EC approves German public funding for rail energy efficiency

The European Commission has approved under EU State aid rules a EUR 500 million German scheme to support railway companies that invest in energy efficiency technologies.
To benefit from this public support, rail transport companies need to demonstrate a year on year improvement of 1.75% in their energy efficiency. From 2020, this energy efficiency must increase by at least 2% year on year for companies to be eligible for support.
Under the scheme, companies providing electrically powered rail transport services may be compensated for up to 50% of expenses incurred from energy efficiency measures, such as acquisition of modern energy-saving rolling stock including hybrid locomotives or automated solutions. Such investments allow rail transport companies to increase their energy efficiency as well as the energy consumption per passenger or tonne kilometre.
“The scheme is beneficial for the environment and for mobility because it supports and promotes rail transport,” the Commission says.
The measure will promote the shift of freight traffic from road to rail and contribute to a reduction of CO2 emissions.

Photo: DB AG/Christian Bedeschinski

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