Toshiba to buy Landis+Gyr

By Reuters


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Japanese electronics manufacturer Toshiba Corp said it will buy unlisted Swiss-based meter maker Landis+Gyr in a deal valued at $2.3 billion, including debt, in a bid to move into the promising overseas smart grid market.

The deal, which had been well flagged to the market, comes as Toshiba's hopes of growing profits in its nuclear power division are being overshadowed by the crisis at Japan's tsunami-hit Fukushima reactor, and utilities around the world focus on smart grids as a means of saving energy and cutting carbon emissions.

The smart grid market is expected to grow six-fold to 5.8 trillion yen US $70.9 billion over the next decade, Toshiba said.

"Quality comes at a price," said Macquarie Equities Research analyst Damian Thong. "I think it would be near impossible for Toshiba to build a business like this organically."

Smart grids are designed to accommodate a range of generation options, including renewables, and to provide customers and utilities with more real time information, enabling them to manage usage and supply more efficiently.

Landis+Gyr is a maker of both smart meter hardware and communication modules, key components of smart grids. It competes with companies such as Itron Inc and EnerNoc Inc.

The Swiss firm's earnings before interest, taxes, depreciation and amortization came to $215 million dollars in the year to March 2011, on revenue of $1.59 billion.

Credit Suisse and Lazard Ltd advised Landis+Gyr on the sale.

Toshiba declined to comment on how it would finance the deal, but the Japanese firm will likely have enough cash on hand to cover most of the cost, depending on the size of Landis+Gyr's debts, Macquarie's Thong said.

Toshiba said it had yet to determine the impact of the acquisition on its business performance in the year to March 2012.

Media reports had said the Japanese conglomerate might team up with other firms in the buy-out, but Toshiba said it had agreed to acquire the whole firm.

Landis+Gyr, founded in 1896, is owned by several equity funds and individual investors, after going through a series of different owners including Kohlberg Kravis Roberts & Co and Siemens in the 1990s.

The firm boasts more than 8,000 utility customers globally, and its 5,000 employees operate in more than 30 countries. There are no plans for job reductions following the deal, Landis+Gyr said.

In January it was chosen to supply 10,000 smart meters to the State Grid Corporation of China as part of the construction of the world's largest smart grid.

The Toshiba takeover, which is subject to regulatory approval, is expected to close in the third calendar quarter of this year, Landis+Gyr said.

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Cheap at Last, Batteries Are Making a Solar Dream Come True

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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Energy crisis is a 'wake up call' for Europe to ditch fossil fuels

EU Clean Energy Transition underscores the shift from fossil fuels to renewable energy, decarbonization, and hydrogen, as soaring gas prices and electricity volatility spur resilience, storage, and joint procurement across the single market.

 

Key Points

EU Clean Energy Transition shifts from fossil fuels to renewables, enhancing resilience and reducing price volatility.

✅ Cuts reliance on Russian gas and fossil imports

✅ Scales renewables, hydrogen, and energy storage

✅ Stabilizes electricity prices via market resilience

 

Soaring energy prices, described as Europe's energy nightmare, are a stark reminder of how dependent Europe is on fossil fuels and should serve to accelerate the shift towards renewable forms of energy.

"This experience today of the rising energy prices is a clear wake up call... that we should accelerate the transition to clean energy, wean ourselves off the fossil fuel dependency," a senior EU official told reporters as the European Commission unveiled a series of emergency electricity measures aimed at tackling the crisis.

The European Union is facing a sharp spike in energy prices, driven by increased global demand as the world recovers from the pandemic and lower-than-expected natural gas deliveries from Russia. Wholesale electricity prices have increased by 200% compared to the 2019 average, underscoring why rolling back electricity prices is tougher than it appears, according to the European Commission.

"Winter is coming and for many electricity costs are larger than they have been for a decade," Energy Commissioner Kadri Simson told reporters on Wednesday.

80 million European households struggle to stay warm
Wholesale gas prices — which have surged to record highs in France, Spain, Germany and Italy, amid reports of Germany's local utilities crying for help — are expected to remain high through the winter.

Prices are expected to fall in the spring, but remain higher than the average of past years, according to the Commission. Most EU countries rely on gas-fired power stations to meet electricity demand, and about 40% of that gas comes from Russia, with the EU outlining a plan to dump Russian energy to reduce this reliance, according to Eurostat.

