The European Commission has given the green light to three new state aid schemes aimed at providing temporary reductions in electricity prices for large energy-consuming companies in Bulgaria, Germany, and Slovenia. These measures align with the broader objectives of the European Green Deal and the Pact for a Green Industry, as part of the EU’s efforts to support a sustainable, low-carbon transition across member states.
The approved schemes, with substantial financial backing, are designed to assist industries that face significant international competition and risk relocating their operations outside the European Union due to rising energy costs or less stringent environmental regulations elsewhere. The schemes are also part of the EU’s strategy to promote decarbonization and the transition to a net-zero emissions economy.
Budget allocations for these schemes are significant: Bulgaria’s support measures are set at €334 million, Germany’s at €3.8 billion, and Slovenia’s at €90 million. These funds are intended to provide targeted relief to large enterprises over the next three years, helping them manage energy costs while simultaneously incentivizing investments in decarbonization and energy efficiency.
The schemes were approved under the state aid framework within the context of the Pact for a Green Industry (CISAF), adopted by the European Commission on June 25, 2025. This framework emphasizes conditional support, requiring recipients to reinvest a substantial part of the aid received into measures that contribute to decarbonization efforts. This ensures that the aid not only eases immediate financial burdens but also accelerates the transition toward a low-emission economy.
The primary objective of these schemes is to compensate large energy consumers for part of their electricity costs over a three-year period. By doing so, they aim to alleviate the financial strain on industries such as manufacturing, chemicals, and steel, which are particularly vulnerable to energy price fluctuations. The measures will be accessible to companies operating in sectors with a significant risk of activity relocation outside the EU—so-called "at risk-of-carbon leakage" sectors—especially where environmental standards are less ambitious or absent.
In Bulgaria, the scheme will be implemented from July 1, 2025, to June 30, 2028. The aid will be delivered through electricity providers, who will reduce the monthly bills of beneficiary companies, thus providing immediate relief from high energy costs. This approach simplifies access to support and ensures that aid reaches companies efficiently.
Germany’s scheme will operate from January 1, 2026, to December 31, 2028. Companies eligible for aid will be able to request payments at the end of each year, based on their actual energy consumption and the average wholesale market price during that period. This annual assessment allows for flexible support tailored to the companies’ real energy needs and market conditions.
Slovenia’s scheme will also run from January 1, 2026, to December 31, 2028. Unlike Germany’s annual payments, this scheme will provide support twice a year, based on the estimated electricity consumption of each beneficiary. This biannual payment schedule aims to offer more predictable assistance, helping companies plan their budgets more effectively.
The European Commission’s approval confirms that these schemes meet the criteria for state aid under EU rules, particularly regarding transparency, proportionality, and environmental objectives. They are expected to contribute significantly to the EU’s climate ambitions by encouraging industries to reinvest in decarbonization measures, such as upgrading equipment or shifting to renewable energy sources.
Frimu Ghinea
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