Expensive energy is considered one of the reasons for the crisis in German industry. “However, the discussion about high prices often lacks perspective and a long-term outlook“, criticises Patrick Lemcke-Braselmann, Co-CEO of aream Group SE. Industrial electricity costs less in 2024 than it did five years ago. Prices are likely to stabilise in the medium term - partly due to the expansion of solar energy, for example.

In 2024, a kilowatt hour of electricity cost 16.99 cents for a small or medium-sized industrial company. That was almost eight per cent less than in 2019 and 60 per cent less than in 2022, according to figures from the German Association of Energy and Water Industries (BDEW). ”Unfortunately, this medium-term comparison has mostly been lost in the recent debate ahead of the federal election”, says Lemcke-Braselmann.

Over the past five years, procurement, grid fees and sales have decreased by more than half. In the same period, however, the EEG surcharge has been completely eliminated and the electricity tax has been almost entirely abolished for medium-sized industrial companies. ”If you also take into account the inflation rate of previous years, electricity is now significantly cheaper for small and medium-sized companies relative to the general price level than it was a few years ago”, says Lemcke-Braselmann.

Against this backdrop, he argues for a less agitated discussion. Electricity costs companies in Germany more than in many other countries. ”But it's wrong to make sweeping statements about the most expensive electricity in the world. Moreover, electricity costs are only one of many reasons for the current economic difficulties”, says Lemcke-Braselmann. According to a study by the Deutsche Schutzgemeinschaft für Wertpapierbesitz and the strategy consultancy Advyce & Company, energy prices are a much smaller factor in the problems of many companies than, for example, higher wages, bureaucracy and tougher international competition.

According to Lemcke-Braselmann, a comprehensive set of measures is needed to protect against rising or volatile prices. This includes striving for greater energy efficiency in companies as well as the further expansion of renewable energy sources such as photovoltaics and wind. This would also reduce geopolitical dependence on fossil fuels and, together with an expansion of energy storage capacity, would stabilise prices in the medium term. Companies could also contribute to the expansion themselves. ”For both ecological and cost reasons, it makes sense for companies to cover at least part of their own electricity requirements with their own photovoltaic systems”, says Lemcke-Braselmann.