The European Commission has approved the extension and changes to Romania’s state aid scheme to support highly efficient cogeneration of electricity and heat. The original scheme was due to expire on 30 June 2024. In addition to the extension of the period of application of the state aid scheme, Romania also received a doubling of its allocated budget. We remind you that this state aid can be seen in the bills to consumers, through the so-called cogeneration tax.

The budget increased by 362 million euros

The scheme was first approved in September 2022 and was due to expire on 30 June 2024.

Romania notified the Commission of its intention to extend the measure until 31 July 2028.

He also asked to increase the budget by 362 million euros, thus reaching a total of 752 million euros.

In addition, it sought approval to support the installation of additional cogeneration capacity of at least 200 MW.

State aid is visible in the bills

The state scheme is aimed at promoting the construction of new highly efficient cogeneration plants. This assistance is reflected in invoices to end users.

The Commission states that it has found that the amended scheme is still necessary and appropriate to promote highly efficient cogeneration plants in Romania and reduce greenhouse gas emissions.

In addition, the Commission found that the aid is proportionate and that any negative impact on competition and intra-EU trade will be limited. Based on these considerations, the Commission approved an amendment to the EU rules on state aid.