Energy and Climate

30/01/2012

Given the debt crisis in some Eurozone countries and overall weakening economic performance, everything must be done to avoid additional risk factors for German industry.

One such home grown risk is the missing timetable for the turnaround in energy policy agreed in the summer of 2011. With its relatively large industrial sector, Germany relies on a secure and affordable energy supply more than almost other economy in the world. If the government decides to phase out nuclear energy in the short term, it is also their duty to set the course for a future energy supply. Renewable energy is unfortunately not always generated where it is needed. The energy transition can only succeed by expanding the network infrastructure and a way that does not compromise industry in Germany. We need clear responsibilities if we are to design the energy revolution. These have not been established. Too often it has remained unclear what responsibility will be borne by economic or environmental policy and what the federal government or states are supposed to do. This fight over who is responsible for energy policy must stop.

Industry can only fully tap the potential of its technical knowledge and innovation if government first provides the appropriate conditions. The energy revolution will require major investments whose costs must also be borne by citizens at the end of the day. This should also be clearly communicated. Citizens have a part to play in the much-needed expansion of networks as well – the key here is acceptance. By the year 2020 up to 4,450 km of new high voltage grids and up to 200,000 km of new or enhanced distribution grids must be built throughout our country. So far only a fraction of the approximately 850 km of new power lines cited in the Expansion Act have been installed. Eight of the 24 urgent expansion projects nationwide are significantly behind schedule.

The BDI calls for efficient planning and permitting processes as well as for improved citizen participation and greater transparency. From the BDI’s perspective, the federal government should be responsible for approving projects that cross stateborders within Germany. Staff must be redeployed in some states to speed up application processing. The new energy policy adopted by lawmakers is a major project, and the government should treat is as such. For this reason the BDI urges the creation of a Kontrollzentrum Energiestrategie Deutschland(Control Centre for Energy Strategy in Germany). This centre must bundle all questions about energy policy, undertake corrective action when appropriate, and at the same time bring the global opportunities the energy transition brings for the German industry more into focus. With respect to the impending energy revolution, the federal government’s latest annual economic report leaves many questions unanswered.