Commission announces phase out of renewable energy subsidies

  

The European Commission announced on Wednesday that renewable energy subsidies that helped spur Europe’s €48-billion-a-year clean energy industry are to be phased out across the continent, under new market-friendly state aid rules

"It is time for renewables to join the market,” said EU Commissioner for Competition Joaquin Almunia. “The new guidelines provide a framework for designing more efficient public support measures that reflect market conditions, in a gradual and pragmatic way."

Under the new rules, renewable energy subsidies will have to be replaced by market-based mechanisms for all but the smallest of clean electricity generators by 2017, following a pilot phase that will start next year.