End nuclear with Pickering closure: critics

Gander Curling Club Debt Forgiveness Agreement explained: town council tax relief, loan write-off conditions, community benefits, and economic impact, covering long-standing taxes and loans while protecting the facility with asset clauses and compliance terms.

Key Points

Town plan erasing 25 years of tax and loan debt, with conditions to keep the curling facility open for residents.

✅ Conditions: no borrowing against property without consent.

✅ Water and sewer taxes must be paid annually.

✅ If sold or use changes, debt due; transfer for $1.

Gander town council has agreed to forgive the local curling club's debt of over $250,000.

Gina Brown, chair of the town council's finance committee, says the agreement has been put in place to help the curling club survive, amid broader discussions on electricity affordability in Newfoundland and Labrador.

"When we took a look at this and realized there was a significant outstanding debt for Gander curling club … we have to mitigate," Brown told CBC Newfoundland Morning. "[Getting] what the taxpayers are owed, with also understanding and appreciating the role that that recreational facility plays in our community."

According to Brown, the debt comes from a combination of taxes and loans, going back about 25 years. She says the curling club understood there was debt, but didn't know the number was so high. The club has been in the black since 2007, but used their profits for other items like renovations.

"Like so many cases when you're dealing with an organization with a changing board, and the same for council … [people are] coming in and coming out," Brown said. "And as a result, my understanding from the curling club's perspective is they weren't aware of how much was outstanding."

Chris McLeod, president of the Gander Curling Club, told CBC the club had been trying to address the debt since he became president in 2014.

Terms of agreement
The town's agreement with the club comes with the following stipulations:

The club will not use the property as security for any form of borrowing without the town's consent.
 
The club will continue to pay water and sewer tax annually.
 
If the club sells the property, the town reserves the right to void the agreement and the debt will immediately become due in full.
 
If the club stops using the facility as a curling club, the property will be transferred to the town for $1.
McLeod says the club will not attempt to pay back the debt, as it is not part of the agreement. The only way the debt would be paid is if the building is sold, which McLeod says it won't be, and there are also no plans to use the building for anything other than a curling club.

"[The debt] is basically gone now," McLeod said.

McLeod says the move was made to help get the debt off the books, and make sure the curling club can be financially responsible in the future, similar to relief programs some utilities offered during the pandemic.

The curling club is something that encourages people. So we felt that this has to be maintained.
- Gina Brown

Brown says keeping the curling club in Gander is important for the town, and brings different benefits to the area, as regional power cooperation debates illustrate broader trends.

"They are servicing people from as young as Grade 1 to seniors," Brown said. "You need little to no equipment, you need no background. So for the town itself, for its social and health implications, as provinces advance emissions plans that can affect communities, is one. But the other thing is the economic benefit that comes from having this facility here."

The Gander Curling Club's debt forgiveness comes with several conditions. (Google Maps)
The curling club can help attract people into the community, as recreational facilities are often a key draw for families, she added, while other provinces are creating transition funds to support communities.

"When you're as a town, trying to attract people coming in … whether you're a doctor, nurse, anybody looking at the recreational facilities, the curling club is something that encourages people," Brown said. "So we felt that this has to be maintained."

Brown says the town understands they might be setting a precedent with other businesses in forgiving the debts of the curling club, as major infrastructure like B.C.'s Site C dam has faced budget overruns.

"That's another thing we had to consider, what kind of precedents are [we] establishing?" Brown said. "From our standpoint, I think one of the things about this agreement that we felt was beneficial to the town is that they have an asset, helping to avoid costly delays seen with large projects. And the asset is a great building. To us, the taxpayers are in a win-win situation."

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California Net Zero Grid Investment will fuel electrification, renewable energy buildout, EV adoption, and grid modernization, boosting utilities, solar, and storage, while policy, IRA incentives, and transmission upgrades drive reliability and long-term rate base growth.

Key Points

Funding to electrify sectors and modernize the grid, scaling renewables, EVs, and storage to meet 2045 net zero goals.

