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State aid: Commission authorizes €37.4 million aid for the construction of a high-efficiency cogeneration installation on Reunion Island in France

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The European Commission has approved investment aid of €37.4 million under EU state aid rules for the construction of a high-performance cogeneration plant on Reunion Island in France. This installation will produce heat with the treatment of waste and electricity for more than 10,000 homes. The installation is scheduled to come into service in the second quarter of 2023. The beneficiary of the aid is the Mixed Syndicate of Waste Treatment of the South and West Microregions of Réunion, 'ILEVA'.

This project aims to promote high efficiency combined heat and power production on Reunion Island, given that the production of these cogeneration facilities allows primary energy savings compared to separate production. of heat and electricity. This project will also increase recycling rates by reducing municipal waste in landfills at the same time. The Commission has examined the measure against EU state aid rules, in particular its 2014 guidelines on state aid for environmental protection and energy.

The Commission considered that the measure is necessary, as the project would not be profitable without the aid granted and proportionate, as the aid intensity will respect the limit of eligible costs allowed. The Commission has concluded that the scheme will support the production of electricity from high-efficiency cogeneration, in line with the EU's energy and climate targets under the European Green Deal, without unduly distorting competition in the single market. On this basis, the Commission concluded that the measure complies with EU state aid rules. The non-confidential version of the decision will be made available under case number SA.60115 in the State Aid Register on the Commission's competition website once any confidentiality issues have been resolved.

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