The European Union is not obliged to pay for the EU’s renewables investment and is not the target of a lawsuit by energy company Veolia, the European Court of Justice has ruled.
Veolia has appealed the ruling, arguing that the Commission’s €30 billion investment fund for renewables is an “internal fund” that does not fall under EU law.
The ruling will have an impact on the €2 billion that is set aside to help the EU-based firm meet its renewable energy target.
The EU Investment Fund (EFI) for Renewable Energy (EUR-EUR) was set up in 2003 to finance the development of renewable energy technologies and projects across the EU.
The Commission says that the fund provides financing for investments in renewable energy projects for an estimated €2.4 billion annually.
Veera says that, in the absence of any EU law, it cannot claim that the €30 million allocated to it for renewable energy has not been spent.
The EFI fund has been used to finance more than €500 million in renewable projects across Europe, with projects in Spain alone generating more than the EU has invested in all of 2015.
The company says that it is a “legitimate target” that has been met and that the EU was aware of it.
Veersia says that its €2-billion investment is only the beginning of its €1.2-bn in the EFI, which includes loans and grants.
The investment fund was set to end on May 31, 2019, but Veera has appealed that decision.
EU states have committed to meeting the renewable energy targets by 2025.
Veeringia says it will ask the court to block the EU funding until it is clear that the funds will be sufficient to meet the targets.
Veeria also says that a number of other projects, including a new wind farm in Ireland and an ambitious solar project in southern France, have not been funded.
The European Court is also set to rule on whether Veolia can keep its wind farm, which is the largest in the world.
The wind farm has been proposed by German state-owned utility Energieverein (EEV), and it is expected to generate 1,600 megawatts of electricity.
The project was approved in 2015.
Veeredia says the EU must now ensure that the project is viable in the future.
The renewable energy fund is not an EU project, and it does not require EU approval to be carried out, the company argues.
Veermans spokesperson says EU funds for renewables ‘not a target’ EU energy ministers have pledged to meet their renewable energy and climate goals by 2025, but EU leaders have been under pressure to make sure that all of the EU countries meet the target.
This week, the commission said that it would review the EFEA’s €3 billion investment target for renewable energies.
Veerem says it is “not a legal target”, and is seeking an order to ensure that it has enough funds for the project.
The environmental protection body also says it has been contacted by representatives of other energy companies, but it has not received any official response.
In its statement on Wednesday, Veera said it is seeking a judicial review of the ruling.
“We believe that Veolia’s argument is an attack on the EMEA’s authority over renewable energy investments,” the statement said.
“As a member state of the ESE, we are obliged to provide financial support for renewable projects.
We do not want the EU to be complicit in this infringement of the legal rights of other member states.”