The federal government has reached an agreement regarding the specifics of introducing an industrial electricity price. According to reports cited by Handelsblatt from government sources, Economics Minister Katherina Reiche (CDU) and Environment Minister Carsten Schneider (SPD) have aligned on the relevant subsidy guideline. This agreement is expected to be announced sometime this Thursday.
The objective of the industrial electricity price is to provide relief from high electricity costs for sectors such as the chemical, metal, and cement industries. Through this subsidy, the government intends to enable businesses to cover a portion of their electricity needs at five cents per kilowatt-hour. The industrial electricity price is scheduled to take effect retroactively as of January 1, 2026.
Reiche and Schneider reportedly held discussions about the subsidy guideline for longer than initially anticipated. A key point of discussion concerned what specific projects the subsidized companies must reinvest the received state aid into. The guideline still requires final approval from the EU Commission. Reiche had previously suggested that she expected all necessary clearances by the end of the second quarter of 2026.
