The European Commission has unveiled a new set of coordinated actions to lower energy prices for both industry and consumers, marking the next stage of the Affordable Energy Action Plan.
Although energy costs have fallen from their 2022 peaks, they remain significantly higher than global competitors, undermining industrial competitiveness and household affordability. The Commission's new plan focuses on immediate assistance and long-term structural measures in cooperation with EU member states.
Seven actions to reduce energy costs
The Commission has presented seven key measures to accelerate cost reductions and ensure safe, affordable and sustainable energy in the EU:
- Member States are urged to make full use of the Clean Industry State Aid Programme. (CISAF), which provides targeted assistance to energy-intensive sectors through price reductions and support for decarbonization. The Commission will issue guidance for national schemes by the end of 2025, ensuring state aid is applied consistently across member states.
- Governments are encouraged to reallocate EU cohesion funds to modernize national networks and expand energy storage capacity. Revised investment programs could be presented before the end of the year, and the Commission will assist Member States in developing effective, low-risk financing mechanisms.
- The Commission advises industrial companies to engage with the European Investment Bank (EIB) and national banks for assistance to obtain access to new financing instruments. A €500 million pilot program has been launched to support corporate power purchase agreements (PPAs), helping companies lock in stable, long-term energy prices and reduce exposure to market volatility.
- Member states are encouraged to speed up procedures for obtaining permits for renewable energy, storage and grid projects, applying the new rules of the Revised Renewable Energy Directive (RED III). Additional simplifications will be included in the upcoming energy systems package, which is scheduled to be adopted before the end of the year.
- The Commission will improve cross-border energy links and domestic grid
