Brussels, 20/12/2006 (Agence Europe) - On Wednesday, the European Commission authorised aid of €76 million which the German government intends to grant to Conergy over three years for the creation of a new production plant for solar energy modules in Frankfurt (Oder), Brandenburg. It took the view that the aid was compatible with the rules on regional state aid to large investment projects. The project, which will be spread over three years (2006-2008), is aimed at producing solar energy modules which make it possible, as the main part of an integrated solar energy system, to convert sunlight into electricity. The project is expected to create around 1,000 new jobs in Frankfurt (Oder) which is a disadvantaged area eligible for regional aid and has an unemployment rate of 20.1%.
The aid would be partly paid in the form of a grant under a scheme for the improvement of the regional economic structure (Gemeinschaftsaufgabe). The rest of the aid would take the form of a tax reduction under the law on investment premiums 2005 and 2007 (Investitionszulage 2005 under 2007). Both schemes have been previously approved by the Commission. However, the aid for Conergy had to be notified to the Commission for individual clearance as it concerns a large investment project. On the basis of Article 87(3) of the EC Treaty, state aid granted to promote the economic development of certain disadvantaged areas within the European Union may be considered compatible with the Single Market. (hb)