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The New EU Commission Approach vis a vis State Aids to Renewable Energy Sources. Striking a Fair Balance between Promotion of Green Energy and the Safeguard of Market Competition

Proietto, GiulianoThe New EU Commission Approach vis a vis State Aids to Renewable Energy Sources. Striking a Fair Balance between Promotion of Green Energy and the Safeguard of Market Competition Concorrenza e Mercato 2015, 38 - 50 (gemeinsam mit Marco Botta).

The article analyzes the new approach followed by the EU Commission in assessing aids granted to support the production of electricity via Renewable energy sources (Res). In order to meet the EU 20-20 goal and to compensate the higher investment and operational costs faced by Res generators, EU Member States have substantially subsidized green energy during the past years. However, the high degree of subsidization generates a risk of overcompensation, which distorts the competition between fossil fuels and green energy producers. This risk has recently been recognized by the EU Commission in the Environmental and energy aid guidelines (Eeag) adopted in April 2014. The article aims at analyzing the new Eu Commission approach vis à vis the treatment of State aids to Res. Finally, the article takes Italy as case study in order to assess the future impact of the new EU approach on Res support schemes.