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Germany Approves Industry Power Subsidy, New Power-Plant Tenders and Air Ticket Tax Cut

Funding will come from the Climate and Transformation Fund, pending EU state-aid clearance.

Overview

  • Energy‑intensive companies will get a subsidised electricity price of about 5 cents per kilowatt-hour from 2026 to 2028.
  • The government’s power-plant strategy foresees 2026 tenders for roughly 8–10 gigawatts of capacity to be operational by 2031 and hydrogen‑ready.
  • A new Deutschlandfonds is being set up to mobilise private investment in areas such as energy, resilience and security‑related start‑ups, with details due in the coming days.
  • The air ticket tax will be reduced from 1 July 2026 in a move worth about €350 million to the sector, with air navigation fees targeted for a first cut in 2026.
  • Officials estimate the electricity subsidy will cost €3–5 billion annually from the Climate and Transformation Fund, and they say EU approval for the measures is expected while talks continue on the 2035 combustion‑engine rules and pension plans.