The EU Commission on Monday said it had approved a 3.2 billion euros ($3.5 billion) Czech state aid scheme to support combined heat and power generation.

Aid is targeted at the production of electricity in high-efficiency combined heat and power plants, and is expected to cut CO2 emissions by around 9.3 million tonnes per year.

The commission said the aid is "necessary and appropriate" to increase energy efficiency and accelerate the green transition, while the positive effects outweigh any potential negative effects on competition. ($1 = 0.9216 euros)

(Reporting by Bart Meijer)