Commission approves €300 million Irish State aid scheme for temporary electricity price relief for energy-intensive companies

This article is brought to you in association with the European Commission.

The European Commission has approved a €300 million Irish scheme to provide temporary electricity price relief for energy-intensive companies in line with the objectives of the Clean Industrial Deal. Through the condition to reinvest a significant share of the aid received in decarbonisation measures, this scheme will contribute to the transition towards a net-zero economy. The scheme was approved under the Clean Industrial Deal State Aid Framework (CISAF) adopted by the Commission on 25 June 2025.

The Irish measure

Ireland notified to the Commission, under the CISAF, a €300 million scheme to provide temporary electricity price relief for companies in energy-intensive industries.

The purpose of the scheme is to support energy-intensive companies by compensating them for a share of their electricity costs for a maximum of three years. The scheme will be open to companies active in sectors with a significant risk of activities moving outside the EU to locations where environmental measures are absent or less ambitious. This risk depends on the electro-intensity of the sector in question and its openness to international trade. The sectors with a significant risk are listed in the 2022 guidelines on State aid for climate, environmental protection and energy. The aid will be disbursed in the form of a direct grant in the year the eligible costs are incurred, or in the following year.

The Commission found that the Irish scheme is in line with the conditions set out in the CISAF. In particular:

• the scheme facilitates the development of economic activities in the eligible sectors and aims to preserve the economic viability of companies in these sectors;
• the scheme complies with the condition that the reduced electricity price is at least €50/MW;
• the scheme covers the electricity consumption of beneficiaries for a maximum duration of three years; and
• beneficiaries will be required to invest at least 50% of the aid received in new or modernised assets to reduce electricity system costs, reflecting market and system needs, without increasing fossil fuel use.

The Irish scheme will run from 4 July 2025 until 31 December 2029.

The Commission concluded that the Irish scheme is necessary, appropriate and proportionate to accelerate the transition towards a net-zero economy and facilitate the development of certain economic activities, which are of importance for the implementation of the Clean Industrial Deal. 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 aid measure under EU State aid rules.

Background

On 25 June 2025, the Commission adopted the CISAF to foster support measures in sectors which are key for the transition to a net-zero economy, in line with the Clean Industrial Deal.

The CISAF allows the following types of aid, which can be granted by Member States to accelerate the clean transition:

• Measures accelerating the rollout of renewable energy and low-carbon fuels(sections 4.1 and 4.2). Member States can set up schemes for investments in all renewable energy sources as well as energy storage, with simplified tender procedures. Specific rules are also provided to accelerate the roll-out of low-carbon fuels.
• Measures allowing temporary electricity price relief for energy-intensive users to ensure the transition to low-cost clean electricity (section 4.5). Such measures will help avoid industrial activities relocating to locations where environmental regulations are absent or less ambitious, before the decarbonisation of the EU’s electricity system fully translates into lower electricity prices.
• Measures facilitating the decarbonisation of industrial processes (section 5). Member States can support investments in the decarbonisation of industrial activities to reduce dependency on imported fossil fuels. This can happen through electrification, energy efficiency and the switch to the use of renewable and electricity-based hydrogen which complies with certain conditions, with expanded possibilities to support the decarbonisation of industrial processes switching to hydrogen-derived fuels.
• Measures to ensure sufficient clean technology manufacturing capacity (section 6). Member States can grant investment support for strategic projects in line with the Net Zero Industry Act (such as batteries, solar panels, wind turbines, heat-pumps, electrolysers, and carbon capture usage and storage). This also includes the production of key components and the production and recycling of related critical raw materials.
• Measures to de-risk private investments required for the roll-out of clean energy, industrial decarbonisation, clean tech manufacturing, certain energy infrastructure projects, and projects supporting the circular economy (section 8).

More information on the CISAF can be found online.

For more information

The non-confidential version of today’s decision will be made available under the case number SA.120348 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.