The European Commission has cleared the latest modification of a Greek support scheme for renewable electricity and high efficiency cogeneration (CHP) under the European Union (EU) State aid rules. More specifically, it approves reductions granted to energy-intensive companies on a surcharge to finance support for renewable electricity production and high-efficient cogeneration in the country. Indeed, EU State aid rules authorise a certain level of reductions in contributions levied on energy-intensive companies exposed to international trade and used to fund renewable energy support schemes.
Greece provides support to renewable electricity and CHP through the "ETMEAR levy", a surcharge imposed on final electricity consumers based on their power consumption. It was approved by the European Commission in November 2016, concluding that it was likely to increase the proportion of renewable-based electricity and reduce pollution, while limiting distortions of competition due to the state support. It includes state support for renewable power generation installations either through a feed-in tariff (FiT) or through a price premium: facilities with a capacity higher than 500 kW receive a premium on top of the market price over a 20-25 year period.