The European Commission has officially approved a € 0.5 billion million state aid package for Luxembourg to support the expansion of indigenous clean technology manufacturing capacity through direct funding. The plan covers key areas such as solar, wind, heat pumps and batteries, and is valid until the end of 2030. It is the first “Clean Industrial Trading Country Assistance Framework” (CISAF) plan approved for small member states.
The European Commission announced that it has approved the € 0.5 billion state aid package submitted by Luxembourg to support investments in the field of clean technology manufacturing. The initiative aims to expand the production capacity of clean technology products and their key components that are critical to Europe’s energy transition, specifically covering solar, wind, heat pumps and batteries.
Under the approved scheme, support funds will be provided to all Luxembourg-based enterprises in the form of direct grants, which will remain open until 31 December 2030. The Committee noted that the programme, approved under the Country Assistance Framework for Clean Industrial Transactions (CISAF), would accelerate the country’s transition to a net-zero economy and concluded that it was “necessary, appropriate and proportionate” to the implementation of CISAF.
The EU Executive Vice-President for the Clean, Just and Competitive Transition, Teresa Ribera, said: “This is the first CISAF approved for a small member state, and Luxembourg has a budget of € 0.5 billion to spend on additional clean technology manufacturing capacity. Direct grants under the program will help businesses make key investments in the years ahead.”
The Solarcells of photovoltaic manufacturers has launched the production of the first “Made in Luxembourg” solar modules in Luxembourg in 2024, with an initial production capacity of 40000 modules per year. As a joint venture between Socom Group and Evocells, the company plans to gradually increase its annual output to 200000 pieces, according to Luxembourg media Wort.
Previously, the European Commission has approved a 0.4 billion euro clean technology manufacturing support plan for Greece and another 3 billion euro support plan for Germany under CISAF. At the same time, the Commission is working to create demand for EU-made solar inverters and cells through the draft Industrial Accelerator Act (Industrial Accelerator Act), which proposes to give priority to the procurement of EU-made inverters and cells.
