The European Commission has approved, under EU State aid rules, a €1.8 billion German scheme to support the roll out of high power charging (‘HPC’) infrastructure for electric vehicles. The measure contributes to the achievement of the objectives of the Commission’s European Green Deal and ‘Fit for 55‘ package.
The German scheme
The scheme notified by the German authorities aims at establishing a network of HPC infrastructure for electric vehicles in urban, suburban and rural areas in Germany, the so-called “Deutschlandnetz”. The scheme will create a backbone of essential HPC infrastructure in order to encourage the shift to electric mobility.
The measure envisages the deployment of 8,500 HPC points, which will allow recharging electric vehicles within 15 to 30 minutes, in approximately 900 locations in Germany,where there are no HPC points or where the existing points are insufficient to address anticipated demand. .
Under the scheme, the aid will take the form of direct grants and recurring payments covering part of the operating costs. The beneficiaries will be companies with experience in the construction and operation of recharging infrastructure, which will be selected following a competitive bidding process.
The Commission’s assessment
The Commission assessed the measure under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union (‘TFEU’), which enables Member States to support the development of certain economic activities subject to certain conditions, and the Guidelines on State aid for climate, environmental protection and energy 2022 (‘CEEAG’).
The Commission found that:
- The scheme is necessary and appropriate to allow for the deployment of HPC recharging infrastructure at a large scale;
- The measure has an “incentive effect” as the beneficiaries would not carry out the relevant investments without the public support; and
- Germany put in place sufficient safeguards to ensure that the scheme has a limited impact on competition and trade within the EU. The scheme is open to all companies operating in the sector and the beneficiaries will be selected following an open, transparent and non-discriminatory bidding process. In addition, the German authorities will ensure that the prices charged are in line with those charged by comparable existing infrastructure.
On this basis, the Commission approved the German measure under EU State aid rules.
Background
The 2022 CEEAG provide guidance on how the Commission will assess the compatibility of aid measures for environmental protection, including climate protection, and energy which are subject to the notification requirement under Article 107(3)(c) TFEU.
The new guidelines, applicable as from January 2022, create a flexible, fit-for-purpose enabling framework to help Member States provide the necessary support to reach the Green Deal objectives in a targeted and cost-effective manner. The rules involve an alignment with the important EU’s objectives and targets set out in the European Green Deal and with other recent regulatory changes in the energy and environmental areas and cater for the increased importance of climate protection. They include sections on aid for reduction of greenhouse gas emissions including through support for renewable energy, energy efficiency measures, aid for clean mobility, infrastructure, circular economy, pollution reduction, protection and restoration of biodiversity, as well as measures to ensure security of energy supply, subject to certain conditions.
The 2022 CEEAG aim to help Member States meet the EU’s ambitious energy and climate targets at the least possible cost for taxpayers and without undue distortions of competition in the Single Market.
With the European Green Deal Communication in 2019, the Commission reinforced its climate ambitions, setting an objective of net zero emissions of greenhouse gases in 2050. The European Climate Law in force since July 2021, which enshrines the 2050 climate neutrality objective and introduces the intermediate target of reducing net greenhouse gas emissions by at least 55% by 2030, sets the ground for the ‘Fit for 55‘ legislative proposals presented by the Commission on 14 July 2021. Among these proposals, the Commission has presented amendments of the Renewable Energy Directive and the Energy Efficiency Directive with more ambitious binding annual targets to increase the production of energy from renewable sources and reduce energy use at EU level.
For More Information
The non-confidential version of the decision will be made available under the case number SA.104749 in the State aid register on the DG 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.
Quote
This €1.8 billion scheme will enable Germany to roll out the necessary high-power charging infrastructure for electric vehicles in urban, suburban and rural areas. The scheme will accelerate the deployment of electric mobility and help reduce greenhouse gas emissions, in line with the European Green Deal objectives, while limiting undue competition distortions.