Jun 25, 2025
Heavy industries will receive reduced electricity costs under new EU regulations.
Heavy industries will get temporary electricity price relief under new EU state aid rules to be announced on Wednesday, a draft from the European Commission revealed, following criticism from companies regarding high energy costs and strict green regulations.
Earlier this month, the industry group Eurometaux wrote to Commission President Ursula von der Leyen, expressing concerns about the declining competitiveness of the metals sector against U.S. and Chinese competitors.
The new rules, part of the Commission's Clean Industrial Deal aimed at revitalizing Europe's struggling industries, will allow companies to receive electricity price relief for up to three years, but no later than December 31, 2030.
The draft stated, "Until the decarbonisation of the Union's electricity system fully translates into lower electricity prices, industries within the Union will continue to face higher costs compared to competitors in jurisdictions with less ambitious climate policies." It highlighted challenges for sectors that are exposed to international trade and heavily reliant on electricity for creating value.
The relief will not exceed half of the yearly average wholesale price or cover more than 50% of a company's annual electricity consumption, according to the document.
Moreover, energy-intensive industries will need to invest part of the state aid in initiatives that support the green transition.
Member states can set the maximum level of state aid, but they must seek Commission approval if the funding gap surpasses 200 million euros ($232.4 million) or 10% of the project's budget.
The new rules indicate that low-carbon nuclear projects, as well as solar, wind, and hydrogen, among other renewable sources, could receive aid.
The document stated that "the Commission will conduct a timely assessment of state aid cases for nuclear supply chains and technologies, including for small modular reactors."
Earlier this month, the industry group Eurometaux wrote to Commission President Ursula von der Leyen, expressing concerns about the declining competitiveness of the metals sector against U.S. and Chinese competitors.
The new rules, part of the Commission's Clean Industrial Deal aimed at revitalizing Europe's struggling industries, will allow companies to receive electricity price relief for up to three years, but no later than December 31, 2030.
The draft stated, "Until the decarbonisation of the Union's electricity system fully translates into lower electricity prices, industries within the Union will continue to face higher costs compared to competitors in jurisdictions with less ambitious climate policies." It highlighted challenges for sectors that are exposed to international trade and heavily reliant on electricity for creating value.
The relief will not exceed half of the yearly average wholesale price or cover more than 50% of a company's annual electricity consumption, according to the document.
Moreover, energy-intensive industries will need to invest part of the state aid in initiatives that support the green transition.
Member states can set the maximum level of state aid, but they must seek Commission approval if the funding gap surpasses 200 million euros ($232.4 million) or 10% of the project's budget.
The new rules indicate that low-carbon nuclear projects, as well as solar, wind, and hydrogen, among other renewable sources, could receive aid.
The document stated that "the Commission will conduct a timely assessment of state aid cases for nuclear supply chains and technologies, including for small modular reactors."