Views: 0 Author: Site Editor Publish Time: 2025-11-17 Origin: Site
Germany’s energy-intensive industries will have access to a subsidised power price until 2028 in order to reduce costs and boost competitiveness, according to a Reuters report.
The subsidised price will be set at 5 eurocents per kilowatt hour, it reports.
Following the Bundestag parliament vote, the EU must agree to the scheme under state aid rules.
Chancellor Friedrich Merz and coalition partners also agreed to tender 8GW of capacity for gas power plant construction.
Germany’s electricity prices are among the highest in Europe due to transmission fees, taxes, and levies that fund the energy transition.
Following Russia’s invasion of Ukraine, natural gas prices surged, contributing to a 5% decrease in industrial production. Some energy-intensive companies downsized European operations or sought cheaper energy elsewhere.
It has also been reported that Germany, which is targeting carbon neutrality by 2045, is to freeze national CO2 prices in 2027 as the EU delays emissions trading.
Germany’s ruling coalition plans to raise the national price on CO2 emissions in the transport and heating sector in 2026 as planned and keep it at that level in 2027, according to a report in newspaper WirtschaftsWoche. Transport is the largest emitting sector in Germany, according to the International Energy Agency.
The decision follows the EU deal to delay the full introduction of the emissions trading system for road transport and buildings (ETS2) by one year to 2028.
Last month the German government launched the first stage of a bidding process for carbon dioxide contracts for difference (CfD), which will take place next year.
According to the funding programme, €6bn will be made available to help heavy industries such as steel, chemicals, cement, and glass switch to cleaner production methods that emit less CO2.
Germany wants renewables to supply 80% of all its electricity by 2030 and 100% by 2035. French firm Lhyfe recently inaugurated its first green hydrogen production site in Germany.
