Germany set to introduce "industrial electricity price" by beginning of 2026 – economy minister
Clean Energy Wire
The German government is in the final stage of negotiations with the European Commission concerning the details of electricity price incentives for industry businesses, said economy minister Katherina Reiche at a press conference in Berlin.
“I expect that we will be able to introduce the industrial electricity price on 1 January 2026,” said Reiche.
A discounted industrial electricity price is a core element of chancellor Friedrich Merz’s plan to halt the decline of industry and return Germany to economic growth, but it has run into delays, as the EU must agree to the scheme under state aid regulation. Energy-intensive sectors, such as steel, chemicals and glass, are coming under international competitive pressure due to Germany’s comparatively high electricity prices. While energy-intensive companies already enjoy exemptions from certain taxes and levies, the wholesale price of electricity continues to be much higher than before the energy crisis, figures by energy industry association BDEW showed. The wholesale price rise was to a large extent fuelled by Russia’s war against Ukraine and remains a key cost driver for these companies.
The European Commission earlier this year allowed EU member states to provide temporary electricity price support for companies operating in sectors particularly exposed to international trade, and heavily dependent on electricity for their production. However, it set strict conditions, including that only a part of total electricity costs could be supported. The Financial Times earlier this year reported that Germany’s government would earmark about 4 billion euros over three years to support up to about 2,200 companies.
