The European Commission has approved, under EU State aid rules, a scheme to support electricity production from renewable sources in Italy. The measure will contribute to the EU environmental objectives without unduly distorting competition.
Commissioner Margrethe Vestager, in charge of competition policy, said: “More renewable energy in power generation is essential for the future of our planet and environment. The €5.4 billion scheme will increase the level of Italy’s electricity production from renewable sources. This is in line with the EU environmental objectives and our common State aid rules.”
Italy intends to introduce a new aid measure to support electricity production from renewable sources, such as onshore wind, solar photovoltaic, hydroelectric and sewage gases. The scheme will help Italy reach its renewable energy targets. The scheme, with an estimated total budget of €5.4 billion, will be applicable until 2021.
Renewables installations benefitting from the scheme will receive support in the form of a premium on top of the market price. This premium cannot be higher than the difference between the average production cost for each renewable technology and the market price.
For larger projects above 1 megawatt, the premium will be set through a competitive bidding process open to all types of installations, irrespective of the renewable technology used. Smaller projects will be selected based on a combination of environmental and economic criteria.
The Commission assessed the scheme under EU State aid rules, in particular under the 2014 Guidelines on State aid for environmental protection and energy.
Original source: European Commission
Published on 14 June 2019
