Electricity prices high in the long term: new study warns of an expensive trend

Electricity prices high in the long term: new study warns of an expensive trend

The latest forecast by economist Veronika Grimm has caused a stir. According to a recent study, electricity prices are gradually declining again after a price shock. Nevertheless, energy costs could remain at a high level in the long term. Particular emphasis is placed on the fact that even if renewable energies are expanded, electricity costs are unlikely to fall significantly.

The direct costs for electricity from wind power and photovoltaics could fall to around three cents per kilowatt hour by 2040, but if alternative energy sources such as gas power plants are used when there is no wind or a lack of sunshine, electricity generation becomes significantly more expensive. This could mean that electricity costs will remain at around 7-8 cents per kilowatt hour in 2040, remaining at a similar level to current levels.

Consumers are already paying high costs for energy, with the average price in the second half of 2023 being 41.75 cents per kilowatt hour. Despite slight declines compared to the previous year, these prices are still higher than before the energy crisis. The traffic light coalition had taken measures to relieve consumers and achieve long-term falling energy prices through the energy transition, but the study by economists Grimm raises doubts about the feasibility of this goal.

In an attempt to stabilize electricity prices and protect against a possible sharp increase in network fees, Federal Minister of Economics Robert Habeck is planning to introduce a new instrument. This is intended to ensure that the costs of network expansion are not imposed directly on consumers, but are spread over a longer period of time. Despite these efforts, further price increases could occur, but the initiative aims to mitigate these and distribute costs more fairly.