✅ $370B over 22 years to meet 2045 net zero target

✅ Utilities lead gains via grid modernization and rate base growth

✅ EVs, solar, storage scale; IRA credits offset costs

$370 billion: That’s the investment Edison International CEO Pedro Pizarro says is needed for California’s power grid to meet the state’s “net zero” goal for CO2 emissions by 2045.

Getting there will require replacing fossil fuels with electricity in transportation, HVAC systems for buildings and industrial processes. Combined with population growth and data demand potentially augmented by artificial intelligence, that adds up to an 82 percent increase in electricity demand over 22 years, or 3 percent annually, and a potential looming shortage if buildout lags.

California’s plans also call for phasing out fossil fuel generation in the state, despite ongoing dependence on fossil power during peaks. And presumably, its last nuclear plant—PG&E Corp’s (PCG) Diablo Canyon—will be eventually be shuttered as well. So getting there also means trebling the state’s renewable energy generation and doubling usage of rooftop solar.

Assuming this investment is made, it’s relatively easy to put together a list of beneficiaries. Electric vehicles hit 20 percent market share in the state in Q2, even as pandemic-era demand shifts complicate load forecasting. And while competition from manufacturers has increased, leading manufacturers like Tesla TSLA -3% Inc (TSLA) can look forward to rising sales for some time—though that’s more than priced in for Elon Musk’s company at 65 times expected next 12 months earnings.

In the past year, California regulators have dialed back net metering through pricing changes affecting compensation, a subsidy previously paying rooftop solar owners premium prices for power sold back to the grid. That’s hit share prices of SunPower Corp (SPWR) and Sunrun Inc (RUN) quite hard, by further undermining business plans yet to demonstrate consistent profitability.

Nonetheless, these companies too can expect robust sales growth, as global prices for solar components drop and Inflation Reduction Act tax credits at least somewhat offset higher interest rates. And the combination of IRA tax credits and U.S. tariff walls will continue to boost sales at solar manufacturers like JinkoSolar Holding (JKS).

The surest, biggest beneficiaries of California’s drive to Net Zero are the utilities, reflecting broader utility trends in grid modernization, with investment increasing earnings and dividends. And as the state’s largest pure electric company, Edison has the clearest path.

Edison is currently requesting California regulators OK recovery over a 30-year period of $2.4 billion in losses related to 2017 wildfires. Assuming a amicable decision by early next year, management can then turn its attention to upgrading the grid. That investment is expected to generate long-term rate base growth of 8 percent at year, fueling 5 to 7 percent annual earnings growth through 2028 with commensurate dividend increases.

That’s a strong value proposition Edison stock, with trades at just 14 times expected next 12 months earnings. The yield of roughly 4.4 percent at current prices was increased 5.4 percent this year and is headed for a similar boost in December.

When California deregulated electricity in 1996, it required utilities with rare exceptions to divest their power generation. As a result, Edison’s growth opportunity is 100 percent upgrading its transmission and distribution grid. And its projects can typically be proposed, sited, permitted and built in less than a year, limiting risk of cost overruns to ensure regulatory approval and strong investment returns.

Edison’s investment plan is also pretty much immune to an unlikely backtracking on Net Zero goals by the state. And the company has a cost argument as well: Dr Pizarro cites U.S. Department of Energy and Department of Transportation data to project inflation-adjusted savings of 40 percent in California’s total customer energy bills from full electrification.

There’s even a reason to believe 40 percent savings will prove conservative. Mainly, gasoline currently accounts for a bit more than half energy expenditures. And after a more than 10-year global oil and gas investment drought, supplies are likely get tighter and prices possibly much higher in coming years.

Of course, those savings will only show up after significant investment is made. At this point, no major utility system in the world runs on 100 percent renewable energy, and California’s blackout politics underscore how reliability concerns shape deployment. And the magnitude of storage technology needed to overcome intermittency in solar and wind generation is not currently available let alone affordable, though both cost and efficiency are advancing.

