Francesco Maria Salerno (Cleary Gottlieb LLP) presents on the new approaches to State aid in the energy sector, considering the State aid Guidelines

1. © 2014 Cleary Gottlieb Steen & Hamilton LLP. All rights reserved.
Throughout this presentation, “Cleary Gottlieb” and the “firm” refer to Cleary Gottlieb Steen & Hamilton LLP and its affiliated entities in certain jurisdictions, and the term “offices”
includes offices of those affiliated entities.
Francesco Maria Salerno
State aid and energy – a new approach? Some
remarks on the new State aid Guidelines

2.  Existing guidelines ill-equipped to deal with new challenges: increased RES penetration,
in turn triggering generation adequacy concerns; costs of energy policies for energy-
intensive users
 Consultation ended in February. Adoption expected by year end.
 Main features: New rules for RES generation; New aid measures: reductions in funding
support for RES electricity /Infrastructure /Generation adequacy
Why do we need new State aid energy guidelines ?
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RES support levels by country and technology (2011) -
CEER

3. A closer look at three novelties

4.  Several provisions on aid for RES and generation adequacy aim at preserving the
internal market
1- State aid as a tool to foster market integration
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5. 2013 Communication Delivering the internal electricity market and making the most of public intervention
 State intervention is pervasive and mostly through State aid
 Several provisions attempt to shape that intervention
2. State aid as a regulatory tool
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6.  The rule in the Guidelines provides for a suitable transition period (provided there is
‘confirmation’)
 BUT beware of overcompensation
3. State aid: past, present and future
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7. A few lessons to take home…that is, from Vienna to Brussels
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8. www.clearygottlieb.com
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