Lower Saxony warns of job losses without faster energy policy reforms

Time is running out for Germany’s industrial heartland. Without urgent energy reforms, ministers warn, factories—and jobs—will vanish overseas.

, and Administrator

2025 December 31 . 7:07 AM

1 min read

In this image we can see motor vehicles on the road. In the background we can see electric lights... — In this image we can see motor vehicles on the road. In the background we can see electric lights and plants.

Minister: "Industrial electricity price is not a nice-to-have" - Lower Saxony warns of job losses without faster energy policy reforms

Lower Saxony’s Economy Minister Grant Hendrik Tonne has urged faster action on industrial electricity pricing and hydrogen policies. He warns that delays are costing jobs and pushing companies to relocate. His calls come as the federal government prepares a new subsidy scheme for energy-intensive businesses.

Tonne stressed that industrial jobs are disappearing every month, demanding solutions within weeks, not months. He highlighted Lower Saxony’s strong position in the hydrogen sector but insisted federal support must provide long-term certainty for investors.

The federal government plans to introduce a subsidised electricity price of five to six cents per kilowatt-hour from January 1, 2026. This scheme, costing over three billion euros, will run until 2028 and target businesses facing global competition. Tonne backs the plan but opposes extra bureaucratic hurdles, arguing that companies need predictability to act. On hydrogen, Tonne criticised Federal Economy Minister Katharina Reiche’s approach as insufficient. Reiche’s strategy focuses on gas power plants that can later switch to hydrogen, aiming to boost system flexibility and industrial competitiveness. Tonne, however, insists broader planning security is essential to keep businesses in Germany.

The proposed electricity subsidy will cost billions and run for two years. Tonne’s push for faster implementation reflects concerns over job losses and industrial decline. Without clearer federal commitments, he warns, companies may continue to leave.