The European Commission has approved, under EU state aid rules, an amendment to an existing German renewable energy scheme, originally approved in December 2022. The amendment will increase the budget of the biomass and biogas support scheme by €7.9 billion.
The amendment will increase the tender volume, introduce a dedicated quota for biomass installations with an existing connection to a heating network and limit hours of electricity production from biogas eligible for support. It will also reduce the timeframe for old installations to switch to the new support for biomass and increase the payment for flexible electricity production.
The Commission assessed the amendments under Article 107(3)(c) TFEU, which allows member states to support the development of certain economic activities under certain conditions, and the Guidelines on State aid for climate, environmental protection and energy (‘CEEAG’). The Commission found that the amendments are necessary and appropriate to increase the electricity production from biomass and biogas. Furthermore, the Commission concluded that the scheme remains proportionate, as the aid will be limited to the minimum necessary to ensure an incentive to increase electricity generation from biomass and biogas, even at times of high electricity prices, while it will have a limited impact on competition and trade in the EU. On this basis, the Commission approved the amended scheme under EU state aid rules.
The non-confidential version of the decision will be made available under the number SA.118542 in the state aid register on the Commission’s competition website once any confidentiality issues have been resolved.
