© 2014 Cleary Gottlieb Steen & Hamilton LLP. All rights reserved.

Throughout this presentation, “Cleary Gottlieb” and the “firm” refer to Cleary Gottlieb Steen & Hamilton LLP and its affiliated entities in certain jurisdictions, and the term “offices”

includes offices of those affiliated entities.

Francesco Maria Salerno

State aid and energy – a new approach? Some

remarks on the new State aid Guidelines

Existing guidelines ill-equipped to deal with new challenges: increased RES penetration,

in turn triggering generation adequacy concerns; costs of energy policies for energy-

intensive users

Consultation ended in February. Adoption expected by year end.

Main features: New rules for RES generation; New aid measures: reductions in funding

support for RES electricity /Infrastructure /Generation adequacy

Why do we need new State aid energy guidelines ?

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RES support levels by country and technology (2011) -

CEER

A closer look at three novelties

Several provisions on aid for RES and generation adequacy aim at preserving the

internal market

1- State aid as a tool to foster market integration

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2013 Communication Delivering the internal electricity market and making the most of public intervention

State intervention is pervasive and mostly through State aid

Several provisions attempt to shape that intervention

2. State aid as a regulatory tool

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The rule in the Guidelines provides for a suitable transition period (provided there is

‘confirmation’)

BUT beware of overcompensation

3. State aid: past, present and future

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A few lessons to take home…that is, from Vienna to Brussels

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