High energy costs have been a major drag on European manufacturing competitiveness. Germany, in particular, faces pressure from global rivals and energy-intensive sectors such as steel, chemicals and glass. By targeting a rate of five cents per kWh, the government aims to reduce one of the biggest cost burdens for manufacturers. The program is estimated to cost around €4.5 billion over three years.
Additional support for emissions-intensive sectors
The minister also confirmed plans to extend electricity-price compensation beyond 2030, a crucial measure for energy-intensive industries such as steel. She noted, “The industrial power price is essential for steel competitiveness, but prolonging power-price compensation is even more important.” The electricity-price compensation program targets sectors with high greenhouse-gas emissions and heavy electricity usage, offering financial aid to offset costs.