Brussels (The Brussels Morning Newspaper) – The EU Commission approved an amendment to the Italian State aid scheme under the Recovery and Resilience Facility to fund investments in photovoltaic panels in the agricultural sector.
How Will the Increased Budget Support Photovoltaic Investments?
The European Commission has consented, under EU State aid rules, to an amendment to an Italian scheme made known through the Recovery and Resilience Facility (‘RRF’) to sponsor investments in photovoltaic panels in the agricultural sector.
What Is the Timeline for Italy’s Agricultural Solar Project?
The scheme was originally endorsed by the EU Commission in July 2022, and its amendment in June 2023. The scheme seeks to support agricultural, breeding and agro-industrial firms to invest in the use of renewable energy. The project will run until 31 December 2026. Italy reported one amendment to the project, namely a budget boost of €785 million, bringing the overall budget of the scheme to €1.6 billion.
Why Is the Scheme Crucial for Sustainable Agricultural Growth?
The EU Commission evaluated the amended scheme under the EU State aid rules, in special, Article 107(3)(c) of the Treaty on the Functioning of the EU, which authorises Member States to back the development of certain economic movements under certain conditions, and the Guidelines for State aid in the agricultural and forestry sectors and in rural locations. The EU Commission discovered that the amended scheme remains essential, appropriate and proportionate to assure sustainable growth of the agricultural sector. On this basis, the EU Commission approved the scheme under EU State aid rules
What Are the Expected Benefits for the Agricultural Sector?
The Commission concluded that the scheme will Facilitate the growth of certain economic activities, in particular the investment in photovoltaic panels in the agricultural sector. Has a limited impact on competition and trade within the EU. It is necessary and proper to ensure the sustainable growth of the agricultural sector. It is proportionate, as any adverse effect on competition and trade in the EU will be determined given the size of the projects, the aid amounts and the elements of the sector.
Moreover, It will improve the competitiveness of the agricultural sector and have favourable effects on climate, as it enables operators to use renewable energy instead of fossil one. In addition, the action is in line with the EU’s rural development objectives and the EU’s strategic purposes relating to the green transition.
