The European Commission has granted state aid approval for the Czech Republic’s new renewable energy subsidy scheme.
The nation’s new Feed-in Tariff and green bonus scheme provides financial incentives to developers of renewable energy projects, including hydropower, wind, solar, biomass, biogas and geothermal.
The Commission said the scheme “will further EU energy objectives without unduly distorting competition in the Single Market”.
The Czech authorities committed to making a series of changes in order to bring the scheme in line with the EU’s 2008 Environmental Aid Guidelines following concerns that some renewable energy producers could be receiving excessive compensation.
Joaquín Almunia, Commission Vice President in charge of competition policy said: “The implementation of the scheme helps the Czech Republic to meet its renewable energy targets and achieve its Europe 2020 goals in line with EU state aid rules.”
The decision only concerns installations commissioned since January last year and does not cover support granted to projects before that period.