Berlin (energate) - In view of high energy prices, the industry is looking to the new year with concern. In an interview with energate, Christian Seyfert, managing director of the association of the industrial energy and power industry, VIK (Verband der industriellen Energie- und Kraftwirtschaft), calls on the German government to provide further support for companies from the German government. For 2023, he also hopes for more political momentum on the topic of CCU/CCS.
energate: Mr Seyfert, what is the sentiment of your association when looking forward to 2023?
Christian Seyfert: The security of supply with natural gas and electricity is still fragile, there are open questions of great significance here for this winter and next winter (2023/24) that still have to be decided politically in the first quarter of 2023. It already became clear in the dark lull before last Christmas that we are dependent on secure, controllable power plant capacity for electricity production, but at the same time we must conserve our natural gas reserves. This requires courageous consequences.
Another cause for concern are the still unsatisfactory energy prices, which are putting energy-intensive industries under considerable pressure and severely impairing the competitiveness of Germany as a business location. At the same time, publicly announced relief measures have mostly bypassed the energy-intensive industries, as the EU state aid rules have not allowed any substantial aid here. The 'double whammy' has unfortunately fizzled out.
However, the VIK hopes that in the dialogue with politicians in 2023, very important decisions will be taken to finally release the brakes on the industrial transformation towards climate neutrality, even if the effect will only become apparent in the medium to long term. Companies are urgently waiting for existing obstacles, for example in the area of hydrogen or CCU/CCS, to be quickly removed.
energate: Do you expect bottlenecks in energy supply and/or blackouts in the current year?
Seyfert: Unfortunately, bottlenecks in the energy supply or brownouts or blackouts cannot be seriously ruled out 100 per cent at the moment. At the moment, the positive signs outweigh the negative, but the situation can deteriorate just as quickly. That is why we as the VIK have been continuously promoting early preparations since spring 2022, for example in the event of a gas shortage or electricity shortage, in order to prevent or at least minimise damage and other negative effects for the economy.
energate: Which project in the area of energy policy should the Federal Government tackle in any case in the current year?
Seyfert: The question of security of supply with electricity and natural gas in the current and coming winter must be answered as a priority, and already in the next few weeks. At the same time, in view of the energy prices, which are far too high by international standards, supportive measures are urgently needed.
energate: What do you expect in terms of climate protection?
Seyfert: The funding guideline on climate protection contracts definitely has to come into force this year and the first rounds of tenders have to be carried out so that the transformation projects in energy-intensive industry can gain momentum. For many companies, especially from the energy-intensive SME sector, investment decisions are pending in which this instrument can be of decisive importance.
After the German government successfully evaluated the Carbon Dioxide Storage Act at the end of last year, the recommendations of the evaluation must be implemented quickly and thoroughly this year in order to finally bring CCU/S technologies into use for unavoidable emissions. Several sectors depend on these technologies to become climate neutral. We cannot afford any delay, even though there must of course be an appropriate dialogue with the relevant social actors.
The framework conditions for the expansion of renewable energies must be further simplified in order to fully exploit the potential. This is also a contribution to a secure energy supply for industry in Germany. The same applies to permits for electrolysers to provide sufficient quantities of hydrogen, which industry needs for the transformation.
energate: The energy price brakes came into force at the beginning of the year. How satisfied are you?
Seyfert: With the electricity and gas price brakes, there are still many unanswered questions from the point of view of the energy-intensive industry. Important points are the TCF adjustment (practicable Ebitda regulations) and a practical bonus and dividend regulation that enables as many companies as possible to use the relief measures. Prompt designation of the competent authority is also necessary for swift implementation.
The companies in the energy-intensive industry and the industrial SME sector also expect a clear commitment from the German government to a moratorium on burdens; this expressly also applies to the costs and personnel expenses arising from new or additional bureaucratic regulations. With regard to EU regulation, too, the German government must stand up for clear and unbureaucratic regulations.
energate: The federal government wants to define the investment framework for gas-fired power plants this year. What do you expect?
Seyfert: The 'Platform for Climate-Neutral Electricity Market Design' must be set up quickly and find a market-oriented solution within 2023 on how to stimulate the construction of gas-fired power plants as a back-up for the increasing RE. Secured power plant capacity is of great importance for industry in view of the phase-out of nuclear and coal energy. In an electricity grid with significantly increased flexibility requirements, the grid-serving behaviour of large industrial consumers must be encouraged and rewarded, for example in the design of grid fees.
In addition, a successor regulation for the so-called AbLaV must be found quickly, in which the broadest possible group of participants can be included. The offer of industrial load flexibility can contribute to a stable electricity system, but must also be rewarded financially accordingly. Losses in energy efficiency should also be taken into account, as flexible and energy-efficient consumption behaviour are mutually exclusive. Flexibility should therefore be seen as a component of the energy transition on a par with efficiency.
The questions were asked by Karsten Wiedemann.
