On 24 October 2016 DG-Competition announced its approval for German support to cogenerated electricity, finding that it can “make an important contribution to EU energy and climate goals”.
State Aid support will be given to the construction and expansion of energy-efficient district heating/cooling networks (i.e. pipelines often built in towns, which allow the transfer of heat/cooling to end users) as well as the construction and retrofitting of heating/cooling storage facilities.
In its decision notice, DG-Competition noted that such support improves the integration of cogeneration into the electricity market and that the support was in line with its 2014 Guidelines on State aid for environmental protection and energy.
In a further development, DG-Competition’s investigation has also prompted a further investigation to “examine in more detail the impact on competition of reductions for certain users from the surcharge that finances the scheme“.