Brussels, 7 July 2022
The European Commission has approved, under EU State aid rules, a €1.2 billion Italian scheme made available through the Recovery and Resilience Facility (‘RRF’) to support investments in photovoltaic panels in the agricultural sector. The scheme will also contribute to the EU’s strategic objectives relating to the EU Green Deal.
Executive Vice-President Margrethe Vestager, in charge of competition policy, said:
This €1.2 billion scheme approved today will contribute to reaching Italy’s climate objectives by encouraging operators in the agricultural sector, such as farmers and processing companies, to use renewable energy. Not only the measure will contribute to EU Green Deal objectives, but it will also support the economic development of rural areas in Italy, while limiting possible distortions of competition.
The Italian measure
The measure notified by Italy, with a budget of €1.2 billion, will be entirely funded through the RRF, following the Commission’s positive assessment of Italy’s Recovery and Resilience Plan and its adoption by the Council.
The scheme, which will run until 30 June 2026, is aimed at supporting agricultural, breeding and agro-industrial companies to invest in the use of renewable energy. This will improve the competitiveness of the sector and have positive effects on climate.
Under the scheme, the support will take the form of direct grants covering up to 90 % of the eligible investment costs. Those costs are subject to ceilings depending on the capacity of the photovoltaic installation. The beneficiaries may only invest in photovoltaic capacities not exceeding their energy needs.
The Commission’s assessment
The Commission assessed the scheme under EU State aid rules, and in particular under the Guidelines for State aid in the agricultural and forestry sectors and in rural areas and Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows Member States to support the development of certain economic activities under certain conditions.
The Commission found that the scheme:
- Facilitates the development of certain economic activities, in particular the investment in photovoltaic panels in the agricultural sector.
- Has an ‘incentive effect’ as the beneficiaries would not carry out the investments to the same extent in the absence of the aid.
- Has a limited impact on competition and trade within the EU. In particular:
- It is necessary and appropriate to ensure a sustainable growth of the agricultural sector.
- It is proportionate, as any negative effect on competition and trade in the EU will be limited in view of the size of the projects, the aid amounts and the characteristics of the sector.
- Improves the competitiveness of the agricultural sector and has positive effects on climate, as it encourages operators to use renewable energy instead of fossil one. In addition, the measure is line with the EU’s rural development objectives and the EU’s strategic objectives relating to the green transition.
On this basis, the Commission approved the scheme under EU State aid rules.
Background
All investments and reforms entailing State aid, also those included in national resilience and recovery plans presented in the context of the RRF, must be notified to the Commission for prior approval, unless covered by one of the State aid block-exemption rules.
The Commission assesses measures entailing State aid contained in the national recovery plans presented in the context of the RRF as a matter of priority and has provided guidance and support to Member States in the preparatory phases of the national plans, to facilitate the rapid deployment of the RRF. At the same time, the Commission makes sure in its decision that the applicable State aid rules are complied with, in order to preserve the level playing field in the Single Market and ensure that the RRF funds are used in a way that minimises competition distortions and do not crowd out private investment.
For More Information
The non-confidential version of the decision will be made available under the case number SA.102460 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved. New publications of State aid decisions on the internet and in the Official Journal are listed in the Competition Weekly e-News.