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Commission approves support scheme for energy-intensive companies in Spain

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The European Commission has approved, under EU state aid rules, a Spanish scheme to partially compensate energy-intensive companies for the costs incurred to finance support to (i) renewable energy production in Spain, (ii) high-efficiency cogeneration in Spain, and (iii) power generation in Spanish non-peninsular territories. The scheme, which will apply until 31 December 2022 and will have a provisional annual budget of €91.88 million,  will benefit companies active in Spain in sectors that are particularly energy-intensive (hence with high electricity consumption relative to the value added of production) and more exposed to international trade.

The beneficiaries will obtain compensation for up to a maximum of 85% of their contribution to the financing of support to renewable energy production, high-efficiency cogeneration and power generation in Spain's non-peninsular territories. The Commission assessed the measure under EU state aid rules, in particular, the Guidelines on State Aid for environmental protection and energy 2014-2020, which have been extended until the end of 2021. The Guidelines authorise reductions – up to a certain level – in contributions levied on energy-intensive companies active in certain sectors and exposed to international trade, in order to ensure their global competitiveness.

The Commission found that the compensation will only be granted to energy intensive companies exposed to international trade, in line with the requirements of the Guidelines. The measure will promote the EU energy and climate goals and ensure the global competitiveness of energy-intensive users and industries, without unduly distorting competition. On this basis, the Commission concluded that the measure is in line with EU state aid rules. In connection to this scheme, the Spanish authorities have also notified to the Commission a measure granting guarantees in relation to long-term power purchase agreements concluded by energy-intensive companies for electricity from renewable energy sources, the so-called Reserve Fund to Guarantee Large Electricity Consumers (FERGEI).

This guarantee scheme aims to facilitate the production of energy from renewable sources. The Commission assessed the measure under EU state aid rules, in particular, the 2008 Commission Notice on state aid in the form of guarantees, and concluded that the state guarantee scheme does not constitute aid within the meaning of Article 107(1) TFEU. More information will be available on the Commission's competition website, in the State Aid Register.

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