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33 min ago 2 min read
Energy-intensive firms in Germany, Bulgaria and Slovenia are to receive temporary electricity relief, the EU has confirmed, as it seeks to bolster European industrial competitiveness during current energy price volatility.
Germany will receive by far the largest relief (€3.8bn), while Bulgaria and Slovenia will receive €334m and €90m respectively. The Bulgaria scheme is open until 30 June 2028, while Germany’s and Slovenia’s will run to 31 December 2028.
However unlike previous emergency bailouts, these schemes include a ‘green carrot’.
Beneficiaries must reinvest at least 50% of the aid into energy efficiency or carbon-reduction projects.
Clean energy sourcing is also required. In Slovenia, for example, firms must prove that at least 30% of their electricity comes from carbon-free sources.
The schemes must ensure the final price paid by industry does not fall below a certain threshold (€50MWh) to ensure firms still have an incentive to save energy.
The European Commission said the schemes are ‘necessary, appropriate and proportionate’ to accelerate the transition towards a net zero economy and facilitate the development of certain economic activities, which are important for implementing the Clean Industrial Deal.
Europe is concerned that if energy costs are too high, companies may move production to countries with lower prices and weaker environmental laws. This would result in job losses in Europe without reducing global emissions.
Sectors like steel, chemicals, and paper are at risk of closing plants because they cannot pass on high energy costs to customers in a competitive global market.
A new European clean hydrogen lobby group is calling on the EU to prioritise industrially anchored projects as developments struggle to reach final investment decisions.