Taking EVs from 20 to 100 percent of California’s new vehicle sales calls for a similar leap in efficiency and cost, even with generous federal and state subsidy. And while technology to fully electrify buildings and homes is there, economically retrofitting statewide is almost certainly going to be a slog.

At the end of the day, political will is likely to be as important as future technological advance for how much of Pizarro’s $370 billion actually gets spent. And the same will be true across the U.S., with state governments and regulators still by and large calling the shots for how electricity gets generated, transmitted and distributed—as well as who pays for it and how much, even as California’s exported policies influence Western markets.

Ironically, the one state where investors don’t need to worry about renewable energy’s prospects is one of the currently reddest politically. That’s Florida, where NextEra Energy NEE +2.8% (NEE) and other utilities can dramatically cut costs to customers and boost reliability by deploying solar and energy storage.

You won’t hear management asserting it can run the Sunshine State on 100 percent renewable energy, as utilities and regulators do in some of the bluer parts of the country. But by demonstrating the cost and reliability argument for solar deployment, NextEra is also making the case why its stock is America’s highest percentage bet on renewables’ growth—particularly at a time when all things energy are unfortunately becoming increasingly, intensely political.

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France Diesel Prices at Pre-Ukraine Levels reflect energy market stabilization as supply chains adapt and subsidies help; easing fuel costs, inflation, and logistics burdens for households, transport firms, and the wider economy.

Key Points

They mark normalization as oil supply stabilizes, easing fuel costs and logistics expenses for consumers and firms.

✅ Lower transport and logistics operating costs

✅ Softer inflation and improved household budgets

✅ Market stabilization amid adjusted oil supply chains

In a significant development for French consumers and businesses alike, diesel prices in France have recently fallen back to levels last seen before the Ukrainian conflict began, mirroring European gas prices returning to pre-war levels across the region. This drop comes as a relief to many who have been grappling with volatile energy costs and their impact on the cost of living and business operations. The return to lower diesel prices is a noteworthy shift in the energy landscape, with implications for the French economy, transportation sector, and broader European market.

Context of Rising Diesel Prices

The onset of the Ukrainian conflict in early 2022 triggered a dramatic increase in global energy prices, including diesel. The conflict's disruption of supply chains, coupled with sanctions on Russian oil and gas exports, contributed to a steep rise in fuel prices across Europe, prompting the EU to weigh emergency electricity price measures to shield consumers. For France, this meant that diesel prices soared to unprecedented levels, putting significant pressure on consumers and businesses that rely heavily on diesel for transportation and logistics.

The impact was felt across various sectors. Transportation companies faced higher operational costs, which were often passed down to consumers in the form of increased prices for goods and services. Additionally, higher fuel costs contributed to broader inflationary pressures, with EU inflation hitting lower-income households hardest, affecting household budgets and overall economic stability.

Recent Price Trends and Market Adjustments

The recent decline in diesel prices in France is a welcome reversal from the peak levels experienced during the height of the conflict. Several factors have contributed to this price reduction. Firstly, there has been a stabilization of global oil markets as geopolitical tensions have somewhat eased and supply chains have adjusted to new realities. The gradual return of Russian oil to global markets, albeit under complex sanctions and trading arrangements, has also played a role in moderating prices.

Moreover, France's strategic reserves and diversified energy sources have helped cushion the impact of global price fluctuations. The French government has also implemented measures to stabilize energy prices, including subsidies and tax adjustments, and a new electricity pricing scheme to satisfy EU concerns, which have helped alleviate some of the financial pressure on consumers.

Implications for the French Economy

The return to pre-conflict diesel price levels brings several positive implications for the French economy. For consumers, the decrease in fuel prices means lower transportation costs, which can ease inflationary pressures and improve disposable income, and, alongside the EDF electricity price deal, reduce overall utility burdens for households. This is particularly beneficial for households with long commutes or those relying on diesel-powered vehicles.

