Associations call for bridge electricity price for industry

German industry is currently undergoing a fundamental and comprehensive transformation towards climate neutrality and a circular economy. Companies are replacing fossil fuels such as gas, coal and oil with electricity from renewable sources. They are focussing on converting and electrifying their production facilities. And they are working, for example in the plastics industry on product designs and technologies for more recycling and for more use of renewable raw materials - Recyclates, bioplastics, CO₂ - for the production of plastics from non-fossil sources.

„The goals are significantly greater independence from raw materials in geopolitically uncertain times, a resource-efficient economy with higher added value and decisive progress in climate protection. Only with a successful transformation will Germany be able to achieve these goals and thus remain internationally competitive and become a sustainable industrialised country.“

Dr Ralf Düssel, Chairman of Plastics Europe Germany

Display

According to the industry association, this competitiveness is acutely jeopardised during the transformation effort of all times. Even before the invasion of Ukraine, electricity costs for German companies were high by international standards. Since then, electricity costs have risen again and become increasingly volatile, pushing many companies - including those in the plastics industry - to the edge of their competitiveness: The increased import costs for natural gas and raw materials led to a decline in production of almost ten per cent in 2022 and a significant increase in producer prices of over 23 per cent. A decline in production of ten per cent is also expected in 2023.

According to Dr Ralf Düssel, the situation is serious: „Forward-looking investment decisions are increasingly being made against German locations due to the cost of electricity and the necessary massive investments in the transition to a climate-neutral circular economy at a crucial phase of the transformation“.

For Ingemar Bühler, Managing Director of Plastics Europe Germany, a „rapid, ambitious and unbureaucratic expansion of renewable energies“ is needed. The required quantities of renewable electricity are important, but will only be available in a few years„ time. Ingemar Bühler is therefore counting on "politicians to recognise the urgent need for action in order to bring a highly innovative industry with hundreds of thousands of good jobs and a clear transformation course onto an equal footing internationally. With a fair, time-limited bridge electricity price, it can prevent the migration of investments that is currently taking place and ensure sustainable value creation in Germany“.