To be well-prepared for the challenges the current year bring, building managers must anticipate both internal property issues and external legal changes. In the context of Germany, this means navigating significant shifts in government initiatives, the suspension of energy funding, and the increasing of the existing taxes.
Understanding the factors behind rising energy prices
Given that energy costs represent the most significant expenditure in building maintenance, keeping them low is top priority for managers. Accomplishing this task is going to be difficult in 2024 in Germany for a couple of reasons.
German national CO2 prices increases on carbon emissions in the transport and heating sector
In 2021, the German government introduced a price on greenhouse gas emissions in transportation and buildings to support its climate goals. However, this decision has adverse effects on businesses and consumers. On January 1, 2024, the price increased from 30 to 45 euros per tonne of CO2 equivalents, exceeding the planned 40 euros. As Germany heavily relies on fossil fuels, this will significantly raise costs for building managers and businesses.
Electricity and gas brakes are no longer extend until March 2024
Source: HEPI by Energie-Control Austria, MEKH and VaasaETT Ltd @VaasaETT 2023Created with Datawrapper
The energy price caps were earlier stopped in the end of 2023 due to the deficit in the budget. With one of the highest rates in the EU for both gas and electricity, a substantial number of commercial and residential buildings in Germany depend on this type of heating.
Electricity grid fee increase
More serious is the fact that the operators of the electricity transmission grids in Germany doubled the fees for grid usage to an average of 6.43 cents per kilowatt hour at the turn of the year. The reason for this is the loss of the state subsidy of 5.5 billion euros for transmission grid fees. The distribution grid operators had already published their provisional electricity grid fees on which basis an average increase of 11% will emerge which again falls on the shoulders of building managers and end consumers.
Smart solutions as an effective way to cut energy costs
Prepare for the high energy costs by implementing smart devices for monitoring, controlling and analytics of your buildings. MClimate's innovative hardware and software solutions deliver remarkable results, reducing heating expenses in diverse building types, including hospitals, offices, public spaces, schools, and residences.
A good example is the Vicki LoRaWAN® Smart Radiator Thermostat device is perfect for retrofitting buildings with either old or new radiators. This smart device allows for the creation of heating schedules, reducing temperatures when rooms are unoccupied to maximize cost savings. With features like remote locking through any Building Management System (BMS) or platforms like MClimate Enterprise, Vicki empowers building managers to precisely control heating times and levels. When paired with the MClimate Open/Close Sensor LoRaWAN, the radiator reduce the temperature or stops when a window is open, ensuring efficiency.
For buildings relying on Fan Coil Units (FCUs), MClimate offers an All-in-one retrofit solution that achieves 30% reduction in energy costs. The MClimate Fan Coil Thermostat LoRaWAN provides comprehensive control over temperature, humidity, and HVAC on a room-by-room basis. With integrated manual control buttons and optional child lock functionality for remote control, this device is ideal for hotels, offices, and any space equipped with Fan Coil Units.
Elevate your building's energy efficiency with MClimate's smart solutions.
References:
- Clean Energy Wire: https://www.cleanenergywire.org/news/climate-bonus-payments-urgently-needed-germanys-co2-price-rises-govt-advisor
- Clean Energy Wire: https://www.cleanenergywire.org/news/germanys-social-democrats-cast-doubt-over-plan-return-co2-income-citizens
- Clean Energy Wire: https://www.cleanenergywire.org/news/german-grid-agency-head-says-prices-electricity-and-gas-will-remain-high-2024
- Aussiedlerbote https://aussiedlerbote.de/en/higher-co2-price-more-taxes-this-is-how-much-more-expensive-2024-will-be/
- Clean Energy Wire: https://www.cleanenergywire.org/news/german-finance-minister-announces-end-energy-price-caps-causing-disapproval-among-coalition-partners#:~:text=The%20energy%20price%20brakes%2C%20capping,broadcaster%20Deutschlandfunk%20in%20an%20interview.
