Industry: Energy transition costs competitiveness

According to the German Chamber of Industry and Commerce (DIHK), the current strategy for Germany's energy transition could cost up to €5.4 trillion by 2049.

This would place a heavy burden on businesses and households and significantly weaken competitiveness.

Germany plans to cover around 80 percent of its electricity needs from renewable energies by 2030 in order to become climate-neutral by 2045.

Despite a significant expansion of wind and solar energy in recent years, electricity prices remain among the highest in Europe.

Forecasts also show that investments in the electricity grid are likely to rise sharply in the coming years.
“The energy transition cannot succeed with the current policy. There is a threat of energy-intensive industries moving away and a weakening of the economic base,” said DIHK President Peter Adrian.

According to a study commissioned by the DIHK and conducted by the consulting firm Frontier Economics, annual private investment in energy, industry, buildings, and transportation would have to increase from the current average of €82 billion (2020–2024) to between €113 and €316 billion by 2035.

The total cost of the energy system for the period 2025 to 2049 is estimated at €4.8 to €5.5 trillion.
This includes up to €2.3 trillion for energy imports and around €1.2 trillion for grid expansion.

The study was published shortly before the planned review of the German government's energy demand and transformation plans.

It calls for a stronger focus on cost efficiency, international emissions trading, and more flexible regulation.

The use of existing gas networks for hydrogen and decarbonized gases should also be extended.

(reuters, red)