The influential German economic advisor, Veronika Grimm, has expressed support for the energy transition plans recently outlined by Federal Minister for Economic Affairs, Katheine Reiche (CDU).
Speaking to the “Rheinische Post” Grimm acknowledged the value of Minister Reiche’s initiative to monitor the progress of the energy transition. Initial assessments suggest that energy consumption may not increase as rapidly as previously anticipated, providing an opportunity to adjust the pace of expansion and distribute costs more evenly over time.
Grimm emphasized the importance of prioritizing cost-efficiency within the energy transition strategy. She underscored that assessments should focus on overall system costs, rather than solely on the production costs of renewable energy sources, a point also highlighted by the Minister herself.
The proposed reduction in subsidies for renewable energy is also viewed favorably. Grimm advocates for a critical evaluation of existing subsidy mechanisms, arguing that price signals must appropriately guide future expansion.
Looking ahead, Grimm recommends the introduction of distinct electricity price zones within Germany. She noted the difficulty of implementing effective, regionally differentiated pricing through network fees or regional tenders, suggesting that dividing the German market into price zones warrants serious consideration. While currently lacking political consensus, the concept benefits from scientific support and a careful evaluation of various solutions is needed.