ANNOUNCEMENT 04 Nov 2015
On 5 May 2017, the European Commission decided not to raise objections against a support scheme for the production of electricity by sewage treatment plant gas by the French government. The maximum budget of the scheme is 1150 million EUR for the years 2017-2042. France needs to renew the scheme to the Commission no later than 10 years after its approval.
NUMBER OF INTERVENTIONS
European Commission case summary (SA.43485)
European Commission letter to France, 31.05.2017
According to France, "[...] The measures are aimed at supporting electricity generating facilities using primarily biogas produced by the methanisation of materials resulting from the treatment of urban or industrial wastewater ("STEP"). [...] The aid scheme has been notified with a duration until 2030 in view of the renewable energy development objectives which France has set for this horizon (see recital (4)). However, France needs to renew the scheme to the Commission no later than 10 years after its approval. [...] The estimated budget for support for electricity generation in the STEP sector is 1150 million EUR until 2042 (annual budget of 46 million EUR"). (translated from para. 3, 8 and 33 letter from the EC to France, Brussels 31.05.2017)
Based on the findings of the European Commission, "Electricity is the subject of considerable trade between Member States. Any advantage given to a given mode of electricity production is therefore liable to distort competition and affect trade between Member States." (translated from para. 28 letter from the EC to the France, Brussels 31.05.2017)
In the GTA database the determination of whether a policy instrument discriminates against foreign commercial interests turns on whether it creates or alters the relative treatment of domestic firms versus foreign commercial interests. On this metric, the state aid proposed here is discriminatory because the state aid is not available to competing firms outside of the implementing jurisdiction.