State aid: Commission approves Greek scheme under Recovery and Resilience Facility to support development of electricity storage facilities

The European Commission has approved, under EU state aid rules, a Greek measure with an estimated budget of €341 million to support the construction and operation of storage facilities in the electricity system. The measure will be partly funded by the Recovery and Resilience Facility (‘RRF'), following the Commission's positive assessment of the Greek Recovery and Resilience Plan and its adoption by the Council. The measure aims at allowing a smooth integration in the Greek electricity system of an increasing share of renewable energy coming from wind and solar sources. The scheme will also contribute to the EU's strategic objectives relating to the EU Green Deal. The scheme will promote the establishment of several electricity storage facilities, with a joint capacity of up to 900 MW, connected to the high-voltage network.

The aid will be granted, cumulatively, in the form of: (i) an investment grant, which will be paid during the construction phase of all supported projects; and (ii) an annual support to be paid during the operations phase of the projects, for a 10-year period. The Commission assessed the measure under EU state aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union, which enables EU countries to support the development of certain economic activities subject to certain conditions, and the Guidelines on State aid for climate, environmental protection and energy 2022. On this basis, the Commission approved the measure under EU state aid rules.

Executive Vice President Margrethe Vestager, in charge of competition policy, said: “Increasing available electricity storage capacity in the system is key to make grids more flexible and better prepared for a future in which renewables form the backbone of the decarbonised electricity mix. The Greek aid measure we have approved today, which will be partly funded by the Recovery and Resilience Facility, will contribute to the development of competitive markets for electricity system services, while helping Greece meet its emission reduction targets.” A press release is available here.

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