Simson said that the Commission's initial assessment indicates that Russia's Gazprom has been fulfilling its long-term contracts "while providing little or no additional supply."
Kremlin spokesman Dmitry Peskov told journalists on Wednesday that Russia has increased gas supplies to Europe to the maximum possible level under existing contracts, but could not exceed those thresholds. "We can say that Russia is flawlessly fulfilling all contractual obligations," he said.

Measures EU states can take to help consumers and businesses cope with soaring electricity costs include emergency income support to households to help them pay their energy bills, alongside potential gas price cap strategies, state aid for companies, and targeted tax reductions. Member states can also temporarily delay bill payments and put in place processes to ensure that no one is disconnected from the grid.

Green energy the solution
The Commission also published a series of longer term measures the bloc should consider to reduce its dependence on fossil fuels and tackle energy price volatility, despite opposition from nine countries to electricity market reforms.

"Our immediate priority is to protect Europe's consumers, especially the most vulnerable," Simson said. "Second, we want to make our energy system better prepared and more resilient, so we don't have to face a similar situation in the future," she added.

Energy crisis could force more UK factories to close
This would require speeding up the green energy transition rather than slowing it down, Simson said. "We are not facing an energy price surge because of our climate policy or because renewable energy is expensive. We are facing it because the fossil fuel prices are spiking," she continued.

"The only long term remedy against demand shocks and price volatility is a transition to a green energy system."

Simson said she will propose to EU leaders a package of measures to decarbonize Europe's gas and hydrogen markets by 2050. Other measures to improve energy market stability could include increasing gas storage capacity and buying gas jointly at an EU level.

 

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Alberta's Last Coal Plant Closes, Embracing Clean Energy

Alberta Coal Phase-Out signals a clean energy transition, replacing coal with natural gas and renewables, cutting greenhouse gas emissions, leveraging a carbon levy, and supporting workers in Alberta's evolving electricity market.

 

Key Points

Alberta Coal Phase-Out moves power from coal to lower-emission natural gas and renewables to reduce grid emissions.

✅ Last coal plant closed: Genesee Generating Station, Sept 30, 2023

✅ Shift to natural gas and renewables lowers emissions

✅ Carbon levy and incentives accelerated clean power build-out

 

The closure of the Genesee Generating Station on September 30, 2023, marked a significant milestone in Alberta's energy history, as the province moved to retire coal power by 2023 ahead of its 2030 provincial deadline. The Genesee, located near Calgary, was the province's last remaining coal-fired power plant. Its closure represents the culmination of a multi-year effort to transition Alberta's electricity sector away from coal and towards cleaner sources of energy.

For decades, coal was the backbone of Alberta's electricity grid. Coal-fired plants were reliable and relatively inexpensive to operate. However, coal also has a significant environmental impact. The burning of coal releases greenhouse gases, including carbon dioxide, a major contributor to climate change. Coal plants also produce air pollutants such as sulfur dioxide and nitrogen oxide, which can cause respiratory problems and acid rain, and in some regions electricity is projected to get dirtier as gas use expands.

In recognition of these environmental concerns, the Alberta government began to develop plans to phase out coal-fired power generation in the early 2000s. The government implemented a number of policies to encourage the shift from coal to cleaner energy such as natural gas and renewable energy. These policies included providing financial incentives for the construction of new natural gas plants and renewable energy facilities, as well as imposing a carbon levy on coal-fired generation.

The phase-out of coal was also driven by economic factors. The cost of natural gas has declined significantly in recent years, making it a more competitive fuel source for electricity generation as producers switch to gas under evolving market conditions. Additionally, the Alberta government faced increasing pressure from the federal government to reduce greenhouse gas emissions.

The transition away from coal has not been without its challenges. Coal mining and coal-fired power generation have long been important parts of Alberta's economy. The closure of coal plants has resulted in job losses in the affected communities. The government has implemented programs to help workers transition to new jobs in the clean energy sector.

Despite these challenges, the closure of the Genesee Generating Station is a positive development for Alberta's environment and climate. Coal-fired power generation is one of the largest sources of greenhouse gas emissions in Alberta, and recent wind generation outpacing coal underscores the sector's transformation. The closure of the Genesee is expected to result in a significant reduction in emissions, helping Alberta to meet its climate change targets.

