ANNOUNCEMENT 07 Sep 2012

On 07 September 2012, the European Commission approved a Financial grant to support the production of renewable energy.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 07 Sep 2012 | Removal date: 07 Apr 2015

Production subsidy

On 07 September 2012, the European Commission approved a EUR 2755 (USD 3443.75) million aid scheme for supporting investments in renewable energy known as "Stimulering Duurzame Energieproductie (SDE+)". The aid will support undertakings that operate a hub in the Netherlands that generate renewable energy. The scheme is in force until 12 March 2018.

Under the SDE+ scheme, the amount of the subsidy is determined based on the difference between the cost price for the production of renewable energy (base price) and the correction amount which is calculated based on “market prices of electricity and heat; and the electricity and heat ratio of the reference installation”.

In this context, the European Commission noted that: “Article 107(1) TFEU provides that "any aid granted by a Member State or through State resources in any form whatsoever which distorts or threatens to distort competition by favouring certain undertakings or the production of certain goods, shall, in so far as it affects trade between member States, be incompatible with the internal market". The set-up and financing of the notified scheme is the same as under the existing schemes. The notified modifications do not make the Commission change its position on whether the scheme constitutes State aid within the meaning of Article 107(1) TFEU.”

Regardless, the Commission has decided not to raise objections to the aid on the grounds that “the aid is to be considered compatible with the common market within the meaning of Article 107(3)(c) TFEU and Article 61(3)(c) of the EEA Agreement.”

The state aid is notified under the following objective: Environmental protection.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

Update

The budget of this aid scheme has been expanded in April 2015 (see related state act).

AFFECTED SECTORS

 

AFFECTED PRODUCTS