The European Commission has found that a scheme which supports hydroelectric power production in the Czech Republic to be congruent with European Union state aid rules, the organization said earlier today.
The announcement stems to September 2015, when the Czech Republic notified the EU of its plan to provide the operators of hydropower projects up to 10 MW in capacity with support totaling up to US$9 million.
Under environmental protection and energy guidelines established by the EC in 2014, member states can support the production of energy from renewable sources under certain conditions.
According to the guidelines, hydro installations with a capacity below 500 kW will receive support in the form of a market premium paid on top of the market price, while those below will receive a feed-in tariff.
The EC said this, alongside a similar plan for the Czech Republic's biogas sector, will "minimize the potential distortion of competition brought about by the public financing by ensuring that these payments do not exceed the minimum level necessary to achieve the schemes' objectives."
Both initiatives are part of the Czech Republic's effort to increase its target of making renewable sources account for 14% of its total image consumed by 2020.