Climate politics - Dulig Energy Investment Company
Martin Dulig (SPD), Saxony's Economy Minister, intends to push forward the energy supply overhaul towards climate neutrality through a Saxon Investment Company in Dresden. "Everyone wants investments to finally be made", said Dulig. The question is now how to make it happen. It's about investing now and not in ten or twenty years, Dulig added. "We have a time problem. The world isn't waiting for us to catch up in Europe."
A report commissioned by the Ministry of Economy from PwC in November assessed the proposal of a Saxon Investment Company as sensible and appropriate. "Massive investments are necessary to achieve climate political goals", said Henry Otto, Business Manager of the Energy Business Unit at PwC and the report's main author. Relying on private and municipal actors to shoulder the burden alone is insufficient.
According to Otto, such an investment company is an essential supporter in this endeavor. The report suggests heating as their primary business area. In addition to district heating networks, water and wastewater supply, photovoltaics, and wind energy are mentioned as other sectors.
Dulig: State incentives for private investments in Saxony
Dulig sees the investment company as a concrete solution for the investment needs in Saxony. The focus is on economically viable business fields in the energy sector where the market does not function, Dulig stated. The Free State can make future profits there with its investments. "We assume that through these state incentive investments, private capital can also be collected, which is secured by state guarantees and sureties", added Dulig.
The report now goes to the coalition partners. Dulig assumes that the idea will be constructively reviewed. However, he does not expect approval before the state election on September 1, 2021.
- In his role as Saxony's Economy Minister, Martin Dulig (SPD) aims to drive the reconstruction of the energy supply towards climate neutrality in Saxony, specifically in Dresden.
- Dulig emphasizes the importance of making investments now rather than waiting for decades, as time is of the essence in achieving climate neutrality, considering the pace of energy transition in Europe.
- A report commissioned by the Ministry of Economy from PricewaterhouseCoopers (PwC) endorsed the proposal of a Saxon Investment Company, deeming it necessary for making massive investments in achieving climate political goals.
- Henry Otto, Business Manager of the Energy Business Unit at PwC and the report's primary author, stressed the need for more than just relying on private and municipal actors to shoulder the investment burden alone.
- According to Otto, a Saxon Investment Company could serve as an essential supporter, with heating as their primary focus and other sectors such as district heating networks, water and wastewater supply, photovoltaics, and wind energy also included.
- Dulig views the investment company as a concrete solution for addressing the investment needs in Saxony, focusing on economically viable business fields in the energy sector where the market does not perform well.
- Dulig expects the idea to be constructively reviewed by the coalition partners, although he does not anticipate approval before the state election on September 1, 2021.
