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EU Raises State-Aid Limits for Energy Costs Through Year-End

Brussels aims to cushion price shocks without backtracking on its clean‑energy goals.

Overview

  • EU competition officials unveiled the temporary framework Wednesday, allowing larger, faster subsidies through December for energy‑intensive industry, farming, fisheries and transport.
  • Member states may now cover up to 70% of electricity costs for energy‑intensive firms, up from the previous 50% cap.
  • Primary sectors can receive help with up to 70% of extra fuel and fertilizer costs, with simplified grants of up to €50,000 per beneficiary.
  • The Commission cites a sharp jump in input costs, noting nitrogen fertilizer prices are about 61% above the 2024 average due to gas dependence and Middle East shipping risks near the Strait of Hormuz.
  • National plans still require Commission approval, as shown by mid‑April’s sign‑off on Germany’s €3.8 billion scheme capping power at €0.05/kWh for half of annual use for roughly 9,500 firms.