"There are regions already today where power production is
as cheap as we want it to be so that industrial operations can
prevail against global competition without subsidies," Scholz
said, when asked to comment on how to best lower power prices.
To extend this for the whole of Germany, Scholz said
everything within his powers needed to be done to boost power
transmission networks and renewable power production.
Scholz was speaking to journalists at a geothermal power
plant in Kenya during a trip to Africa.
"We know today already that we will have lower power prices
than today, once we reached our goal that renewable energies
dominate electricity production in Germany," he added.
Habeck's economy ministry has said the proposed subsidy
would be in place until 2030, costing between 25 billion euros
($28 billion) and 30 billion euros at current market prices.
Scholz previously voiced scepticism about the initiative,
saying long-term subsidies were not beneficial for the economy.
($1 = 0.9071 euros)
(Reporting by Ludwig Burger and Andreas Rinke;
Editing by Alexander Smith)
May 6 (Reuters) - Ramping up renewable power production
rather than subsidies is the key to lower electricity prices for
Germany's energy-hungry industry, Chancellor Olaf Scholz said on
Saturday, in an apparent dig at proposals by his government's
economy minister.
Industrial companies in Germany say electricity prices are
too high compared with other countries, putting Germany's heavy
industry at a structural disadvantage to other manufacturing
centres such as the United States and China.
Germany's economy ministry, led by Robert Habeck of the
Greens, this week released a plan for a subsidized price of 6
cents per kilowatt hour (kWh) until 2030.
But the finance ministry of Scholz's coalition government
swiftly pushed back against the subsidy scheme on Friday, saying
there was no budget for it.
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.