European Commission approves € 250 million to support the construction and operation of a hydroelectric storage facility in Amfilochia
THE European Commission, approved a Greek measure to support the construction and operation of a hydroelectric storage facility in Dispute, according to its rules EU for state aid.
The measure will be partly funded by Recovery and Durability Mechanism (RRF), following the Commission’s positive assessment of the Greek recovery and resilience plan and its approval by the Council.
The aid will take the form of an investment grant 250 million euros and annual support – financed by a contribution to electricity suppliers – to supplement market revenue in order to achieve an acceptable return on investment.
The supported storage facility will have a capacity of 680 MW and will be connected directly to high voltage transmission lines. By supporting the operation of existing renewable energy units as well as allowing the introduction of new ones, the project will contribute to the smooth and efficient transition to clean renewable energy of the Greek electricity system.
The Commission has assessed the measure on the basis of EU State aid rules, in particular Article 107 (3) (f) of the Treaty on the Functioning of the European Union, which allows Member States to support the development of certain economic activities under certain conditions, and state aid guidelines for environmental and energy protection.
The Commission found that the aid was necessary and justified, as the project would not have been possible without public support. In addition, the measure is proportionate, as the level of aid corresponds to the actual funding needs and the necessary safeguards will be applied to keep aid to a minimum.
Response: Irini Zarkadoula, Brussels