Commission approves EUR 103 million Czech aid scheme to support biomass-powered district heating
Today, the European Commission (Commission) has approved a EUR 103 million Czech state aid scheme to promote biomass-based heat production in existing district heating system.
The aid will be provided as a green bonus consisting of a subsidy per gigajoule of biomass-generated heat supplied to the distribution system. This bonus will cover the cost difference between biomass and coal-based heat production. The eligible recipients are the owners of existing biomass heat installations with an output exceeding 1 MW.
The Commission approved the scheme under the Guidelines on State aid for climate, environmental protection and energy (CEEAG), finding it necessary and appropriate to promote renewable heat production under the REPowerEU Plan. It also concluded it is proportionate, providing only the necessary support with minimal impact on competition and trade.
For more information, see the Commission’s PR.