Germany moves to make renewable energy costs fairer with new grid fees

German electricity consumers in areas with lots of wind and solar power could see lower grid fees from next year, according to newly published pricings aimed at more evenly distributing the costs of renewable expansion. In renewable rich regions, households with an average consumption of 3,500 kilowatt hours (kWh) annually will see "significant savings" of more than 200 euros in 2025 compared to 2024, according to the country's Federal Network Agency (BNetzA). "The grid fees in regions with a strong increase in wind and solar power will fall noticeably. Now it's the suppliers' turn to pass these benefits on to customers," said BNetzA head Klaus Müller.  

A decentralised electricity system based on renewable sources requires grid modernisation. Up to now the costs of updating the grid have been borne by those in the local area. That means consumers in Germany's windy north, for instance, currently pay for integrating offshore wind power into the grid – electricity that is then used largely in the country's industrial south. The new model will distribute those costs nationwide.  

Unfair cost distribution was highlighted as a factor for discontent with energy policy for many voters in eastern Germany, where populist parties rejecting national climate and energy policies made gains in recent state elections, including in Brandenburg. The average household in that state should make savings of around 100 euros in grid fees annually under the new model.