European Commission clears French, Danish renewable state aid schemes

The European Commission has cleared four French support schemes for renewable energy, considering that they are in line with EU State aid rules and will help promote EU objectives in the field of energy and climate without unduly distorting competition.



The French support to geothermal installations, biogas installations below 500 kW (using biogas produced by methanisation), hydropower plants of less than 1 MW and wind parks which submitted a complete aid application in 2016 is estimated to cost €7,681m until 2042. The four aid schemes are financed from the earmarked ‘Energy Transition' account. This account was funded in 2016 by the domestic tax on final electricity consumption. From 1 January 2017, it will be financed by a share of the domestic tax on coal, brown coal and coke and a share of the proceeds of the domestic tax on the consumption of petroleum and similar products.



In addition, the Commission has approved Danish plans to partially compensate more energy intensive users for the levy to support renewable energy under EU state aid rules. The measure will contribute to the competitiveness of these users without unduly distorting competition in the Single Market.



In October 2015, the Commission approved a Danish scheme granting such reductions for users in certain sectors that met the conditions under the Guidelines. Denmark has now notified plans to extend the scope of reductions to energy-intensive users in several additional manufacturing sectors and four horticulture sectors. All other conditions of the original scheme remain unchanged and will apply to the new beneficiaries, in particular that energy intensive users will be compensated up to a maximum of 85% of their contribution to the financing of renewable energy support. The Commission's assessment showed that these reductions remain in line with the Guidelines.