The Industrial Energy Market in Germany

• German industry is the most energy-intensive industry in Europe.
• Germany has rapidly and totally liberalised its energy markets. 

That is the reason why developments in German energy markets may be representative of future trends in other European countries. 
German energy markets offer new business opportunities for international energy providers too.

 Changing energy suppliers

• Nearly 50% of industrial clients switched their electricity suppliers or are ready to do so and one out of three for natural gas.

• Industrial sectors with higher probability of changing: chemical industry, automotive, metallurgy and cardboard & paper.

 The ideal profile of energy supplier

• Industrial users still privilege suppliers specialised in one energy relative to multienergy suppliers: 57% against 43%.

• But a majority of industrial users (78%) want to be proposed energy services.

 Outsourcing of energy management

• Nearly 15% of industrial users have already outsourced energy management or are willing to do so.

• Industrial sectors with higher rates of outsourcing : Metallurgy and glass industry

 The survey highlights:

• Increasingly demanding industrial customers: Energy supply is more and more associated to energy services

• The impact of deregulation and fiscal measures: the emergence of new modes of generation

• Differences in corporate energy demand by sector

 The approach: an extensive user-enquiry: 

405 industrial actors were interviewed in October and November 2001.

Number of pages: 158
It analyses - the context of the survey (legal and fiscal framework) - the way industrial sites have been managing energy consumption since the setting up of the liberalisation process - potential needs for energy services and outsourcing

PART ONE : Evolution of energy consumption in the German industry

Chap 1 Presentation of the context

1.1 The liberalisation of energy markets: German energy markets are widely open to competition
1.2 Energy prices in Germany

Chap 2 Energy consumed by the industry: a steady trend since 1997

2.1 Importance of industrial energy consumption in the economy: in decrease since 1991
2.2 Energy consumption in the manufacturing industry (1997-2000)
2.3 Energy intensity in the main industrial sectors
2.4 Energy consumption of the industry by regional areas: some noticeable differences between Länder

PART TWO :The consequences of energy market liberalisation

Chap 1 Industrial actors' attitudes towards energy market liberalisation

1.1 The energy problematic : What are the main worries of energy users?
1.2 The first impact of energy market opening to competition liberalisation: industrialists are ready to switch energy suppliers
1.3 Energy supply contracts expected in the mid term
1.4 How energy users adapt to the new context? Still a preference for the status quo

Chap 2 Industrial actors' expectations as regards energy management

2.1 The selection of energy suppliers: how are industrial companies choosing their energy supplier(s)?
2.2 An increasing demand for energy services
2.3 Outsourcing: A new way of managing energy?
2.4 Decentralised energy production: some new opportunities in the future?

PART THREE: SECTOR-BASED ENERGY SPECIFITIES

Chap 1 Sector-based differences regarding energy consumption

1.1 Importance of energy consumption in the selected industrial sectors
1.2 Evolution of energy consumption between 1997 and 2000

Chap 2 Sector-based differences regarding expectations and attitudes of industrial actors

2.1 Worries
2.2 Expected profile of energy suppliers
2.3 Energy supplier changing
2.4 Outsourcing of energy management
2.5 Decentralised energy production
2.6 How to make suppliers compete one another?

Volume two presents a detailed analysis of the German industrial energy market. It includes sector-based and regional monographs.
 Sectorial analysis
(480 pages)
Nine industrial sectors were selected for the survey. The selected sectors were the most energy-intensive sectors of the Germany industry: Each sector can be subdivided into pertinent sub-sectors.

1. Agribusiness
2. Automotive
3. Cardboard & paper
4. Oil refining
5. Chemical industry
6. Plastics industry
7. Glass
8. Metallurgy
9. Electronic components

 Regional analysis

Germany has been divided into eight regions. Each region represents one or several Länder.

1. Nordrhein-Westfalen
2. Bayern
3. Baden-Württemberg
4. Nierdersachsen, Hamburg, Bremen, Schleswig Holstein
5. Hessen
6. Rheinland-Pflaz, Saarland
7. Sachsen, Sachsen-Anhalt, Thüringen
8. Berlin, Brandenburg, Mecklenbourg

It was decided to select plants with a staff of more than 100 so as to focus on energy consumers that are expected to be really interested by new offers from energy suppliers.

Results from standard interviews are completed by about 20 open interviews with important German energy users and providers.

Table 1 - Interview breakdown by sectors

Table 2 - Interview breakdown by regions