Leag employees protest: No southern bonus for our region!

Leag employees protest: No southern bonus for our region!

In the heart of Brandenburg, more than 1,500 employees of the energy company Leag took to the streets last weekend, and their message is clear. The trigger for the protest is the planned “Southern bonus” for new gas power plants, which was brought into play by Federal Economics Minister Katherina Reiche (CDU). The workforce in the Cottbus stadium called for a fair distribution of power plant buildings in Germany with banners such as “No blackout” and “Transformation bonus instead of the southern bonus”. The image of the “Southern Bonus” is often interpreted as a disadvantage for Lusatia, where Leag is also planning hydrogen-capable gas power plants in the Schwarze Pumpe and Jänschwalde industrial parks.

Katherina Reiche announced that two thirds of the gas power plant capacity that will be tendered in the future will be located in the south of Germany. In plain language, this means that around 13.3 out of 20 gigawatts of planned power could flow to Bavaria and Baden-Württemberg, while the rest, only around 6.7 gigawatts, is left for the other federal states. This brought the group works council chairman Uwe Teubner to the fore, who stated that the southern bonus could significantly limit Leag's future prospects. “We need a transformation bonus that promotes investments in Lusatia,” said Teubner.
Borkener Zeitung reports on the worrying development and the need not to disadvantage the region with the planned investments.

The challenge of the energy transition

The discussion about the new gas power plants is part of a larger problem: the German energy transition. Minister Reiche is calling for new gas power plants to be built quickly so that the country is better prepared for “dark lulls” when sun and wind cannot provide sufficient energy. Their program calls for tenders for at least 20 gigawatts of gas power plant capacity in order to guarantee security of supply. Examples from other countries, such as the recent power outage on the Iberian Peninsula, show how important flexible energy production is.
Tagesschau also reported on Reiche's efforts to secure long-term gas supply contracts and reduce electricity prices in order to strengthen the domestic economy.

But the situation is not only politically tense, but also has direct economic effects on the Leag. CEO Adolf Roesch commented on the challenging business situation, despite higher revenues in the first quarter. For example, the company lost more than two million euros in contribution margin over the Pentecost weekend. Despite the unclear future of energy supply, Roesch has assured that job security is a top priority, even if he can't make any specific promises about what that will look like.

The announced “Southern Bonus” could not only jeopardize Leag’s plans, but also hinder the structural change in Lusatia, which is urgently needed after the coal phase-out. From 2038, electricity will no longer be generated from lignite, and regions such as Lusatia are facing major changes that require new investments and jobs. The transformation bonus that Teubner is calling for could be the key to making the region future-proof and thus strengthening its economic foundation.

The coming weeks and months will show how the federal government positions itself when it comes to distributing investments and funding and whether the voices of Leag employees will be heard. If you look at the high level of participation in the protest actions, you can assume that there is still a lot of need for discussion in Lusatia in order to find the right solutions for the energy future.