State aid: France to grant €46.5 million aid for Solar Nano Crystal
The European Commission has decided not to raise objections under EC Treaty state aid rules to the financial support of € 46.5 million that France plans to grant to the Solar Nano Crystal research and development (R&D) programme. The objective of the programme, which is being implemented by a consortium led by PV Alliance LabFab, is to develop the whole value chain of solar energy, from the production of silicon to the module for obtaining solar energy. The Commission found the aid to be compatible with its R&D&I framework (see IP/06/1600) because, in line with EU objectives, it encourages R&D to improve sustainable and diversified sources of energy, that would not have taken place without aid. These benefits outweigh any potential distortions of competition.
France plans to grant a total of €46.5 million to PV Alliance LabFab and other public and private partners in the form of grants and repayable advances. The eligible costs for the purpose of calculating the permissible aid ceiling amount to €129.2 million. The programme was presented in the framework of the French Industrial Innovation Agency (now OSEO) aid scheme, which the Commission approved on 19 July 2006 (see IP/06/1020). Only the €20 million part of the aid to PV Alliance LabFab was subject to an in-depth assessment by the Commission because of its size. The smaller aids either fall under the approved scheme or do not constitute aid because they are granted to public or research organisations.
Solar Nano Crystal aims at improving breakthrough technologies in the solar energy sector, procuring them an environmental and energetic advantage in comparison to fossil fuel energy. It concerns the whole value chain from the production of silicon to the modules that can be installed to obtain solar energy. The project is two-fold: it develops the value chain on two types of silicon, which is the material used to build up cells: metallurgic silicon and polycrystalline silicon. It will be carried out by PV LabFab, a pilot facility set up to carry out the research, test it and validate it, whose shareholders are EDF-ENR, Photowatt and CEA-INES (a non-profit making research organisation).
In particular, the programme aims at boosting the efficiency of the use of metallurgic silicon and polycrystalline silicon.
Following an in-depth examination, the Commission has concluded that the Solar Nano Crystal programme remedies certain market failures, such as the fact thatthe environmental benefits of the research cannot be appropriated by the company and the difficulties to obtain financing due to the high risks of the project. Moreover, the programme will have benefits for the environment, since it aims at reducing CO2 emissions and the EU's energy dependence by 2013. Furthermore, the aid to PV Alliance LabFab has a limited negative impact given its relatively small amount and the fact that it has to be paid back. The impact on competition is limited as the aid beneficiary is a small player and the market is expected to expand.
The non-confidential version of the decision will be made available under the case number N 274/2008 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved.
(2009-02-26)
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