Source: European Parliament
In December 2022, the Commission declared an amendment to the German Renewable Energy Act (‘Erneuerbare Energien Gesetz’, EEG 2023) compatible with the internal market in line with the Guidelines on state aid for climate, environmental protection and energy[1].
One of the criteria for state aid approval is to limit aid to what is necessary to address an identified market failure, and thus to avoid over-compensating aid recipients for their investments. Long-term commitments (with potential aid disbursement of up to 20 years) entail significant uncertainty about market developments and thus the possibility of undue windfall profits. For that reason, Germany committed to introduce a claw-back provision (or similar mechanism) to limit eventual overcompensation, in the context of the Commission decision approving the EEG 2023. This commitment is a condition of the approval.
The current discussions on the Solar Package I amendments include the outstanding need to incorporate this pre-existing requirement in the scheme. It falls within the responsibility of Member States to notify new aid in line with the applicable legal requirements and to ensure the timeliness and quality of information provided. The Commission is awaiting a proposal from Germany to address the requirement regarding the EEG 2023 approval condition and remains available and committed to rapidly review any such proposal once received.
- [1] Communication from the Commission — Guidelines on state aid for climate, environmental protection and energy 2022, Official Journal of the European Union, C 80, 18 February 2022.