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PR(94)34: Swedish R&D aid in the field of hydropower technology authorised by the EFTA Surveillance Authority


The EFTA Surveillance Authority today authorised a one-off aid granted by Sweden to a research and development (R&D) project in the field of hydropower, technology. Having found that the aid is in line with the EEA provisions on State aid, the Authority has decided to authorise it under Article 61(3)(c) of the EEA Agreement.

The aid is to be given in support of a R&D project carried out by a foundation established by Vattenfall AB, ABB Generation AB and Kvwmer Turbin AB. The foundation will be located in Porjus, Municipality of Jokkmokk in the County of Norrbotten.

The aid is to be awarded in the form of a direct grant of SEK 16.5 million to cover investment in buildings, equipment and instruments in the R&D facilities of a Centre for education and development of hydropower technology in Porjus.

The R&D activities to be carried out at the centre will cover both basic industrial research and applied research and development. The private financing share of the R&D facilities at the centre will cover at least 75.4 % of the investment cost, thus the maximum intensity of the investment aid will be 24.6 per cent. The cost categories eligible for aid are subject to approval by the National Board for Industrial and Technical Development (Narings- och teknikutveklingsverket, NUTEK).

The EFTA Surveillance Authority recognises in general the potential beneficial effects of R&D activity on economic development and takes a favourable view of aid to such activity, provided that it is not likely to adversely affect trading conditions to an extent contrary to the functioning of the EEA Agreement. In the present case the Authority deemed such conditions to be met, as the established practice allows a maximum aid intensity of 25 % for applied research and development, and therefore decided not to raise objections to the Swedish aid proposal.

For further information please contact Morten Sandberg (State Aid & Monopolies Directorate) on tel. 22 66 855.

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