European Commission clears Irish electricity relief scheme for energy-intensive industry

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Irish electricity relief scheme approved

Highlights

The European Commission approved Ireland's temporary electricity price relief scheme for energy-intensive industries under CISAF, effective from 4 July 2025 to 31 December 2029.
Eligible companies will receive direct grants covering part of electricity costs for up to three years, provided they reinvest at least 50% in low-carbon assets.
The scheme mandates a minimum €50/MW reduced electricity price and aims to preserve industrial competitiveness while advancing EU decarbonisation objectives.

Relief plan tied to decarbonisation investment

As reported by European Commission, the approved Irish scheme provides temporary electricity price relief to companies in energy-intensive sectors under the Clean Industrial Deal State Aid Framework, or CISAF, adopted on 25 June 2025.

The program is intended to compensate eligible companies for part of their electricity costs for as long as three years. It is open to businesses in sectors considered at significant risk of shifting activity outside the EU to jurisdictions with weaker or no environmental measures, with that risk assessed by electro-intensity and exposure to international trade.

Support will be paid as a direct grant in the year eligible costs are incurred or in the following year. Under the scheme's conditions, beneficiaries must reinvest at least 50% of the aid they receive in new or modernized assets that reduce electricity system costs in line with market and system needs, without increasing fossil fuel use.

State aid compliance and Irish industry impact

The Commission says the measure meets CISAF requirements, including a condition that the reduced electricity price remains at least €50/MW and that support for electricity consumption lasts no longer than three years. It also finds the scheme helps preserve the economic viability of companies in eligible sectors while supporting the development of economic activity tied to the bloc's industrial transition.

The Irish scheme runs from 4 July 2025 until 31 December 2029. The Commission concludes that the aid is necessary, appropriate and proportionate under Article 107(3)(c) of the Treaty on the Functioning of the EU, and approves it under EU State aid rules.

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