Importance of the Power Industry for the Economy

A sufficient and constant supply of electricity is indispensable for the economic development of highly developed industrialised countries. This applies to all areas of a modern economy, beginning with the production sector and including transportation and the service sector all the way down to private households. Although the indispensability of energy and its importance for an efficient power industry are evident, it is difficult it to evaluate their economic importance adequately. In addition to the contribution of the power industry to GDP, its importance to the economy is particularly the fact that it makes energy continuously available in various forms. The focus of this study, in addition to an evaluation of the supply security, the importance of renewable energy for the electricity supply and the innovativeness of the power industry in Germany, is also a comparison of the situation in Germany with that in selected European countries. The results of this study underscore that the power industry is of great importance to the German economy, especially with regard to economic development and employment. The assurance of an energy supply that excels in an international comparison is a great locational advantage for Germany. Also with regard to attaining climate protection goals, the energy supply is of great importance. Via the implementation of innovative concepts, the power industry takes the demands of climate protection into account. A special challenge for the energy suppliers is coping with the considerable costs – in particular for industrial consumers – that are imposed by the many energy-policy decisions.