The transition away from coal also presents opportunities for Alberta. The province has vast natural gas resources, which can be used to generate electricity with lower emissions than coal. Alberta is also well-positioned to develop renewable energy sources, such as wind power and solar power. These renewable energy sources can help to further reduce emissions and create new jobs in the clean energy sector.

The closure of the Genesee Generating Station is a significant milestone in Alberta's energy history. It represents the end of an era for coal-fired power generation in the province, a shift mirrored by the UK's last coal station going offline earlier this year. However, it also marks the beginning of a new era for Alberta's energy sector. By transitioning to cleaner sources of energy, Alberta can reduce its environmental impact and create a more sustainable energy future.

 

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EU outlines $300 billion plan to dump Russian energy

REPowerEU Plan accelerates the EU's shift from Russian fossil fuels with renewable energy, energy efficiency, solar, wind, heat pumps, faster permits, and energy security measures by 2027, backed by grants, loans, and grid investments.

 

Key Points

EU plan to quit Russian fossil fuels via renewables and efficiency, with faster permits, by 2027.

✅ €300bn in grants and loans for efficiency and renewables

✅ Streamlined permits; solar mandate on new buildings

✅ Targets 2027 independence; cuts Russian gas, oil, coal

 

The European Union’s executive arm moved Wednesday to jump-start plans for the 27-nation bloc to abandon Russian energy amid the Kremlin’s war in Ukraine, proposing a nearly 300 billion-euro ($315 billion) package that includes more efficient use of fuels and faster rollout of renewable power, even as rolling back electricity prices remains challenging.

The European Commission’s investment initiative is meant to help the 27 EU countries start weaning themselves off Russian fossil fuels this year, a move many see as a wake-up call to ditch fossil fuels across Europe. The goal is to deprive Russia, the EU’s main supplier of oil, natural gas and coal, of tens of billions in revenue and strengthen EU climate policies.

“We are taking our ambition to yet another level to make sure that we become independent from Russian fossil fuels as quickly as possible,” European Commission President Ursula von der Leyen said in Brussels when announcing the package, dubbed REPowerEU.

With no end in sight to Russia’s war in Ukraine and European energy security shaken, amid what some describe as an energy nightmare for the region, the EU is rushing to align its geopolitical and climate interests for the coming decades. It comes amid troubling signs that have raised concerns about energy supplies that the EU relies on and have no quick replacements for, including Russia cutting off member nations Poland and Bulgaria after they refused a demand to pay for natural gas in rubles.

The bloc’s dash to ditch Russian energy stems from a combination of voluntary and mandatory actions. Both reflect the political discomfort of helping fund Russia’s military campaign in a country that neighbors the EU and wants to join the bloc.

An EU ban on coal from Russia is due to start in August, and the bloc has pledged to try to reduce demand for Russian gas by two-thirds by year's end, while debating gas price cap strategies to curb volatility. Meanwhile, a proposed EU oil embargo has hit a roadblock from Hungary and other landlocked countries that worry about the cost of switching to alternative sources.

In a bid to swing Hungary behind the oil phaseout, the REPowerEU package expects oil investment funding of around 2 billion euros for member nations highly dependent on Russian oil.

Energy savings and renewables form the cornerstones of the package, which would be funded mainly by an economic stimulus program put in place to help member countries overcome the slump triggered by the coronavirus pandemic.

The European Commission said the price tag for abandoning Russian fossil fuels completely by a 2027 target date is 210 billion euros. Its package includes 56 billion euros for energy efficiency and 86 billion euros for renewables.

Von der Leyen cited a total funding pot of 72 billion euros in grants and 225 billion euros for loans.

The European Commission also proposed ways to streamline the approval processes in EU countries for renewable projects, which can take up to a decade to get through red tape, as part of a broader effort to revamp the electricity market across Europe. The commission said approval times need to fall to as little as a year or less.

It put forward a specific plan on solar energy, seeking to double photovoltaic capacity by 2025 and pushing for a phased-in obligation to install solar panels on new buildings.

Simone Tagliapietra, an energy expert at the Bruegel think tank in Brussels, called REPowerEU a “jumbo package” whose success will ultimately depend on political will in the bloc’s national capitals, with examples such as Germany’s 200 billion euro energy price shield illustrating the scale of national responses.