For businesses, especially those in the transportation and logistics sectors, the drop in diesel prices translates into reduced operational costs. This can help lower the cost of goods and services, potentially leading to lower prices for consumers and improved profitability for businesses. In a broader sense, stabilized fuel prices can contribute to overall economic stability and growth, as lower energy costs can support consumer spending and business investment.

Environmental and Policy Considerations

While the decrease in diesel prices is advantageous in the short term, it also raises questions about long-term energy policy and environmental impact, with the recent crisis framed as a wake-up call for Europe to accelerate the shift away from fossil fuels. Diesel, as a fossil fuel, continues to pose environmental challenges, including greenhouse gas emissions and air pollution. The drop in prices might inadvertently discourage investments in cleaner energy alternatives, such as electric and hybrid vehicles, which are crucial for achieving long-term sustainability goals.

In response, there is a growing call for continued investment in renewable energy and energy efficiency measures. France has been actively pursuing policies to reduce its reliance on fossil fuels and increase the adoption of cleaner technologies, amid ongoing EU electricity reform debates with Germany. The government’s support for green energy initiatives and incentives for low-emission vehicles will be essential in balancing short-term benefits with long-term environmental objectives.

Conclusion

The recent return of French diesel prices to pre-Ukrainian conflict levels marks a significant shift in the energy market, offering relief to both consumers and businesses. While this decline brings immediate financial benefits and supports economic stability, it also underscores the ongoing need for a strategic approach to energy policy and environmental sustainability. As France navigates the evolving energy landscape, the focus will need to remain on fostering a transition towards cleaner energy sources while managing the economic and environmental impacts of fuel price fluctuations.

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Washington State Hybrid-Electric Ferries advance green maritime transit with battery-diesel propulsion, lower emissions, and fleet modernization, integrating charging infrastructure and reliable operations across WSF routes to meet climate goals and reduce fuel consumption.

Key Points

New WSF vessels using diesel-battery propulsion to cut emissions, improve efficiency, and sustain reliable ferry service.

✅ Hybrid diesel-battery propulsion reduces fuel use and CO2

✅ Larger vessels with efficient batteries and charging upgrades

✅ Compatible with WSF docks, maintenance, and safety standards

Washington State is embarking on an ambitious update to its ferry fleet, introducing hybrid-electric boats that represent a significant leap toward greener and more sustainable transportation. The state’s updated plans reflect a commitment to reducing carbon emissions and enhancing environmental stewardship while maintaining the efficiency and reliability of its vital ferry services.

The Washington State Ferries (WSF) system, one of the largest in the world, has long been a critical component of the state’s transportation network, linking various islands and coastal communities with the mainland. Traditionally powered by diesel engines, the ferries are responsible for significant greenhouse gas emissions. In response to growing environmental concerns and legislative pressure, WSF is now turning to hybrid-electric technology similar to battery-electric high-speed ferries seen elsewhere to modernize its fleet and reduce its carbon footprint.

The updated plans for the hybrid-electric boats build on earlier efforts to introduce cleaner technologies into the ferry system. The new designs incorporate advanced hybrid-electric propulsion systems that combine traditional diesel engines with electric batteries. This hybrid approach allows the ferries to operate on electric power during certain segments of their routes, reducing reliance on diesel fuel and cutting emissions as electric ships on the B.C. coast have demonstrated during similar operations.

One of the key features of the updated plans is the inclusion of larger and more capable hybrid-electric ferries, echoing BC Ferries hybrid ships now entering service in the region. These vessels are designed to handle the demanding operational requirements of the Washington State Ferries system while significantly reducing environmental impact. The new boats will be equipped with state-of-the-art battery systems that can store and utilize electric power more efficiently, leading to improved fuel economy and lower overall emissions.

