BRUSSELS, Dec 19 (Reuters) - The European Commission on Monday approved Britain's plans to support the conversion of a unit of the Drax power plant from coal to biomass, saying it would further the EU's environmental and energy targets.
The Commission opened an in-depth investigation into the proposed state aid in January to check that it would not lead to overcompensation and undue distortions of competition in the biomass market.
The UK government plans to support the conversion by paying a premium on top of the market price of the electricity generated.
"On the basis of this analysis, the Commission has now concluded that the planned premium will not result in overcompensation," the Commission said in a statement. (Reporting by Julia Fioretti; editing by Philip Blenkinsop)