05/05/2023
Source: Energy & Management Powernews
At the VBW in Munich, representatives of industry, politics and Fridays for Future discussed the energy transition and the climate policy of the German government.
The Association of Bavarian Business (VBW) called for the unification of ecological and economic aspects at a discussion on the climate policy of the Federal Government. In Munich's Hotel Bayerischer Hof discussed the right measures representatives of the business community with the Green Party Member of Parliament Lisa Badum and Etienne Denk, spokesman for Fridays for Future. "Climate-friendly economic restructuring must be supported and new production and business models promoted," VBW CEO Bertram Brossardt demanded of the federal government.
Energy-intensive industry in particular quickly needs an internationally competitive industrial electricity price, Brossardt continued. Affordable electricity is an important driver for the use of climate-friendly technologies and the best carbon leakage protection, he said. Rainer Häring, Director Energy Western Europe of the paper manufacturer UPM, emphasized that production in Germany is much more environmentally friendly and energy efficient than in other parts of the world. Therefore, he said, it benefits globally if industry can stay in Germany.
"In Finland, where my company is headquartered, industrial electricity costs 50 euros/MWh. We only achieve this price in Germany with gas," Häring explained. Therefore, he said, a comparable electricity price is also necessary for decarbonization, otherwise production in Germany would be uneconomical. His company is endeavoring to set up power-to-heat plants to generate the necessary steam with electricity in the future, but this only pays off with a favorable electricity price.
More speed for power grid expansion and renewable generation
Based on data from Prognos AG, VBW also called for more speed in the energy turnaround: "Renewable energies and power grids are central pillars in climate protection," Brossardt reminded us. This would dampen prices in the long term and strengthen security of supply. Another plus point for Germany, he said, was the outstanding security of energy supply worldwide. In this context, he praised the crisis measures taken by the German government following the shortfall of Russian natural gas.
"We also have to ignite the turbo in the development of the hydrogen economy," Brossardt further demanded. He said Bavaria needs pipeline connections from the north and south sooner than previously planned. "We also need industry-related electrolysers and the capture of unavoidable, process-related greenhouse gases," he said. For that reason, he said, VBW welcomes the fact that the federal government has begun work on a carbon management strategy.
Climate change activists warn against wait-and-see attitude
For Fridays for Future, Etienne Denk said hydrogen expectations and CO2 capture should not lead to postponing efficiency and energy transition measures possible today. "Scarce is not only money, but also time," he cautioned. The later long-term measures such as building renovation and the heat turnaround were started, the faster they would have to be completed, he said. That would only become more expensive.
That's why he thought it was wrong for the federal government to soften the sectoral climate protection measures and thus push the defaulting sectors of transport and buildings less. Lisa Badum, chairwoman of the Bundestag's Climate and Energy Committee, who joined online, asserted that these sectors would not be absolved of their responsibility to reduce greenhouse gas emissions.
Depending on the commitments of the federal finance minister, she said, there would soon be an industrial electricity price of 50 to 70 euros/MWh, reliably secured for several years. This should smooth the transition for industry until the general electricity price would be cheaper around 2030 thanks to more renewable electricity in the grid, Badum promised.
Hydrogen would be an expensive commodity for years to come, warned Almut Kirchner, director at Prognos. Therefore it would be wrong, for example in the building heating with today possible reorganizations and conversions to wait. There is no infrastructure yet and the calorific value of hydrogen is lower than that of natural gas, she reminded. That's why her economic research institute does not expect widespread use of hydrogen by 2030, certainly not from renewable sources. In addition, a mechanism still needs to be created across Europe to protect companies with higher costs because of climate-friendly production from cheaper competing products worldwide, Kirchner said.
The VBW position paper on climate policy is available online.
Author: Susanne Harmsen
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