Electricity Price Compensation for More Industries

July 9, 2026

Source: E & M powernews

The European Commission has approved the expansion of Germany’s electricity price compensation scheme. Retroactive to 2025, more industries can now receive relief on their electricity costs.

The European Commission has approved the expansion of Germany’s electricity price compensation program to 31 sectors. As a result, retroactively for the 2025 billing year, approximately 20 additional energy- and trade-intensive sectors can benefit from the aid. According to the German government, the subsidy rate will also increase for companies that are already eligible.

The electricity price compensation offsets a portion of the indirect costs that companies incur through the European Emissions Trading System via the price of electricity. It is aimed at energy-intensive sectors that face international competition and whose production is particularly burdened as a result.

Ministries Emphasize Economic Support

According to the Federal Ministry for Economic Affairs and Energy (BMWE), the range of sectors eligible for aid is expanding from the current 11 to 31 sectors in the future. The newly included sectors include, among others, companies in the organic chemicals and glass industries. Federal Minister of Economics Katherina Reiche (CDU) stated: “This helps secure industrial value creation and jobs in Germany, as well as enable growth and innovation.”

For sectors already eligible for aid, such as the steel industry, the aid intensity will be raised to 80 percent. In addition, chemical parks will also be taken into account in the future; according to the minister, there has been no definitive regulation for them for decades.

Federal Environment Minister Carsten Schneider (SPD) also sees the decision as a step toward combining climate protection with industrial competitiveness. According to Schneider, companies that face international competition while simultaneously investing in the energy transition will benefit in particular. “The expanded electricity price compensation creates planning certainty and supports the path to climate neutrality,” Schneider explained.

Extension of Compensation Beyond 2026 Planned

With this approval, the federal government says it is making use of the European Union’s expanded options under state aid law. Germany had advocated at the European level for an expansion of this leeway. The amended directive is set to be published shortly in the Federal Gazette and will then take effect.

The federal government also announced plans to further develop the electricity price compensation for billing years starting in 2026. These planned changes will again be submitted to the European Commission for approval under state aid law. According to the federal government, the goal is to permanently enshrine the improvements that have now been adopted, reduce bureaucratic requirements, and increase the relief provided to companies.

The German Emissions Trading Authority (DEHSt) at the Federal Environment Agency is responsible for administering the subsidy program. Companies can already submit their applications for the current round.

Further information on the industrial electricity application process is available online.

Author: Susanne Harmsen