Germany expects to introduce industrial electricity prices in 2026

German Economy Minister Katerina Reiche expects that a new government mechanism for subsidizing electricity costs for energy-intensive industries will be introduced early next year, according to Die Zeit.

According to her, negotiations with the European Commission on industrial electricity prices are in the final stages. The EC already gave its general approval in the summer, but subsidies depend on companies investing in the green transition. The necessary funds from the federal budget are to be allocated retroactively in 2027.

The German Federal Energy Agency (Dena) and the think tanks Epico Klima-Innovation and Agora Energiewende have developed a concept that proposes a fixed price for industrial electricity of five euro cents per kWh, which will apply to approximately 2,000 energy-intensive companies in the country. This will cost the federal government €1.5 billion annually. The program is scheduled to run until 2029.

Reiche said that for the steel industry, the continuation of electricity price compensation is a decisive factor for competitiveness, and the program could be extended well beyond 2030. She added that there are positive signals from the EC on this issue, and the minister expects a decision to be made in the coming weeks.

Amid deepening crisis in the steel sector, German Federal Chancellor Friedrich Merz announced the convening of a steel summit to be held on November 6. The main goal of the meeting is to preserve the country’s steel industry and protect jobs. It will discuss energy prices, trade relations, and the sustainability of the industry.