An State aid scheme aimed at supporting energy-intensive companies under EU State aid rules. The scheme seeks to reduce the electricity levy rate imposed to promote renewable energy, mitigating the risk of companies relocating outside the EU to jurisdictions with less ambitious climate policies.

Details of the scheme

The Romanian initiative stems from a green certificate system introduced in 2011 to encourage electricity generation from renewable sources. Under this system, producers of renewable electricity receive green certificates per megawatt hour generated, which suppliers must purchase, passing the costs onto consumers as a levy.

To alleviate the burden on energy-intensive sectors, the scheme will reduce levy rates for eligible companies by 75% to 85%, depending on their exposure to international competition. However, the reductions will not lower the levy below 0.5 EUR/MWh. Beneficiaries will need to comply with specific conditions, such as:

• Implementing energy audit recommendations.
  
  
• Ensuring at least 30% of electricity consumption comes from carbon-free sources.
  
  
• Investing at least 50% of the aid received in projects that substantially reduce greenhouse gas emissions.

The scheme, effective until December 31, 2031, replaces an earlier program approved in 2014 and aligns with the 2022 Guidelines on State aid for climate, environmental protection, and energy (CEEAG).

Commission's assessment

The European Commission assessed the scheme under Article 107(3)(c) of the Treaty on the Functioning of the European Union (TFEU) and the CEEAG framework. The Commission concluded that:

• The scheme supports economic activities heavily reliant on electricity and exposed to international trade.
  
  
• It is aligned with the European Green Deal’s objectives, facilitating the transition to a low-carbon economy.
  
  
• The measure is proportionate, adhering to maximum aid thresholds and targeting sectors identified in the CEEAG.
  
  
• The scheme’s benefits outweigh potential negative impacts on competition and trade within the EU.

Background

The scheme aligns with the EU’s broader climate goals under the European Green Deal and the legally binding European Climate Law, which targets net-zero greenhouse gas emissions by 2050 and a 55% reduction by 2030.

A non-confidential version of the Commission's decision will be published under case number SA.110166 in the State aid register on the Commission's competition website.