The European Commission (EC) has granted approval to Italy and Hungary for their respective renewable energy aid schemes, signaling a significant step in advancing clean energy initiatives within the European Union.
Italy's scheme, supported by the Recovery and Resilience Facility (RRF), involves the allocation of €5.7 billion ($6.2 billion) to bolster renewable energy communities and self-consumers. Comprising two aid measures, the first entails a premium tariff on electricity consumed by self-consumers and renewable energy communities, spanning a 20-year period with a budget of €3.5 billion. Financed through a levy on the electricity bill of all consumers, this measure aims to encourage local engagement and participation in the green energy transition.
The second measure, with a budget of €2.2 billion funded through the RRF, takes the form of an investment grant covering up to 40% of project costs. Eligible projects, focusing on small-scale renewable energy projects with a capacity of up to 1MW, must be completed before June 30, 2026, to benefit from RRF funding. Furthermore, these projects are required to be located in municipalities with populations of fewer than 5,000 inhabitants.
Commissioner Didier Reynders, in charge of competition policy, emphasized the scheme's role in supporting renewable electricity production and self-consumption by energy communities. The initiative aligns with the European Green Deal and contributes to both the EU's and Italy's decarbonization and electricity production targets.
Simultaneously, Hungary's €4.6 billion REPowerEU chapter has also received positive assessment by the EC. Comprising 13 reforms and 16 investments, Hungary's plan aligns with the EU's strategy to reduce dependence on fossil fuels before 2030. The measures encompass modernizing the electricity sector, accelerating renewables deployment, and investing in green technologies. Noteworthy reforms include the introduction of dynamic pricing in the retail electricity market, reinforcing the role of energy communities and aggregators, and incentivizing the adoption of electricity storage and grid development to accommodate increased renewable resources.
Hungary's modified plan directs 67.1% of funds to climate measures, reflecting a strong emphasis on the green transition. Among its goals is an increase in grid connection authorizations for renewables, aligning with a raised target of 12GW of installed renewable energy resources by 2026.
