The scheme, which will run until December 31, 2031, will lower the electricity levy rate for energy-intensive firms, mitigating the risk of these companies moving their activities to locations outside the EU with less ambitious climate policies, the Commission said in a press release.
“In 2011, Romania introduced green certificates for promoting electricity from renewable sources, under which eligible producers of electricity from renewable energy sources receive green certificates for each megawatt hour produced and delivered to the grid. Electricity suppliers are obliged to purchase a mandatory quota of green certificates. The costs of the green certificates are ultimately passed on to consumers through a levy,” the EU executive arm explained. The levy is thus meant to promote electricity from renewable sources.
The beneficiaries of the Romanian state aid scheme will be companies operating in the sectors listed in Annex 1 of the EU’s 2022 Guidelines on State aid for climate, environmental protection and energy (CEEAG) – sectors which rely heavily on electricity and are particularly exposed to international trade. Beneficiary companies will receive levy reductions between 75% and 85%, depending on their risk exposure, without bringing the levy amount below 0.5 euro per MWh.
In exchange for the aid, beneficiaries will have to either implement certain energy audit recommendations, cover at least 30% of their electricity consumption with carbon-free sources, or invest at least 50% of the aid received in projects leading to major cuts in greenhouse gas emissions.