Port Technology — 2024-06-21
Maritime and Ports
The European Commission has approved, under EU State aid rules, a €570 m ($609.6 m) Italian scheme to incentivise ships to use shore-side electricity when they are at berth in maritime ports.
The measure contributes to reducing GHG emissions, air pollution and noise in line with the objectives of the European Green Deal.
Under the scheme, aid in the form of a reduction of up to 100% of ‘general system charges’ in electricity prices is aimed at financing public policy goals, such as renewable energy. This reduction is expected to lower the cost of electricity for ship operators purchasing shore-side electricity, making it competitive with onboard electricity production using fossil-fueled engines.
By lowering the cost of shore-side electricity for ships, the measure aims to incentivise ship operators to opt for a more environmentally friendly electricity supply, thereby avoiding significant GHG emissions, air pollutants and noise emissions. Initially, the reduction will cover 100% of the general system charges.
The Commission assessed the scheme under EU State aid rules, in particular Article 107(3)(c) of the Treaty on the Functioning of the European Union, which enables Member States to support the development of certain economic activities subject to certain conditions, and the Guidelines on State aid for climate, environmental protection and energy (CEEAG), which allow Member States to support measures reducing or removing CO2emissions.
The Commission found that:
On this basis, the Commission approved the Italian measure under EU State aid rules.
“This €570 m Italian scheme will incentivise ship operators to use shore-side electricity rather than electricity produced on-board from fossil fuels,” said Margrethe Vestager, Executive Vice-President in charge of competition policy.
“With this measure, Italy will contribute to the ambitious EU target of reducing transport emissions by at least 90% by 2050 while ensuring competition is not distorted.”
Earlier in 2024, NatPower H, a company of the NatPower group, announced a €100 m ($108 m) green hydrogen refuelling infrastructure for recreational boating in Italy, the first of its kind in the nation.