Close Menu
    Latest Category
    • Finance
    • Tech
    • EU Law
    • Energy
    • About
    • Contact
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Login
    • EU News
    • Focus
    • Guides
    • Press
    • Jobs
    • Events
    • Directory
    EUbusiness.com | EU news, business and politicsEUbusiness.com | EU news, business and politics
    Home » EU probes Spain’s support for coal power plants

    EU probes Spain’s support for coal power plants

    npsnps28 November 2017
    — Filed under: Competition Energy Environment EU News Headline1
    Share
    Facebook Twitter LinkedIn Pinterest Email
    EU probes Spain's support for coal power plants

    Aerea central termica Velilla – Photo by Goldorak

    (BRUSSELS) – The European Commission opened an in-depth investigation Monday into whether Spain’s environmental incentive for coal power plants – to meet EU mandatory environmental standards – is in line with EU State aid rules.

    The EU executive does not believe Spain’s scheme incentivised coal power plants to reduce harmful sulphur oxide emissions, the reason being that they were already under obligation to do so under EU environmental law.

    “If you pollute, you pay, this is a long-standing principle in EU environmental law,” said Competition Commissioner Margrethe Vestager: ” EU State aid rules do not allow Member States to relieve companies of this responsibility using taxpayer money. “

    The concern, says Ms Vestager, was that the support gave these coal power plants unfair competitive advantage. The Commission will now investigate the issue further.

    Spanish authorities introduced a scheme in 2007 (‘environmental incentive’) to support the installation of new sulphur oxide filters in existing coal power plants. These filters were supposed to reduce sulphur oxide emissions from those plants below certain limits.

    In return, the coal power plants were entitled to receive public support linked to the size of the plant for a period of 10 years (i.e. €8,750 per megawatt per year). Since 2007, 14 coal power plants benefited from the scheme and received in total more than €440 million in public support, and payments will continue until 2020.

    Spain failed to notify this measure to the Commission for assessment under EU State aid rules. At this stage, the Commission says it has concerns that the emission limits imposed on beneficiaries of the scheme merely implement mandatory environmental EU standards which applied to coal power plants at the time. The relevant legal requirements were laid down in EU legislation on the limitation of emissions of certain pollutants into the air from large combustion plants (Directive 2001/80/EC).

    If confirmed, this means that the scheme did not actually have any environmental incentive effect. Furthermore, the financial support may breach a long-standing principle of EU State aid rules, namely that Member States may not grant State aid to companies to meet mandatory environmental EU standards. This would go against the “polluter pays” principle and give the relevant coal power plants an unfair competitive advantage towards other forms of power generation and towards coal power plants in other EU countries subject to the same EU legislation.

    The Commission will now investigate further whether its initial concerns are justified. The opening of an in-depth investigation gives Spain and interested third parties an opportunity to submit comments. It does not prejudge the outcome of the investigation.

    The non-confidential version of the decision will be published in the State aid register on the competition website under the case number SA.47912 once eventual confidentiality issues have been resolved. The State Aid Weekly e-News lists new publications of state aid decisions on the internet and in the EU Official Journal.

    Add A Comment
    Leave A Reply Cancel Reply

    You must be logged in to post a comment.

    nps
    • Website

    Related Content

    Renewable energy - Photo by Wolfgang Weiser on Unsplash

    EUR 126m EU funding for cross-border renewable energy projects

    Internet safety children - Photo by Jonathan Borba on Pexels

    EU Kids Act to ban social media for under-13s

    Ursula von der Leyen - Photo © European Union 2026

    State of the Union 2026: the Single Market now requires practical delivery

    Sponsor: EuroCommerce16 September 2026
    European Parliament - Photo © European Union 2026 - source EP

    State of the EU: major concerns among SMEs

    Sponsor: SMEunited16 September 2026
    Office workers with laptops - Image by Annie Spratt on Unsplash

    The Practical Side of Building Multi-Agent AI Systems

    Carney - von der Leyen - Photo © European Union 2026

    Canada could become EU’s first ‘associate member’

    LATEST EU NEWS
    Renewable energy - Photo by Wolfgang Weiser on Unsplash

    EUR 126m EU funding for cross-border renewable energy projects

    17 September 2026
    Internet safety children - Photo by Jonathan Borba on Pexels

    EU Kids Act to ban social media for under-13s

    17 September 2026
    Carney - von der Leyen - Photo © European Union 2026

    Canada could become EU’s first ‘associate member’

    16 September 2026
    Energy - Image by Benjamin Farren on Pexels

    Energy Regulation Academy launched to implement EU energy measures

    15 September 2026
    Roxana Mînzatu - Photo © European Union 2026

    EU pushes simpler rules, effective enforcement for fair labour mobility

    15 September 2026

    Subscribe to EUbusiness Week

    Get the latest EU news

    CONTACT INFO

    • EUbusiness, 117 High Street, Chesham Buckinghamshire, HP5 1DE, United Kingdom
    • +44(0)20 8058 8232
    • service@eubusiness.com

    INFORMATION

    • About Us
    • Advertising
    • Contact Info

    Services

    • Cookie Policy
    • Terms
    • Disclaimer

    SOCIAL MEDIA

    Facebook
    eubusiness.com © EUbusiness Ltd 2026

    Type above and press Enter to search. Press Esc to cancel.

    Manage Consent
    To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}
    Manage Consent
    To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
    Functional Always active
    The technical storage or access is strictly necessary for the legitimate purpose of enabling the use of a specific service explicitly requested by the subscriber or user, or for the sole purpose of carrying out the transmission of a communication over an electronic communications network.
    Preferences
    The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
    Statistics
    The technical storage or access that is used exclusively for statistical purposes. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
    Marketing
    The technical storage or access is required to create user profiles to send advertising, or to track the user on a website or across several websites for similar marketing purposes.
    • Manage options
    • Manage services
    • Manage {vendor_count} vendors
    • Read more about these purposes
    View preferences
    • {title}
    • {title}
    • {title}

    Sign In or Register

    Welcome Back!

    Login to your account below.

    Lost password?