Financial Wire

EU Approves $4.9 Billion Aid to Shield Industry From Power Costs

-- The European Union has approved state aid schemes for Bulgaria, Germany and Slovenia to provide temporary electricity price relief for energy-intensive industries, the European Commission said on Thursday.

The measures, cleared under the Clean Industrial Deal State Aid Framework, will offer financial support totaling 334 million euros ($393 million) in Bulgaria, 3.8 billion euros in Germany and 90 million euros in Slovenia.

The Commission said the measures are designed to compensate companies in energy-intensive sectors for part of their electricity costs over the next three years, supporting their continued competitiveness while facing higher energy prices.

The support will be limited to industries considered at risk of relocating production outside the EU to regions with weaker environmental standards.

The EU executive board said that to qualify, companies must reinvest at least 50% of the aid received into decarbonization measures, such as upgrading assets to reduce electricity system costs without increasing fossil fuel use.

The schemes meet CISAF requirements, including a minimum electricity price threshold of 50 euros per megawatt-hour and a maximum support duration of three years.

Under the scheme, Bulgaria's scheme will run from July 2025 to June 2028, with aid delivered through electricity suppliers via discounts on monthly bills.

Germany's program, running from January 2026 to December 2028, will allow companies to claim payments annually based on verified consumption and wholesale power prices. Slovenia's scheme, covering the same period, will disburse aid twice a year based on projected consumption.

The Commission said the measures were "necessary, appropriate and proportionate" to support industrial activity while advancing climate goals, in line with EU state aid rules.

The CISAF, adopted in June 2025, allows member states to support key sectors in the green transition, including renewable energy deployment, industrial decarbonization, and clean technology manufacturing.

It also enables temporary relief on electricity prices to prevent companies from shifting operations abroad before Europe's energy transition delivers structurally lower power costs.

Earlier this week, the Commission launched a consultation on a new Temporary Crisis Framework to address elevated energy prices amid the ongoing Middle East conflict.

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