The Implementation of the European Green Deal – Tensions Between a Market-based Approach and State Aid for Renewables

Abstract

Energy policies which promote a green transition are of particular interest to the European Commission and are one of the key elements of the European Green Deal. This article takes a close look at the interplay and tensions between two theoretically separated frameworks, renewable energy law and the State aid regime, and analyses the impact of the European Green Deal on their revision. As State aid plays a pivotal role in the green transition and in the fulfilment of the Commission’s policy objectives, the implementation of the European Green Deal can offer a great opportunity to establish new State aid control rules. More specifically, the analysis focuses on a market-based approach towards renewable energy support schemes, and attempts to answer the question of whether or not such a solution fits the purpose of achieving the newly established EU sustainable goals defined in the European Green Deal.