Leading economic advisor Veronika Grimm has expressed support for the energy transition plans recently outlined by Federal Minister for Economic Affairs Katherina Reiche (CDU).
Speaking to the “Rheinische Post” Grimm acknowledged the minister’s decision to initiate a monitoring process regarding energy consumption. Preliminary data suggests that energy demand may not increase as rapidly as initially projected. This adjustment, Grimm stated, allows for a potential reshaping of the transition timeline, distributing investments more evenly over time and facilitating cost savings.
Grimm emphasized the importance of prioritizing cost efficiency within the energy transition process. She underscored the need to focus on systemic costs, cautioning against solely concentrating on the production costs of renewable energy sources, a point she acknowledged Minister Reiche has also highlighted. The planned reduction of subsidies for renewable energy is also viewed positively, with Grimm advocating for a thorough re-evaluation of current support mechanisms to ensure accurate market signals guide future expansion.
Furthermore, Grimm advocates for the introduction of distinct electricity price zones across Germany. Identifying challenges in implementing effective, regionally differentiated pricing through network fees or regional auctions, she suggests that dividing the German market into separate price zones warrants serious consideration. While this remains a politically contentious issue, various academic perspectives favor such a zonal structure, requiring careful evaluation of different proposed solutions.
