The European Commission will propose next week a package of measures to support the bloc’s industry, including aid for power purchase agreements with reduced risks and simpler state aid regulations, according to the draft “Clean Industrial Plan”, consulted by Reuters.

EC President Ursula von der Leyen has pledged to support EU industry, and in January presented the “Compass for Competitiveness”, which includes objectives for the next two years, according to Agerpres.

One of the pillars is the “Clean Industrial Plan”, which is to be announced by Brussels next week, and provides measures to ensure that the green transition does not lead to the relocation of industrial production outside the EU and to support clean technology. Energy-intensive industries, affected by “high energy costs, unfair global competition and complex regulations”, are also supported.

As part of its plan to keep energy prices under control, the European Commission will propose an “Affordable Energy Action Plan”. The plan includes a pilot programme in cooperation with the European Investment Bank (EIB) to introduce de-risked power purchase agreements, with a focus on SMEs.

The EIB will also introduce “grid manufacturer measures” aimed at providing guarantees to manufacturers of grid components. EU member states must modernise and expand their electricity grids to meet the EU’s climate targets, which depend on electrification.

In addition, the European Commission wants to adopt simpler rules on state aid by July, introduce dynamic targets for gas storage and require EU member states to “reduce electricity taxation to the legal minimum”.