The document "The Total Cost of Power Supply" (March 2026) provides a pragmatic three-step framework to evaluate electricity costs beyond simple generation figures.

Step 1: Generation Costs (LCOE): Levelized Cost of Electricity includes investment, fuel, and carbon costs. It highlights that power generation is capital-intensive, with nuclear (EPR) having the highest investment cost (€17,000/kW). Geographical location significantly impacts yield, with Spain producing double the solar energy of Northern Germany.

Step 2: Value Correction: The economic value of a MWh depends on the wholesale market price at the time of production. Flexible sources like gas can earn 30% more than the average, while solar and wind revenue can be 20-50% lower due to high supply depressing market prices during peak production hours.

Step 3: Grid Costs: Grid costs are a major component of system costs, often comparable to generation costs in Germany. Renewables tend to incur higher grid costs due to lower capacity factors and remote locations.

Total System Reality: In 2025, Germany's total electricity cost was approximately 200 €/MWh. The author concludes that political expectations of 50 €/MWh are unrealistic, and even a highly optimized system is unlikely to drop below 150 €/MWh.

Read the full documentation at: 1776431634510