State aid for energy
The Romanian Government is looking for solutions to carry on with the aid schemes for energy, against the background of a big rise in the prices of gas and electricity
Mihai Pelin, 11.02.2022, 14:00
On Thursday, the Romanian Government approved two aid schemes for energy producers and municipalities or inter-community development associations that produce or modernise gas installations. Dozens of millions of Euros will be earmarked for those investors who will use renewable sources of energy. Here is the Government spokesperson
Dan Carbunaru:
The two schemes are worth, together, some 82 million Euro. The potential beneficiaries are the companies that produce energy and the local administration units or inter-community development associations that produce or modernise equipment that produce power.
The Government is looking for solutions to keep supporting the big consumers of energy as well, such as the ALRO aluminium producer in Slatina, or Azomures, the largest producer of fertilisers used in the Romanian agriculture and industry.
Against the background of a big rise in energy prices, the big consumers are considering cutting down or even shutting down production. Through a memorandum, the Government has made concrete steps to extend the aid scheme for them. The Ministry of Energy has been authorised to discuss with EC representatives about carrying on with the aid scheme for the big consumers, in order to maintain both those companies competitiveness, and employees’ jobs.
Here is Dan Carbunaru again:
These state-aid schemes were implemented in Romania in the 2019-2021 period and were successful, as these companies have an annual contribution to the GDP of approximately 6%. However, an important element that we must consider are the jobs that such big companies benefiting from the aid must keep.
Managing the effects of the energy crisis remains among the main concerns of the Executive, Dan Carbunaru pointed out. The decision adopted by the Government is meant to support investments aimed at promoting the production of energy from less exploited renewable sources, namely biomass, biogas, geothermal energy, and the state aid scheme to support investments in high efficiency cogeneration. The two state aid schemes apply until December 31, 2023, and the amounts are allocated from European non-reimbursable funds provided by the European Regional Development Fund in proportion of 85%, and 15% public co-financing funds from the state budget. (MI)
