EU green lights Danish state aid to support energy intensive industry

The European Commission has approved state aid to support energy intensive users in Denmark. It believes Danish plans to partially compensate more energy intensive users for the levy to support […]

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By Jacqueline Echevarria

The European Commission has approved state aid to support energy intensive users in Denmark.

It believes Danish plans to partially compensate more energy intensive users for the levy to support renewables are in line with state aid rules.

Under the new measure, energy intensive users will be compensated for up to 85% of their contribution to the financing of green energy support.

It will support the competitiveness of these users without distorting competition in the single market, the Commission adds.

The Danish public support for renewable energy is at present financed through contributions levied on electricity consumption. The Commission allows Member States to grant reductions from such contributions under certain conditions.

In October 2015, it approved a Danish scheme granting such reductions for users in certain sectors that met the conditions under the EU guidelines. Denmark has now notified plans to extend the scope of reductions to energy-intensive users in several additional manufacturing sectors and four horticulture sectors.

The EU has also approved four French measures to support the production of renewable electricity.