On Tuesday 11 July, the European Commission approved a Hungarian aid regime in support of electricity produced from renewable sources.
This measure takes the form of financial support for producers of renewable electricity. The regime, with a maximum annual budget in the region of €146 million, provides two options for public support, depending on the size of the installation. It will be paid for out of the renewable energies tax, already in force in the country.
Small installations (with a capacity up to 500 kW) and demonstration projects will be given a feed-in tariff. For installations with a capacity above 500 kW, operators will be granted a premium on top of the market price for electricity. However, a competitive bidding process will be used to determine the amount and beneficiaries of the premiums for companies with installations with a production capacity of more than 1 MW.
The Commission assessed this measure in light of the guidelines on state aid for environmental protection and energy of 2014. It found that the aid will allow Hungary to reduce its CO2 emissions and that it was proportionate. It concluded that the measure was compatible with EU state aid rules, as it does not distort competition and limits electricity costs for consumers. (Original version in French by Lucas Tripoteau)