies things (link provided).

    If ever there was an ideal scenario to impose a carbon tax (but not carbon trading as EU has struggled with this) then now must be the time given the historic lows fossil fuels are experiencing. Govt’s can implement CO2 tax reform while minimizing company backlash.

    Renewable energy cost/kWh advancement needs to be linked to a corresponding carbon emission abatement result, otherwise we are missing the point, right?

    http://www2.warwick.ac.uk/fac/soc/csgr/green/foresight/energyenvironment/2013_eurelectric_power_statistics__trends_2013.pdf

    1. Catprog Avatar
      Catprog

      I think the increase in coal is due to a reduction in nuclear. (due to the incident in Japan)

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