'Significant Capacity Extension' means a significant increase in an installation's initial installed capacity whereby all following occur:
- one or more identifiable physical changes relating to its technical configuration and
functioning take place other than the mere replacement of an existing production line , and
- the installation can be operated at a capacity that is at least 10% higher compared to the installation's initial installed capacity before the change and it results from a physical capital investment (or a series of incremental physical capital investments).
The installation must submit to the national aid granting authority evidence demonstrating that the criteria for a significant capacity extension have been met and that the significant capacity extension has been verified as satisfactory by an independent verifier.
The verification should address the reliability, credibility and accuracy of the data provided by the installation and should deliver a verification opinion that states with reasonable assurance that the data submitted are free from material misstatements.
The source of the definition - European Commission Communication on Guidelines on Certain State Aid Measures in the Context of the Greenhouse Gas Emission Allowance Trading Scheme Post 2012 C(2012) 3230 final {SWD(2012) 130 final} {SWD(2012) 131 final} of 22 May 2012.