Commission approves €578 million Romanian state aid scheme to support energy-intensive companies

The European Commission has approved, under EU state aid rules, a €578 million (RON 2.9 billion) Romanian scheme to lower an electricity levy rate for energy-intensive companies. The levy is intended to promote electricity from renewable energy sources. The scheme aims at mitigating the risk that, due to this levy, energy-intensive companies may relocate their activities to locations outside the EU with less ambitious climate policies.

The measure will benefit companies in sectors listed in Annex 1 of the 2022 Guidelines on State aid for climate, environmental protection and energy (‘CEEAG'). Those sectors rely heavily on electricity and are particularly exposed to international trade. Beneficiaries will receive a levy reduction between 75% and 85%, depending on their risk exposure. The applicable reduction must not result in a levy below 0.5 EUR/MWh.

Under the scheme, beneficiaries will have to either (i) implement certain energy audit recommendations, (ii) cover at least 30% of electricity consumption with carbon-free sources, or (iii) invest at least 50% of the aid in projects leading to substantial reductions of the installation's greenhouse gas emissions.

Executive Vice President Margrethe Vestager, in charge of competition policy (pictured), said: “This €578 million scheme enables Romania to support companies particularly exposed to international trade and relying heavily on electricity for their activities. The scheme maintains incentives for an effective decarbonisation of the Romanian economy, in line with the European Green Deal objectives. At the same time, it keeps distortions of competition to the minimum.”

A press release is available online.

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