NON-FOSSIL FLEXIBILITY TECHNOLOGIES IN ELECTRICITY SECTOR
The European Commission approved a €1.3 billion French scheme aimed at developing cost-efficient and non-fossil flexibility technologies. The scheme's objective is to ensure that supply and demand of electricity are kept in balance during times of peak consumption (such as during the winter period). Further Information can be found here.
DEVELOPMENT OF CENTRALISED ELECTRICITY STORAGE SYSTEM
The European Commission approved a €17.7 billion Italian scheme to support the construction and operation of a centralised electricity storage system. It is intended to enable the integration of renewable energy sources in the Italian electricity system and will support the construction of storage facilities with a joint capacity of more than 9 GW/71 GWh with the aim of developing a centralised electricity storage system. The aid available under the scheme will take the form of annual payments covering investment and operating costs to electricity storage developers. The scheme will run until 31 December 2033. Further information can be found here.
DECARBONISATION OF STEEL PRODUCTION THROUGH HYDROGEN USE
The European Commission approved a €2.6 billion German measure to support SHS Stahl-Holding-Saar GmbH & Co KGaA ("SHS") in partly decarbonising its steel production processes in Saarland, Germany, where SHS operates two blast furnaces and five basic oxygen converters producing crude steel. The aid is intended to support the construction of a direct reduction plant and two new electric arc furnaces that will replace the existing blast furnaces and oxygen converters. Ultimately, the new installation will operate using mainly low-carbon and renewable hydrogen. Further information can be found here.
NEW STATE AID RECOVERY INTEREST AND REFERENCE RATES FROM 1 JANUARY 2024
On 28 December 2023, a European Commission notice on state aid recovery interest rates and reference/discount rates for all 27 EU Member States and the UK was published in the OJEU. Rates have been increased for the eurozone countries, Bulgaria, Denmark, Sweden and the UK, and decreased for the Czech Republic, Hungary, Poland and Romania. The rates are applicable from 1 January 2024. The link to the data can be found here.
INVESTMENT IN EQUIPMENT NECESSARY TO FOSTER THE TRANSITION TOWARDS A NET-ZERO ECONOMY
The European Commission approved a €1 billion Slovak State aid scheme to support investment for the production of equipment necessary for transition to a net-zero economy. Under this measure, the aid (up to an amount of €350 million per company) will take the form of direct grants, income tax reliefs and transfers or leases of immovable property for a price below market value. The measure is available to companies producing relevant equipment, such as batteries, solar panels, and wind turbines as well as related critical raw materials necessary for their production. Further information can be found here.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
