Energy-intensive industries in Europe—like steel, chemicals, manufacturing, and automotive—are under pressure. In 2024, industrial electricity prices in Europe are still ~65% higher than in 2019 and more than double those in the U.S.  While support measures (e.g., EU-ETS compensation, localized subsidies) help, they highlight a bigger issue: high electricity costs are putting Europe at a disadvantage against global competitors in the U.S., China, and India.

Within Europe, Germany’s large industrial customers face 21% higher costs compared to France—largely due to the nuclear exit and other policy shifts. Now, with the recent German election resulting in a CDU/CSU–SPD coalition under Chancellor @Friedrich Merz and SPD Chairman-designate @Lars Klingbeil, all eyes are on Germany’s forthcoming New Energy Agenda. Will it be implemented swiftly to make Germany (and Europe) a top destination for foreigndirectinvestment again?

Why It Matters

Industrial Competitiveness: Energy costs can determine whether factories stay in Germany and Europe – or relocate.
Policy & Aid:
Germany: 100% aid for indirect emission costs (2023–2030), translating to an extra subsidy of €10–15/MWh.
Spain: 45% maximum aid for energy-intensive firms in 2024.
Italy: Compensation expected to exceed 50% by 2025.
Global Race: U.S. industrial players enjoy significantly lower electricity prices. To keep up, Europe must address structural energy cost issues.

Key Question

Can Germany and Europe bridge this energy price gap and remain competitive on the global stage?

At SDI, we help energy and energy-intensive clients navigate these challenges, evaluate policy impacts, and chart a course for sustainable profitable growth.

I’d love to hear your thoughts:

What energy policy changes do you expect from the new German government?
How can Europe secure more affordable, sustainable energy to keep industries thriving?