Press Release: State aid: Commission approves aid for new 400 MW thermal power plant in Latvia

The European Commission authorised on 28 January 2010, under EU state aid rules, aid that Latvia intends to grant by way of tender for the construction and operation of a 400 MW thermal power plant between 2015 and 2025. The measure is aimed to ensure that the future electricity demands will be met by available supplies and to reduce the dependency on gas as the dominant fuel source. The Commission found the measure to be compatible with Article 107.3.c of the Treaty on the Functioning of the European Union (TFEU) that allows, under certain conditions, aid for the development of economic activities or regions. In particular, the aid is proportionate and contains safeguards minimising potential distortions of competition.

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