Easier state aid rules for renewable energy, decarbonisation schemes, EU says

European Union flags flutter outside the EU Commission headquarters in Brussels
European Union flags flutter outside the EU Commission headquarters in Brussels, Belgium June 17, 2022. REUTERS/Yves Herman

BRUSSELS, July 20 (Reuters) - The European Commission on Wednesday loosened state aid rules for renewable energy and decarbonisation schemes aimed at reducing the European Union's dependence on Russian energy.

The EU executive, which acts as the competition enforcer in the 27-country European Union, said governments will also be allowed to grant up to 500,000 euros ($511,650) in state aid to companies affected by sanctions against Russia, up from 400,000 euros previously.

Companies in the agriculture sector can also apply for state aid up to 62,000 euros and those in fisheries up to 75,000 euros, versus a previous 35,000-euro cap.

Renewable energy projects can be renewable hydrogen, biogas and biomethane, storage and renewable heat, the Commission said. It said the easier state aid rules would enable EU countries to set up new tender based schemes for decarbonisation projects or directly support projects without tenders.

($1 = 0.9772 euros)

Reporting by Foo Yun Chee

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