The impact of high energy prices on investment decisions and employment opportunities

Febeliec commissioned KPMG to conduct a study to answer this question through in-depth interviews with 22 industry leaders in Belgium across sectors, including chemicals and petrochemicals, life sciences, industrial manufacturing and food processing. Together, the companies represent approximately 10TWh of electricity consumption (or approximately 1/8 of total electricity consumption in Belgium) and 40.000 direct jobs. To further highlight the importance of the sectors represented in the report, it’s noteworthy that Belgium hosts the second largest petrochemical cluster in the world, ranks second worldwide for (bio)pharma exports, and the food industry is the largest industrial employer of the country.

As the global economy moves towards a cleaner, more sustainable future, nations worldwide are grappling with the challenges posed by the energy transition and rapidly rising energy costs. By delving into the experiences and perspectives of Belgian industry leaders, we developed a comprehensive understanding of the complex relationship between energy costs and industrial growth in our country and uncovered how high electricity prices have shaped their decision-making processes, operational strategies, and workforce dynamics. 

1. The industry considers the total electricity cost per MWh in Belgium as one of the highest in the world.
2. Security of electricity supply and capacity is a pressing concern for the industry.
3. There is a crucial need for a stable, coherent energy strategy in Belgium and Europe.
4. Decarbonization of the industry will require substantial investments.

1. To establish a long-term stable energy policy with a clear roadmap.
2. To articulate a clear path towards a carbon-neutral economy.
3. To organize a good and constructive dialogue between the industry, the energy sector and the government to restore trust and work out structural solutions and appropriate measures.