Dutch government brings forward €150m support for industry’s power costs

The Dutch government will bring forward support for industry facing high electricity costs, making €150 million available in 2027. Companies must invest at least half of any support they receive in measures to cut emissions or use electricity more efficiently.

The funding is additional to the government’s existing plan: €345 million a year is due from 2028, rising to €495 million a year from 2029 through 2035. The government says it will decide next spring how to allocate the funding from 2028 onwards.

The 2027 scheme is being developed under the EU’s Clean Industrial Deal state-aid framework, known as CISAF, so that companies can use it next year. Eligible investments could include energy saving, electrification, renewable power generation, electrolysis and more flexible electricity use.

The government says it examined options involving grid charges, electricity prices and taxes. It says directing benefits from offshore-grid subsidies specifically to industry would not fit the Dutch Energy Act and would require European Commission approval. Direct compensation for network costs is its preferred option, but current EU state-aid rules do not allow it. The Netherlands is seeking changes to those rules, though the government says the outcome is uncertain and a change would not be possible in time for 2027.

Climate and Green Growth Minister Sophie Hermans said lower electricity costs were a priority and would make investment in sustainable production in the Netherlands more attractive. State Secretary Jo-Annes de Bat said the measures were intended to help energy-intensive businesses facing pressure, while keeping decarbonisation moving.