"Germany plans to begin a scheme to slash energy costs for power-hungry manufacturers in January, the economy minister said Monday, part of efforts to revive Europe's struggling industrial powerhouse. Sectors like chemicals and steel production have long been complaining that high electricity prices in Germany are adding to their burdens. The conservative-led government, which took power in May, has promised to bring them down as it seeks to turn around Europe's biggest economy following two years of recession."
""I am assuming that we will introduce the industrial electricity price from January 1st, 2026," Economy Minister Katherina Reiche said at a conference in Berlin. "We are in the final stages of negotiations with the European Commission". Reiche did not give further details. But the Handelsblatt financial daily reported that, under proposals put forward for the scheme, it could cost the government up to €4.5 billion over three years."
"According to the Handelsblatt report, an energy advisory body and think tanks suggest targeting a subsidised price of five cents per kilowatt hour, substantially lower than the average now, and some 2,000 companies could benefit. Firms that receive the subsidies would be obliged to boost investments in reducing greenhouse gas emissions. The plan has faced criticism from some quarters, including that it could discourage companies from lowering energy consumption, slow the green transition, and that it applies only to firms and not households."
Germany will start a scheme to reduce electricity costs for large industrial users from January 1, 2026, aiming to improve competitiveness in sectors such as chemicals and steel. Negotiations with the European Commission are reported to be in the final stages. The measure could cost up to €4.5 billion over three years and requires an exemption from EU state aid rules. Proposals suggest a subsidised rate of five cents per kilowatt hour for about 2,000 firms, conditional on increased investment to cut greenhouse gas emissions. Critics warn of risks to energy efficiency, the green transition, and unequal treatment compared with households.
Read at The Local Germany
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