EU Clears Portuguese Ocean Energy Tech Scheme

European Union regulators gave the green light on Thursday to a Portuguese ocean energy technology scheme aimed at boosting the bloc's renewable energy goals, saying it was in line with EU state aid rules.

The plan, with a target of 50 megawatts of installed capacity, will initially test floating offshore wind turbines in real operating conditions. Portuguese authorities will offer a feed-in tariff for 25 years to offset the higher costs of the new technology.

"The project would further EU energy and environmental objectives without unduly distorting competition in the single market," the European Commission said in a statement.

The scheme is also set to support projects producing energy from ocean waves and tides. (Reporting by Foo Yun Chee