EC okays EUR-401m Czech state aid for green district heating

The European Commission (EC) today cleared, under EU state aid rules, a EUR-401-million (USD 440m) scheme in Czechia to help green the district heating sector.

The scheme will support the construction of new renewable heat generation units based on biomass and waste with a capacity larger than 500 kW. To run until the end of 2025, it will award aid in the form of a green bonus to heat generators for each gigajoule of heat supplied to the heat distribution system.

It is estimated that the installation of about 345 MWt of renewable heat generation capacity will be supported under the programme.

The plan will contribute to the European Green Deal objectives and Czechia’s environmental targets, while limiting possible distortions of competition, remarked Margrethe Vestager, executive vice-president in charge of competition policy.

At the end of 2022, the EC approved a EUR-1.2-billion Czech scheme to support green and more efficient district heating.

(EUR 1 = USD 1.098)

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