On Monday 18 May, the European Commission approved two State aid schemes in the energy sector. The first, worth €405 million, is intended for Greece, and is designed to reduce electricity charges for particularly energy-intensive businesses. The second, worth €300 million, is aimed at Ireland, and is designed to increase the production of heat from renewable sources.
The Greek State aid scheme will enable certain sectors that are highly exposed to the risk of relocation outside the European Union, such as natural gas extraction, mineral extraction and oil refining, to benefit from a reduction of between 75% and 85% in their electricity levies, up to a minimum of €0.5 per megawatt-hour.
In return, beneficiary companies will have to commit to investing at least 50% of this aid in projects to reduce greenhouse gas emissions or to covering 30% of their electricity consumption with carbon-free sources.
This new aid scheme will apply retroactively from 1 January 2024 to 31 December 2026.
Irish scheme. The Irish scheme will support users of renewable non-domestic heating systems, such as those using biomass, methanisation or combined heat and power, by granting them fixed tariffs per heat production unit. It aims to increase the share of renewable energy in heating by 3%.
Aid will be capped on a project-by-project basis, and there will be periodic reviews “to avoid any overcompensation”, warns the Commission in a press release.
Users will be eligible for this aid until 31 December 2030 and payments can be made until 31 December 2047. (Original version in French by Nadège Delépine)