EU Adopts New State Aid Framework To Boost Renewables

The European Commission has adopted the new Clean Industrial Deal State Aid Framework (CISAF) which empowers member states to accelerate the roll-out of renewable energy projects across the European Union (EU).  

The CISAF replaces the Temporary Crisis and Transition Framework (TCTF) that has been in place since 2022 that was aimed at supporting bloc members to invest in key sectors in view of the Russian invasion of Ukraine. The commission had previously launched the Clean Industrial Deal plan in February 2025 aiming to support clean technology manufacturing with €100 billion (see EU: Over €100 Billion For Clean Manufacturing Under Clean Industrial Deal).  

Member states, under the CISAF, will be able to grant support to fast-track renewable energy and low-carbon fuel projects by simplification of procedures, especially to support transition for companies in hard-to-decarbonize sectors.    

They will also get additional tools to integrate intermittent renewable energy sources such as wind and solar into their energy supply. Additionally, member states will be able to support investments in new manufacturing capacity for net-zero technologies and those covered by the Net-Zero Industry Act (NZIA) to prevent such investments from leaving the EU.    

State aid will be capped at €200 million for every selected project. Member States may offer equity, loans, or guarantees to attract private investment in clean energy and infrastructure projects. 

Having been implemented on June 25, 2025, the new framework CISAF will remain in place until December 31, 2030 to ensure investors get a long-term predictability.  

“The new framework simplifies and speeds up support for decarbonisation, but it goes further: it recognises the state as a strategic investor in our future. It’s a tool to drive climate ambition, strengthen Europe’s resilience, and ensure our industry remains globally competitive,” said Executive Vice-President for Clean, Just and Competitive Transition, Teresa Ribera.  

European solar PV lobby association SolarPower Europe (SPE) welcomed the new framework calling it a watershed moment for the European industry in its efforts to compete globally and decarbonize.  

“For the first time, EU governments can support the electricity costs for their nations’ heavy industry. If applied properly, the new rules will help more European businesses to access the competitive and climate advantages of solar-based electrification,” said SPE CEO Walburga Hemetsberger.  

Yet, she rued the fact that there is not much for solar manufacturers in the new rules. Hemetsberger explained, “The option to temporarily support electricity costs of existing heavy industries is not evidently available for new solar manufacturing projects. We call on the European Commission to turn to the EU budget and swiftly set up a Clean Tech Manufacturing Bank, including a dedicated Solar Manufacturing Facility, that rewards projects with production-linked aid, covering opex costs for new factories.”