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[BUSINESS] · Germany · 6 sources

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Germany faces highest electricity prices in G20

Germany is facing significant energy challenges as households and businesses deal with the highest electricity prices among G20 nations. According to an analysis by Verivox, German electricity costs approximately 35.6 cents per kilowatt-hour, more than double the G20 average of 16.3 cents. A major portion of these costs—over 60 percent—is attributed to taxes, levies, and grid usage fees rather than actual energy production.

In response, the Handelsverband Deutschland (HDE) has called for an immediate reduction in electricity taxes to support consumers and maintain industrial competitiveness. While the government previously reduced taxes for certain companies, households have not yet seen similar relief.

To ensure long-term energy security, the European Commission has approved a German state aid program worth up to 35 billion euros. This program, set to begin implementation in 2031, aims to secure capacity for production, storage, and demand adjustment. The initiative will utilize competitive tenders for various technologies, with a requirement that plants transition to climate-neutral hydrogen by 2045. Meanwhile, the German government continues to weigh the use of coal-fired power plants to mitigate price spikes, despite plans to phase out coal by 2038.

Entities

G20 · Handelsverband Deutschland · Verivox

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