30.03.2021  |   Special Report

Federal government’s governance of energy transition still inadequate

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With a view to the targets set by law of a safe, secure and affordable energy supply, the federal government is steering energy transition still inadequately.

The governance of energy transition by the Federal Ministry for Economic Affairs and Energy still shows weaknesses. The Ministry’s assumptions on the safety and security of energy supply are either not reasonable or overly optimistic. Therefore, the Ministry’s monitoring of security of supply needs to be enhanced.

The Ministry has still not defined an affordable electricity supply. At European level, Germany has the highest electricity prices for private households and small and medium-sized commercial and industrial customers. A major portion of the electricity price is governed by state-regulated components, especially the surcharge to be levied pursuant to the Renewable Energy Sources Act and the grid fees. We recommend that these electricity-price components be reformed fundamentally.