Frankfurt am Main – Employee representatives from the energy and heating technology sectors expect the federal government to ensure a reliable energy supply. Any political signal that unsettles companies is poison for domestic jobs, according to the conclusion reached by the works council members at an IG Metall industry conference in Berlin. However, clear local content requirements for the industries are necessary, emphasizes Jürgen Kerner, Second Chair of IG Metall: “We need smart regulations to ensure that domestic industry is fairly taken into account in capacity and grid expansion. The federal government must ensure that German energy policy also secures and promotes employment in Germany.”
The debate over the so-called Heating Act has long been a source of great uncertainty: Sales of heat pumps in 2024 have plummeted by nearly half compared to the boom year of 2023. Most recently, the new Federal Minister of Economics, Katherina Reiche, had unsettled the industry. In some quarters, the impression had arisen that the long-established climate and expansion targets might be revised.
In light of this debate, Kerner calls for greater reliability: “Investment and planning cycles—especially in the areas of energy systems and grid infrastructure—are long. Companies must therefore be able to rely on targets and strategies. They need clear and long-term decisions. A political course of vacillation regarding the energy transition is disastrous; it jeopardizes thousands of jobs and causes lasting damage to Germany as an industrial hub.”
Among the factors fueling these debates are the high costs associated with expanding grids and capacity. In this context, IG Metall points to a recent study by the Hans Böckler Foundation, which identifies the use of private capital in expanding the power grids as a major cost driver.
According to the study, the federal government’s plans to finance the expansion of Germany’s power grids primarily through public-private partnerships using private equity are inefficient. Researchers warn that if the projects announced in the coalition agreement were implemented, the economy as a whole could face a total loss of 220 billion euros by 2037. This is because private investors, such as investment firms or banks, demand high returns on their capital. It would be far more cost-effective to finance the grid expansion exclusively through public investment companies that receive funding on favorable terms from the federal government or the federal states.
Speaking at the IG Metall symposium, Kerner emphasized the importance of these sectors: “The energy and heating technology sectors are central to climate goals and a secure energy supply. There is potential here for promising innovations and thus for good, secure jobs today and tomorrow. To achieve this, companies must invest now.”
Around 90 works council members from companies in the conventional energy plant and power plant construction sectors, as well as the heating, solar, and wind industries, gathered in Berlin this Thursday and Friday for the IG Metall industry conference on energy and heating technologies. Over the course of two days, they discussed the current challenges facing their industries from an employee’s perspective with representatives from academia and politics.
Further information and press photos of Jürgen Kerner
