Germany: €1.1 Billion Scheme to Support Rail Operators Using Electric Traction

Under EU State aid rules, the European Commission has approved a 1.1 billion EUR German scheme to compensate operators who are negatively impacted by the recent spike in electricity prices when powering electric trains.

This scheme will help rail operators cover part of the additional electricity cost in order to support the modal shift from road to electric rail.

DB High-Performance Corridors
DB Cargo freight train with a class 193 electric locomotive on the Emmerich – Oberhausen route between Mehrhoog and Diersfordt

The aid will be given in the form of monthly reductions from the rail transport operators’ electricity bills throughout 2023. Electricity suppliers will then be reimbursed by the German state.

Germany notified the European Commission of its intention to introduce this scheme, resulting in a thorough assessment that concluded on 24 February.

The Commission found that the scheme is beneficial for the environment and mobility and will not have negative effects on competition and trade in the EU.

Margrethe Vestager, Executive Vice-President in charge of competition policy said:

“This €1.1 billion scheme will enable Germany to support electric traction, which is a more environmental-friendly mode of rail transport compared to diesel-fuelled vehicles. It will help Germany meet its European Green Deal objectives, while reducing the burden of rising electricity costs for transport operators, to the benefit of passengers and freight customers.”

Get your news featured on Railway-News

Please fill in the contact form opposite. A member of the team will be in touch shortly.

    We'd love to send you the latest news and information from the world of Railway-News. Please tick the box if you agree to receive them.

    For your peace of mind here is a link to our Privacy Policy.

    By submitting this form, you consent to allow Railway-News to store and process this information.

    Follow Railway-News on LinkedIn
    Follow Railway-News on Twitter