State aid: Commission approves €103 million Romanian scheme to support construction of electricity storage facilities – EQ Mag
The European Commission has approved, under EU State aid rules, a €103 million Romanian scheme to support the construction of electricity storage facilities. The measure will be partly funded by the Recovery and Resilience Facility (‘RRF’), following the Commission’s positive assessment of the Romanian Recovery and Resilience Plan and its adoption by the Council.
The aim of the scheme is to support investments in battery electricity storage facilities, allowing for a smooth integration of renewable energy coming from wind and solar sources in the Romanian power system.
Under the scheme, the aid will take form of a direct grant to projects selected through a competitive bidding process. The aid per beneficiary will not exceed: (i) 100% of the project’s funding gap, (ii) €167,000 per MWh of installed storage capacity, or (iii) a maximum amount of €15 million. The projects will be selected by 31 December 2023 and must be completed by 31 December 2025.
The Commission assessed the scheme under Article 107(3)(c) TFEU, which allows Member States to support the development of certain economic activities under certain conditions and the Guidelines on State aid for climate, environmental protection and energy (CEEAG). The Commission found that the Romanian scheme is necessary and appropriate to speed up investments in electricity storage facilities, thereby contributing to the EU’s strategic objectives related to the green transition. Furthermore, the Commission concluded that the scheme is proportionate, as the aid will be limited to the minimum necessary, and will not have undue negative effects on competition and trade in the EU. On this basis, the Commission approved the Romanian scheme under EU State aid rules.
The Commission assesses measures entailing State aid contained in the national recovery plans presented in the context of the RRF as a matter of priority and has provided guidance and support to Member States in the preparatory phases of the national plans, to facilitate the rapid deployment of the RRF.
Source: energy.ec
