The European Commission has approved a state aid program with a budget of 405 million euros for Greece, aimed at reducing the burden of high electricity costs for energy-intensive companies. The measure aims to protect the competitiveness of high-energy consumption industries and prevent their relocation to third countries with more lenient climate policies, which would worsen global greenhouse gas emissions.
The new state aid scheme replaces an older program that was approved by the Commission in December 2018. The approval was granted in accordance with European Union state aid rules, ensuring that the measure contributes to environmental protection without distorting competition.
The program targets companies operating in sectors listed in Annex 1 of the 2022 Guidelines for State Aid in the areas of climate, environmental protection and energy. These specific sectors are characterized by intensive electricity use and significant exposure to international trade.
Eligible companies will receive burden reductions between 75% and 85%, depending on their level of exposure to relocation risk. The applied reduction cannot lead to charges below 0.5 euros per megawatt hour.
Beneficiary companies must meet specific conditions related to energy efficiency and emission reductions:
- Implementation of recommendations from energy audits
- Investment of at least 50% of the aid in projects that lead to substantial greenhouse gas emission reductions
- Coverage of at least 30% of electricity consumption from carbon-free sources
The program includes transitional rules for the gradual phase-out of burden reductions for energy-intensive companies that benefited from the previous scheme but no longer meet the eligibility criteria of the new one. The measure takes effect retroactively from January 1, 2024, and will run until December 31, 2026.
