EU ruling on national renewables subsidies

• 10 years ago (2014-07-02)
• Junior Isles

Europe 1068 North America 1004 Renewables 757

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The European Union has upheld a ruling that countries have the right to limit subsidies for renewable energy to plants based on their territory, as opposed to companies’ operations abroad.

The ruling came in a lawsuit by Alands Vindkraft, a Swedish company that sought to benefit from Swedish subsidies for power generated in Finland.

The Court of Justice found countries may also restrict electricity imports to promote wind, solar or biomass energy because it “is justified by the public interest objective of promoting the use of renewable energy sources in order to protect the environment and combat climate change”.

The verdict upholds current practices. A different outcome could have caused major challenges for countries like Germany, which spends billions on subsidies limited to its national borders.