Germany’s leading business association has warned of potentially escalating costs associated with the country’s energy transition, known as the “Energiewende”. Peter Adrian, President of the Association of German Chambers of Industry and Commerce (DIHK), expressed concern that costs for the German power grid could surge in the coming decades.
Speaking to the “Frankfurter Allgemeine Sonntagszeitung”, Adrian highlighted findings from an upcoming DIHK-commissioned study which forecasts cumulative costs for electricity and gas networks could reach a total of 1.2 trillion euros by mid-century. The study, conducted by Frontier Economics, estimates that approximately half of this sum could accrue within the next ten years. Importantly, the DIHK emphasizes these figures differ from other projections by encompassing not only investment costs for construction, but also significant operational and maintenance expenses.
The DIHK president noted that several large industrial companies have already begun relocating production outside of Germany, citing rising costs as a primary motivator. He cautioned that continued increases in grid costs and energy prices could reach a critical threshold, jeopardizing economic prosperity, employment and public acceptance of the energy transition.
The association suggests one potential avenue for cost reduction lies in a greater reliance on imported hydrogen for climate protection within the energy sector. Utilizing existing natural gas pipelines for hydrogen transport could substantially lower the overall expense of expanding energy infrastructure, according to the DIHK, representing a “key lever” to mitigate increasing costs.