Action for annulment of the Commission’s approval of EUR 2.6 billion in state aid to RWE for lignite phase-out
Today, the lodging of an action for annulment by eins energie in Sachsen and six other undertakings-challenging the Commission’s decision SA.53625 approving EUR 2.6 billion in state aid to RWE, a German energy company, for the phase-out of lignite-fired power plants (Case T-630/24) was published in the OJ. The aid was granted as part of Germany’s commitment to end coal-based electricity generation by 2038 and transitioning towards renewable energy.
In their action, the applicants raise three pleas in law:
- Failure to state reasons for approval SA.53625
The applicants claim that it has not been identified how an aid to close coal fired power plants is supposed to promote certain economic activities within the meaning of Article 107(3)(c) TFEU and no contra factual scenario has been established. Furthermore, the alleged proportionality of the aid in the amount of EUR 2.6 billion has not been sufficiently justified and is alleged to be based on the company’s fictitious profit expectations.
- Insufficient investigation of the facts
The applicants argue that the Commission assumes that the aid in favour of RWE has the effect of promoting (inter alia) the production of renewable energy ignoring the effect of existing legislation applicable in Germany that may play a role in the deployment of renewable energy.
- Manifest error of assessment
The applicants allege a failure to sufficiently justify proportionality, necessity and appropriateness of the aid. Additionally, they contend that the assumption that the aid would promote economic activities as required under Article 107(3)(c) of the TFEU, such as renewable energy production, was not properly substantiated.
For more information, read the official publication here.