State aid: Commission approves €90 million Lithuanian scheme to help companies reduce fossil fuel consumption and foster the use of renewables in the context of Russia’s invasion of Ukraine
The European Commission has approved a €90 million Lithuanian scheme to support companies across sectors in the context of the Russian invasion of Ukraine. The scheme was approved under the State Aid Temporary Crisis Framework, adopted by the Commission on 23 March 2022 and amended on 20 July 2022. Under the scheme, the aid will take the form of direct grants covering part of the additional costs linked to severe increases in natural gas and electricity prices. At the same time, the measure aims at reducing the consumption of fossil fuels and at promoting the use of renewable energy sources in Lithuania. To this end, the scheme includes a number of sustainability requirements, including investments for energy efficiency or for the reduction/diversification of natural gas consumption. The Commission found that the Lithuanian scheme is in line with the conditions set out in the Temporary Crisis Framework. In particular, the overall aid per beneficiary cannot exceed 30% of the additional costs due to exceptional natural gas and electricity price increases, up to a maximum of €2 million. In addition, the aid will be granted no later than 31 December 2022. The Commission concluded that the scheme is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Crisis Framework. On this basis, the Commission approved the scheme under EU State aid rules. More information on the Temporary Crisis Framework and other actions taken by the Commission to address the economic impact of Russia’s invasion of Ukraine can be found here. The non-confidential version of the decision will be made available under the number SA.103781 in the State aid register on the Commission’s competition website once any confidentiality issues have been resolved.
