Germany's Scholz says more renewables key to lower industry costs

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Ramping up renewable power production rather than subsidies is the key to lower electricity prices for Germany's energy-hungry industry, Chancellor Olaf Scholz said on Saturday, in an apparent dig at proposals by his government's economy minister.

Industrial companies in Germany say electricity prices are too high compared with other countries, putting Germany's heavy industry at a structural disadvantage to other manufacturing centres such as the United States and China.

"There are regions already today where power production is as cheap as we want it to be so that industrial operations can prevail against global competition without subsidies," Scholz said, when asked to comment on how to best lower power prices.

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