Cheaper electricity for industry from 2027? The resort is preparing a program modeled on the German one

Work on extending the compensation system to include additional energy-intensive industries is to be completed in Q2 or Q3, and from 2027, a CISAF-based temporary energy price reduction program may be available to energy-intensive enterprises, the Ministry of Development said in response to a parliamentary interpellation.

Deputy Minister of Development and Technology Michał Jaros, in response to a parliamentary question, recalled that in December the European Commission published an amendment to the guidelines on certain state aid measures in the context of the ETS system and extended the list of energy-intensive industries eligible for aid to include further sectors, including: o the production of fertilizers and nitrogen compounds, iron ore mining, and the production of ceramic tiles.

“In January this year, the Ministry of Development and Technology began work on the preparation of an amendment to the Act of July 19, 2019 on the compensation system for energy-intensive sectors and subsectors (Journal of Laws of 2024, item 1215), which will enable the payment of compensation to the sectors included in the Commission's amendment. Planned completion of work in the second-third quarter of this year.” – Jaros informed.

Billions of zlotys for compensation

Based on this act, the Ministry of Development and Technology grants annual compensation to energy-intensive industries most exposed to the risk of the so-called carbon leakage.

“In 2025, 97 entities received compensation for the amount of nearly PLN 2.92 billion. In total, over the last six years of the system's operation, entities from energy-intensive sectors have been granted over PLN 9.25 billion in compensation support,” the Ministry of Development said in response to the interpellation.

CISAF program based on the German model

He added that in addition to the compensation system, the Ministry of Energy and Technology plans to support the competitiveness of Polish energy-intensive enterprises based on the communication adopted by the European Commission in June 2025 regarding public aid to support the Clean Industry Pact, the so-called CISAF. The ministry explained that CISAF defines, among others: conditions for providing support for activities aimed at improving access to affordable electricity for energy-intensive consumers.

“Just as the German government has introduced a support instrument based on the CISAF communication, the Ministry of Development and Technology is working on introducing a similar support instrument for the Polish energy-intensive industry based on this communication (…). The subsidy to energy prices for energy-intensive industries will be able to cover a reduction of no more than 50% of the average annual wholesale market price in the market area where the beneficiary is connected, for no more than 50% of its annual electricity consumption. Total annual energy consumption electricity can be measured either in the year in which the eligible cost arises or in the previous year,” said the Deputy Minister of Development.

CISAF: Conditions of discounts and implementation date

He added that the reductions must not result in a price below EUR 50 per MWh for eligible consumption, and to achieve a lasting impact, beneficiaries will be required to make investments that contribute to the industrial transformation and reduce the costs of the energy system in the medium and long term.

“Work is currently underway on a draft law enabling the preparation of a program for the temporary reduction of energy prices according to the assumptions described above. The designed solution based on CISAF is in the discussion and preparatory phase. According to the current schedule, it is planned that the program will be available to energy-intensive enterprises from 2027.” – the Ministry of Energy and Technology reported. (PAP Business)

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