Brandenburg’s Minister-President, Dietmar Woidke (SPD), welcomed the subsidies awarded to LEAG in the initial round of the power plant strategy, yet he expressed significant reservations regarding the costs associated with the new gas power plants. During a speech at the “Competitive Germany Summit” hosted by Politico in Berlin on Tuesday, the SPD politician highlighted the local benefits while raising concerns about broader economic implications.
Woidke stated that the news was positive, particularly for the industrial site of Jänschwalde, and welcomed the outlook for Lausitz and Boxberg-the latter being in Saxony but still benefiting. Of the eleven awards granted in the first bidding phase, the energy conglomerate LEAG received six.
However, Woidke simultaneously criticized the costs generated by these awards. He argued that the construction of the gas power plants would ultimately lead to increased electricity prices, calling it less of a good piece of news for consumers. He also pointed out that the financing for these facilities would, truthfully, involve the taxpayer.
The SPD politician further questioned the overall competitiveness of Germany’s location. He stressed that the country urgently needs to equip its energy prices to remain competitive, a goal he feels is far from being met currently. Woidke observed that the German electricity price is artificially lowered through subsidies, such as the industrial electricity price. Since this support is only valid for three years, he deemed it insufficient as a basis for corporate investment in energy-intensive sectors within Germany. He concluded that serious improvements in this area are urgently needed.
