EU approves Luxembourg and Malta’s state aid for renewables

Luxembourg and Malta’s plans to provide state aid for renewable energy projects have been approved by the European Commission. It said the schemes will increase power production from green sources, […]

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By Priyanka Shrestha

Luxembourg and Malta’s plans to provide state aid for renewable energy projects have been approved by the European Commission.

It said the schemes will increase power production from green sources, in line with EU energy objectives, without distorting competition.

The Luxembourg scheme introduces premium payments to support operators of wind, solar, biogas, hydropower and biomass installations. The total budget will be around €150 million (£128m), allocated between 2016 and 2020.

In December 2015, Malta also notified plans to provide support totalling €140 million (£120m) by 2020 to operators of solar and onshore wind installations.

Onshore wind developers can also tender for support if an eligible site receives development consent during the lifetime of the scheme.

The Commission stated: “The Commission found the measures will encourage the deployment of renewable electricity installations and help Luxembourg and Malta achieve their 2020 renewable energy targets.

“In line with the Guidelines, operators above 500KW receive no Feed-in Tariff but market based premium payments. Both schemes ensure that the potential distortion of competition brought about by the public financing is minimised.”