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German heavy industry emphasises the need for more competitive energy prices in strongly worded letter to Chancellor Merz:
"If the energy transition is an open-heart operation on our economy, as is sometimes said, then this operation has so far been a complete failure. We must admit: The patient is in danger of dying on the operating table.
PV and wind have been legally privileged and subsidized for 35 years. However, their contribution to security of supply is no greater today, than three decades ago.
In return, they generate grid costs in the hundreds of billions.
The dual phase-out of nuclear power and coal has made Germany dependent on unreliable PV and wind power and expensive gas imports. We are paying the price with the highest electricity prices in Europe. Our electricity supply has never been so expensive and insecure."
German heavy industry emphasises the need for more competitive energy prices in strongly worded letter to Chancellor Merz:
"If the energy transition is an open-heart operation on our economy, as is sometimes said, then this operation has so far been a complete failure. We must admit: The patient is in danger of dying on the operating table.
PV and wind have been legally privileged and subsidized for 35 years. However, their contribution to security of supply is no greater today, than three decades ago.
In return, they generate grid costs in the hundreds of billions.
The dual phase-out of nuclear power and coal has made Germany dependent on unreliable PV and wind power and expensive gas imports. We are paying the price with the highest electricity prices in Europe. Our electricity supply has never been so expensive and insecure."
My own translation of the last three paragraphs.
"Wenn die Energiewende eine Operation am offenen Herzen unserer Volkswirtschaft ist,
wie manchmal gesagt wird, dann ist diese Operation bislang gründlich misslungen. Wir
müssen feststellen: Der Patient droht, auf dem OP-Tisch zu sterben.
Seit 35 Jahren werden PV und Wind gesetzlich privilegiert und gefördert. Sie leisten jedoch
bis heute keinen größeren Beitrag zur Versorgungssicherheit als vor drei Jahrzehnten.
Dafür verursachen sie Netzkosten im dreistelligen Milliardenbereich.
Der Doppelausstieg aus Kernenergie und Kohle hat Deutschland abhängig gemacht von unzuverlässigem PV- und Windstrom und teuren Gasimporten. Die Zeche zahlen wir mit den europaweit höchsten Strompreisen. Noch nie war unsere Stromversorgung so teuer
und unsicher."
Thanks to @StaffanReveman for first linking it.
x.com/StaffanReveman…
The entire letter can be found here:
assets.ctfassets.net/mj324dykhxwi/3…
"Wenn die Energiewende eine Operation am offenen Herzen unserer Volkswirtschaft ist,
wie manchmal gesagt wird, dann ist diese Operation bislang gründlich misslungen. Wir
müssen feststellen: Der Patient droht, auf dem OP-Tisch zu sterben.
Seit 35 Jahren werden PV und Wind gesetzlich privilegiert und gefördert. Sie leisten jedoch
bis heute keinen größeren Beitrag zur Versorgungssicherheit als vor drei Jahrzehnten.
Dafür verursachen sie Netzkosten im dreistelligen Milliardenbereich.
Der Doppelausstieg aus Kernenergie und Kohle hat Deutschland abhängig gemacht von unzuverlässigem PV- und Windstrom und teuren Gasimporten. Die Zeche zahlen wir mit den europaweit höchsten Strompreisen. Noch nie war unsere Stromversorgung so teuer
und unsicher."
Thanks to @StaffanReveman for first linking it.
x.com/StaffanReveman…
The entire letter can be found here:
assets.ctfassets.net/mj324dykhxwi/3…
The entire text translated (and yes, the all caps words are from the letter) 👇
"It's 5 past 12 - so we need industrial jobs NOW!
Dear Chancellor,
we are in the midst of the worst economic crisis since the Second World War. Last year alone, at least 100,000 industrial jobs were eliminated without replacement. The political promises of the last federal government for a "green economic miracle" are nothing but smoke and mirrors. The reality is that never before have so many good jobs been threatened as today.
In Germany alone, well over a million people work in energy-intensive industries. Most of them work in the IGBCE and IG Metall sectors. We therefore need an Industrial and Economic Agenda 2030 NOW!
We need innovations and investments for decent jobs and for livable regions. We don't want lordly subsidies, but reasonable framework conditions so that decent work and added value have a future in Germany again.
While the complaints about paralyzing bureaucracy and delayed digitalization are valid, it is also true that German energy policy, in particular, has developed into one of the most dangerous risks to our location and economy.
If the energy transition is an open-heart operation on our economy, as is sometimes said, then this operation has so far failed miserably. We must admit that the patient is in danger of dying on the operating table.
For 35 years, PV and wind have been legally privileged and subsidized. However, to this day, they have made no greater contribution to security of supply than they did three decades ago. In return, they incur grid costs in the hundreds of billions.
The dual phase-out of nuclear power and coal has made Germany dependent on unreliable PV and wind power and expensive gas imports. We are paying the price with the highest electricity prices in Europe. Our electricity supply has never been so expensive and insecure.
We demand:
➢ Electricity prices must become internationally competitive again for the economy and especially for industry. We need an industrial electricity price of 5 cents/kWh. And this industrial electricity price must not be further inflated by political CO2 costs or burdened with excessive requirements.
➢ Permanent, complete exemption from transmission charges for electricity-intensive production, continuation of the relief under Section 19.2 of the Electricity New Energy Ordinance (StromNEV), and free connection to the electricity infrastructure with the required capacity.
