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It is seen as a way to bridge the gap until 2030, when Germany hopes to have 80% of its power from renewable sources.
But that is too much uncertainty for BDI. “The BDI expects more than a bridging solution from the federal government,” said BDI president Siegfried Russwurm.
He said the proposal was just a rescue measure, but the government needed a clear plan. “If you’re building a bridge without being able to see the other shore, then it’s just going to end up being a pier surrounded by deep water.”
The proposal came amid intense price pressure in Germany. At the worst phase of the energy crisis, Germany’s benchmark front-year contract peaked at EUR 1,050/MWh. The Cal 24 was last seen trading at around EUR 149.15/MWh, still much higher than pre-war averages.
“Market fragmentation”
The proposal would limit the price to EUR 60/MWh, which Green economy minister Robert Habeck said could cost the country about EUR 4bn a year.
Those figures have caused concerns. Finance minister Christian Lindner of the Greens’ coalition partner, Free Democratic party, reiterated his opposition to the cost at the BDI event.
Markus Krebber, CEO of German utility RWE, said he also had doubts about the cost and structure of the proposal.
He questioned why the initiative was aimed only at industry, leaving critical parts of the Germany economy out in the cold – such as small to medium enterprises (known as Mittelstand) or even the countries’ thousands of bakeries – just because they were not classified as energy-intensive.
“The method that we find to get through this stretch can’t lead to a fragmentation of the energy market,” he said. “That’s inefficient and even more expensive for the overall system.”
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