State Aid and Article 7 EED

This review offers an overview of how State aid policies are defined on the EU level regarding the energy efficiency measures implementation.

The emphasis is on the implementation of EEOS and alternative measures under Article 7 EED and the State Aid regulation. Cases from partner countries are presented and discussed.

The short report is available here.

State aid is defined as the financial aid or financial intervention from the Member State to the specific market actor (undertaking), which puts the undertaking in an advantage when compared to the sectoral competitor.

This includes aid from regional government, national and international aid, and EC funding (mainly ESIF-European structural and investment funds, since it is co-managed by MS and the EC). Hence, if there is a third party involved in the aid, it can be considered as State aid only if the State is in a situation where it can influence the flow of the financial resources.

To define something as state aid, several conditions have to be fulfilled:

The State is the one involved in the intervention or its resources are used
The intervention gives the receiver the advantage when compared to other competitors
Competition is influenced: either it is distorted or there is a chance it could be,
This aid can affect any kind of trade between MSs. (The criteria are cumulative.) This means that the undertaking is treated in a way that is not common in economic relations and can include not only financial aid but also provided aid in any other form (for example, free training or expert help from the providers financed by the MS).


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