Monopolies Commission calls for replacing renewables support with CO2 price
Monopolies Commission
Germany's Monopolies Commission, which advises the government on competition policies, is calling for a shift from renewables support to a price on CO2 emissions to finance the country's energy transition. In a new report on the electricity and gas markets, it recommends:
- reinforcing the EU emissions trading system (ETS) to reach climate targets by including other sectors like transport. Such a price tag on CO2 in all sectors would allow the phase-out of the current support system for renewable energies.
- increasing the volume of technology-neutral auctions to determine support levels for renewable energies.
- introducing regionally differentiated network charges for renewable energy generators. These would provide incentives for plant operators to account for possible network expansion costs in their choice of location.
Single players do not excessively dominate the electricity wholesale market in Germany, writes the Commission. The independent expert committee said that the market share of the four largest energy suppliers decreased to 54 percent in 2016 (2014: 62 percent).
Find the press release in English here and the full report in German here.
For background, read the CLEW factsheet Germany's new power market design and the dossier Utilities and the energy transition.
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