IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
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Inception date: 21 Jan 2013 | Removal date: open ended
Still in force

Loan guarantee

On 27 July 2011, Italy notified the EC on the granting in favor of 'Integrated CCS Sulcis project' an energy company using coal to produce electricity. The facility includes a demonstration section where CO2 storage will be tested.

Italy supports the project with direct aid in the form of guaranteed 'off-take tariffs over 20 years from the entry into operation', hence the state aid will result in the difference between the guaranteed tariffs and the market price over these 20 years.

The EC states that: 'The CCS Sulcis project appears to selectively confer on the concessionaire an economic advantage, which it could not have obtained under normal market conditions, by means of State resources. As it is also liable to affect competition and intra-EU trade on the electricity market, the Commission considers that the support to the Project constitutes State aid within the meaning of Article 107(1) of the TFEU.' (page 2, Official Journal of the EU, 21 January 2013 , SA.33424)

Furthermore 'Commission has doubts as to the alleged absence of any indirect aid to the local coal mine, provided that the project seems to imply de jure or de
facto the obligation to use local brown coal, and therefore to provide for a long-term demand for the mine'. (page 3. Official Journal of the EU, 21 January 2013 , SA.33424) This could imply additional distorting effects with respect to the usage of coal.

Five countries are connected to the Italian grid, namely: France, Switzerland, Austria, Slovenia and Greece (sorted by import volume). In the case of trade on the electricity market, these countries will therefore be affected.

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

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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