In a recent update, the government announced a higher level of support for electricity intensive industries, a move disclosed by the Minister of Industry and Tourism, Jordi Hereu, during a session at the Congress of Deputies. Industry groups note that while the increase marks progress, it still falls short of what is needed for these sectors to stay competitive in a changing energy market. The announcement aligns with ongoing efforts to help large energy users manage rising electricity costs and maintain vital industrial activity as markets evolve in Europe and beyond. AEGE, the association representing companies with high energy consumption, has voiced concern that the measures do not reach the levels required for a truly sustainable transition for a large portion of the sector and calls for continued dialogue and adjustment in the fiscal framework to reflect real energy prices and decarbonization goals. [Citation: AEGE]
A major multinational steel producer is actively seeking more favorable energy pricing from the government to enable a significant decarbonization project. The plan includes a direct reduction iron ore plant powered by green hydrogen, designed to replace one of the blast furnaces in Gijón. Such a project would be a pivotal step for Asturias’ steel industry, reducing carbon emissions and supporting the region’s industrial future. Against this backdrop, the industry minister announced in the same week that indirect CO2 cost compensation for the electro intensive sector would rise from 244 million euros to 300 million euros in the 2024 general budget, with the aim of easing electricity bills for these users. Nevertheless, AEGE cautions that this increase remains insufficient when viewed in the broader European context. [Citation: AEGE]
Pedro González, the managing director of AEGE, notes that the total compensation will still exceed the limits set by the European Commission for certain subsidy categories. He points out that the overall aid package is projected to reach around 700 million euros this year, closely tied to the government’s revenue from carbon emission allowances. The association emphasizes the gap between what is available domestically and what is possible in other European countries, a discrepancy that affects competitiveness for energy intensive industries. González highlights that, compared with other Europe-wide scenarios, the national support is only a fraction of what is accessible elsewhere, which has real implications for operational costs and long term planning for Spanish steel and energy users. The conversation about fair support continues as the government seeks a balance between encouraging decarbonization and preserving industrial jobs and investment across the sector. [Citation: AEGE]
Industry leaders stress that access to robust, predictable energy subsidies is essential for maintaining competitiveness while pursuing ambitious environmental goals. They argue that the current framework should reflect the actual energy market dynamics and carbon pricing structure faced by large consumers like ArcelorMittal and similar firms. The discussion remains focused on creating policies that can translate into lower electricity bills, greater investment in green technologies, and a smoother transition to lowercarbon production methods. Stakeholders reiterate the importance of aligned EU guidelines and national measures that together support a resilient, carbon-conscious industrial base for the future. [Citation: AEGE]