Investment aid to promote energy from renewable sources (GBER Article 41)

Purpose of funding

Investments to promote renewable energy sources.

We can support investments in biofuel production that meet the sustainability criteria.

Company size

Businesses of any size can receive funding.

Eligible costs

Only costs directly related to achieving a higher level of environmental protection are eligible for support. We determine the costs as follows:​

  • The costs of investing in energy production from renewable sources where these can be identified as a separate investment within the total investment costs, for example as a clearly identifiable additional component of an existing facility;
  • the costs of investing in energy production from renewable sources where these can be identified by comparison with a less environmentally friendly investment that would realistically have been made without the support;
  • For specific small installations where a less environmentally friendly investment cannot be calculated due to the lack of comparable small installations, the entire investment required to achieve a higher level of environmental protection shall constitute the eligible costs.

Exceptions

We can only provide grants for new facilities, or for conversions or upgrades that cover significant parts of the facility and extend its expected service life. We cannot provide grants for the production of biofuels subject to supply or blending requirements. We cannot award or pay grants after the facility has become operational, and the grants must not depend on the facility's operating income.

Grant amounts exceeding EUR 15 million per company per project must be notified to ESA. ​​

Aid intensity

The maximum aid intensity is 45% of eligible costs when the costs are calculated in accordance with point (a) or (b) above, and 30% when the costs are calculated in accordance with point (c). The aid intensity may be increased by 10 percentage points for medium-sized enterprises and 20 percentage points for small enterprises (SME bonus).

In addition, the aid intensity may be increased by 5% within the regional aid area (regional bonus).

Note

For biofuel production, we can only support production that uses sustainable biological feedstocks other than food-based feedstocks (see the Renewable Energy Directive). However, we can support the conversion of existing food-based biofuel plants into advanced biofuel plants, provided that food-based production is reduced by an amount equivalent to the new capacity.

For grants to bioenergy heating plants, the distribution network is included in the eligible cost base. Where the distribution network or piping system accounts for more than 50% of the eligible cost base, Article 46 applies instead of Article 41, provided that all other conditions are met.

Published 22 Apr 2020Last updated 29 Aug 2023
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