Overheidssteun: Commissie keurt voor 73 miljoen steun aan Intico Zonne voor productie van dunne zonnecellen in Saksen-Anhalt, Duitsland goed (en)

The European Commission has endorsed, under EC Treaty state aid rules, €73 million of aid which the German authorities intend to grant to Intico Solar for the production of thin film solar modules in Sachsen-Anhalt, Germany. The project involves a total investment of €585 million and is expected to create more than 1000 direct and indirect jobs. The Commission found the measure to be compatible with the requirements of the Regional Aid Guidelines 2007-2013 (see IP/05/1653) and in particular with the rules on large investment projects, because Intico Solar would gain neither a significant new market share nor a significant increase in production capacity in a declining market. Therefore the positive impact of the investment on regional development can be considered to outweigh any potential distortions of competition.

Competition Commissioner Neelie Kroes i said: “I am pleased to approve aid for this large investment project which is expected to create more than 1000 direct and indirect jobs in Sachsen-Anhalt and will contribute to the development of the region."

Intico Solar is a newly created company which will set up a new plant to manufacture thin film solar modules which allow, as part of an integrated solar energy system, to convert sunlight into electricity. The investment costs taken into consideration for the calculation of the aid amount to €585 million, while the actual aid amount is €73 million, paid out in the form of an investment premium and possibly a grant.

The project is to be carried out in Sachsen-Anhalt, in Eastern Germany, an area eligible for regional aid under Article 87(3)(a) of the EC Treaty as a region with an abnormally low standard of living and high unemployment.

The aid is granted under existing aid schemes but due to the high amounts of aid and investment costs involved, the measure had to be notified to the Commission for individual assessment and clearance.

The Commission’s assessment of regional aid to large investment projects aims to verify whether the market share of the beneficiary and the production capacity created by the investment remain below the thresholds set in the Regional Aid Guidelines. In case the thresholds are not exceeded, any negative effect of the aid on competition is deemed to be outweighed by its positive contribution to regional development.

The Commission found that Intico Solar's share of the worldwide solar module market would remain below the 25% threshold, both before and after the planned investment.

The Commission also verified the capacity increase generated by the project. Its analysis concluded that the solar module market was growing rapidly compared to the EEA growth rate and that therefore the additional production capacity created by the project would not raise concerns.

The non-confidential version of the decision will be made available under the case number N 199/ 2008 in the State Aid Register on the DG Competition website once any confidentiality issues have been resolved. New publications of state aid decisions on the internet and in the Official Journal are listed in the State Aid Weekly e-News.