The EC has approved €4.2 billion in aid for energy-intensive sectors in the EU

Bulgaria, Germany, and Slovenia will receive support to lower electricity prices on the condition that they decarbonize

The European Commission (EC) has approved state aid programs for energy-intensive companies in Bulgaria, Germany, and Slovenia aimed at temporarily reducing electricity costs. The total budget for the initiatives is approximately €4.2 billion, of which €3.8 billion is allocated to Germany, €334 million to Bulgaria, and €90 million to Slovenia. This is stated in an EC press release.

The programs provide for partial compensation of electricity costs for businesses over a three-year period. They target sectors at high risk of relocating production outside the EU due to high energy costs and competition from countries with less stringent environmental requirements.

At the same time, aid recipients are required to allocate at least 50% of the funds to investments in decarbonization—modernizing production, improving energy efficiency, or reducing the load on the power grid. The minimum electricity price for beneficiaries is set at no less than €50/MWh.

The programs’ durations vary: in Bulgaria, from July 2025 to June 2028; in Germany and Slovenia, from early 2026 to late 2028. Payments will be made through various mechanisms, including reduced electricity bills or compensation after the end of the reporting period.

The European Commission notes that these measures are in line with the Clean Industrial Deal framework and will help maintain the competitiveness of EU industry while accelerating the transition to a climate-neutral economy.

As a reminder, in late February, the European Commission approved a €1.1 billion state aid scheme for France to support strategic investments that add clean technology production capacity.