EC Limits Green Energy Subsidies
The European Commission has decided to introduce restrictions to subsidies allocated by the bloc for production of energy from renewable sources.
EU's executive arms took the step on Wednesday in an attempt to push electricity prices down, the Irish Independent reported.
EC representatives were quoted as saying that production costs have gone down over the past years, but European-level subsidies distorted the market, "increasing costs to consumers".
If the measure is further approved, stricter rules could be applied to terms of government support for projects involving solar, wind or biomass energy.
New rules will not come into force for small-scale installations such as rooftop solar panels.
Exemptions from the planned curbs will also be kept for energy intensive manufacturers (meaning companies significant on an international level) which ending subsidies could put in jeopardy.
Steps to restrict grants will be gradually implemented, as the EC does not wish to suppress the growth of renewable energy market.
According to the Wall Street Journal, the measure will lessen the financial burden on heavy industries, as it comes hand in hand with a reduction of payments the sector is obliged to make into public funds to finance green energy.
Within the EU, countries like Germany, which is leading in renewable energy, are also reviewing their energy laws to reduce pressure on electricity bills caused by the green energy expansion.
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