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illuminem summarizes for you the essential news of the day. Read the full piece on Euractiv or enjoy below:
🗞️ Driving the news: Germany's industrial sector faces increasing pressure from high energy prices, with key industries still struggling to recover from the 2022 energy price shock
• Many German industrial sectors remain highly dependent on gas, causing production costs to stay above the EU average
• Government efforts to reduce energy prices post-election may not be enough in the short term
🔭 The context: Germany, the EU's largest gas consumer, has limited control over energy prices, and a push towards renewable energy has shown mixed results
• Research suggests that key aspects of Germany’s energy transition are facing significant challenges, raising questions about the country’s competitiveness
• The solution might lie in more sunny and windy regions, such as Spain and Scandinavia, which have abundant renewable energy sources
🌍 Why it matters for the planet: As renewable energy becomes increasingly central to industrial competitiveness, Germany's energy-intensive industries may face disadvantages in the long run
• Countries like Spain and Sweden, with lower energy prices due to their renewable energy resources, could attract German industries looking to cut costs
• The shift could lead to a significant restructuring of Germany’s industrial landscape, especially if key energy-intensive inputs like hydrogen are produced elsewhere
⏭️ What's next: German industries are at a crossroads—either relocate production to renewable-rich regions or accept the need for imported inputs
• Further research will be needed to assess the future competitiveness of German industries in this new energy paradigm
• Meanwhile, investment in renewable energy infrastructure and hydrogen projects is growing in Spain, Portugal, and the Nordic countries
💬 One quote: “Germany must face the reality that certain energy-intensive processes might need to be sourced from outside the country, or risk falling behind in the renewable industrial race” — Bernd Weber, Epico think tank
📈 One stat: The EU's first competitive hydrogen auction awarded the majority of funds to Spain, Portugal, and the Nordics, while none of the 21 German participants were successful.
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