The EU has unveiled new measures to reduce energy prices and support energy-intensive industries.
The European Commission has unveiled a new set of coordinated actions to reduce energy prices for both industry and consumers, marking the next stage of the Affordable Energy Action Plan.
Although energy prices have decreased compared to the peak in 2022, they remain significantly higher than those of global competitors, which undermines the competitiveness of industry and accessibility for the population. The new plan of the European Commission is aimed at immediate assistance and long-term structural measures in cooperation with EU member states.
Seven measures to reduce energy costs
The European Commission has presented seven key measures to accelerate cost reduction and ensure safe, affordable and sustainable energy across the EU.:
- Member States are strongly encouraged to make full use of the Clean Industry Agreement (CISAF) public assistance mechanism, which allows targeted assistance to energy-intensive sectors by reducing prices and supporting decarbonization. The Commission will issue guidelines for national schemes by the end of 2025, which will ensure the coordinated application of state aid in all Member States.
- Governments are encouraged to reallocate EU funds to modernize national energy systems and expand energy storage capacity. Revised investment programs may be submitted before the end of the year, and the Commission will assist Member States in developing effective low-risk financing mechanisms.
- The Commission recommends that industrial companies work with the European Investment Bank (EIB) and national assistance banks to gain access to new financing tools. A pilot program worth 500 million euros has been launched to support corporate Electricity purchase Agreements (PPAs), which helps companies maintain stable long-term energy prices and reduce exposure to market volatility.
- Member States are encouraged to speed up the procedures for issuing permits for renewable energy, storage and electricity grid projects by applying the new rules of the revised Renewable Energy Directive (RED III). Additional simplifications will be included in the upcoming Grids package, which is scheduled to be adopted by the end of the year.
- The European Commission will strengthen cross-border energy links and internal grid infrastructure as part of the Energy Highways initiative, addressing eight key challenges in the EU Energy Union.
- To ensure