Romania's plan to provide EUR 259m in state aid for PV and batteries cleared by EC

• European Commission approves Romania's state aid of EUR 259m for batteries, solar photovoltaic (PV) cells and panels, partially financed through Recovery and Resilience Facility (RRF).

What happened:

The European Commission has given its approval to Romania's plan to grant EUR 259m in state aid to companies that are involved in the production, assembly, and recycling of batteries, solar photovoltaic (PV) cells and panels. The Romanian government intends to directly provide the aid to companies located in areas eligible for regional aid. The aid scheme will be available until the end of 2024 and partially financed through the Recovery and Resilience Facility (RRF). The EC found the plan to contribute to the country's regional development and is necessary for the growth of areas that are included in its regional aid map. The plan does not have any significant negative effects in terms of competition distortion and impact on trade between Member States. (Source: PV Tech)

Why does it matter:

The Romanian government's plan to offer state aid to companies that are involved in the production, assembly and recycling of batteries and solar PV cells and panels is a significant step towards sustainable energy development in the country. The move is aligned with the European Union's Green Deal initiative and supports the Romanian government's aim to achieve climate neutrality by 2050. The scheme will provide a much-needed boost to the country's solar energy industry and help accelerate the shift towards renewable energy sources, which will further reduce the nation's carbon footprint. Romania is expected to increase its solar capacity by 3.3 GW by 2025. The move will also generate employment opportunities in the solar and battery production sector.

What's next:

The EC's approval of the Romanian government's state aid plan for PV and batteries is a positive development that will help the country accelerate its transition towards renewable energy sources. The approval is expected to attract foreign investments in the sector and promote the country's regional development. The aid scheme will also help the country to recover from the economic effects of the COVID-19 pandemic. With the scheme in place until 2024, companies operating in the sector can benefit from the state aid while also contributing to the nation's sustainable energy goals. The move is expected to increase Romania's energy security and help reduce the country's dependence on imported energy sources.