The European Commission has approved Germany’s EUR 3.8 billion subsidy program to ease electricity costs for energy-intensive industries from 2026 to 2028.

In return, companies must reinvest most of the aid into low-carbon technologies such as electrification and energy efficiency, aligning competitiveness with decarbonization goals.

However, Germany’s steel sector warns that the scheme’s limited coverage and incompatibility with existing compensation measures may reduce its effectiveness, urging more flexible state aid rules and a competitive power pricing framework.