The European Commission has approved plans put forward by the Czech Republic in September 2015 to provide financial support to operators of hydropower installations with a capacity of up to 10MW.
The Commission ruled that the scheme, which would have a total budget of around €8 million, is in line with EU state aid rules, and would increase energy produced from renewable sources without unduly distorting competition.
The Commission assessed the measures under its 2014 Guidelines on state aid for environmental protection and energy, which allow Member States to support the production of energy from renewable sources under certain conditions.
In line with the Guidelines, hydropower installations with a capacity above 0.5MW will receive their support in the form of a market premium paid on top of the market price, while for those below this threshold a feed-in tariff is payable.
