ABSTRACT
State aid rules are an integral component of energy regulation in the European Union (EU). They establish negative and positive limits for the provision of State aid (support) to undertakings involved in the generation, transmission and/or distribution of energy in the internal market. The importance of State aid rules for the energy sector is pivotal. According to the Commission, 53 per cent of all approved State aid spending was attributed to measures related to environmental and energy services, including renewable energy in 2017. State aid is a sui generis set of rules part of EU competition regime. These rules are designed to prevent or limit the capacity of Member States to distort the competitive process and intra-community trade in the EU by granting an undertaking with some economic advantage. A State measure only falls into the State aid rules’ scope if it favours certain undertakings or the production of certain goods.
