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EU Backs Irish Plan to Cut Power Costs for Heavy Industry

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The European Commission on Thursday approved a 300 million euro ($343.67 million) Irish state aid scheme to provide temporary electricity price relief for energy-intensive industries.

The Commission said the measure will help maintain competitiveness while supporting the EU's transition to a net-zero economy.

The scheme, approved under the Clean Industrial Deal State Aid Framework, will compensate eligible companies for part of their electricity costs for up to three years.

It targets sectors deemed at high risk of relocating outside the European Union because of energy costs and differing environmental standards.

Ireland's scheme will run from July 4, 2025, until Dec. 31, 2029, with aid paid as direct grants.

Under the conditions of the approval, beneficiaries must reinvest at least 50% of the support received in new or upgraded assets that reduce electricity system costs without increasing fossil fuel use.

The Commission also said the reduced electricity price must remain at least 50 euros per megawatt-hour.

The Commission concluded the measure is necessary, appropriate and proportionate under EU state aid rules, saying it supports the Clean Industrial Deal by preserving industrial activity while encouraging decarbonization through investment.

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