On 18 December 2013, the European Commission launched a consultation on the guidelines for energy and environmental State Aid (“EEA” guidelines), which ended on 14 February 2014.

In the new draft of the guidelines, the European Commission appears to be withdrawing a few issues with regard to the renewables subsidy reform, notably avoiding the initially proposed distinction between “deployed” and “less deployed” technologies. The draft further introduces a transitional phase between 2015 and 2016 requiring a minimum of 5% of renewables to be covered by bidding processes. The goal is that by 2017, all aid should be granted though a bidding process.

The document is currently at the stage of the inter-service consultations and is expected to be adopted in the coming weeks.

Further information on the EEAG can be found here: http://ec.europa.eu/competition/consultations/2013_state_aid_environment/index_en.html