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EU: Commission investigates UK power plant proposals

By  |  February 22, 2015

The European Commission has launched an in-depth investigation to determine whether the planned conversion of the Lynemouth coal power station into a 420-MW biomass plant would comply with EU state aid rules.

Last December, the UK announced plans to subsidise under its Contract for Difference mechanism the proposed conversion of the specific coal-fired power station into a plant that runs exclusively on wood pellets.

In a statement on Thursday, the EC said it will make sure that the public funds used to back the project are limited to the necessary amount. The commission is concerned that the project’s actual rate of return could be higher than the current estimates and could result in overcompensation.

The in-depth investigation will allow the Commission to assess whether its concerns are justified.

 

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