“Most of the actions entailed in the plan require either national implementation or strong coordination among member states,” Tagliapietra said. “The extent to which countries really engage is going to be defining.”

The German energy think tank Agora Energiewende said the EU’s plan “gives too little attention to concrete initiatives that reduce fossil fuel demand in the short term and thereby misses the opportunity to simultaneously enhance Europe’s energy security and meet Europe’s climate objectives.”

The group's research shows rapidly expanding solar, wind parks and use of heat pumps for low-temperature heat in industry and buildings could be done faster than constructing new liquefied natural gas terminals or gas infrastructure, said Matthias Buck, its director for Europe.

The European Commission’s recommendations on short-term national actions to cut demand for Russian energy, which include potential emergency measures to limit electricity prices as well, coincide with deliberations underway in the bloc since last year on setting more ambitious EU energy-efficiency and renewable targets for 2030.

Those targets, being negotiated by the European Parliament and national governments, are part of the bloc’s commitments to a 55% cut in greenhouse gases by decade's end, compared with 1990 emissions, and to climate neutrality by 2050.

Von der Leyen urged the European Parliament and national governments to deepen the commission’s July proposal for an energy efficiency target of 9% and renewable energy goal of 40% by 2030. She said those objectives should be 13% and 45%, respectively.

Belgium, the Netherlands, Germany and Denmark plan to build North Sea wind farms to help cut carbon emissions.

 

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Trump's Pledge to Scrap Offshore Wind Projects

Trump Offshore Wind Pledge signals a push for deregulation over renewable energy, challenging climate policy, green jobs, and coastal development while citing marine ecosystems, navigation, and energy independence amid state-federal permitting and legal hurdles.

 

Key Points

Trump's vow to cancel offshore wind projects favors deregulation and fossil fuels, impacting climate policy and jobs.

✅ Day-one plan to scrap offshore wind leases and permits

✅ Risks to renewable targets, grid mix, and coastal supply chains

✅ Likely court fights and state-federal regulatory conflicts

 

During his tenure as President of the United States, Donald Trump made numerous promises and policy proposals, many of which sparked controversy and debate. One such pledge was his vow to scrap offshore wind projects on "day one" of his presidency. This bold statement, while appealing to certain interests, raised concerns about its potential impact on U.S. offshore wind growth and environmental conservation efforts.

Trump's opposition to offshore wind projects stemmed from various factors, including his skepticism towards renewable energy, even as forecasts point to a $1 trillion offshore wind market in coming years, concerns about aesthetics and property values, and his focus on promoting traditional energy sources like coal and oil. Throughout his presidency, Trump prioritized deregulation and sought to roll back environmental policies introduced by previous administrations, arguing that they stifled economic growth and hindered American energy independence.

The prospect of scrapping offshore wind projects drew mixed reactions from different stakeholders. Supporters of Trump's proposal pointed to potential benefits such as preserving scenic coastal landscapes, protecting marine ecosystems, and addressing concerns about navigational safety and national security. Critics, however, raised valid concerns about the implications of such a decision on the renewable energy sector, including progress toward getting 1 GW on the grid nationwide, climate change mitigation efforts, and job creation in the burgeoning green economy.

Offshore wind energy has emerged as a promising source of clean, renewable power with the potential to reduce greenhouse gas emissions and diversify the energy mix. Countries like Denmark, the United Kingdom, and Germany have made significant investments in offshore wind in Europe, demonstrating its viability as a sustainable energy solution. In the United States, offshore wind projects have gained traction in states like Massachusetts, New York, and New Jersey, where coastal conditions are conducive to wind energy generation.

Trump's pledge to scrap offshore wind projects on "day one" of his presidency raised questions about the feasibility and legality of such a move. While the president has authority over certain aspects of energy policy and regulatory oversight, the development of offshore wind projects often involves multiple stakeholders, including state governments, local communities, private developers, and federal agencies, and actions such as Interior's move on Vineyard Wind illustrate federal leverage in permitting. Any attempt to halt or reverse ongoing projects would likely face legal challenges and regulatory hurdles, potentially delaying or derailing implementation.

