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Lichtblick criticizes household resolution: Transmission model could finance charging infrastructure

(ots) Electricity provider sees million-dollar savings: The transmission model would make financing of the charging infrastructure independent of the Climate and Transformation Fund, but is currently not planned. The costs could be used to reduce transmission network fees. Fair competition would lower prices for e-car drivers. Key role in expanding the truck charging infrastructure.

LichtBlick sees a silver lining: The budget resolutions could lead to millions in savings, which in turn could benefit e-mobilists, hopes the Hamburg-based company. | Photo: LichtBlick
LichtBlick sees a silver lining: The budget resolutions could lead to millions in savings, which in turn could benefit e-mobilists, hopes the Hamburg-based company. | Photo: LichtBlick
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(ots) The introduction of a throughput model in Germany would generate additional revenue in the millions, but is not planned in the current budget. This is criticized by the Hamburg green electricity provider LichtBlick in its assessment of the current budget decisions of the Bundestag. With the throughput model, the expansion of the charging infrastructure in Germany would be less dependent on nationwide subsidies and their discontinuation, such as after the Federal Constitutional Court's ruling on the Climate and Transformation Fund (KTF).

"As shocking as the news of the reduction of the Climate and Transformation Fund in December was, it now offers an opportunity to switch the financing of the charging station expansion to a new, future-proof market design with the throughput model," says Markus Adam, Chief Legal Officer of LichtBlick. In this way, the costs allocated to charging and infrastructure in the new budget could have been significantly reduced and used more sensibly elsewhere for consumers, such as for subsidizing network charges.

Financing through usage fees for charging station operators

The throughput model or the non-discriminatory access to the charging infrastructure for third-party providers is already applied in all relevant network infrastructures in the EU - whether electricity, gas, telecommunications, or the railway network. If implemented in the charging station market, the charging station operators would receive a usage fee that covers costs and includes a reasonable return. This creates incentives for the expansion of additional charging points, which is urgently needed for the success of the energy transition.

Fair competition with transparent prices instead of entrenched monopolies

The throughput model also offers advantages for consumers. The growing monopolistic structures can slow down expansion and lead to excessive prices, while throughput stimulates expansion and enables fair competition at the charging station. Drivers could charge the desired electricity with the desired quality, as any provider could deliver its electricity to any public charging station. This would have a corresponding dampening effect on charging prices, as the entrenched monopolistic structures have led to excessive charging prices for consumers for years.

This correlation between market power and higher prices is also confirmed by the Monopolies Commission in its 9th sector report. In an empirical study, it examined the pricing models of all charging points for which data is available under federal subsidy programs. From mid-2021, the price increase in areas with high market concentration is about 20 cents higher than in areas with less market concentration.

Truck Charging Infrastructure Only Sustainable with Throughput

According to the provider, the throughput model is also essential for the development of the truck charging infrastructure. Heavy commercial vehicles that travel long distances require more charging capacity than an electric car. In the future, the so-called "Megawatt Charging System" (MCS) is expected to become the global standard. In this context, the construction costs, along with the required space, are the biggest challenge. This is because the cost per charging point only decreases when they are used frequently. As a result, there will be hardly any providers who set up additional charging points in the immediate vicinity. Due to these infrastructural and logistical challenges, a natural monopoly of a few providers will emerge in the current market design in the coming years.

"The introduction of the throughput model is therefore of enormous importance, especially for the ramp-up of the truck charging infrastructure, so that despite a natural monopoly, fair competitive conditions and thus reasonable prices at the charging station are achieved," Adam said.

Translated automatically from German.
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