At the 8th Ministerial Meeting of the Friends of Industry, held in Berlin on November 3, 2025, German Economy Minister Katerina Reiche announced that Germany will introduce an industrial electricity price from January 1, 2026, with retroactive budgetary support to 2027.
High energy costs have become a serious obstacle to the competitiveness of European manufacturing. Germany in particular faces pressure from global competitors and energy-intensive sectors such as steel, chemicals and glass. By setting the rate at five cents per kWh, the government aims to reduce one of the biggest costs for manufacturers. The cost of the program is estimated at around 4.5 billion euros over three years.
Additional support for emission-intensive sectors
The Minister also confirmed plans to extend electricity price compensation beyond 2030, an important measure for energy-intensive industries such as steel. She noted: “The price of industrial electricity is important for the competitiveness of steel, but the extension of electricity price compensation is even more important.” The Energy Price Compensation Program targets sectors with high greenhouse gas emissions and intensive electricity consumption, offering financial assistance to offset costs.
