At the 8th “Friends of Industry” ministerial meeting held in Berlin on November 3, 2025, German economy minister Katerina Reiche announced that Germany will implement an industrial electricity price from January 1, 2026, with retroactive budgetary support for 2027.
High energy costs have been a major drag on European manufacturing competitiveness. Germany, in particular, faces pressure from global rivals and energy-intensive sectors such as steel, chemicals and glass. By targeting a rate of five cents per kWh, the government aims to reduce one of the biggest cost burdens for manufacturers. The program is estimated to cost around €4.5 billion over three years.
Additional support for emissions-intensive sectors
The minister also confirmed plans to extend electricity-price compensation beyond 2030, a crucial measure for energy-intensive industries such as steel. She noted, “The industrial power price is essential for steel competitiveness, but prolonging power-price compensation is even more important.” The electricity-price compensation program targets sectors with high greenhouse-gas emissions and heavy electricity usage, offering financial aid to offset costs.
