Two researchers from the Institute of Energy Economics at the University of Cologne (EWI) presented current analyses on the need for investment in the energy transition and the electricity price package as part of the “EWI Insights” webinar series. The event was moderated by Philipp Kienscherf, Manager at EWI.
Senior Researcher Amir Ashour Novirdoust began by presenting the topic of investments in the energy transition until 2030. In this analysis, EWI quantifies the investment requirement in the energy transition for the transport, residential buildings and electricity supply sectors in a plan scenario at around 240 billion euros per year until 2030 and discusses possible implications.
According to the analysis, the overall level of investment should increase significantly compared to previous years. Compared to the scenario presented here, there has already been a delay in investment since 2018. This could amount to around EUR 220 billion and thus around ten percent of the total investment requirement in the scenario examined. The electricity sector has the largest investment backlog, both for renewable generation plants and grids. In the electricity supply sector, total investments for renewable energies, power plants and grids would have to more than double compared to historical levels in the scenario under consideration.
The higher investments in the sectors under consideration would account for more than six percent of gross domestic product, an increase on today’s level. If the economic savings rate remains constant, this capital requirement would have to come at the expense of investments in other sectors. Otherwise, the overall economic savings rate or the import of capital from abroad would have to increase.
In the second part of the event, Senior Research Associate Nils Namockel spoke about electricity price components, the electricity price package and distribution effects. In response to persistently high electricity prices, the electricity price package recently presented by the German government aims to reduce individual electricity price components for industrial companies. The measures are intended to reduce both the tax burden and the indirect CO2 price burden. “However, end customer prices could rise for all consumer groups in the medium term due to rising grid fees, among other things,” says Namockel. It seems unlikely that the measures presented will cause electricity prices for energy-intensive industrial companies to return to historical levels.
The EWI online workshop series “EWI Insights” has been held around four times a year since 2020 and is aimed at experts from business, science and politics who are interested in scientific findings from the world of energy. EWI researchers offer insights into the institute’s current studies and analyses. Information on current EWI events can be found here: https://www.ewi.uni-koeln.de/de/termine-uebersicht.