S.10.2. Competition Law

D.10.2. Competition Law

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Electro-intensive industries off the hook for RES support

Friday, February 6, 2015

The EC has approved a Romanian plan allowing electro-intensive industries a reduction in RES  support payments.

The EC considers that the granting by Romania of reductions in RES financing payments to certain energy-intensive users is in line with EU state aid rules. Indeed, such reductions appear necessary to guarantee the competitiveness of energy-intensive industries “without unduly distorting competition in the Single Market”. The Romanian measures were thus deemed compatible with the provisions of the 2014 Energy and Environmental Aid Guidelines.

Romania had notified the EC in July 2014 of its plans to grant electro-intensive industries a 85%, 60% or 40% reduction in RES support payments depending on whether their electro-intensity is above 20%, between 10%-20% or between 5%-10% respectively, combined with a number of additional conditions including the requirement that they “carry out energy audits and implement measures to improve their energy efficiency”.