EU market test for renewables subsidies

New EU state aid rules should limit the cost to taxpayers of supporting major renewable electricity. Their potential impact on UK schemes is disputed

Large-scale generators of renewable electricity will have to compete for subsidies from 2017, said the European Commission.

The move is part of a radical overhaul of state aid rules governing how member states can subsidise new renewable electricity schemes announced on 9 April.1

The commission has acted in the face of rising concern among governments over the cost of renewable energy subsidies. This has even led to the abrupt and controversial cancellation of some schemes.

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