EU Member States have a degree of freedom in designing their own support schemes, which are necessary for decarbonisation and the development of renewable energy, sustainable construction and transport. Some choose to focus on stimulating industry, whilst others prioritise social support for the population. At the same time, all governments must comply with the conditions of the Clean Industry State Aid Framework (CISAF) or the Social Climate Fund.
EcoPolitic has prepared a brief overview of the latest support schemes approved by the European Commission.
Lithuanian support for citizens in the transition to renewable energy
In Lithuania, revenue from the sale of emission allowances under the EU ETS is planned to be used to support a clean transition for vulnerable communities and businesses. The European Commission has already approved the country’s corresponding Social Climate Plan.
By 2032, Lithuania intends to spend €884 million on implementing the plan’s measures. Among the planned actions:
- compensating from 50% to 85% of the energy retrofit costs for more than 40,000 vulnerable households;
- purchasing over 700 electric vehicles for public transport, households, and micro-enterprises;
- expanding the network of electric charging stations in public areas;
- supporting the development of cycling infrastructure by building about 280 km of bike lanes and helping more than 14,000 people acquire bicycles;
- constructing or renovating highly energy-efficient buildings for social housing;
- establishing energy advisory centers where people can receive personalized advice on how to reduce their energy costs.
In its conclusion, the European Commission noted that Lithuania's plan meets the country's needs and contributes to the transition to clean energy and transport.
Italian clean energy
The Government of Italy plans over the next 20 years to allocate €23 billion to support the construction of "green" generation facilities. This includes solar and wind power plants, hydropower, and biogas production.
The country expects that this support will enable the creation of an additional 37.15 GW of renewable energy capacity. Thus, Italy aims to achieve one of its climate goals-to ensure that by 2030, at least 39.4% of the country's energy consumption comes from clean sources.
This is expected to lower electricity prices and reduce the entire European Union's dependence on fossil fuel imports.
The scheme, already approved by the European Commission, will function as variable payments under bilateral contracts for difference. Support is envisaged for every kWh of electricity generated and supplied to the grid, based on the so-called strike price.
The plans include organizing a separate tender for wind and solar power plants with capacities exceeding 1 MW. Power plants with lower capacity will be able to participate in the program without an auction; in this case, the strike price will be set by the national energy regulator.
Additional support for RES in Austria
The Austrian government plans to provide assistance in the form of subsidized loans for small and medium-sized enterprises. Large businesses that invest in solar and wind power plants, as well as the battery sector, may also be eligible for support.
The scheme approved by the European Commission provides for financing of €100 million in addition to an equal amount approved a year ago. The aim of these measures is to ensure sufficient production capacity for clean technologies and their components.
EcoPolitic earlier reported that the European Commission selected 65 projects in the field of clean heat supply, for which it intends to allocate €400 million from the Innovation Fund. The Fund is formed from the proceeds of emissions trading within the EU ETS.
