The planned expansion of photovoltaics and wind power in Germany has the potential to reduce electricity prices on the stock market by up to 23 percent by 2030. This development is of great significance for private investors, as it can have substantial impacts on the economy and investment decisions.
Background and Scenarios
A study by Agora Energiewende shows that the planned expansion of renewable energies, especially photovoltaics and wind power, could lead to a significant reduction in electricity prices. The study considers two scenarios:
Lower Electricity Demand
In this scenario, it is assumed that electricity demand will drop to about 609 terawatt-hours by 2030. If the targets for photovoltaics and wind power are achieved, the average electricity price on the stock market could fall by around 23 percent, from a higher initial value to about 65 euros per megawatt-hour. This would mean an annual relief for electricity consumers of about 12 billion euros, although additional funding costs for renewable energies would be incurred.
Higher Electricity Demand
In this scenario, electricity demand rises to about 708 terawatt-hours by 2030. Again, the stock market electricity price would fall by about 20 percent, from 101 euros to 81 euros per megawatt-hour, if the planned expansion targets are met. This would result in an annual relief for consumers of about 14 billion euros.
Expansion Goals and Challenges
Germany has set ambitious targets for the expansion of wind and solar energy. The Wind Energy Monitor Germany from the think tank Goal100 shows that the target of 115 gigawatts of wind power by 2030 is achievable. Approval processes have become more efficient, and there are signs of an acceleration in the expansion.
Economic Impacts
Lower electricity prices can have positive effects on the economy, as they reduce production costs for companies and improve competitiveness. These developments are particularly relevant for private investors, as they can influence investment decisions. Every euro invested in the expansion of renewable energies leads to a significant reduction in electricity prices, which can result in higher returns in the long run.
Conclusion
The planned expansion of photovoltaics and wind power has the potential to substantially lower stock market electricity prices and alleviate the economy. This is of great importance for private investors, as it can influence investment decisions and lead to higher returns in the long term.