Moreover, Trump's stance on offshore wind projects reflected broader debates about the future of energy policy, environmental protection, and economic development. While some argued for prioritizing fossil fuel extraction and traditional energy infrastructure, others advocated for a transition towards clean, renewable energy sources, drawing on lessons from the U.K. about wind deployment, to mitigate climate change and promote sustainable development. The Biden administration, which succeeded the Trump presidency, has signaled a shift towards a more climate-conscious agenda, including support for renewable energy initiatives and commitments to rejoin international agreements like the Paris Climate Accord.

In hindsight, Trump's pledge to scrap offshore wind projects on "day one" of his presidency underscores the complexities of energy policy and the importance of balancing competing interests and priorities. While concerns about aesthetics, property values, and environmental impact are valid, addressing the urgent challenge of climate change requires bold action and innovation in the energy sector. Offshore wind energy presents an opportunity, as seen in the country's biggest offshore wind farm approved in New York, to harness the power of nature in a way that is both environmentally responsible and economically beneficial. As the United States navigates its energy future, finding common ground and forging partnerships will be essential to ensure a sustainable and prosperous tomorrow.

 

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German coalition backs electricity subsidy for industries

Germany Industrial Electricity Price Subsidy weighs subsidies for energy-intensive industries to bolster competitiveness as Germany shifts to renewables, expands grid capacity, and debates free-market tax cuts versus targeted relief and long-term policies.

 

Key Points

Policy to subsidize power for energy-intensive industry, preserving competitiveness during the energy transition.

✅ SPD backs 5-7 cents per kWh for 10-15 years

✅ FDP prefers tax cuts and free-market pricing

✅ Scholz urges cheap renewables and grid expansion first

 

Germany’s three-party coalition is debating whether electricity prices for energy-intensive industries should be subsidised in a market where rolling back European electricity prices can be tougher than it appears, to prevent companies from moving production abroad.

Calls to reduce the electricity bill for big industrial producers are being made by leading politicians, who, like others in Germany, fear the country could lose its position as an industrial powerhouse as it gradually shifts away from fossil fuel-based production, amid historic low energy demand and economic stagnation concerns.

“It is in the interest of all of us that this strong industry, which we undoubtedly have in Germany, is preserved,” Lars Klingbeil, head of Germany’s leading government party SPD (S&D), told Bayrischer Rundfunk on Wednesday.

To achieve this, Klingbeil is advocating a reduced electricity price for the industry of about 5 to 7 cents per Kilowatt hour, which the federal government would subsidise. This should be introduced within the next year and last for about 10 to 15 years, he said.

Under the current support scheme, which was financed as part of the €200 billion “rescue shield” against the energy crisis, energy-intensive industries already pay 13 cents per Kilowatt hour (KWh) for 70% of their previous electricity needs, which is substantially lower than the 30 to 40 cents per KWh that private consumers pay.

“We see that the Americans, for example, are spending $450 billion on the Inflation Reduction Act, and we see what China is doing in terms of economic policy,” Klingbeil said.

“If we find out in 10 years that we have let all the large industrial companies slip away because the investments are not being made here in Germany or Europe, and jobs and prosperity and growth are being lost here, then we will lose as a country,” he added.

However, not everyone in the German coalition favours subsidising electricity prices.

Finance Minister Christian Lindner of the liberal FDP (Renew), for example, has argued against such a step, instead promoting free-market principles and, amid rising household energy costs, reducing taxes on electricity for all.

“Privileging industrial companies would only be feasible at the expense of other electricity consumers and taxpayers, for example, private households or the small trade sector,” Lindner wrote in an op-ed for Handelsblatt on Tuesday.

“Increasing competitiveness for some would mean a loss of competitiveness for others,” he added.

Chancellor Olaf Scholz, himself a member of SPD, was more careful with his words, amid ongoing EU electricity reform debates in Brussels.

Asked about a subsidised electricity price for the industry at a town hall event on Monday, Scholz said he does not “want to make any promises now”.

“First of all, we have to make sure that we have cheap electricity in Germany in the first place,” Scholz said, promoting the expansion of renewable energy such as wind and solar, as local utilities cry for help, as well as more electricity grid infrastructure.

“What we will not be able to do as an economy, even as France’s new electricity pricing scheme advances, is to subsidise everything that takes place in normal economic activity,” Scholz said. “We should not get into the habit of doing that,” he added.

 

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