The European Commission is working on new State Aid rules for energy
The European Commission is writing new State Aid rules for energy. These rules are really important for the sector – they decide if and how national and regional governments can fund renewable energy projects.
The new draft rules are a big improvement on the old rules. They are much simpler, so renewable projects are easier to fund than other sectors.
Most importantly the % ‘thresholds’ on public funding are removed. Now governments can provide as much public funding as is needed to close a project’s ‘funding gap’. It will be much simpler to properly fund demo projects, and to combine different sources of public funds. So this is a big win. In addition, national governments can still allocate revenue support to individual technologies – so ocean energy does not need to compete directly against more established mature tech.