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

European Commission Press release Brussels, 02 Sep 2026 The European Commission has approved, under EU State aid rules, a capacity mechanism for Germany available from 2031. This measure, with an estimated cost between €15.6 billion and €35.2 billion, aims to ensure sufficient capacity to produce, store or flexibly consume electricity, so that electricity production can consistently meet expected demand.