The European Commission has decided to apply the derogation to State aid under Article 92(3)(c) of the EC Treaty to the Danish Energy 200 programme for research and development in the field of energy technologies. The programme sets out to encourage the application of research results to energy technologies. Projects eligible for the aid should aim to improve the energy situation at national and international level. Emphasis will be placed on projects involving research institutions and on cross-border projects. There are two types of aid: grants and loans. Grants will be awarded at the start of research, while loans will come into play in the final stages of development. A budget of DKR 15 million (ECU 2 million) has been earmarked for this programme. This relatively small amount means that only three to five projects will receive grants. The programme is designed for projects involving basic industrial research, applied research and development. As regards basic industrial research, an aid intensity of up to 50% is envisaged. For applied research and development, the maximum aid intensity will be 25%. A 10% bonus will be available to SMEs. The aid will be granted to enterprises, most of which, because of the structure of Danish industry, fall into the category of SMEs.