high electricity germany industry energy cost germanys

techsuch May 9, 2021 0 Comments

High electricity cost drives German high-tech industry to Asia# High electricity cost drives German high-tech industry to Asia## Siltronic, one of the world’s leading chip makers, is moving Germany’s tophigh-tech company to Asia.Siltronic boss Christoph von Plotho blames Germany’s high energy costs for thedecision: “The high electricity price makes the location unattractive,” hesaid in an interview with the Handelsblatt. His company pays “less than halfthe electricity price” in Singapore.The main cost driver in Germany is the green energy levy under the RenewableEnergy Sources Act (EEG) which has cost energy consumers more than 30 billioneuros last year.Germany’s largest semiconductor producer Infineon told Handelsblatt thatinsecure power supply was also a major factor in reconsidering industrialproduction in Germany and Europe.## Chipmakers lament high taxes and levies on electricity in Germany> Several chip and semiconductor manufacturers have criticised high taxes and> levies on electricity as a disadvantage for Germany as an industry location> in global competition, reports business daily Handelsblatt. “The high> electricity price makes the location unattractive,” Christoph von Plotho,> head of chip supplier Siltronic, told Handelsblatt. Another main reason were> high personnel costs in Germany.>> At the same time, a spokesperson of Germany’s largest semiconductor producer> Infineon told Handelsblatt that a secure power supply without fluctuations> was also a major factor in keeping production in Germany and Europe.>> The comments showed that the issue of high power costs extended beyond the> traditional industry companies like chemical factories, to high tech> sectors, writes Handelsblatt.>> The reason for high power prices are taxes and levies on electricity, such> as the renewables levy to finance the expansion of wind and solar energy.> Many companies are partly or fully exempt from certain levies. In addition,> the government has started to use state budget funds, such as revenues from> the new CO2 price for transport and heating fuels, to help cap the levy and> it plans to further decrease it over coming years.

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