State Aid

In February 2025, the European Commission announced in the 'Communication on the Clean Industrial Deal: A joint roadmap for competitiveness and decarbonization' a new auction to promote the decarbonization of key industrial processes, drawing on the experience of the hydrogen auctions of the Innovation Fund. It was proposed to allocate the budget of up to EUR 1 billion through fixed-premium auctions in support of projects that decarbonise industrial process heat through innovative electrification technologies such as heat pumps, electric boilers, resistance heating, induction heating, plasma heating and other solutions as well as renewable heat solutions (solar thermal and geothermal). First ideas for the auction scope and design were presented and discussed with stakeholders during a Workshop on 16 April 2025. As a follow-up, the European Commission invited all interested stakeholders to provide feedback on the proposed design elements of the new auction by participating in a survey. EGEC took part in the survey on 15 May 2025.   EGEC's response to consultation on Innovation Fund Heat Auction (PDF)

On 25 June 2025, the European Commission adopted a new State aid framework accompanying the Clean Industrial Deal (CISAF), which is designed to help Member States support the development of clean energy, industrial decarbonisation and clean technology. EGEC contributed to the public consultation which closed on 25 April 2025.   EGEC's response to consultation on the Clean Industrial Deal State Aid Framework (CISAF) (PDF)

The Commission is consulting Member States on proposal for a Temporary Crisis and Transition Framework with a reform of the State Aid rules. Here are the proposals for geothermal.

As the State Aid Guidelines review is ongoing, the European Commission engaged a consultation of stakeholders to collect inputs on a first version of the revised guidelines.

Today EGEC sent a letter to the European Commission Executive Vice President on the European Green Deal, the Executive Vice President for A Europe Fit for the Digital Age and the Commissioner on Energy. This letter was asking for the implementation of a fair framework for State Aid, that allow European Member States to support the development of innovative technologies and the market uptake of geothermal energy, notably in the heating and cooling sector.

Bundesverband Geothermie e.V and EGEC  wrote to the European Commission Directorate-General for Competition (DG COMP) outlining concerns around subsidies for incumbent fossil fuel providers in the proposed new Bundesförderung effiziente Wärmenetze (BEW) programme.

The European Commission will review and update the EU State Aid framework for energy and environment by the end of 2021.

EGEC Members are invited to provide feedback by 07/01/2021 to the European Commission questionnaire on the review of the State Aid Guidelines. This questionnaire notably looks to identify the most relevant ways to direct state aid to the efficient market uptake of renewable energy technologies.

EGEC welcomes the European Commission’s call to revise its competition policy that will support the successful implementation of the European Green Deal.

The State Aid Guidelines on Energy and the Environment were initially release to adapt the rules on public support for the energy sector from a competition law perspective to reflect notably the framework of the 2020 EU Climate and Energy objectives. The purpose of this review is to put the State Aid framework in line with the 2030 Clean Energy for All European package, and reflect the changing market dynamics in the energy sector.