EU puts end to subsidies for renewables?

The European Commission issued new guidelines Tuesday which could end costly and controversial subsidies for renewable energy, opening the way for state-aid backing of gas or coal-fired electricity generation projects.

- The ultimate aim of the market is to deliver secure and affordable energy for our citizens and business. Public intervention must support these objectives because when the sun is not shining and the wind is not blowing, electricity must still be produced - France Presse cited EU Energy Commissioner Guenther Oettinger as saying.

To ensure back-up generating capacity, new power plants would be needed, and these could get state backing.

State intervention is potentially harmful to the working of the market and the new guidelines are meant to prevent that and show member nations what "best practice" is.

The Commission said investment costs in renewables have come down and therefore government support can now be tapered off.