The Commission already approved state aid under FIDeR for five projects to develop offshore wind farms, the construction of the Teesside combined heat and power biomass plant and the biomass conversion of the Lynemouth power plant.

This Sector Understanding does not apply to items located outside the power plant site boundary for which the buyer is usually responsible, in particular, water supply not directly linked to the power production plant, costs associated with land development, roads, construction villages, power lines and switchyard, as well as costs arising in the buyer's country from official approval procedures (e.g. site permits, construction permit), except:

This does not include items for which the buyer is usually responsible, in particular costs associated with land development, roads, construction villages, power lines, and switchyard and water supply located outside the power plant site boundary, as well as costs arising in the buyer's country from official approval procedures (e.g. site permits, construction permit, fuel loading permits), except:

Items located outside the nuclear power plant site boundary for which the buyer is usually responsible, in particular costs associated with land development, roads, construction village, power lines, switchyard (15 18 22 29 30 32 37 38 39) and water supply, as well as costs arising in the buyer's country from official approval procedures (e.g. site permit, construction permit, fuel loading permit).

Notes that, in order to guarantee supply security, the development of RES with variable feed-in will necessitate a flexible balancing of fluctuations and a flexible back-up through an integrated and interconnected European electricity grid that allows cross-border trading, demand response systems, energy storage and flexible power plants; calls on the Commission to assess whether there is a capacity issue in the EU and to determine the amount of firm capacity that can be provided by variable RES in an integrated EU power system, as well as its potential impact on generation adequacy; agrees with Commission’s analysis that the developme ...[+++]nt of reserve capacity mechanisms entails substantial costs and may distort price signals; notes that there is an increasing need for a stable policy framework to provide economic guarantees concerning the availability of these reserves as well as for system and balancing services; rejects the concept of competition for subsidies between energy sources and calls for an energy market design tailored to the Union’s long-term energy and climate policy objectives, which makes it possible to integrate RES technologies into the internal energy market, but acknowledges that state aid has historically been necessary in the development of all energy sources;

It also stresses that the operation of the future power plant park ‘shall allow profitable operation and maintenance, at a development of prices being in accordance with the provisions of the law’ (88).