Brussels, 28/06/2012 (Agence Europe) - On Wednesday 27 June, the European Commission concluded that certain provisions of Cyprus' and Estonia's development plans for the electricity sector allocating carbon emission trading allowances free of charge are in line with EU state aid rules. The Commission found that the funds (€371 million for Estonia and €194 million for Cyprus) granted will be used to modernise the production infrastructure, diversify the energy mix and build new installations to replace capacity, which will “contribute to liberalising energy markets, reducing greenhouse gas emissions and increasing the security of supply, in line with EU objectives”. Commissioner for Competition Joaquín Almunia stated that “the investments foreseen in the Cypriot and Estonian plans will contribute to modernising their electricity generation infrastructure without unduly distorting competition in the internal market.” He explained that this investment would “allow both member states to diversify their production sources while reducing greenhouse gas emissions.” (O.L./transl.fl)