The transition to hybrid-electric ferries is driven by both environmental and economic considerations. On the environmental side, the move aligns with Washington State’s broader goals to combat climate change and reduce greenhouse gas emissions, including programs like electric vehicle rebate program that encourage cleaner travel across the state. The state has set ambitious targets for reducing carbon emissions across various sectors, and upgrading the ferry fleet is a crucial component of achieving these goals.

From an economic perspective, hybrid-electric ferries offer the potential for long-term cost savings. Although the initial investment in new technology can be substantial, with financing models like CIB support for B.C. electric ferries helping spur adoption and reduce barriers for agencies, the reduced fuel consumption and lower maintenance costs associated with hybrid-electric systems are expected to lead to significant savings over the lifespan of the vessels. Additionally, the introduction of greener technology aligns with public expectations for more sustainable transportation options.

The updated plans also emphasize the importance of integrating hybrid-electric technology with existing infrastructure. Washington State Ferries is working to ensure that the new vessels are compatible with current docking facilities and maintenance practices. This involves updating docking systems, as seen with Kootenay Lake electric-ready ferry preparations, to accommodate the specific needs of hybrid-electric ferries and training personnel to handle the new technology.

Public response to the hybrid-electric ferry initiative has been largely positive, with many residents and environmental advocates expressing support for the move towards greener transportation. The new boats are seen as a tangible step toward reducing the environmental impact of one of the state’s most iconic transportation services. The project also highlights Washington State’s commitment to innovation and leadership in sustainable transportation, alongside global examples like Berlin's electric flying ferry that push the envelope in maritime transit.

However, the transition to hybrid-electric ferries is not without its challenges. Implementing new technology requires careful planning and coordination, including addressing potential technical issues and ensuring that the vessels meet all safety and operational standards. Additionally, there may be logistical challenges associated with integrating the new ferries into the existing fleet and managing the transition without disrupting service.

Despite these challenges, the updated plans for hybrid-electric boats represent a significant advancement in Washington State’s efforts to modernize its transportation system. The initiative reflects a growing trend among transportation agencies to embrace sustainable technologies and address the environmental impact of traditional transportation methods.

In summary, Washington State’s updated plans for hybrid-electric ferries mark a crucial step towards a more sustainable and environmentally friendly transportation network. By incorporating advanced hybrid-electric technology, the state aims to reduce carbon emissions, improve fuel efficiency, and align with its broader climate goals. While challenges remain, the initiative demonstrates a commitment to innovation and underscores the importance of transitioning to greener technologies in the quest for a more sustainable future.

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Solar Plus Storage is accelerating across utilities and microgrids, pairing rooftop solar with lithium-ion batteries to enhance grid resilience, reduce peak costs, prevent blackouts, and leverage tax credits amid falling prices and decarbonization goals.

Key Points

Solar Plus Storage combines solar generation with batteries to shift load, boost reliability, and cut energy costs.

✅ Cuts peak demand charges and enhances blackout resilience

✅ Falling battery and solar costs drive nationwide utility adoption

✅ Enables microgrids and grid services like frequency regulation

Todd Karin was prepared when California’s largest utility shut off power to millions of people to avoid the risk of wildfires last month. He’s got rooftop solar panels connected to a single Tesla Powerwall in his rural home near Fairfield, California. “We had backup power the whole time,” Karin says. “We ran the fridge and watched movies.”

Californians worried about an insecure energy future are increasingly looking to this kind of solution. Karin, a 31-year-old postdoctoral fellow at Lawrence Berkeley National Laboratory, spent just under $4,000 for his battery by taking advantage of tax credits. He's also saving money by discharging the battery on weekday evenings, when energy is more expensive during peak demand periods. He expects to save around $1,500 over the 10 years the battery is under warranty.

The economics don’t yet work for every household, but the green-power combo of solar panels plus batteries is popping up on a much bigger scale in some unexpected places. Owners of a rice processing plant in Arkansas are building a system to generate 26 megawatts of solar power and store another 40 MW. The plant will cut its power bill by a third, and owners say they will pass the savings to local rice growers. New York’s JFK Airport is installing solar plus storage to reduce its power load by 10 percent, while Pittsburgh International Airport is building a 20-MW solar and natural gas microgrid to keep it independent from the local utility. Officials at both airports are worried about recent power shutdowns due to weather and overload-related blackouts.

