Greece's Ministry of Environment and Energy and Ministry of National Economy and Finance on Wednesday detailed a 95 million euro energy aid package for industry.
The joint ministerial announcement specifies the emergency measure announced on Tuesday by Prime Minister Kyriakos Mitsotakis during his address to the Hellenic Federation of Enterprises. The intervention aims to cushion Greek manufacturing companies against rising electricity tariffs and prevent higher energy costs from inflating consumer prices across the supply chain.
Government officials confirmed that the package carries a maximum fiscal ceiling of 95 million euros. The scheme will be finalised following formal authorization from the Directorate-General for Competition of the European Commission, with Greek authorities currently engaged in advanced talks with EU regulators.
The Directorate-General for Competition oversees state aid rules across the European Union to prevent national subsidies from distorting competition within the single market. The Hellenic Federation of Enterprises, known locally as SEV, serves as the main business association representing industrial employers and manufacturing conglomerates in Greece.
European Aid Frameworks and Clean Energy Targets
The Greek subsidy plan relies on the Clean Industrial Deal State Aid Framework, which the European Commission adopted in June 2025. Under this mechanism, EU member states can offer financial assistance to energy-intensive industrial plants facing high electricity expenses. The framework allows governments to subsidise up to 50 percent of eligible electricity consumption, providing price reductions of up to 50 percent while establishing a minimum price floor of 50 euros per megawatt-hour.
A megawatt-hour is the standard unit used by utility providers to quantify large-scale industrial electrical power usage. Industrial plants in sectors such as metallurgy, chemical manufacturing, and heavy production rely on continuous high-voltage electricity supplies, making their operational costs highly sensitive to wholesale energy market volatility.
To qualify for the state subsidies, industrial recipients must commit to reinvesting at least 50 percent of the financial support into projects that decrease carbon emissions and lower baseline energy costs. Eligible corporate investments include renewable energy installations, utility-scale battery storage infrastructure, and operational energy efficiency upgrades.
Eligibility is restricted to manufacturing sectors listed under Annex 1 of the European Union Climate, Energy and Environmental Aid Guidelines. These guidelines target industrial branches that face intensive international competition and run a structural risk of relocating production facilities outside the European Union to countries with weaker environmental regulations.
Middle East Crisis Options and Extended Support
Greece is also incorporating provisions from the Middle East Crisis Temporary State Aid Framework, which European regulators introduced in April 2026 to address market disruptions linked to regional conflicts. The temporary emergency framework permits member states to raise electricity subsidy coverage rates from 50 percent up to 70 percent.
The Middle East crisis framework also allows governments under specific conditions to combine electricity relief with indirect carbon emission cost compensations. Indirect carbon compensation is an established EU mechanism designed to reimburse power-hungry factories for carbon pricing costs embedded in wholesale electricity prices under the European Union Emissions Trading System.
By blending the two European legal frameworks, Greek policymakers intend to maximize relief for heavy industrial enterprises experiencing the most severe cost pressures.
Two-Phase Support Timeline and Implementation
The Greek assistance package will be rolled out across two distinct phases based on energy consumption dates and company profiles. The first phase covers the period from January to July 2026 under the Clean Industrial Framework, targeting factories listed in the environmental guidelines that do not receive indirect carbon cost reimbursements and face major threats to their market competitiveness.
During this initial seven-month period, qualifying companies can receive subsidies covering up to 50 percent of their eligible electricity intake, reducing prices by up to 50 percent down to the mandatory minimum floor of 50 euros per megawatt-hour.
The second phase spans from August to December 2026, a timeframe coinciding with observed wholesale electricity price increases across regional power markets. During the final five months of the year, Greece will deploy the expanded powers granted under the Middle East crisis framework.
The second phase extends assistance to industrial firms that already receive indirect carbon emissions compensation. Aid intensity during this period can reach up to 70 percent, subject to the same 50 euro per megawatt-hour minimum floor. Non-compensated factories remain eligible for subsidies on up to 50 percent of their total consumption, while companies receiving carbon compensation can receive subsidies on up to 25 percent of their total usage.
Commercial petroleum refining companies are explicitly excluded from the subsidy scheme, as windfall market conditions in the energy sector have already offset a portion of their operating expenses. State aid disbursements for both phases will begin in 2027, covering verified power consumption recorded throughout 2026.
Broader Industrial Support Package
The newly detailed 95 million euro package builds upon existing Greek government measures that bring total industrial energy relief close to half a billion euros. Existing programs include a 75 million euro expansion of indirect carbon emission compensations benefiting 50 industrial enterprises, alongside reduced grid fees, lower excise duties, and special tax adjustments.
The government also instituted a 50 percent reduction in public service obligation contributions for 23,000 businesses. In the Greek electricity market, public service obligation charges are statutory levies added to power bills to fund uniform electricity tariffs for residents on remote islands and lower rates for vulnerable social groups.
The joint ministerial statement highlighted that industrial manufacturing remains a fundamental pillar of the Greek economy, driving capital investment, merchandise exports, and employment opportunities. Officials emphasised that the temporary relief measures balance fiscal prudence with strategic goals, encouraging factories to adopt clean technologies and build long-term competitiveness in global markets.
