EU launches state aid investigation into UK power plant
Xinhua, February 19, 2015 Adjust font size:
The European Commission (EC) has begun an in-depth investigation to assess whether UK's plan to support a Lynemouth coal-powered plant's conversion to biomass operation were in line with EU state aid rules, a statement said on Thursday.
The EC will investigate to make sure the public funds used in the project were limited to what was necessary and do not result in overcompensation.
It will also assess whether the positive effects of the project in achieving EU energy and environmental objectives outweigh potential competition distortions in the market for biomass.
The launch of an in-depth investigation gives the UK and interested third parties an opportunity to submit comments.
In December 2014, the UK announced plans to subsidize the conversion of the coal-fired Lynemouth power plant to biomass. The plant would have the capacity to generate 420 megawatts of renewable electricity running exclusively on wood pellets.
The Lynemouth plant is one of several projects selected under a UK support measure for renewable energy projects. Endit