Brussels, 22/01/2014 (Agence Europe) - On Wednesday 22 January, the European Commission decided that a Polish plan to allocate free-of-charge 404.6 million carbon emission allowances for modernising the electricity industry complies with EU state aid rules. Currently, 90% of Poland's electricity generation comes from coal-fired power stations, which are very carbon-intensive. The Polish investment plan includes more than 340 investment projects with a total value exceeding €28 billion (PLN 119 billion). The Commission says this aid is legal because it servesteh general objectivs of the EU without distorting competition. The funds granted will be used to modernise production infrastructure, diversify the energy mix or build new installations. This will contribute to liberalising energy markets, reducing greenhouse gas emissions and increasing the security of supply. The projects to be supported with the free allowances were chosen through an open, transparent and non-discriminatory procedure. They will contribute to a more competitive environment by closing some of the low efficiency coal fuelled thermal plants and developing a higher share of lower emitting natural gas and renewable energy production. In 2012, la Commission approved an initial version of this investment plan, unveiled in 2011, but ruled out 30 investment projects. The plan was adjusted and has now been approved. (FG/transl.fl)