Azernews.Az

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.