The German steel industry has announced that it has welcomed plans by Germany’s Federal Ministry for Economic Affairs to allow the parallel use of the industrial electricity price mechanism and electricity price compensation in 2026, following approval under the EU’s Middle East Crisis Temporary State Aid Framework.
Under the new arrangement, industrial companies will be able to apply both support measures simultaneously for up to 50 percent of their electricity consumption in 2026, providing greater relief from high energy costs.
WV Stahl welcomes the proposal
Kerstin Maria Rippel, CEO of the German Steel Federation (WV Stahl), said the move would finally make the industrial electricity price scheme effective for the steel industry, as the current framework does not permit combining the two instruments.
According to Rippel, the measure would be particularly beneficial for energy-intensive electric steel plants, which already produce steel with comparatively low carbon emissions. She stressed that Germany’s steel industry continues to face severe competitive pressure due to electricity prices that are significantly higher than those in many international markets.
Industry calls for long-term support
Rippel emphasized that all available instruments should be used to reduce electricity costs for energy-intensive industries. However, she argued that support measures must be permanent rather than limited to a single year, as steel producers require long-term planning certainty for investments and operations.
She also noted that competitive electricity prices are essential for the sector’s transition toward climate neutrality. As steel decarbonization relies heavily on electrification, electricity demand is expected to increase substantially in the coming years.
The German Steel Federation is therefore calling for an industrial electricity price of €50/MWh on an all-inclusive basis, including taxes, levies and grid charges, which it says is necessary to maintain competitiveness, secure investment and support the industry’s transition to climate-neutral production.