IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 22 Mar 2011 | Removal date: 17 Feb 2020
Still in force

Loan guarantee

 On 22 March 2011, the European Commission approved state aid to Finnish wood fired CHP and forest chips fired power plants.
The state aid would be used to increase electricity production using renewable energy, in this case biomass, by providing a price guarantee by the state for wood fuel cogeneration plants.
The scheme is planned to run until 1 February 2020 with a total budget of 466.8 million EUR.
According to the Commission, "The notified aid measure allows the beneficiaries to be relieved, by means of State resources transferred directly from the State budget, of a part of the costs which they would normally have to bear themselves. Consequently, the financial aid from the State (granted by the Energy Market Authority - a public body) strengthens the position of beneficiaries in relation to their competitors in the EU and therefore has potentially distorting effects on competition. The energy produced by the beneficiary companies concerned might be subject to intra- community trade therefore the guaranteed price is likely to affect the trade between Member States".
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.
Update
On 15 February 2016, the Commission approved amendments to the scheme mentioned above. However, the changes were not substantial enough for a new measure to be included in this database.

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

171 Electrical energy
2716 Electrical energy. (optional heading)
271600 Electrical energy. (optional heading)

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