Brussels gives green light for German industrial electricity price

The EU Commission has approved Germany's plans for an industrial electricity price. This allows Germany to retroactively relieve electricity-intensive industrial operations via a capped electricity price starting from January 1, 2026. As reported by tagesschau.de, the approval from Brussels provides clarity for part of the industry for the first time regarding the planned subsidy framework. Initially, the instrument is available to energy-intensive sectors, with others potentially added later. Up to 3.8 billion euros are earmarked for cheaper industrial electricity until the end of 2028, with the state covering the difference to limit the price companies pay to five cents per kilowatt-hour. The discounted price must not fall below 50 euros per megawatt-hour, and supported companies must reinvest at least half of the relief into more climate-friendly production. The subsidy, applied for annually, targets sectors like steel, cement, and chemicals to prevent them from relocating outside the EU. However, the chemical industry criticizes the relief as insufficient for many companies to noticeably cushion high electricity costs