Commission concludes compensations to two coal plant operators in the Netherlands do not constitute State aid

The Commission has concluded that compensation granted by the Netherlands to RWE Eemshaven Holding II BV (‘RWE’) and to Uniper Benelux N.V. (‘Uniper’) for losses linked to a temporary CO₂ emissions cap does not constitute State aid.

The Dutch government approved payments of EUR 331.8 million to RWE and EUR 165.3 million to Uniper, following the introduction of a temporary emissions cap on coal-fired power plants between 1 January and 20 June 2022. The cap formed part of broader measures accompanying the Netherlands’ 2019 law phasing out coal-based electricity generation by 2030, although it was lifted early due to energy market disruptions triggered by Russia’s invasion of Ukraine.

In its assessment, the Commission found that the emissions cap restricted the operators’ property rights, thereby entitling them to compensation under Dutch law. It also determined that the compensation amounts were established on the basis of independent expert evaluations and a sound methodology, reflecting what would likely have been awarded by national courts. As a result, the payments did not confer any undue economic advantage on the beneficiaries. Therefore, the Commission concluded that the measure does not constitute State aid under Article 107(1) TFEU.

For more information, see the Commission’s PR.