Romania: State aid for green district heating projects

, SEE Energy News

The planned aid would be granted in the form of direct grants financed from the EU structural funds managed by Romania. The European Commission has approved Romania’s state aid scheme worth 150 million euros, aimed to support investments in district heating systems based on renewable energy sources.

EC Margrethe Vestager said that this state aid scheme presented by Romania will support investments in the construction or modernization of district heating systems. It will facilitate the transition from the use of fossil fuels to produce thermal energy to the use of renewable energy sources, according to the objectives of the European Green Deal. This aid measure was also possible thanks to the European Green Deal Investment Plan. In order to unlock the potential of district heating systems to contribute to the transition to a climate-neutral economy, the Investment Plan has given member states more flexibility in providing support for thermal energy production in line with EU state aid rules.

The statement from the EC said that Romania notified the Commission of its intention to provide public support worth up to 150 million euros for the construction and/or modernization of several thermal production facilities and energy distribution networks (with a contribution of maximum 20 % of the total value of investments in the case of the latter).