Brussels, 17/07/2009 (Agence Europe) - On Thursday 16 July, the European Commission authorised two support schemes, worth €170 million, proposed by Poland in the energy sector. The first of the measures is to reduce energy losses on electricity distribution networks, and the second is to extend these networks to connect renewable energy sources. The Commission found that “the positive effects of the scheme on the environment clearly outweigh potential distortions of competition,” according to a press release issued on Thursday.
The project, co-financed by the European Structural Funds, will subsidise the operators of electricity networks who allow free access to their competitors. Distortions of competition are low since the planned subsidies, which will help bring existing networks up to the mark, will not discourage operators from investing themselves in new electricity distribution networks, the Commission notes. The method of calculating the aid should ensure that distortions of competition will be limited.
A number of regions in Poland are well placed to exploit renewable energy, but limited access to the national grid has discouraged companies from making the necessary investment. The age of parts of the national grid means up to 10% of gross energy production can be lost. (C.D./transl.rt)