The European Commission has published its new EU Guidelines on State Aid for Climate, Environmental Protection and Energy.
The new guidelines allow national governments to hold technology specific auctions and endorse revenue stabilisation mechanisms, notably two-sided contracts for difference.
These are pre-conditions for the accelerated deployment of wind energy towards climate neutrality.
The EU Guidelines on State Aid for Climate, Environmental Protection and Energy (CEEAG) define the measures national governments can take to grant state aid in line with internal market rules notably when it comes to renewables.
The revised State Aid guidelines allow national governments to hold competitive auctions for renewable energy projects.
They offer member states the flexibility to hold technology-specific auctions.
The energy transition can only be delivered with a mix of different renewable technologies.
Complementary technologies essential to Europe’s future energy system, such as wind and solar, need to scale up in parallel.
The guidelines specifically mention revenue stabilisation mechanisms in the form of two-sided CfDs as a good model to support the further expansion of renewables.
“National governments can continue with technology-specific auctions: good. They’re critical to the visibility of the industry and preserving and expanding the European wind supply chain”, said Pierre Tardieu (pictured), chief policy officer at WindEurope.
Price will continue to be the lead criterion for allocating public support to wind energy projects, but not the only one.
The European Commission decided to allow for up to 30% of non-price-based criteria to be introduced to national auctions.
The State Aid Guidelines are broadening the scope of state aid to allow for different decarbonisation technologies to be supported.
This includes that storage and renewable hydrogen projects are eligible for State support. WindEurope welcomes this aspect.
The EU Hydrogen Strategy defines renewable hydrogen as the form of hydrogen most compatible with the EU’s climate neutrality target.
WindEurope said It is now important that the European Commission works within these guidelines and approves support that will help close the cost gap between fossil and renewable hydrogen and accelerate the scaling up of electrolysers.