ANNOUNCEMENT 21 Jun 2017

On 21 March 2016, Denmark notified the European Commission of its intention to provide investment aid, in the form of a financial grant, to DONG Energy Thermal Power A/S (Dong Thermal). On 21 June 2017, the European Commission approved the investment aid.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

Letter to the Member State - Published on 14 August 2018, State Aid SA.44922 (2017/N) – Denmark Investment aid for the conversion of a CHP plant in Denmark: http://ec.europa.eu/competition/state_aid/cases/269822/269822_2006052_189_2.pdf
SA.44922 Investment aid for the conversion of a CHP plant in Denmark: http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_44922

Inception date: 21 Jun 2017 | Removal date: open ended

Financial grant

On 21 June 2017, the European Commission approved the investment aid to be granted DONG Thermal by the Danish state. The financial grant has a total value of DKK 422 million (approx. USD 63.4 million). The financial grant will support the company's replacement of an existing coal-fired plant with a thermal biomass-fueled power plant. 

Dong Thermal is a 100% owned subsidiary of DONG A/S which is majority state-owned company. DONG's business activities include the production and trade of electricity. The company manages nine power plants in Denmark and one gas-fired power plant in the Netherlands. 

The Commission noted that: "The producers of electricity compete with each other in an open market. Electricity can be sold and transported from one Member State to another. Therefore it is likely that the implementation of this public support will be liable to affect trade between Member States."

The Commission, however, decided, following an investigation of the state aid: "not to raise objections to the notified individual investment aid on the grounds that it is compatible with the internal market pursuant to Article 107(3) c) of the Treaty on the Functioning of the European Union"

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.

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AFFECTED PRODUCTS