German Chamber Of Industry and Commerce: Renewable Energy Driving Out 25% Of Industrial Companies

Yesterday I wrote 2 posts on the renewable energies folly in Germany, see here and here.

Now the German Chamber of Industry and Commerce (DIHK) confirms the mess with a press release and survey results of businesses and industries. The survey (see right) shows that energy prices and supply risks are threatening the ability of many German industrial companies to compete, and that many are now gearing up to move their operations to friendlier foreign locations.

Renewable energies are leading to higher prices, unreliable supply, less competitiveness and widespread job loss

In total, some 2400 companies of all sizes, sectors, and regions were surveyed throughout the country.

“Only a small share of the companies see more opportunities than risks,” reported Eric Schweitzer, President of the German Chamber of Industry and Commerce. Most companies view renewable energies skeptically because of rising energy prices and fears with respect to the reliability of the energy supply.

Most of the companies see renewable energies more as a burden than a bonus. More than half of the industrial companies surveyed view renewable energies as hampering their competitiveness. The DIHK survey also says that 25% of the industrial companies are now active in some way in moving their operations to foreign countries. Three percent have already done so, 8% are currently in the process of doing so, and 14% are planning to do so. In a nutshell, renewable energies have made Germany a less attractive place for industry.

This is especially true in the energy-intensive chemical industry. For example natural gas prices are almost 70% cheaper in the USA – thanks to shale gas.

Energy prices on the rise, supply reliability in question

The DIHK report states that electricity prices in Germany are especially high and that 50% of the companies say that the importance of energy prices has increased over the last 12 months. Every tenth company is now attempting to pass the higher energy costs along to their customers.

The survey also shows that many companies are worried about the reliability of the electricity supply. Twenty one percent say that the importance of disruptions in power supply has gone up. 12% of the companies surveyed saw a power outage lasting more than 3 minutes and one out every six companies saw a power outage of less than three minutes. Ten percent of the companies incurred costs because of electric power or gas supply disruptions. Already a single short power outage can cause a company 10,000 euros in losses.

Graphic source: http://www.dihk.energiewende-barometer