Commission approves prolongation and amendment of Romanian State aid scheme to support high-efficiency cogeneration of electricity and heat

The European Commission has approved, under EU State aid rules, the prolongation and amendment of a Romanian scheme to support the production of electricity and heat from high-efficiency cogeneration installations connected to district heating networks in Romania.

The scheme was originally approved in September 2022 and is due to expire on 30 June 2024. It aims at promoting the construction of new high-efficiency cogeneration plants.

Romania notified the Commission of its intention to: (i) prolong the measure until 31 July 2028; (ii) increase the budget by €362 million, bringing the total budget to €752 million; and (iii) support the installation of at least 200 MW of additional cogeneration power capacity.

The Commission assessed the amended scheme under EU State aid rules, in particular under Article 107(3)(c) of the Treaty on the Functioning of the European Union and the 2022 Guidelines on State aid for climate, environmental protection and energy. The Commission found that the amended scheme remains necessary and appropriate to promote energy-efficiency cogeneration installations in Romania and to reduce greenhouse gas emissions. Furthermore, the Commission found that the aid is proportionate and any negative effect on competition and trade in the EU will be limited. On this basis, the Commission approved the amendment under EU State aid rules.

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