EWI investigates the effects of an increase in electricity prices on the non-ferrous metal industry
13. May 2019 | On behalf of the WirtschaftsVereinigung Metalle e.V., EWI analysed the effects of an increase in electricity prices on the gross value added of exemplary companies in the non-ferrous metal industry. In 2017, the electricity procurement prices of companies in the non-ferrous metal industry fluctuated between 3.6 ct/kWh for an aluminium electrolysis plant and 14.0 ct/kWh for a small copper rolling mill. The large differences are mainly due to the deviating relief regulations. Compared to other branches of the manufacturing industry, the electricity cost intensity is highest in the metal industry with an average of 14.5 %, an electricity price increase therefore has comparatively strong effects.
An increase in electricity procurement prices by 1.0 ct/kWh would reduce the gross value added of the metal industry by 439 million Euro (2.3 %). This would affect aluminium electrolysis in particular by 15 million Euro (24 %). The same electricity price increase would reduce the gross value added of the large aluminium rolling mill by 6 million Euro (3.5 %), while it would lead to a reduction of 4 million Euro (2.1 %) in the large copper rolling mill. The gross value added of the small copper rolling mill would fall by 199 thousand Euro (0.5 %).