German Government Allocates Funding to Reduce Electricity Transportation Costs
December 4, 2024
Berlin, Germany – The German government has announced a new initiative to provide financial assistance to reduce electricity transportation costs and support the transition to renewable energy. The initiative is part of a broader effort to decarbonize the country’s energy sector and achieve climate neutrality by 2045.
The funding, which will be available from 2025 onwards, aims to offset the costs of transporting electricity from renewable energy sources, such as wind and solar farms, to urban centers. These transportation costs have been a significant challenge for the expansion of renewable energy in Germany, as they can account for up to 20% of the total cost of electricity.
The subsidy will be provided in the form of grants to electricity transmission system operators (TSOs). The TSOs will be responsible for distributing the funds to project developers and renewable energy producers.
The government has set aside €1 billion for the subsidy program, which will be allocated over the next five years. The program is expected to support the construction of new transmission lines and improve the efficiency of existing networks.
“This subsidy program is a crucial step towards enabling the transition to a clean energy future,” said Federal Minister for Economic Affairs and Climate Action, Robert Habeck. “By reducing the cost of transporting renewable electricity, we are making it more affordable and competitive, and accelerating the decarbonization of our energy sector.”
The initiative is part of the German government’s broader “Easter Package,” which was introduced in April 2023 to accelerate the country’s energy transition. The package includes a number of measures to promote renewable energy, including a target to increase the share of renewable electricity in the grid to 80% by 2030.
The subsidy program has been welcomed by the renewable energy industry, which has long called for financial support to reduce transportation costs. “This subsidy is a game-changer for the renewable energy sector,” said Hermann Albers, President of the German Renewable Energy Federation (BEE). “It will significantly reduce the cost of renewable electricity and make it more competitive with fossil fuels.”
The government’s initiative is expected to have a positive impact on the development of renewable energy in Germany and contribute to the country’s climate goals. By reducing transportation costs, the subsidy will make renewable electricity more affordable and accessible, paving the way for a clean and sustainable energy future.
Zuschuss soll Transportkosten für Strom reduzieren
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