Home Economy Brussels approves 175 million euro state aid program

Brussels approves 175 million euro state aid program

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The maximum amount of assistance per beneficiary will be equal to 75% of the indirect issuance costs incurred in the ETS.

ANTONIO KOTRIM/LUSA

The maximum amount of assistance per beneficiary will be equal to 75% of the indirect issuance costs incurred in the ETS.

ANTONIO KOTRIM/LUSA

The European Commission approved this Thursday a €175 million state aid scheme for Portugal to help energy-intensive companies cope with high electricity prices.

The regime is called upon, according to the communiqué of the head of the community, partially compensate energy-intensive companies higher electricity prices as a result of the impact of carbon prices on electricity generation costs (so-called “indirect emissions costs”) incurred between 2021 and 2030 under the EU Emissions Trading Scheme (ETS).

This measure will benefit the respective companies “which face significant energy costs and are particularly subject to international competition”, with government assistance provided by partially offsetting the indirect costs of greenhouse gas (GHG) emissions incurred in the previous year, with final payment in 2031.

The maximum amount of assistance per beneficiary will be equal to 75% indirect cost of issuance incurred in the ETS.

To encourage energy conservation, the amount of assistance is calculated on the basis of electricity consumption efficiency benchmarks with the participation of beneficiaries. apply specific energy audit recommendationscover at least 30% of its electricity consumption with carbon-free sources or invest at least 50% of the amount of assistance in projects that will lead to a significant reduction in greenhouse gas emissions at its facilities.

Beneficiaries will be required to fulfill one of these obligations within three years of the granting of assistance.

Geopolitical tensions over the war in Ukraine have affected the European energy market as the EU remains dependent on Russian fossil fuels such as gas (despite pipeline imports falling from 40% to less than 10%), fearing cuts and disruptions in power supply. deliveries this winter.

Source: Observador

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