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EU state aid framework for energy

Creating a level playing field for low carbon industries

The European state aid framework is one of the most important levers the European Commission has at its disposal to enforce the single market principles. The new rules, to be adopted in April 2014, will apply over the period 2014-2020. Both the Energy and Environmental Aid Guidelines (EEAG), and the General Block Exemption Regulation (GBER) will thus impact delivery of the internal market, many national climate and energy policies, and the political dynamics between European Commission and Member States during the rest of the decade.

This showcase explores different elements of the “state aid” issue.

First, it demonstrates the role of state aid in creating a green economy and outlines a range of measures which would support Member States’ efforts towards their transition to a low-carbon and resource-efficient economy.

Secondly, it addresses the implications of the European regime on national policies – the nascent capacity markets, support schemes for renewables, deployment of demand-side resources, but also nuclear subsidies and industry exemptions.

Finally, it presents the wider repercussion on European politics and the wider internal energy market agenda.

Don't miss our starter guide on ‘What is state aid?’.