EU Commission approves Austria renewable energy scheme

BRUSSELS (Reuters) - The European Commission said on Wednesday it had approved an Austrian scheme to support renewable energy production.

The Austrian plan would create incentives to increase the production of renewable energy while also limiting distortions to competition, said a statement from the Commission, which acts as competition regulator in the 27-member European Union.

The scheme aims to help Austria reach the EU's 2020 renewable energy target and includes operating aid in the form of subsidized feed-in tariffs and investment grants.

"The current financing structure, unlike the previous one under the 2008 scheme, contains no exemption mechanism for energy intensive undertakings. The additional costs for producing green electricity are shared by all players," the Commission said.

(Writing by Rex Merrifield)