EU approves 3.8 billion euro German aid program for energy-intensive industries
The European Commission has announced that it has approved a 3.8 billion euro state aid program for Germany aimed at supporting energy-intensive industries by temporarily reducing electricity prices.
These measures fall under the framework program of state assistance under the Clean Industry Agreement and are aimed at addressing rising energy costs while supporting the decarbonization process.
The focus is on competitiveness and carbon transition
The program is aimed at industries exposed to international competition and at risk of relocation due to high electricity prices.
In addition to reducing costs, beneficiary companies should reinvest a significant portion of the aid in environmentally friendly technologies such as electrification and energy efficiency improvements.
The support program will run from January 2026 to December 2028. Companies will apply for compensation annually based on actual electricity consumption and wholesale price levels.
The European Commission has stated that the scheme is necessary, appropriate and proportionate, as it aims to both ensure competitiveness and address climate challenges. By combining cost reduction with mandatory environmental investments, the framework program aims to increase the sustainability of industry while moving towards zero emissions.
Steel sector expresses concern about efficiency
After approval, the Director General of the German Steel Industry Federation (WV Stahl) Kerstin Maria Rippel stated that while this decision is a positive step, the current structure of the system limits its effectiveness in energy-intensive industries such as the steel industry.
According to Rippel, this mechanism applies only to a portion of electricity consumption and cannot be combined with existing carbon electricity price compensation schemes.
Calls for more flexible rules on state aid
Industry representatives have called for adjustments to the EU's state aid rules, particularly as part of the proposed Interim Energy Agreement in response to the crisis in Iran, which is expected to provide greater flexibility. The German steel sector has called on the government to actively support these changes at the EU level.
In this context, WV Stahl continues to advocate for a reliable electricity price of 50 euros./MWh, including all related costs such as network connection fees, taxes and levies. Such a criterion is considered