London, 25 September (Argus) — Germany utility RWE expects a levy on renewable energy to rise sharply to €53-54/MWh in 2013, lifting the tax to the same level as prices on the German wholesale power market for the first time.

The country's four transmission system operators (TSOs) are set to announce the levy for 2013 on 15 October.

Consumers currently pay €35.92/MWh to subsidise renewable power, but the levy is likely rise sharply next year because of higher-than-expected solar power installations and generation.

Many experts expect the levy to rise to around €50/MWh. But RWE chief executive Peter Terium today said the levy might reach €53-54/MWh.

“This would take the levy to where prices on the German wholesale market are right now — so it is simply too high,” the firm said.

The calendar 2013 contract, a regional benchmark, has averaged €50.199/MWh for base-load delivery and €61.832/MWh for peak-load delivery on the over-the-counter (OTC) market so far this year and settled at €47.45/MWh and €58.80/MWh, respectively, in yesterday's session, according to Argus data.

And average day-ahead prices so far in 2012 have been lower on the Epex Spot exchange at €43.07/MWh for base-load delivery and €48.06/MWh for peak-load delivery.

The German government is under pressure to rein in financial burdens on consumers to fund the country's push away from nuclear power and towards a greater share of renewable energy in the generation mix.

This has sparked a debate on how and when to reform the renewable energy act that stipulates feed-in tariffs and feed-in priority for electricity generated from renewable sources.

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