propose "generous" aid for renewable energy
- European Union Competition Commissioner Mario Monti
said on Tuesday he would put forward proposals to
allow generous state aid and tax incentives to promote
renewable energy schemes.
energy is a priority for the (European) Community,"
Monti told the European Parliament's Economic and
Monetary Affairs Commission.
proposals, he said, investors would have a guarantee
that their full investment would be recovered.
which still have to be approved by the EU's executive
Commission, would take effect from January 1 for a
backs strict limits on the aid that EU governments
can give to industry. But EU Energy Commissioner Loyola
de Palacio has said she considers financial support
to renewable energies of the utmost importance.
surge in oil prices has also highlighted the advantages
of diversifying energy sources.
his proposals would permit EU governments to grant
aid to investment in renewable energy schemes at a
rate of 40 percent of admissible cost, with a further
10 percent permissible for small and medium businesses.
would also be able to grant aid to cover the difference
between the cost of producing renewable energy and
the market price for electricity, he said.
will be allowed until the whole investment is amortized,"
could also grant aid to running costs of renewable
energy projects for five years, decreasing every year.
very generous terms in terms of state aid but the
objective is justified because we wish to promote
renewable energies," he said.
held out the possibility that EU governments could
offer temporary tax cuts or exemptions to foster renewable