Overview
- Economy Minister Katherina Reiche said she expects the industrial electricity subsidy to begin on 1 January 2026, pending European Commission approval.
- EU guidance allows a discount of up to 50% on the wholesale power price for at most half of a firm’s annual consumption, capped at three years and ending by 2030, with a minimum effective price of €50 per MWh.
- Design specifics remain open, including the discount level and eligible usage, and Reiche signaled that required company efficiency commitments will be verified with minimal bureaucracy.
- Estimated costs range around €1.5 billion per year or about €4.5 billion over three years, with potential funding from the federal Climate and Transformation Fund and budget outlays that could be booked retroactively from 2027.
- Ahead of Thursday’s Chancellery steel summit led by Chancellor Friedrich Merz, the government is also pursuing an extension of power price compensation beyond 2030, which Reiche said could be decided in the coming weeks.