How EU state aid can shape the UK electricity market reform

How EU state aid can shape the UK electricity market reform

On Monday, ClientEarth, E3G and RAP hosted a select number of representatives from academia, NGOs, think tanks, consumer groups and the renewable industry to discuss and understand how the evolving EU state aid framework would impact delivery of the UK electricity market reform and the wider decarbonisation objectives.

This discussion was particularly timely in the context of the UK government’s proposals to amend its planned contract-for-differences mechanism (see consultation) in line with the European Commission’s proposals for its next Energy and Environmental Aid Guidelines (see consultation). The EEAG, and sister General Block Exemption Regulation (see consultation) will be a powerful lever for the Commission to enforce single market principles and approve Member States’ support to renewables, energy savings, or capacity markets, throughout 2014-2020.

E3G’s Simon Skillings first presented the UK Electricity Market Reform proposals in the context of the EU energy policy landscape. Maria Kleis from RAP then drew the participants’ attention to the relevance of the European state aid framework in delivering decarbonisation, internal energy market and affordability objectives. Then followed a lively discussion of the most specific impacts of the EU state aid framework for the UK EMR plans -main conclusions are summarized in the table below.


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