EU approves Spain’s assist for electrical energy manufacturing in non-peninsular territories

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The assist granted by Spain to electrical energy turbines for supplying electrical energy within the Spanish non-peninsular territories as a Service of General Economic Interest (SGEI) complies with EU support rules, the European Commission has stated. These territories embrace the Canary Islands, the Balearic Islands, Ceuta and Melilla. The predominant goal of the scheme is to ensure provide of electrical energy in these remoted territories, whereas preserving retail costs on the identical degree as these within the mainland.

The Commission assessed the measure beneath the EU State support rules on companies of normal financial curiosity (SGEI), which permit Member States to compensate corporations which have been entrusted with public service obligations for the additional price of offering these companies, beneath sure circumstances.

The Commission stated the extra remuneration granted to electrical energy turbines solely covers the additional price associated to the era of electrical energy in these remoted territories. The scheme additionally establishes aggressive procedures for the set up of recent energy era sooner or later, permitting the entry of recent market members and growing competitors. Furthermore, to enhance the safety of electrical energy provide within the Balearic Islands in the long run and to permit for a greater integration of renewable power sources sooner or later, Spain has dedicated to construct a second subsea connection between the mainland and Mallorca by 2025. For this motive, the Commission has authorized the scheme till finish 2029 for the Canary Islands, Ceuta and Melilla whereas solely till finish 2025 for the Balearic Islands.

The Commission stated the measure is in step with EU State support rules, as it is going to contribute to the decarbonisation of the power sector in these specific areas, in step with the Clean Energy for EU Islands initiative, with out unduly distorting competitors.