The state aid for electricity levies reduction for energy-intensive users has been around since the first application period in 2014, with the second application period starting from 2019 onwards, depending on the country. It is applicable to industries at risk of carbon leakage, such as chemicals, metals, etc. To benefit, companies need to ensure that at least 30 % of their electricity consumption comes from carbon-free sources, using PPAs and/or GOs, among other options.

The conditions of the electricity levy scheme are close to the requirements of state aid for indirect emission costs. However, the first spans more sectors than the latter (79 vs. 16). At the same time, the state aid for indirect ETS costs has been implemented in more countries (14 vs. 13, with more pending).

By providing incentives to reduce energy-intensive users’ carbon footprint, the GO and PPA markets could see surging demand in countries where the scheme explicitly lists carbon-free or renewable electricity procurement as an eligibility criterion.