Germany’s Uncertain Energy Policy
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The lack of clarity on Germany’s energy policy is creating the most volatile power prices in seven months, boosting costs for industry in Europe’s largest economy, says BusinessWeek.
– Prices are being victimized because Chancellor Angela Merkel, reelected almost a month ago, has yet to give details on her pledge to amend the nation’s $750 billion solar and wind power program.
– Price swings in Europe’s biggest power market, exacerbated by plunging fuel and carbon costs, are making it harder for industrial users to plan purchases.
– The volatility is boosting total costs and hindering investment in the $3.4 trillion economy, according to Maik Neubauer, a management consultant specializing in utilities and commodity markets and the former chief operating officer of the European Energy Exchange AG.
Merkel has said changing the renewable-energy law will be her first priority after securing a third term.
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