German Chancellor Friedrich Merz announced that the European Commission has granted official approval for the implementation of a large-scale energy sector subsidy program. The plan envisages the construction of new gas capacities and the provision of financial assistance to industry to reduce electricity costs. This is reported by UNN.
Details
The German government plans to tender for the construction of new gas power plants with a total capacity of 8 GW this year. The facilities are scheduled to be launched by 2031. Separately, another 4 GW of capacity is planned for low-carbon sources and plants capable of quickly switching to hydrogen use.
For Germany, which has abandoned nuclear energy and plans to stop using coal, these facilities will become a critically important reserve during periods of low generation from renewable sources.
Financial support for industry
In addition to approving the construction, Berlin received permission to launch an aid package for industry worth 12 billion euros. The support will be distributed through two instruments:
- 7.5 billion euros will be directed to direct aid for small and medium-sized enterprises.
- 4.5 billion euros will be allocated to an expanded carbon emissions compensation program for energy-intensive companies, including steel producers.
As the plan involves significant state subsidies, Brussels' consent was necessary to comply with EU antitrust rules and maintain a level playing field within the bloc.