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Europe Daily Bulletin No. 11049
ECONOMY - FINANCE - BUSINESS / (ae) state aid

Aid for renewable energy and opening of an investigation

Brussels, 28/03/2014 (Agence Europe) - On Thursday 27 March, the European Commission decided that a French aid scheme for wind farms complies with EU state aid rules.

The scheme provides aid to cover the additional production costs for renewable energy. The Commission decided to open in-depth investigations to assess whether three types of reductions of renewable energy surcharges granted to large energy consumers in France (known as CSPE) are in line with EU state aid rules. To finance the support for onshore wind power, every electricity consumer in France has to pay a uniform levy per kWh consumed (a “contribution au service public de l'électricité” - CSPE). However, the law provides for three exceptions: a) No CSPE is due on own consumption below 240 GWh a year; b) No CSPE is due beyond €550,000 (indexed) per consumption site a year; c) For industrial companies consuming at least 7 GWh per year, the CSPE is capped at 0.5% of their annual value added. Reductions of this type are not covered by the 2008 guidelines, which currently apply. In its ongoing revision of the guidelines, the Commission is considering allowing reductions under certain conditions for big consumers of energy. If adopted, the guidelines would apply in this case. The Commission's investigation will assess the impact of the surcharge and the risk of companies relocating. It will also examine how the reductions impact on competition within the single market. (EL)

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