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The Decommissioning of Lignite- and Coal-Fired Power Plants in the Commission’s State Aid Practice and the European Green Deal journal article

Clemens Ziegler

European State Aid Law Quarterly, Volume 21 (2022), Issue 3, Page 237 - 250

The article discusses the European Commission’s recent State aid practice regarding lignite- and coal-fired power plants and their decommissioning in the context of the European Green Deal. It is based on the Commission’s decisions regarding the Dutch Hemweg plant, the German coal- and lignite phase-out and the rescue- and restructuring aid in favour of the Romanian electricity producer Complexul Energetic Oltenia. The author considers that the Commission’s mentioned State aid practice is far from living up to the Commission’s binding commitments under the 8th environmental action programme. To ensure that no-one is left behind, as the Green Deal postulates, the author suggests strengthening the rights of interested parties in State aid proceedings and to give environmental NGOs the status of such an interested party, which would also enable them to bring direct actions before the EU Courts. Keywords: energy; fossil fuels; environmental law; (in)consistency; Green Deal


One Time, Last Time, or Why the CE Oltenia Lignite Restructuring Aid Approval Makes for an Accident, Not a Precedent · Commission Decision on State Aid SA.59974 Complexul Energetic Oltenia SA · Annotation by Clemens Ziegler journal article

Annotation on the Commission Decision of 26 January 2022 on the State Aid SA.59974 – 2021/C (ex 2020/N, ex 2020/PN) which Romania Partially Implemented for Complexul Energetic Oltenia SA

Clemens Ziegler

European State Aid Law Quarterly, Volume 21 (2022), Issue 2, Page 181 - 187

The author considers the European Commission’s approval of the Romanian restructuring aid for Complexul Energetic Oltenia of January 2022 to be an accident. Allowing State aid for bankrupt undertakings’ investments in new fossil gas capacities without the conditions that are imposed on their competitors that would receive aid under the Commission’s Climate, Energy and Environmental Aid Guidelines leads to incoherence in the Commission’s State aid practice. It distorts the market situation for decades in a way contradicting the spirit of the Commission’s Green Deal. The Decision also shows the need for improving civil society actors’ participation rights in State aid proceedings and related court proceedings.

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