Number Of Companies Stop Production Due To High Electricity Prices In Germany
Date
12/14/2024 12:16:56 AM
(MENAFN- AzerNews)
By Alimat Aliyeva
Due to record-high electricity prices in Germany, several
companies, including some that have been in operation for over a
century, have been forced to halt production. Currently,
electricity prices have reached €936 per megawatt-hour,
Azernews reports.
The article cites a reduction in electricity production as a
major factor behind the surge in energy prices. It was noted that
in spring 2024, the German federal government closed coal mines
with a combined capacity of over four gigawatts, and in 2022, the
last nuclear power plant was shut down. This has resulted in a
politically constrained energy supply. Furthermore, with the
ongoing shortage of green energy sources, the situation has
worsened, driving up energy prices even further. As a result,
municipalities and industrial enterprises that are forced to
purchase electricity on the spot market have had to pay exorbitant
prices.
Due to these high costs, numerous companies have scaled back
production. The Saxon Feralpi electric steelmaking plant in Riesa
has completely ceased operations. Company executives, in a
statement to Bild newspaper, expressed that the situation is dire
and stressed the urgent need for power plants that can start
operating in the near future to mitigate the crisis.
The steep rise in electricity prices is also expected to affect
individual consumers, including one million families. The supplier
company Tibber has warned of price hikes of up to 400% in a
statement on social media platform X.
This situation highlights the significant challenges facing
Germany's energy sector as it transitions away from fossil fuels
and nuclear power, underscoring the urgent need for long-term
solutions to ensure energy security and affordability.
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