MILAN (Reuters) -The European Commission has approved an Italian government scheme supporting power-intensive industries and the country's green transition, Italy's energy minister said on Friday. The
European Commission Endorses Italy's Energy Support Scheme for Industries
MILAN (Reuters) -The European Commission has approved an Italian government scheme supporting power-intensive industries and the country's green transition, Italy's energy minister said on Friday.
The Commission deemed the initiative, named "Energy Release 2.0", compatible with European Union internal market rules and state aid regulations, Gilberto Pichetto Fratin said in a statement.
The scheme will provide electricity at a fixed price of 65 euros per megawatt-hour in its first phase. Last year the average price in Italy was 108.5 euros per megawatt-hour, according to government statistics.
In return, beneficiaries must repay the advantage by investing in new renewable energy capacity, either directly or through third parties selected via auctions managed by Italy's energy agency GSE.
"This is not a privilege but a tool to protect jobs, strengthen strategic supply chains, and attract investment," Pichetto said in a statement, thanking the European Commission for a "constructive dialogue".
The head of Italy's main business lobby Confindustria last month urged the government to put in place urgent measures to lower energy costs, saying that the industrial sector suffered from power prices that were more than 35% higher than the European average.
(Reporting by Francesca Landini; Editing by Emelia Sithole-Matarise)
