Germany’s Energiewende To Cost Staggering €520 Billion By 2025, First Full-Cost Study Finds

The total cost of Germany’s green energy transition (Energiewende) amounts to over €520 billion euros by 2025 in the electricity sector alone. This is the result of a report commissioned by the Düsseldorf Institute for Competition Economics (DICE) , commissioned by the Initiative New Social Market Economy.

By far the biggest cost driver with a total of €408 billion is the levy to finance renewable energy (EEG levy). The expansion of electricity and distribution networks totals €55.3 billion. The study is the first full-cost estimate which takes into account all the costs of the energy transition in the electricity sector. In addition to the direct costs of subsidising renewable energy, indirect costs for the expansion of transmission and distribution networks were included in the calculations, as well as offshore liability expenses and network, capacity and replacement costs.

At the end of 2015, 150 billion euros had already been spent on the Energiewende, not including the cost for network expansion. The bulk of the cost (which amounts to 25.000 euros for a family of four) will have to be paid in the coming years.