German small and medium industrial firms, the backbone of the economy, are finding the shift to carbon neutral production difficult. High electricity prices, weak grid infrastructure, and the cost of electrifying high temperature processes are major barriers. For example, MPG Tubes faces electricity costs three times higher than natural gas, and a 6 million euro investment to fully electrify. Many foundries cannot get enough grid capacity for years, with some waiting until the mid 2030s for a connection. The German government introduced electricity price subsidies for energy intensive sectors in April, but industry groups say the relief is insufficient and that rising network fees add further costs. The article highlights the tension between climate goals and the reality of operating a business in a high cost environment with aging infrastructure.
