Commission for the Environment, Climate change and Energy

New Guidelines for State Aid in the Field of Energy

Opinion factsheet

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  • Climate Change and Energy

Objective

From the local and regional point of view, the new guidelines should ideally increase aid thresholds and aid intensities, and specifically extend the scope of the application of the General Block Exemption Regulation (i.e, cases when no prior notification is required.)
This extension of scope could apply to such locally and regionally important areas as combined heat and power production. Moreover, it might be necessary to call for district heating to be included in the new Guidelines, subject to environmental conditionality.

Essential points

THE COMMITTEE OF THE REGIONS

- draws attention to the difficulty of reconciling the competition framework at EU level, for which the EU has exclusive competence, with the fundamental principles of EU energy policy, which provide for shared competence between the EU and its Member States, whilst taking account of the subsidiarity principle and the important role of local and regional authorities, especially local and regional energy agencies;

- calls for local and regional beneficiaries to be included in drafting aid schemes, and advocates a guarantee of transparency in all decisions to be taken concerning state aid for energy;

- has reservations about the Commission's intention to replace the feed-in tariff for energy from renewables, whereby green energy producers receive a fixed price per kWh, with feed-in premiums;

- asks that the eligibility ceiling for aid for alternative energy production installations starting commercial production for the first time and for small plants be increased to 5MW, and to 15MW for wind power plants;

- wonders whether the specific reference to CCS (carbon capture and storage) technology is compatible with the principle of being technology neutral which the Commission espouses elsewhere; and points out that subsidies for fossil fuels should be axed in the short term as they result in distorted competition and considerable environmental costs. At the same time, market principles should also apply to nuclear energy, which should not be included in the guidelines for state aid for energy;

- endorses the CEDEC (European Federation of Local Energy Companies) opinion as regards facilitating investments in smart distribution technologies for electricity networks.