Germany’s Scholz says more renewable key to lower industry costs

Berlin, May 7 (BNA): German Chancellor Olaf Scholz said today, Saturday, that intensifying the production of renewable energy instead of subsidies is the key to lowering electricity prices for the energy-hungry industry in Germany, apparently in search of the proposals of the Minister of Economy in his government.

Industrial companies in Germany say electricity prices are very high compared to other countries, which puts Germany’s heavy industry at a structural disadvantage to other manufacturing centers such as the United States and China.

Germany’s Economy Ministry, led by Robert Habeck of the Green Party, this week released a plan for a subsidized rate of 6 cents per kilowatt-hour until 2030, Reuters reports.

But the Finance Ministry in Schultz’s coalition government quickly backtracked on the subsidy plan on Friday, saying there was no budget for it.

“There are areas today where energy production is as cheap as we want it to be so that industrial processes prevail against global competition without subsidies,” Scholz said when asked to comment on how best to lower energy prices.

To extend this to the whole of Germany, Scholz said that everything within his powers must be done to strengthen energy transmission networks and renewable energy production.

Schultz was speaking to reporters at a geothermal plant in Kenya during a trip to Africa.

“We already know today that we will have lower energy prices than today, once we reach our goal that renewable energies dominate electricity production in Germany,” he added.

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HapeC’s economy ministry said the proposed subsidies would continue until 2030 at a cost of between 25 billion euros ($28 billion) and 30 billion euros at current market prices.

Schulz has previously expressed doubts about the initiative, saying that long-term subsidies were not good for the economy.

($1 = 0.9071 euros)


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