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The head of Germany鈥檚 largest energy company, RWE, has warned that high prices for energy due to limited supply threaten the continued existence of the country鈥檚 industrial foundation. 鈥淲e see the first signs of deindustrialisation,鈥� RWE CEO Markus Krebber聽聽the tabloid Bild Zeitung. 鈥淕ermany鈥檚 wealth is based on strong industry,鈥� Krebber said, arguing that high energy prices increasingly lead companies to relocate and create new jobs elsewhere. 鈥淲e don鈥檛 have as much energy as we need (鈥�) this gap leads to high prices and thus to justified concerns about competitiveness.鈥� Krebber said the right answer would be to 鈥渕assively invest in green energy sources,鈥� arguing that 鈥渢he will and the money is there.鈥� The only thing holding investments in renewable sources back are the surrounding regulatory conditions that create hurdles to renewable power expansion rather than incentivising it, he argued.

Germany has been a net-exporter of electricity for several years, including during the recent energy crisis of 2022. The closure of the country鈥檚 three remaining nuclear power plants in mid-April 2023 drew criticism from opposition parties for potentially leading to higher power prices. However, price spikes did not materialise in the immediate aftermath. The government has drawn up proposals to ensure affordable energy prices for industrial customers and earlier this week introduced a scheme for 鈥渃limate contracts鈥� worth billions of euros in funding to support companies in decarbonising and increasing energy efficiency.