The European Commission has adopted a new State aid framework designed to support the Clean Industrial Deal and accelerate Europe’s transition towards a climate-neutral economy. The new Climate, Environmental Protection and Energy State Aid Framework (CISAF) will be in effect until 31 December 2030 and replaces the Temporary Crisis and Transition Framework (TCTF), which was introduced in 2022.

Renewables at the heart of the green transition

A central feature of the CISAF is its simplification of State aid rules to facilitate the roll-out of renewable energy and low-carbon fuels, such as green and blue hydrogen. These technologies are key to achieving the EU’s decarbonisation goals and reducing reliance on fossil fuels.

The framework introduces fast-track procedures to allow for quicker approval of State aid supporting solar, wind, and other clean energy projects. It also enables Member States to deploy capacity mechanisms and flexibility measures to better integrate intermittent renewable sources into the grid while maintaining reliability of electricity supply.

Reacting to the announcement, SolarPower Europe called the framework a “watershed moment” for the European industry. CEO Walburga Hemetsberger said:
“For the first time, EU governments can support electricity costs for their countries’ heavy industry. If applied well, these new rules will help more European companies benefit from the climate and cost advantages of solar-based electrification.”

Notably, the new rules allow SMEs to install rooftop solar without going through burdensome auction processes, and enable utility-scale solar projects to still receive aid during periods of negative market pricing—provided they are curtailed and not injecting into the grid.

Support for energy-intensive industries

The CISAF also permits Member States to temporarily reduce electricity prices for energy-intensive industries, particularly those facing international competition and exposed to higher costs under ambitious climate policies. In return, companies benefiting from price relief must commit to investments in decarbonisation.

However, SolarPower Europe cautioned that such support must not undermine the competitiveness of renewables:
“Fossil fuels must not be made artificially cheaper at the expense of low-cost, renewable electricity—the structural solution to energy competitiveness,” Hemetsberger warned.

Backing clean tech manufacturing—but more is needed

The framework allows Member States to support investments in new manufacturing capacity for all technologies covered by the Net-Zero Industry Act, as well as the production and processing of critical raw materials necessary for clean technologies.

Despite these steps, SolarPower Europe expressed concern over the limited support for new solar manufacturing projects, especially regarding operational costs.
The association urged the Commission to establish a Clean Tech Manufacturing Bank, including a dedicated Solar Manufacturing Facility, offering production-linked aid to secure Europe’s solar manufacturing base and meet the 30GW target by 2030.

Enabling investment and innovation

Beyond renewables and manufacturing, CISAF provides a wide range of support options, including:

• Aid for the decarbonisation of existing industrial sites, including electrification, biomass, hydrogen, and carbon capture technologies.

• Measures to support the circular economy and energy infrastructure projects.

• Financial tools to de-risk private investments, such as equity, loans, or guarantees via dedicated funds or special purpose vehicles.

• Tax incentives to stimulate demand for clean technologies by allowing companies to deduct investments more rapidly from taxable income.

Additionally, more generous aid will be available in less developed regions, helping ensure a just and balanced transition across Europe.