The EU’s new state aid rules should lead to more investment in clean technology production. The European Solar Manufacturing Council said the new framework will be the foundation of Europe’s future manufacturing ecosystem.
“Together with the amendment to the General Block Exemption Regulation (GBER) adopted by the Commission today, the Temporary Crisis and Transition Framework will help speed up investment and financing for clean technology production in Europe,” the EC said in a statement released yesterday.
The new rules are expected to allow member states to implement support programs for renewable energy and energy storage, which will run until the end of 2025, by simplifying the conditions for granting support to small projects and less advanced technologies and by reducing the need for competitive auctions.
In addition, the new rules should promote the deployment of all types of renewable energy sources, including industrial processes switching to hydrogen-based fuels, and define higher subsidy ceilings and calculations.
In addition, the framework should enable investment support for the manufacture of batteries, solar panels, wind turbines, heat pumps, electrolysis devices and carbon dioxide recovery technologies. “Member States can grant even higher percentages of investment costs if the aid is granted in the form of tax benefits, loans or guarantees,” the EC said. “However, before granting the aid, the national authorities must check the concrete risks that the productive investments will not take place in the European Economic Area (EEA) and that there is no risk of relocating operations within the internal market.”
The European Solar Manufacturing Council (ESMC) said the new framework will be the foundation of Europe’s future manufacturing ecosystem.
“The ESMC is very positive about the European Commission’s proposals, but still doubts the practical effectiveness of the proposed state aid exemptions, as the aid intensity is relatively low and achieving greater support for individual companies is quite complicated,” the organization said. opinion. “ESMC’s position is that the risk of relocating operations in the single market should not be overestimated, so the bigger problem is that the global solar manufacturing competition in the coming months and years is seriously underestimated.”
According to ESMC member countries are allowed supports the solar industry with 15-35% of investments for large companies and 35-55% for small companies. “The support of large companies with tax benefits, loans or guarantees would be feasible for large companies 20-40% (for medium-sized companies 30-50%, for small companies 40-60%) depending on the economic development area,” it explained in more detail.