The government is negotiating with the European Commission to raise the ceiling for future relief programs and to bolster compensatory aid for industry facing CO2 emission costs. As Industry Minister Reyes Maroto explained, the package has already included an increase to 244 million euros in compensation to support electro-intensive sectors.
Last week, a plan to strengthen help for energy-heavy industries amid high energy costs was unveiled. The department head said the package aims to shield large users, notably the steel sector, which faces extraordinary market pressures. He described the move as a European-scale response, not merely a national measure, reflecting how energy costs can influence industrial competitiveness across the continent as governments respond to Russia’s energy disruptions and other global tensions that affect gas and electricity prices.
Both measures are expected to be part of the contingency plan that Spain will submit to the European Commission within the month. This plan seeks to mitigate the risk of energy supply interruptions across the remaining 26 EU member states and to ensure continuity for critical industries.
Today, Spain has already deployed substantial support for electro-intensive and gas-intensive industries, including a temporary 85% reduction in energy tolls for roughly 600 electro-heavy plants. The package also includes a permanent cut in the electricity generation tax from 7% to a much lower rate, a reduction of the special electricity tax, and a 200 million euro fund dedicated to medium and long-term energy procurement through PPAs. In addition, the FERGE fund, created to insure the electro-intensive sector against market risks, stands ready to cover potential fluctuations in energy costs as needed. This coalition of measures supports a broad segment of Spain’s industrial base and is particularly impactful in regions with heavy industrial activity, such as Asturias.
These announcements came during a Steel Table meeting that included representatives from several ministries, autonomous communities, and partner organizations. Participants reviewed environmental obligations, the revision of the emissions rights trading system, and the future border adjustment mechanism, a tariff policy designed to address carbon costs in imports while safeguarding domestic competitiveness as markets adjust. The discussions also touched on safeguards and risk management in a volatile energy landscape, underscoring a comprehensive approach to industrial resilience.
Maroto also announced the forthcoming PERTE initiative, a Government-led Economic Recovery and Transformation Strategy aimed at decarbonization. This program will coordinate with European funds to co-finance investments in industrial companies, accelerating the transition toward lower-emission operations and greater energy efficiency. The PERTE framework is designed to align with broader EU decarbonization goals, ensuring that Spain’s industrial sector remains competitive while meeting environmental objectives and maintaining stable energy supplies for key production lines. The government emphasizes that these steps will help attract investment, support job preservation, and promote sustainable growth across the country.