EU's Bold Plan: Powering Heavy Industries with Temp Energy Price Relief

The European Commission is poised to unveil new state aid regulations designed to offer temporary electricity price relief for heavy industries, addressing mounting complaints over high energy costs and stringent green regulations. This initiative aims to bolster the competitiveness of European industries struggling against U.S. and Chinese rivals.

As part of its ambitious Clean Industrial Deal, the Commission plans to provide electricity price relief for up to three years, with a cutoff date of December 31, 2030. However, the relief is capped at covering no more than half of the yearly average wholesale price and 50% of a company's annual electricity consumption, ensuring industries reliant on electricity remain viable in the face of global competition.

Energy-intensive industries are required to reinvest portions of the state aid into green transition projects. The rules also open avenues for aid in low-carbon projects like nuclear, solar, and wind energy, with financial packages needing Commission approval if exceeding 200 million euros or 10% of project budgets.

(With inputs from agencies.)