The European Commission has approved a €52 million Luxembourg scheme to give temporary relief on electricity prices for energy-intensive companies under EU State aid rules.
The support will compensate eligible firms for a share of their electricity costs for up to three years and will be paid as a direct grant, the Commission said in a statement on Thursday.
The scheme will be open to companies in sectors considered at significant risk of moving activity outside the EU to places with weaker or no environmental measures, with the eligible sectors listed in the EU’s 2022 guidelines on State aid for climate, environmental protection and energy.
Aid under the scheme cannot reduce the electricity price paid by beneficiaries below €50 per megawatt hour (MWh) — a unit used to measure electricity — and support is limited to a maximum of three years.
Investment condition for beneficiaries
Companies receiving the aid will have to invest at least 50% of the amount they get into new or modernised assets that help reduce electricity system costs, in line with market and system needs, without increasing fossil fuel use, the Commission said.
The approval was granted under the Clean Industrial Deal State Aid Framework (CISAF), adopted on 25 June 2025, and the Middle East Crisis Temporary State Aid Framework (METSAF), adopted on 29 April 2026.
METSAF includes a temporary adjustment to CISAF that allows more flexibility and higher aid intensities to address electricity price spikes.
A non-confidential version of the decision will be published in the Commission’s State aid register under case number SA.123868 once confidentiality issues have been resolved.
