The EU General Court holds that environmental harm does not make State aid incompatible with the internal market (Castelnou Energía)

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Energy security and public service obligations* On 3 December 2014, the General Court ruled on case T-57/11, Castelnou Energia v Commission. Castelnou Energia (CE) appealed against Commission decision N 178/2010 concerning public service compensation granted by Spain to generators of electricity produced from domestic coal. CE was a producer of electricity from combined cycle plants using natural gas. In order to ensure its energy security, Spain established a system composed of three instruments. First, it imposed an obligation on certain plants to use domestic coal. Second, power plants using more expensive domestic coal received a compensation. Third, these plants were given priority access to the wholesale electricity market (i.e. they were preferred over other suppliers of

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