The Country Where Taxpayers Are Charged Billions When the Sun Shines
by Eugyppius 26 October 2024 11:00 AM
Climatism in Germany is attended by all manner of naïve ideas and bright pink fairytale slogans. Among the latter is a dubious proverb proclaiming that “The sun doesn’t send any bills” (in German: “Die Sonne schickt keine Rechnung”). Such proverbs always seem initially plausible (is there anything freer and more democratic than sunshine?) while proving to be basically the opposite of the truth. In fact, the energy transition has landed German taxpayers in the position of paying billions of Euros for the sun to shine. It is becoming an unmitigated disaster, and what is worse, the more we expand solar capacity, the more we will have to pay. For something that does not send any bills, sunshine has sure become very expensive here in the Federal Republic.
Welt calls it “the solar trap”, and it works like this: our Renewable Energy Sources Act (EEG) pledges to pay renewables producers fixed tariffs for every kilowatt hour of electricity their installations feed into the grid. Whether you are an ordinary climate-conscious person with solar panels on your house or you run massive solar farms, the EEG entitles you to receive these fixed “feed-in tariffs” for a period of 20 years. The EEG also requires grid operators to accept your electricity regardless of demand and to sell it on the electricity exchange.
Now the sun, although it may not charge for its services, turns out to have this naughty habit of shining in many places all at once. When this happens, electricity supply often exceeds electricity demand and exchange prices fall. They can fall all the way to zero, or in extreme situations of excessive sunshine they can even go negative. Negative prices mean that you have to actual y pay “buyers” to take the excess power off your hands. Whether the prices are merely very low, or zero, or negative, the German taxpayer has obligated himself, via the EEG, to pay these producers of unwanted if extremely green and climate-friendly electricity their fixed feed-in tariffs anyway. That is, we are on the hook for the difference between the actual exchange value of excess electricity and the feed-in tariffs promised to producers. In this way we have ended up literally paying for the sun to shine.
https://dailysceptic.org/2024/10/26/the-country-where-taxpayers-are-charged-billions-when-the-sun-shines/
