The European Commission has approved state aid schemes providing temporary relief on electricity prices for companies in energy-intensive sectors in Bulgaria, Germany, and Slovenia, in line with the objectives of the Clean Industry Pact. The schemes were approved under the Clean Industry Pact State Aid Framework (CISAF), adopted on June 25, 2025. The condition is that a significant portion of the aid received must be reinvested in decarbonization measures.

The budget for the scheme in Bulgaria amounts to 334 million euros. The aim is to compensate energy-intensive enterprises for part of their electricity costs over the next three years. The measure applies to companies in sectors where there is a significant risk that operations could be relocated outside the EU—to places where environmental protection measures have not been implemented.

The measure in Bulgaria will be implemented from July 1, 2025, to June 30, 2028. Bulgaria will disburse the aid through electricity suppliers in the form of a reduction in beneficiaries’ monthly electricity bills.

The European Commission has approved state aid schemes providing temporary relief on electricity prices for energy-intensive companies in Bulgaria, Germany, and Slovenia in line with the objectives of the Clean Industry Pact. Thanks to the condition that a significant portion of the aid received must be reinvested in decarbonization measures, these schemes will contribute to the transition to a net-zero economy. The schemes were approved under the Clean Industry Pact State Aid Framework (CISAF), adopted by the Commission on June 25, 2025.

Support Measures

Bulgaria, Germany, and Slovenia have notified the Commission under CISAF of schemes to provide temporary relief on electricity prices for companies in energy-intensive sectors. The budgets for the schemes are €334 million for Bulgaria, €3.8 billion for Germany, and €90 million for Slovenia.

The aim of the schemes is to support energy-intensive enterprises by compensating them for part of their electricity costs over the next three years. The measures will be open to companies in sectors where there is a significant risk that operations could be relocated outside the EU to places where environmental protection measures have not been implemented or where the applicable measures are less ambitious. This risk depends on the energy intensity of the sector in question and its openness to international trade. Sectors at significant risk are listed in the 2022 Guidelines on State Aid for Climate, Environment, and Energy.

The Commission has determined that the schemes comply with the conditions set out in the CISAF. Specifically:

1. the schemes facilitate the development of economic activities in the eligible sectors and aim to preserve the economic viability of companies in those sectors;
2. the schemes meet the condition that the reduced electricity price is at least 50 EUR/MWh;
3. the schemes cover the beneficiaries’ electricity consumption for a maximum period of three years; and
4. beneficiaries will be required to invest at least 50% of the aid received in new or modernized assets to reduce electricity system costs, reflecting market and system needs without increasing the use of fossil fuels.

The measure in Bulgaria will apply from July 1, 2025, to June 30, 2028. Bulgaria will disburse the aid through electricity suppliers in the form of a reduction in beneficiaries’ monthly electricity bills.

The measure in Germany will apply from January 1, 2026, to December 31, 2028. Companies may apply for aid payments after the end of each year, once electricity consumption and the average wholesale market price are known.

The scheme in Slovenia will apply from January 1, 2026, to December 31, 2028, with the aid to be paid twice a year based on expected electricity consumption.

The Commission concluded that the schemes are necessary, appropriate, and proportionate for accelerating the transition to a net-zero economy and for facilitating the development of certain economic activities that are relevant to the implementation of the Clean Industry Pact. This is in line with Article 107(3)(c) of the Treaty on the Functioning of the EU and the conditions set out in the CISAF.

On this basis, the Commission approved the three aid measures under EU state aid rules.

Context

On June 25, 2025, the Commission adopted the CISAF to promote support measures in sectors that are key to the transition to a net-zero economy, in line with the Clean Industry Pact.

The CISAF allows Member States, until December 31, 2030, to provide the following types of aid to accelerate the green transition:

• Measures to accelerate the deployment of renewable energy and low-carbon fuels (Sections 4.1 and 4.2). Member States may use simplified tendering procedures to establish investment schemes for all renewable energy sources, as well as for energy storage. Specific rules are also provided to accelerate the deployment of low-carbon fuels.
• Measures allowing for temporary relief on electricity prices for energy-intensive consumers to ensure the transition to affordable clean electricity (Section 4.5). These measures will help prevent the relocation of industrial activities to locations where environmental legislation is absent or less ambitious, before the decarbonization of the EU’s electricity system leads to lower electricity prices.
• Measures to facilitate the decarbonization of industrial processes (Section 5). Member States can support investments in the decarbonization of industrial activities to reduce dependence on imported fossil fuels. This can be achieved through electrification, energy efficiency, and the transition to the use of hydrogen from renewable sources and hydrogen from water electrolysis that meets certain conditions, with expanded opportunities to support the decarbonization of industrial processes transitioning to hydrogen-derived fuels.
• Measures to ensure sufficient production capacity in the field of clean technologies (Section 6). Member States may provide investment support for strategic projects in accordance with the Net-Zero Industry Act (such as batteries, solar panels, wind turbines, heat pumps, electrolysers, and carbon capture, utilization, and storage facilities). This also includes the production of key components and the production and recycling of related critical raw materials.
• Measures to reduce the risk for private investments needed for the deployment of clean energy, the decarbonization of industry, the production of clean technologies, certain energy infrastructure projects, and projects supporting the circular economy (Section 8).

More information on CISAF can be found online.

On April 13, 2026, the Commission launched a consultation with Member States on a temporary crisis framework to address higher energy prices due to the crisis in the Middle East. The framework will complement the broad scope Member States have to design measures in line with existing EU state aid rules, including those under CISAF.

For more information

Non-confidential versions of today’s decisions will be available under numbers SA.120414 (Bulgaria), SA.120495 (Germany), and SA.120965 (Slovenia) in the State Aid Register on the Commission’s competition website once all confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the weekly e-newsletter on competition — Competition Weekly e-News.