German Emissions Trading Authority

Understanding electricity price compensation (SPK)

In certain sectors and subsectors of the economy, some of electricity costs for production processes that have a particularly high energy consumption can be financially offset. To this end, the German government has issued the "Directive on State Aid to companies in sectors or subsectors that have been established as being exposed to a significant risk of carbon leakage given the costs associated with EU ETS allowances that are passed on in electricity prices (State Aid for indirect CO2 costs)".

Background

Evaluations

351 companies submitted applications for State aid for indirect CO2 costs of emissions trading for the 2021 accounting year at the start of the fourth trading period of EU emissions trading. Following verification of the applications by the German Emissions Trading Authority (DEHSt), 341 companies with 676 installations received around 806 million euros in State aid. The EUA price used to calculate State aid was 25.09 euros. This means that the approved aid amount for 2021 of around 806 million euros is at a similar level to the State aid of 832 million euros paid out for the 2020 accounting year.

18/07/2023

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