Brussels, 14 October 2024
The European Commission has approved a €180 million Lithuanian scheme to support electricity storage to foster the transition towards a net-zero economy, in line with the Green Deal Industrial Plan. The scheme was approved under the State aid Temporary Crisis and Transition Framework (‘TCTF’), adopted by the Commission on 9 March 2023 and amended on 20 November 2023 and on 2 May 2024.
The purpose of the scheme is to support investment in new electricity storage capacities to facilitate the smooth integration of electricity produced from renewable sources in the system, to contribute to the development of competitive balancing markets and to increase national energy security as well as in the other Baltic States. Under the scheme, the aid will take form of direct grants to support the construction of at least 1200 MWh of new electricity storage capacities. The measure will be open to all storage technologies directly connected to the transmission network. The projects will be selected through a competitive bidding process and the maximum aid intensity is 30% of the relevant investment costs.
The Commission found that the Lithuanian scheme is in line with the conditions set out in the TCTF. In particular, (i) the aid intensity of the investment grant will not exceed 30% of the relevant investment costs; (ii) all electricity storage technologies are eligible for the tendering process; and (iii) the aid will be granted no later than 31 December 2025. The Commission concluded that the scheme is necessary, appropriate and proportionate to accelerate the green transition and facilitate the development of certain economic activities, which are of importance to implement the REPower EU Plan and the Green Deal Industrial Plan, in line with Article 107(3)(c) TFEU and the conditions set out in TCTF. On this basis, the Commission approved the scheme under EU State aid rules.
More information on the TCTF can be found here. The non-confidential version of the decision will be made available under the number SA.115362 in the in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.