European Commission Approves ’Green’ State Aid to Croatia

On December 9, 2021, the European Commission (’’Commission’’) approved Croatian State aid in the amount of EUR 783 million to support the production of electricity from renewable energy sources as part of the European Union’s endeavors to meet the climate and energy objectives set by the Communication ‘A policy framework for climate and energy in the period from 2020 to 2030’.

The Croatian scheme will be open until 2023 and will be paid out to the selected beneficiaries for a period of 12 years.  The Commission assessed this scheme under the 2014 Guidelines on State aid for environmental protection and energy and found that this aid is necessary in order to support Croatia’s commitment to achieving the European climate targets and environmental objectives.

The aid will take the form of a premium on top of the electricity market price and the premium will be determined through a competitive bidding process and will not be higher than the difference between the average production cost and the electricity market price.  The selection of the beneficiaries will take place in the period 2021-2023.

 

Authors: Milica Novaković, Jelena Škorić, Ivana Stojanović-Raišić