And residents of the tiny northern Missouri town of Green City (pop. 608) are getting 2.5 MW of solar plus four hours of battery storage from the state’s public utility next year. The solar power won’t go directly to townspeople, but instead will back up the town’s substation, reducing the risk of a potential shutdown. It’s part of a $68 million project to improve the reliability of remote substations far from electric generating stations.

“It’s a pretty big deal for us,” says Chad Raley, who manages technology and renewables at Ameren, a Missouri utility that is building three rural solar-plus-storage projects to better manage the flow of electricity across the local grid. “It gives us so much flexibility with renewable generation. We can’t control the sun or clouds or wind, but we can have battery storage.”

The first solar-plus-storage installations started about a decade ago on a small scale in sunny states like California, Hawaii, and Arizona. Now they’re spreading across the country, driven by falling prices of both solar panels and lithium-ion batteries the size of a shipping container imported from both China and South Korea, with wind, solar, and batteries making up most of the utility-scale pipeline nationwide. These countries have ramped up production efficiencies and lowered labor costs, leaving many US manufacturers in the dust. In fact, the price of building a comparable solar-plus-storage generating facility is now cheaper than operating a coal-fired power plant, industry officials say. In certain circumstances, the cost is equal to some natural gas plants.

“This is not just a California, New York, Massachusetts thing,” says Kelly Speakes-Backman, CEO of the Energy Storage Association, an industry group in Washington. She says more than 30 states have renewable storage on the grid. Utilities have proposed and states have approved 7 gigawatts to be installed by 2030, and most new storage will be paired with solar across the US.

Speakes-Backman estimates the unit cost of electricity produced from a solar-plus-storage system will drop 10 to 15 percent each year through 2024, supporting record growth in solar and storage investments. “If you have the option of putting out a polluting or non-polluting generating source at the same price, what are you going to pick?” says Speakes-Backman.

She notes that PJM, a large Mid-Atlantic wholesale grid operator, announced it will deploy battery storage to help smooth out fluctuating power from two wind farms it operates. “When the grid fluctuates, storage can react to it quickly and can level out the supply,” she says. In the Midwest, grid-level battery storage is also being used to absorb extra wind power. Batteries hold onto the wind and put it back onto the grid when people need it.

While the solar-plus-storage trend isn’t yet putting a huge dent in our fossil fuel use, according to Paul Denholm, an energy analyst at the National Renewable Energy Laboratory in Golden, Colorado, it is a good beginning and has the side effect of cutting air pollution. By 2021, solar and other renewable energy sources will overtake coal as a source of energy, and the US is moving toward 30% electricity from wind and solar, according to a new report by the Institute for Energy Economics and Financial Analysis, a nonprofit think tank based in Cleveland.

That’s a glimmer of hope in a somewhat dreary week of news on carbon emissions. A new United Nations report released this week finds that the planet is on track to warm by 3.9 degrees Celsius (7 Fahrenheit) by 2100 unless drastic cuts are made by phasing out gas-powered cars, eliminating new coal-fired power plants, and changing how we grow and manage land, and scientists are working to improve solar and wind power to limit climate change as well.

Energy-related greenhouse gas emissions in the US rose 2.7 percent in 2018 after several years of decline. The Trump administration has rolled back climate policies from the Obama years, including withdrawing from the Paris climate accords.

There may be hope from green power initiatives outside the Beltway, though, and from federal proposals like a tenfold increase in US solar that could remake the electricity system. Arizona plans to boost solar-plus-storage from today’s 6 MW to a whopping 850 MW by 2025, more than the entire capacity of large-scale batteries in the US today. And some folks might be cheering the closing of the West’s biggest coal-fired power plant, the 2.25-gigawatt Navajo Generating Station, in Arizona, which had spewed soot and carbon dioxide over the region for 45 years until last week. The closure might help the planet and clear the hazy smog over the Grand Canyon.