➢ No further burdens on industry's own electricity supply. Industrial electricity grids and CHP self-generated electricity are important economic assets and location factors that must be strengthened in international competition.
➢ Instead of further advance payments from Germany and Europe in climate protection, we expect a clear link to be established: all relevant countries worldwide must commit to the same efforts.
➢ Protection of industry from the special burdens of the EU ETS through an effective CBAM that includes exports, excludes circumvention, and expands the product range in line with the actual competitive situation.
➢ Upgrading and modernizing foreign trade protection through a fundamental revision of the EU's existing anti-dumping and anti-subsidy instruments, particularly with regard to China.
➢ Fundamental revision of the German hydrogen strategy with the aim of pragmatic and realistic requirements for technology and targets. In the realistic event that European and international "green lead markets" cannot be implemented in the near future, competitive alternatives to H2 must be made possible.
➢ Immediate adoption of an investment-friendly legislative package to enable CCU/S, including government risk protection and infrastructure investments without technical or industry-specific selection.
"It's 5 past 12 - so we need industrial jobs NOW!
Dear Chancellor,
we are in the midst of the worst economic crisis since the Second World War. Last year alone, at least 100,000 industrial jobs were eliminated without replacement. The political promises of the last federal government for a "green economic miracle" are nothing but smoke and mirrors. The reality is that never before have so many good jobs been threatened as today.
In Germany alone, well over a million people work in energy-intensive industries. Most of them work in the IGBCE and IG Metall sectors. We therefore need an Industrial and Economic Agenda 2030 NOW!
We need innovations and investments for decent jobs and for livable regions. We don't want lordly subsidies, but reasonable framework conditions so that decent work and added value have a future in Germany again.
While the complaints about paralyzing bureaucracy and delayed digitalization are valid, it is also true that German energy policy, in particular, has developed into one of the most dangerous risks to our location and economy.
If the energy transition is an open-heart operation on our economy, as is sometimes said, then this operation has so far failed miserably. We must admit that the patient is in danger of dying on the operating table.
For 35 years, PV and wind have been legally privileged and subsidized. However, to this day, they have made no greater contribution to security of supply than they did three decades ago. In return, they incur grid costs in the hundreds of billions.
The dual phase-out of nuclear power and coal has made Germany dependent on unreliable PV and wind power and expensive gas imports. We are paying the price with the highest electricity prices in Europe. Our electricity supply has never been so expensive and insecure.
We demand:
➢ Electricity prices must become internationally competitive again for the economy and especially for industry. We need an industrial electricity price of 5 cents/kWh. And this industrial electricity price must not be further inflated by political CO2 costs or burdened with excessive requirements.
➢ Permanent, complete exemption from transmission charges for electricity-intensive production, continuation of the relief under Section 19.2 of the Electricity New Energy Ordinance (StromNEV), and free connection to the electricity infrastructure with the required capacity.
➢ No further burdens on industry's own electricity supply. Industrial electricity grids and CHP self-generated electricity are important economic assets and location factors that must be strengthened in international competition.
➢ Instead of further advance payments from Germany and Europe in climate protection, we expect a clear link to be established: all relevant countries worldwide must commit to the same efforts.
➢ Protection of industry from the special burdens of the EU ETS through an effective CBAM that includes exports, excludes circumvention, and expands the product range in line with the actual competitive situation.
➢ Upgrading and modernizing foreign trade protection through a fundamental revision of the EU's existing anti-dumping and anti-subsidy instruments, particularly with regard to China.
➢ Fundamental revision of the German hydrogen strategy with the aim of pragmatic and realistic requirements for technology and targets. In the realistic event that European and international "green lead markets" cannot be implemented in the near future, competitive alternatives to H2 must be made possible.
➢ Immediate adoption of an investment-friendly legislative package to enable CCU/S, including government risk protection and infrastructure investments without technical or industry-specific selection.
➢ Moratorium on power plant shutdowns: New, secured capacity must be available before shutdowns can take place.
➢ No more haphazard expansion of PV and wind power: permits only for grid-compatible investments.
Dear Chancellor, the German energy transition threatens to overwhelm Germany as a business location – and thus all of our colleagues. Instead of further slogans of perseverance and rhetoric, we finally expect clear statements and signals about what concrete measures the federal government will take to correct the negative developments in German energy and climate policy and to make our energy supply internationally competitive again.
The future of Germany as an industrial location depends not only on the actions of this federal government in the abstract. The future of millions of good industrial jobs depends on you in concrete terms. The time for empty words is over. Our colleagues will judge this federal government by its actions!
Sincerely,
➢ No more haphazard expansion of PV and wind power: permits only for grid-compatible investments.
Dear Chancellor, the German energy transition threatens to overwhelm Germany as a business location – and thus all of our colleagues. Instead of further slogans of perseverance and rhetoric, we finally expect clear statements and signals about what concrete measures the federal government will take to correct the negative developments in German energy and climate policy and to make our energy supply internationally competitive again.
The future of Germany as an industrial location depends not only on the actions of this federal government in the abstract. The future of millions of good industrial jobs depends on you in concrete terms. The time for empty words is over. Our colleagues will judge this federal government by its actions!
Sincerely,
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