Netherlands brings forward electricity relief for industry: €150 million as early as 2027

The Dutch government has decided to start compensating the electricity costs of energy-intensive industry as early as 2027, a year sooner than planned. In a letter sent to the House of Representatives (Tweede Kamer) on 3 November, Climate and Green Growth Minister Stientje van Veldhoven announces an extra €166 million for 2027 in the so-called “industry electricity cost envelope”.

What was decided. Of that amount, €150 million will go into a new instrument based on the EU’s Clean Industrial Deal state aid framework (CISAF), which offsets part of the electricity price. The temporary framework adopted by the European Commission after the Middle East crisis (METSAF) allows, for now only for 2026, this support to be combined with compensation for indirect ETS costs (IKC). Companies will apply in 2027 for costs incurred in 2026 and must invest at least half of the aid in decarbonisation: energy efficiency, electrification, renewable generation, electrolysis or flexible consumption.

The numbers. A study attached to the letter shows that large consumers connected to TenneT’s extra-high-voltage grid pay €94/MWh in the Netherlands after discounts and compensation, more than in neighbouring countries. Since 2024 the Netherlands no longer has a grid-tariff discount for large consumers, which Germany, France and the United Kingdom have kept. €345 million is reserved for 2028, and €395 million each for 2029 and 2030.

What could not be done. The government rejected shifting offshore grid costs onto high-voltage customers, judging it incompatible with the Energy Act and the powers of regulator ACM, and EU state aid rules do not yet allow direct compensation of grid tariffs. A cut in the electricity tax for large consumers would have cost about €70 million a year, but was not chosen for 2027.

What comes next. On 29 October six provinces, including Limburg, Groningen and Zeeland, had called for the money to be made available sooner, news agency ANP reported. Trade outlet Energeia notes that the decision responds to repeated requests from parliament, the provinces and business. The use of the money from 2028 and an extension of IKC compensation will be decided in spring 2027.

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