The European Commission has approved a €300 million Irish State aid scheme to support the production of renewable heat under EU rules.
The scheme will be open to non-domestic heat users in Ireland that install and use eligible renewable heating systems, including biomass and anaerobic digestion, as well as high-efficiency combined heat and power systems, the Commission said in a release on Monday.
Support will be paid through tariffs set by administrators, with payments linked to each metered unit of “useful” renewable heat produced.
Aid can be granted under the scheme until 31 December 2030, and payments can continue until 31 December 2047.
The programme will cover only new installations and conversions from fossil-fuel systems or inefficient direct electric heating to renewable options.
Checks on payments and fuel rules
The scheme includes project-specific budget caps and reviews of tariffs to avoid overcompensation, alongside periodic checks designed to address potential windfall gains, according to the Commission.
Beneficiaries cannot receive other public support for the same eligible costs, and biomass and biogas fuels used must meet sustainability and greenhouse-gas savings criteria set under the EU Renewable Energy Directive.
The Commission said the measure would contribute to Ireland’s 2030 targets under the Renewable Energy Directive and increase the share of renewable energy in heating by about 3%.
A non-confidential version of the decision will be published in the Commission’s State aid register under case number SA.106437 once confidentiality issues have been resolved.
