Siemens offers new energy transition concept, says Germany can save EUR 150bn

Jun 6, 2013 - German engineering group Siemens (ETR:SIE) has estimated that Germany can save up to EUR 150 billion (USD 196.3bn) from its energy transition costs by 2030 if it applies the approach published by the company on Wednesday.

Siemens submitted a three-point plan, which includes a restructuring of the electricity market, higher energy efficiency as well as coordination of the energy transition plans on a European level. It also proposes a focus on combined cycle power plants and wind power as well as reducing the transition target of 50% renewables in the energy mix by 2030 to 40%.

The energy market has to be first transformed by removing the levies on renewable energy, without touching the levies for running facilities in order to retain investment security. Moreover, renewable energy firms will have to guarantee their supply security via flexible power plants or with storage and they will compete for new facility contracts by offering lower feed-in tariffs.

Another market measure offered by Siemens is the introduction of a EU-wide legislation for CO2 reduction via CO2 emission trade. Under Siemens' concept, utilities operating older power plants will be obliged to improve their plants' CO2 emission indications.

Furthermore, Siemens proposes to swap the EEG levy for a flat-rate payment by all consumers.

Siemens underlines the importance of energy efficiency improvements via investments in buildings as well as encouraging people not to use electricity in peak load periods.

The engineering giant also stands behind a European solution to energy transition in order to reduce costs.

(EUR 1 = USD 1.309)

Choose your newsletter by Renewables Now. Join for free!