European Commission approves Italian State aid scheme to support renewable energy production
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In a press release, the European Commission declared that it had granted support for an Italian scheme, under state aid rules, to add 4590 MW capacity of new renewable power generation sources.
According to the release, the scheme contributes to the EU’s strategic objectives relating to the European Green Deal, alongside helping to eliminate the EU’s reliance on fossil fuels imported from Russia and fast forward the green transition.
The proposed scheme will support the development of new plants functioning on geothermal energy, offshore wind power, thermodynamic solar, floating solar, tidal and other renewable energy, as per the release.
These plants are believed to add “4590 MW of renewable electricity capacity” to the Italian electricity grid. Depending on the technology used at the plant, the deadline for successful plants to start operations varies. It could be anywhere between 31 and 60 months.
Also read: EU to officially withdraw from Energy Charter Treaty
The aid, according to the press release, will “take the form of a two-way contract for difference for each kWh of electricity produced and fed into the grid, and will be paid for a duration equal to the useful life of the plants.”
A non-discriminatory and transparent process will reportedly be used to select the projects on which the concerned parties will bid on the incentive tariff required to carry out each project.
The release also featured a comment from Margrethe Vestager, the Executive Vice President in charge of competition policy. She said, “This scheme enables Italy to support the production of renewable electricity from various technologies, including innovative ones. “
“The measure helps Italy meet its emission reduction and electricity production targets. It will also contribute to achieving the European Green Deal objectives while limiting possible distortions of competition”, she added.
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