Alina Oprea • 23 March, 2023 at 11:26 AM
The European Commission has approved, in accordance with EU state aid rules, a Romanian scheme worth €103 million (RON512 million) to support the construction of electricity storage facilities. This measure will be partially financed by the Recovery and Resilience Mechanism ("MRR"), following the Commission's positive assessment of Romania's Recovery and Resilience Plan and its adoption by the Council.
The aim of this scheme is to support investments in battery-based electricity storage facilities, enabling a smooth integration of energy from wind and solar renewable sources into the Romanian energy system.
Aid under the scheme will be in the form of a direct grant for projects selected through a competitive bidding procedure. The aid granted to each individual beneficiary will not exceed (i) 100% of the project's financing gap, (ii) €167,000 per MWh of installed storage capacity, or (iii) a maximum amount of €15 million.
Projects will be selected by December 31, 2023, and must be completed by December 31, 2025.
The Commission assessed the scheme on the basis of Article 107 paragraph (3) letter (c) of the TFEU, which allows Member States to support the development of certain economic activities under certain conditions, as well as on the basis of the Guidelines on state aid for climate, environmental protection, and energy.
The Commission found that the scheme proposed by Romania is necessary and appropriate to accelerate investments in electricity storage facilities, thus contributing to the EU's strategic objectives related to the green transition.
In addition, the Commission concluded that the scheme is proportionate, as the aid will be limited to the minimum necessary, and that it will not have undesirable negative effects on competition and trade within the EU. Based on these considerations, the Commission approved Romania's scheme under EU state aid rules.
The Commission assesses as a matter of priority measures involving State aid contained in the national recovery plans presented in the context of the MRR and has provided guidance and support to Member States in the preparatory stages of the national plans to facilitate the rapid implementation of the MRR. After any issues related to confidentiality will be resolved, the non-confidential version of the decision will be made available under the number SA.102761 in the State Aid Register on the Commission's website dedicated to competition.