The European Commission said on October 24 that the EC has approved, under EU State aid rules, the extension of an aid scheme to support biogas production in Luxembourg for six years.

The objective of the measure is to ensure a stable remuneration for biogas plants, which produce biogas from biomass and inject it in the natural gas network.

The Commission said the EC assessed the prolongation of the scheme approved today under EU State aid rules, and in particular the 2014 Guidelines on State aid for environmental protection and energy, which allow the Member States to support the production of electricity from renewable energy sources, subject to certain conditions.

According to the Commission conclusions, the prolongation of the scheme will help Luxembourg boost the share of electricity produced from renewable energy sources to meet its climate targets, in line with the environmental objectives of the EU, without unduly distorting competition.

The extended scheme, which will cover the period from January 2017 to December 2022, has an estimated budget of €45 million. The measure was initially approved by the Commission in 2011 and subsequently modified in 2015.