Siemens, SAP’s Home States Urge Merkel to Ensure Stable Power

Bavaria and Baden-Wuerttemberg, the home states of Siemens AG (SIE) and SAP AG, urged German Chancellor Angela Merkel to ensure power supply is stable under her policy of closing nuclear reactors and expanding renewable energy.

The country should by summer 2015 start a capacity market, paying utilities to provide back-up power generation, to secure supplies as 7 gigawatts may close in both states by 2020, they said today. Energy price increases should be curbed, they said.

“The energy switch poses enormous challenges for states like us that have a high share of nuclear power generation and a strong industry that’s facing international competition,” Bavarian Premier Horst Seehofer and Baden-Wuerttemberg’s Winfried Kretschmann said in a joint e-mailed statement.

Merkel vowed to change green subsidies in her current term after spending on wind and solar power drove up bills. Germans pay more than any other European Union nation except Denmark.

While both states back cuts in “excessive” aid for wind onshore, support should be kept at a level that allows for more installations in southern Germany, Kretschmann said. Biomass energy should be used to stabilize power grids, Seehofer said.

To contact the reporter on this story: Stefan Nicola in Berlin at snicola2@bloomberg.net

To contact the editor responsible for this story: Reed Landberg at landberg@bloomberg.net

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