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EU approves support schemes for renewables in Luxembourg and Malta

The European Commission has approved support schemes for renewable energy in Luxembourg and Malta, considering that the schemes were in line with EU state aid rules.



In September 2015, Luxembourg notified its plans to support renewable energy production by introducing premium payments to support operators of wind, solar, biogas, hydropower and biomass installations. The total budget of the measure will be approximately €150m, allocated between 2016 and 2020. Under the Renewable Energy Directive, Luxembourg has a renewables target of 11% of gross electricity consumed by 2020.



Under the same Directive, Malta has a renewables target of 10% of gross electricity consumed by 2020. By the end of 2014 Malta had achieved 4% renewables share. In December 2015, Malta notified plans to support operators of solar photovoltaic and onshore wind installations, through premium payments on top of the market price. According to the plans, onshore wind developers can also tender for support if an eligible site receives development consent during the lifetime of the scheme. The total budget of the measure will be approximately €140m, allocated between 2016 and 2020. This new measure is meant to help it realise the remaining 6% of renewable energy consumption by 2020.



The European Commission has estimated that these schemes will increase electricity produced from renewable sources, in line with EU energy objectives, without unduly distorting competition.

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