German government has agreed on electricity price mechanism for industry, Handelsblatt reports

The German government's agreement on an industrial electricity price mechanism aims to support energy-intensive sectors by allowing them to secure electricity at a subsidized rate.

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  • Government has agreed details of an industrial electricity price subsidy that would let energy-intensive sectors such as chemicals, metals and cement cover part of their power demand at EUR 0.05 per kilowatt-hour, from 1st January 2026
  • The scheme still needs final EU Commission approval
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This could enhance competitiveness for industries like chemicals and metals, but it's critical to note that the scheme still awaits EU Commission approval, which introduces regulatory uncertainty that could affect sector dynamics in the interim.

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