Federal Minister for Economic Affairs Katherina Reiche (CDU) announced on Thursday that the German industrial electricity price, previously approved by the EU Commission, will be implemented without excessive bureaucracy. Reiche stated in a press release on Thursday that the industrial electricity price is a crucial and necessary step for providing easily noticeable and swift relief.
The EU Commission authorized a related aid scheme amounting to 3.8 billion euros on Thursday. The Brussels authorities determined that these regulations were “necessary, appropriate, and proportionate” to accelerate the transition to a climate-neutral economy and promote specific industrial sectors. Furthermore, by requiring companies to reinvest a substantial portion of the received aid into decarbonization measures, these rules are expected to contribute significantly to the shift toward a climate-neutral economy.
Reiche emphasized that the government will not impose detailed requirements on these reinvestments. For instance, eligible measures could include improvements in energy efficiency or investments in renewable energy sources located on the company premises. The CDU politician explained, “We deliberately kept the options broad and refrained from setting detailed requirements because we cannot assess, and furthermore do not wish to assess, which specific measure is suitable for 9,500 different companies on site”.
The goal of keeping the hurdles low is also to enable smaller businesses to take advantage of the industrial electricity price. “For example, we are waiving verification by accredited bodies, such as TÜV, and confirmation from chartered accountants is now only required for companies with an annual electricity consumption exceeding 10 gigawatt-hours” she added.
The industrial electricity price is designed to alleviate electricity costs for electricity and trade-intensive companies across 91 sectors, including areas such as chemicals, rubber and plastics, glass, and semiconductor manufacturing. The measure is set to run from January 1, 2026, through December 31, 2028. Companies can apply for aid payments at the end of each year, provided that the electricity consumption and the average wholesale market price are known. The target price for this mechanism is set at 5 cents per kilowatt-hour (kWh) and will be determined based on the wholesale electricity price.
