Industrial power prices
Client: Agora Energiewende
Neon team: Lion Hirth, Jonathan Mühlenpfordt, Ingmar Schlecht
Published: 2023
In 2023, Germany intensively debated subsidized electricity prices for energy-intensive industry facing high post-crisis prices. For Agora Energiewende, we developed a feasible design for such a temporary production subsidy. Its primary aim is to buy time for deciding which industries should remain in Germany for strategic reasons; the design maintains incentives for load shifting and demand response as well as for hedging, avoiding the distortions of a naive price cap. We also discussed design options regarding eligibility, subsidy level, and financing. This report was originally published in German.
Dr. Anselm Eicke
eicke@neon.energy
+49 176 56 755 674
