Brussels (Brussels Morning Newspaper) – The EU Commission approved a €180 million Lithuanian State aid scheme to back electricity storage to facilitate the transition to a net-zero economy.
The European Commission has agreed to a €180 million Lithuanian scheme to support electricity storage to promote the transition towards a net-zero economy, in line with the Green Deal Industrial Plan. The scheme was endorsed under the State Aid Temporary Crisis and Transition Framework (‘TCTF’), assumed by the EU Commission on 9 March 2023 and revised on 20 November 2023 and on 2 May 2024.
How will the €180 million aid support energy storage?
According to the EU Commission, the purpose of the scheme is to fund investment in new electricity storage capacities to enable the smooth integration of electricity produced from renewable sources in the system, to assist in the development of competitive balancing markets and to improve national energy security as well as in the other Baltic States.
Moreover, under the scheme, the aid will take the form of direct contributions to support the structure of at least 1200 MWh of new electricity storage capacities. The measure will be open to all storage technologies directly linked to the transmission network. The undertakings will be selected through a competitive bidding process and the maximum support intensity is 30% of the relevant investment costs.
What are the key details of the Lithuanian storage scheme?
The European Commission figured that the Lithuanian scheme was as per the conditions outlined in the TCTF. In special, (i) the aid intensity of the investment grant will not surpass 30% of the relevant investment costs; (ii) all electricity storage technologies are suitable for the tendering process, and (iii) the aid will be given no later than 31 December 2025.
The Commission found that the scheme is essential, appropriate and proportional to accelerate the green transition and encourage the development of certain economic activities, which are of importance to execute the REPower EU Plan and the Green Deal Industrial Plan, in line with TFEU and the conditions set out in TCTF. On this basis, the EU Commission backed the scheme under EU State aid rules.
