French State aid to Environmental and Energy Management Agency approved for geothermal exploration and drilling
The Commission has approved State aid from France to the French Environmental and Energy Management Agency ADEME, to provide guarantee funds (repayable) to ‘Geodeep’ for a maximum of 10 years, in the light of work on an ‘Enhanced Geothermal System’. This allows for indemnification of the risk of unsuccessful exploration or exploitation drilling, which would otherwise deter investors. The Commission based its decision on specific State aid rules considering the environment and energy, and found that the aid granted would contribute to French and European goals of energy efficiency, and provision of energy from renewable sources, in line with EU objectives. It considered that distortion of competition was a low risk, as the aid is to be paid back.
For more information, read the Commission’s press release of today here, where the link to the State aid case file can also be found.