Oil and gas price spike stokes company interest in green investments

German industrial companies are showing renewed interest in accelerating investments in solar power, electrification, and energy efficiency in response to the rapid rise of oil and gas prices due to the Iran war, business daily Handelsblatt reports. "The Iran war acts as a catalyst,” said Nicolàs Juhl, head of energy management startup Encentive, which helps industrial firms optimise their energy use through an AI-based platform. “Many companies are now pursuing energy projects they had put on hold." 

The trend echoes the surge of interest in becoming more independent from fossil fuels that followed Russia's invasion of Ukraine in 2022, when gas prices also spiked and German companies scrambled to cope. But many companies put corresponding projects on hold after gas prices had fallen again.

Energy company E.ON also reported a surge in interest in green power solutions. “March 2026 was the strongest month for photovoltaic demand from both private and business customers since 2023,” said Filip Thon, head of the company’s Germany division. "It is becoming clear that medium-sized companies in particular want to benefit from increased market volatility," Thon said, adding that his firm had seen significantly higher demand for flexible energy solutions.

Yvonne Hanke, a partner at law firm Ritter Gent, also reported growing interest. “Our industrial clients are now increasingly looking into installing solar panels or entering into supply contracts for electricity from renewable energy sources,” she told Handelsblatt. 

Electrical engineering group Schneider Electric and chemicals company Covestro shared similar observations. “Current geopolitical developments and the associated fluctuations in energy and commodity prices underscore once again how important it is to reduce dependence on fossil fuels and to develop alternative, more sustainable sources of raw materials,” a Covestro spokesperson said.

Think tank Agora Industrie cautioned that becoming truly independent from fossil fuels will require large investments in entirely new facilities at many large companies, requiring targeted financing and funding offers to help them make the switch. Director Julia Metz said she hoped the government would soon implement its commitment to support the decarbonisation of process heat and other electrification technologies with 2.9 billion euros between 2027 and 2030.