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Policy Watchlist · Official Sources · US · UK · EU
EUBillOfficial ✓September 1, 2026· European Commission

Commission approves German capacity mechanism of up to €35 billion to secure electricity supply

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What happened

The European Commission, under EU State aid rules, approved a capacity mechanism for Germany. This measure will be available from 2031 and has an estimated cost between €15.6 billion and €35.2 billion. It aims to ensure sufficient capacity for producing, storing, or flexibly consuming electricity.

Why it matters

This policy ensures that Germany will have enough power to meet demand, preventing potential electricity shortages in the future. The significant investment of up to €35.2 billion highlights the long-term commitment to energy security.

Who it affects

  • ›German electricity consumers
  • ›German electricity producers
  • ›Electricity storage operators in Germany
  • ›Businesses that flexibly consume electricity
Receipts

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