The European Commission has approved a €300 million Irish state aid scheme that will offer temporary relief on electricity prices for energy-intensive companies.
The scheme will compensate eligible companies for a share of their electricity costs for up to three years, with support paid as a direct grant either in the year the costs are incurred or the following year, the Commission informed in a release on Thursday.
It will be open to companies in sectors deemed at significant risk of relocating outside the EU to countries with weaker environmental measures, with the sectors set out in the EU’s 2022 state aid guidelines on climate, environmental protection and energy.
The Commission said the measure was assessed under the Clean Industrial Deal State Aid Framework — known as CISAF — which it adopted on 25 June 2025.
Reinvestment requirement for recipients
Companies receiving support will have to invest at least 50% of the aid in new or modernised assets designed to reduce electricity system costs without increasing fossil fuel use.
The Commission also said the scheme must comply with a condition that the reduced electricity price is at least €50 per megawatt-hour.
The scheme is set to run from 4 July 2025 to 31 December 2029.
A non-confidential version of the decision will be published in the Commission’s state aid register under case number SA.120348 once confidentiality issues have been resolved.
