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Commission approves EUR 103 million Romanian scheme under the Recovery and Resilience Facility
The European Commission has approved, under EU State aid rules, a Romanian scheme of EUR 103 million (RON 512 million) to support the construction of electricity storage facilities. This measure will be partly financed by the Recovery and Resilience Facility (“RRF”), following the positive assessment by the Commission of the Romanian Recovery and Resilience Plan and its adoption by the Council.
The aim of this scheme is to support investments in battery-powered electricity storage facilities, enabling a smooth integration of renewable wind and solar energy into the Romanian energy system.
Aid under the scheme will take the form of a direct grant for projects selected through a competitive bidding process. The aid granted to each beneficiary shall not exceed: (I) 100 % of the project funding gap, (ii) EUR 167 000 per MWh of installed storage capacity, or (iii) a maximum amount of EUR 15 million. The projects will be selected by 31 December 2023 and have to be completed by 31 December 2025.
The Commission has assessed the scheme under Article 107(3)(c) TFEU which allows Member States to support the development of certain economic activities under certain conditions and on the basis of the Guidelines on State aid for climate, environmental protection and energy.
The Commission found that the scheme proposed by Romania is necessary and appropriate to accelerate investment in electricity storage facilities, thus contributing to the EU’s strategic objectives related to the green transition. In addition, the Commission concluded that the scheme is proportionate, as the aid will be limited to the minimum necessary, and that it will not have unintended negative effects on competition and trade in the EU.
On the basis of these considerations, the Commission approved the Romanian scheme under EU State aid rules.
The Commission assesses as a priority the State aid measures contained in the national recovery plans presented in the context of the RRF and has provided guidance and support to Member States in the preparatory phases of the national plans, in order to facilitate the swift implementation of the RRF.