On Monday 27 November, the European Commission opened an in-depth investigation into measures set in place by Spain in favour of coal-fired power stations under EU state aid rules.
In 2007, the Spanish authorities set in place a so-called "environmental incentives" scheme in order to promote the installation of new sulphur oxide filters in coal-fired power stations already operating in the Iberian Peninsula. In exchange for the installation of these filters, which are designed to reduce sulphur oxide emissions, the power stations received public aid, depending on their size, for 10 years. Under the scheme, 14 coal-fired power stations received more than €440 million in state support through payments to run until 2020.
The Spanish authorities did not notify the measure to the Commission so that it could carry out its examination.
Although Directive 2001/80/EC on limiting emissions of certain pollutants into the atmosphere from major combustion plants lays down emissions obligations, the Commission has concerns that the Spanish regime was set in place solely to comply with these obligations.
If this was the case, therefore, the measure would have had no incentive effect in terms of environmental support and would run counter to EU state aid rules, as the national authorities may not grant such support to companies to allow them to comply with compulsory EU environmental standards. Furthermore, the regime in question is suspected of breaching the 'polluter pays' principle and would give Spanish coal-fired power stations an unfair competitive advantage over businesses producing electricity in Spain by other means, or over other coal-fired power stations in the EU.
For these reasons, the Commission has decided to open an in-depth investigation. (Original version in French by Lucas Tripoteau)