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Germany's Economic Downturn reflects an energy crisis, deindustrialization risks, export weakness, and manufacturing stress, amid Russia gas loss, IMF and EU recession forecasts, and debates over electricity price caps and green transition.

Key Points

An economic contraction from energy price shocks, export weakness, and bottlenecks in manufacturing and digitization.

✅ Energy shock after loss of cheap Russian gas

✅ Exports slump amid China slowdown and weak demand

✅ Policy gridlock on power price cap and permits

Germany went from envy of the world to the worst-performing major developed economy. What happened?

For most of this century, Germany racked up one economic success after another, dominating global markets for high-end products like luxury cars and industrial machinery, selling so much to the rest of the world that half the economy ran on exports.

Jobs were plentiful, the government’s financial coffers grew as other European countries drowned in debt, and books were written about what other countries could learn from Germany.

No longer. Now, Germany is the world’s worst-performing major developed economy, with both the International Monetary Fund and European Union expecting it to shrink this year.

It follows Russia’s invasion of Ukraine and the loss of Moscow’s cheap Russian gas that underpinned industry — an unprecedented shock to Germany’s energy-intensive industries, long the manufacturing powerhouse of Europe.

The sudden underperformance by Europe’s largest economy has set off a wave of criticism, handwringing and debate about the way forward.

Germany risks “deindustrialization” as high energy costs and government inaction on other chronic problems threaten to send new factories and high-paying jobs elsewhere, said Christian Kullmann, CEO of major German chemical company Evonik Industries AG.

From his 21st-floor office in the west German town of Essen, Kullmann points out the symbols of earlier success across the historic Ruhr Valley industrial region: smokestacks from metal plants, giant heaps of waste from now-shuttered coal mines, a massive BP oil refinery and Evonik’s sprawling chemical production facility.

These days, the former mining region, where coal dust once blackened hanging laundry, is a symbol of the energy transition, as the power sector’s balancing act continues with wind turbines and green space.

The loss of cheap Russian natural gas needed to power factories “painfully damaged the business model of the German economy,” Kullmann told The Associated Press. “We’re in a situation where we’re being strongly affected — damaged — by external factors.”

After Russia cut off most of its gas to the European Union, spurring an energy crisis in the 27-nation bloc that had sourced 40% of the fuel from Moscow, the German government asked Evonik to turn to coal by keeping its 1960s coal-fired power plant running a few months longer.

The company is shifting away from the plant — whose 40-story smokestack fuels production of plastics and other goods — to two gas-fired generators that can later run on hydrogen amid plans to become carbon neutral by 2030 and following the nuclear phase-out of recent years.

One hotly debated solution: a government-funded cap on industrial electricity prices to get the economy through the renewable energy transition, amid an energy crisis that even saw a temporary nuclear extension to stabilize supply.

The proposal from Vice Chancellor Robert Habeck of the Greens Party has faced resistance from Chancellor Olaf Scholz, a Social Democrat, and pro-business coalition partner the Free Democrats. Environmentalists say it would only prolong reliance on fossil fuels, while others advocate a nuclear option to meet climate goals.

Kullmann is for it: “It was mistaken political decisions that primarily developed and influenced these high energy costs. And it can’t now be that German industry, German workers should be stuck with the bill.”

The price of gas is roughly double what it was in 2021, with a senior official arguing nuclear would do little to solve that gas issue, hurting companies that need it to keep glass or metal red-hot and molten 24 hours a day to make glass, paper and metal coatings used in buildings and cars.

A second blow came as key trade partner China experiences a slowdown after several decades of strong economic growth.

These outside shocks have exposed cracks in Germany’s foundation that were ignored during years of success, including lagging use of digital technology in government and business and a lengthy process to get badly needed renewable energy projects approved.

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