The federal government has reached an agreement regarding the specific details for implementing an industrial electricity price. According to reports cited by the “Handelsblatt” (Friday edition), Economics Minister Katherina Reiche (CDU) and Environment Minister Carsten Schneider (SPD) finalized the supportive guideline. This consensus is expected to be publicly announced later this Thursday.
The purpose of the industrial electricity price is to alleviate high energy costs for key sectors, such as chemistry, metalworks, and cement production. The government plans for this subsidy to allow participating companies to cover a portion of their electricity consumption at five cents per kilowatt-hour. This industrial energy price is set to be retroactive, taking effect from January 1, 2026.
The discussion surrounding the support guideline was drawn out beyond initial plans, particularly concerning the requirement that subsidized companies reinvest the received state aid into certain projects. Following the cabinet decision, the guideline must now receive final approval from the European Commission. Reiche had previously indicated that she anticipates receiving all necessary clearances by the end of the second quarter of 2026.