Four billion in state subsidies to produce batteries and panels made in Europe:there is the green light from the Commission

The two huge projects approved yesterday concern France and Germany.Green light also at 17.7 billion for an energy storage system in Italy

The future of the ecological transition is played out (also) with subsidies.Last year, the European Commission has loosened the links strict protocols on state aid for projects for zero impact technologies.A strategy created to prevent the escape of the so-called companies clean tech in the United States and which has started to show its first results in recent days.Yesterday, Monday 8 January, Brussels gave the green light to two major projects.The first concerns aid of 2.9 billion euros allocated by the French government to support the production of batteries, solar panels, wind turbines and heat pumps.The second refers to a loan of 902 million euros granted by the German government to the Northvolt company for the construction of a gigafactory in Heide, Germany.This is the first case of matching aid, in which a European state matches the subsidies offered by a foreign country to convince the company to remain within the borders of the EU.«Without this help, Northvolt would have built its own plant in the United States, where it would have received help fromInflation Reduction Act», explained the vice president of the Commission Margrethe Vestager.

How the new European rules work

The two state aids that received the green light from Brussels were approved as part of the new rules on state aid introduced with the Industrial Plan for the Green Deal.This is, in essence, the strategy through which the European Union aims to significantly increase the production of clean technologies.As?By simplifying the regulatory framework, widening the limits of controls on state subsidies and ensuring that the thousands of jobs created by these new sectors remain within European borders.National governments finance these huge projects.The difference is that, compared to the past, state aid is no longer seen by Brussels as a distortion of competition but as an inevitable contribution - from the member state and the EU - to support the sector.Through this mechanism, in fact, a government that wants to plan the construction of a factory for the production of solar panels could, for example, ask for a loan from the European Investment Bank (EIB) and then use part of the funds to support companies carry out the project with state aid.

Zero emission technologies

Among the technologies that can take advantage of these new rules are photovoltaic systems, those for the production of wind energy, batteries, heat pumps and more.According to European Commission estimates, by 2030 the market for net zero emissions technologies will have a global turnover of 600 billion per year.And Brussels wants as many investments as possible to be made within the EU's borders.“The production of zero-impact technologies in Europe is of strategic interest for the European economy and society,” Vestager summarized.The objective, never hidden, is also to avoid a flight of European companies abroad.In particular towards the United States of Joe Biden, who last year launched theInflation Reduction Act (Anger).This is a maxi package of measures which includes, among other things, also 369 billion dollars intended for companies that produce technologies green on American soil.

17.7 billion also in Italy

State aid from France and Germany is not the only one to have received the approval of the European Commission.Just before Christmas, Italy also got the green light for a 17.7 billion euro scheme.A figure that will be used to support the construction of a centralized electricity storage system.The plants financed by the Italian government will have a total capacity of more than 9GW and are considered fundamental for integrating renewable sources into the Italian electricity system.Solar and wind are in fact considered "intermittent" sources, in the sense that their energy production it is irregular and subject to external factors (the sun and the wind).Storage systems allow excess electricity to be stored in moments of overgeneration and used in times of scarcity, thus avoiding allowing part of the energy produced to be lost.«The one adopted by Italy is an innovative approach, which could represent a sure reference model also at an international level», rejoiced the Minister of the Environment Gilberto Pichetto after the green light from Brussels.The 17 billion allocation will be spread over the next ten years and the beneficiaries will be selected through a specific tender.

Cover photo:EPA/Stephanie Lecocq | The President of the European Commission, Ursula von der Leyen, presents the "Green Deal Industrial Plan" (Brussels, 1 February 2023)