BERLIN / LONDON (IT BOLTWISE) – From 2026, energy-intensive companies in Germany are to be relieved of the burden through a state-subsidized industrial electricity price. This measure aims to strengthen the competitiveness of German industry, which suffers from high electricity prices compared to international standards. Federal Minister of Economics Katherina Reiche announced that the introduction of the industrial electricity price is planned for January 1, 2026.
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The introduction of a subsidized industrial electricity price in Germany from 2026 is intended to relieve the burden on energy-intensive companies and strengthen their competitiveness. Federal Minister of Economics Katherina Reiche has announced that this step is necessary to counteract the high electricity costs that put German companies at a disadvantage compared to other countries. The industrial electricity price has been a topic of political debate for years, and the federal government is now planning to take concrete measures.
The EU Commission has already given the green light for an industrial electricity price that allows a discount of up to 50 percent on the wholesale electricity price. However, these subsidies should only be granted for a maximum of three years per company and should expire by the end of 2030 at the latest. The exact form of the industrial electricity price is still open, but an earlier paper from the ministry mentioned a price of 5 cents per kilowatt hour as a possible target.
Government funding could cost billions, with the money coming from the climate and transformation fund. A concept from the German Energy Agency estimates that an industrial electricity price of five cents for around 2,000 companies would cost the federal government 1.5 billion euros per year. This measure is seen as an important building block for the competitiveness of the steel industry, which is suffering from high energy prices and the pressure of international competition.
IG Metall and the Federation of German Industries welcome the introduction of industrial electricity prices as necessary relief for energy-intensive industries. However, they emphasize that the price should be linked to conditions such as job security and future investments. In addition to the industrial electricity price, structural reforms in the energy system are also required to ensure long-term competitiveness.
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