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The European Commission has announced that it authorised, under EU state aid rules, the modification of a Luxembourg support scheme for the production of electricity from renewable energy sources.

The scheme was initially authorised by the Commission in September 2014 for a period until 31 December 2020, then amended in August 2016 and in March 2019.

Under the scheme, support takes the form of injection tariffs or market premiums to support the production of electricity from wind, biogas, hydropower and biomass installations. Luxembourg has notified the Commission of the following modifications to the existing regime: firstly, an extension of the regime until 31 December 2024; secondly, an increase in the budget of around €330 million for the period 2021-2024; and thirdly, revising the level of aid upwards for installations using biogas as fuel and downwards for those using waste wood as fuel.

The Commission assessed the scheme as amended in the light of EU State aid rules, in particular the 2014 and 2022 Guidelines on State aid for climate, environmental protection and environment and energy. The European Commission stated that the scheme continues to be “necessary” and “appropriate” for promoting renewable electricity production in alignment with the goals of the European Green Deal, without causing excessive distortion of competition within the single market. Consequently, the Commission approved the alteration of the Luxembourg regime following EU state aid rules.

The non-confidential version of the decision will be published (under number SA.100561) in the State aid register on the Commission's competition website, as soon as possible confidentiality issues have been resolved.