On Wednesday 20 July the European Commission adopted an amendment to the State aid Temporary Crisis Framework, initially adopted on 23 March 2022 to support the economy in the context of the Russian invasion of Ukraine.
Margrethe Vestager, Executive Vice-President in charge of Competition Policy, said the changes help “accelerate the rollout of renewable energy as well as the decarbonisation of industries, in line with the REPowerEU objectives”.
The changes to this framework complement the measures announced on the same day to reduce gas consumption in Europe by 15% until next spring (see other news).
Measures to accelerate the deployment of renewable energy. Member States may establish support schemes for investments in renewable energy, including renewable hydrogen, biogas and biomethane, storage and renewable heat, including through heat pumps, with simplified tendering procedures that can be implemented quickly, while including sufficient safeguards to protect the level playing field. In particular, Member States are able to design schemes for a specific technology, requiring support in view of the particular national energy mix.
Measures to facilitate the decarbonisation of industrial processes. To further accelerate the diversification of energy supplies, Member States may support investments to phase out fossil fuels, including through electrification, energy efficiency and a shift to the use of renewable hydrogen and electricity-based hydrogen (under certain conditions). This amendment allows Member States to: - set up new aid systems based on calls for tender; - or support projects directly, without tenders, with certain limits on the share of public support per investment. Specific top-up bonuses would be provided for small and medium-sized enterprises and for particularly energy-efficient solutions.
Under these two new sections, Member States must ensure that projects are implemented within a specific timeframe to ensure an effective acceleration effect in reaching the REPowerEU objectives. Aid under these sections may be granted until 30 June 2023.
The temporary framework now allows Member States to grant limited amounts of aid to companies affected by the current crisis or by sanctions, up to the increased amounts of €62,000 and €75,000 in the agriculture, and fisheries and aquaculture sectors respectively, and up to €500,000 in all other sectors.
The aid to cover the increase in energy costs can only cover a maximum of 70% of the beneficiary’s gas and electricity consumption during the same period in the previous year.
Link to the new revised Temporary Crisis Framework: https://aeur.eu/f/2pd (Original version in French by Lionel Changeur)