German manufacturers are warning that persistently high energy costs are forcing them to consider shifting operations abroad, putting the country’s industrial future at risk. “Decarbonisation must not lead to deindustrialisation,” said Martin Oetjen, COO of engine maker Everllence, as he criticised the lack of concrete government support for energy-intensive industries.
With benchmark electricity prices hovering around €86/MWh, the government’s proposed cut to €50/MWh has failed to convince industry leaders. Many say they’ve heard such promises before — with previous pledges stalling amid EU regulations and tight budgets.
While recent proposals hint at energy price controls, tax cuts, and transmission fee exemptions, analysts argue they won’t go far enough. According to Matthias Belitz of the German Chemical Industry Association (VCI), even with current plans, only 9–13% of a company’s energy costs would be offset. “It’s not an unconditional power price,” he noted.
Energy expert Niclas Wenz added that slashing transmission fees would deliver quick relief, but the government has yet to confirm specific measures.
Industry leaders stress that German energy prices must align more closely with global competitors such as the U.S. and China to remain viable. If no action is taken, Germany could face a potential €90 billion economic hit due to the loss of its energy-intensive sectors, Belitz warned.
