Internal documents from the German Federal Ministry for Economic Affairs and Climate Action reveal significant hurdles remain in the implementation of the planned “Industriestrompreis” (industrial electricity price) scheme, sparking concerns about its viability and raising questions about the government’s commitment to supporting energy-intensive industries. According to a report in the Handelsblatt newspaper, the financial backing for the program, intended to offer subsidized electricity prices of €50 per megawatt-hour to qualifying businesses from 2027 to 2029, is currently “not secured.
The draft guidelines for the program, now under review within the governing coalition, outline the intended framework, but the crucial element of funding casts a long shadow. The internal memo explicitly states that no funds are currently allocated within the Klima- und Transformationsfonds (KTF – Climate and Transformation Fund) for the years 2027-2029. Securing these funds necessitates negotiations with the Federal Ministry of Finance, a process that is reportedly proving challenging.
The situation is further complicated by a significant upward revision in projected costs. Initial estimates placed the program’s expense at €2.7 billion over the three-year period. However, a revised assessment, factoring in the possibility of combining the Industriestrompreis with existing electricity price compensation schemes, now projects a total cost of €3.4 billion. This escalation suggests a potential miscalculation or a failure to fully account for the program’s complexity when initially conceived.
Critics argue that the scheme, while presented as a vital measure to protect German industrial competitiveness amidst soaring energy costs, is increasingly appearing to be a politically driven initiative struggling with fundamental logistical and financial shortcomings. The potential for conflict between the Ministry of Economic Affairs, advocating for industry support and the Ministry of Finance, tasked with fiscal responsibility, highlights the delicate balance within the governing coalition and raises questions about the long-term sustainability of the Industriestrompreis. The Ministry anticipates resolving these outstanding issues by the end of the second quarter of 2026, but the current uncertainty underscores the precarious nature of the plan and its potential implications for German industry and the national budget.
