The European Commission approved, on Wednesday, the extension and modification of the Romanian state aid scheme to promote the production of electricity and thermal energy in high-efficiency cogeneration systems connected to district heating networks in Romania, informs a press release from the Community Executive.

Initially, the scheme was approved in September 2022 and will expire on June 30, 2024. Its objective is to promote the construction of new high-efficiency cogeneration plants, according to Agerpres.

Romania notified the European Commission of its intention to extend the measure until July 31, 2028, to increase the budget by 362 million euros, up to a total value of 752 million euros, as well as to support the installation of additional capacities cogeneration of at least 200 MW.

The Commission has analyzed the amended scheme in accordance with EU State aid rules, in particular Article 107(3)(b) TFEU and the 2022 State aid guidelines for climate, environmental protection and energy and concluded that the amended scheme remains necessary and adequate to promote high-efficiency cogeneration installations in Romania and reduce greenhouse gas emissions. Also, the Commission concluded that the scheme is proportionate and any negative effect on competition and trade in the EU will be limited, the press release states.

Based on these considerations, the Commission approved the scheme under the EU rules on state aid, the quoted source states.