EU Clears Support for Latvian Renewable, Cogeneration Plants

The European Commission said on April 24 that it has found support granted to renewable energy and cogeneration power plants built in Latvia between 2007 and 2012 to be in line with EU state aid rules.

The Commission said it concluded that the measure helps Latvia to achieve its 2020 energy and climate objectives without unduly distorting competition. Latvia notified the existing support scheme to the Commission in 2015 for reasons of legal certainty.

Latvia reviewed the support mechanism to ensure that beneficiaries are not overcompensated and aid is limited to the minimum necessary to achieve the schemes’ objectives. The Commission’s assessment showed that the support scheme promoted the deployment of renewable power generation and cogeneration without unduly distorting the market, in line with the relevant state aid Guidelines.

All final electricity users in Latvia finance the support scheme with a levy on electricity consumption. In order to remedy any possible past discrimination against foreign green electricity stemming from the financing of the support scheme, Latvia has committed to invest in projects favouring integration with the European electricity market.