Views: 193
The EU member states are unanimously joining the Commission proposal to invest about a billion euros to modernise key EU-wide energy infrastructures under the Connecting Europe Facility (CEF), including provision of financial aid for works and studies for first energy-modernising projects.
Background
In the European transition to green and circular economy, the member states’ energy system and infrastructures have to be modernised in order to provide for an integrated EU energy market, improve European security of supply, reduce the dependence on single suppliers and give consumers more choice.
It is also essential for renewable energy sources to thrive and for the EU to deliver on its Paris Agreement commitments and its ambition to become climate neutral by mid-century.
In order to be eligible for the CEF grants, the so-called Projects of Common Interest (PCIs) in the member states shall fit into the Commission’s priority list. Historically, the latest PCI list was published in October 2019 and the second in line entered into force in early 2021.
European CEF-Energy facilities and plans have already awarded almost €4 billion in grants just for the last two years; and about 65 percent of resources were allocated to electricity efficiency’s projects, including so-called smart grids.
Perspective CEF-Energy funding is subject to a final agreement by the EU institutions on the Multiannual Financial Framework for 2021-2027. Future awards are supposed to be in line with the planned revision of the Trans-European Networks for Energy (TEN-E) Regulation.
The Commission published all TEN-E proposal at the end of 2020, to ensure a future-proof framework to allow the EU to fund the infrastructure needed for delivering the European Green Deal.
More on the issue in: https://energy.ec.europa.eu/topics/infrastructure_en
Financing first energy infrastructure projects
The largest amount of funding goes to the Baltic Synchronisation Project (€720 million), to better integrate the electricity markets of Estonia, Latvia, Lithuania and Poland.
Other projects include a so-called smart electricity grid linking Hungary and Slovakia (€102 million), and the first-ever CEF grant for works on a CO2 transport project for Belgian and Dutch ports.
Modern, secure and smart energy infrastructure system in the member states is crucial for delivering the European Green Deal and meeting ambitious 2030 continental climate targets. Recent EU-states’ agreement marks a decisive step in the infrastructure projects of European strategic interest and the necessary investments will help sustain the EU’s economic recovery, resilience and increased employment.
More on the EU-wide energy policy in Commission’s website at: https://energy.ec.europa.eu/index_en
Examples
Among already adopted projects, there are the following:
= Baltic Synchronisation Project (Phase II -€720 million): following previous investment, this new funding will go to the construction of a “Harmony Link”, i.e. an electricity cable connecting Poland and Lithuania through the Baltic Sea. The cable will become a building block for the future offshore grid in the Baltic Sea. This funding will also cover investments such as synchronous condensers in Estonia, Latvia and Lithuania.
= Danube-Ingrid project (€102 million): this smart electricity grid project in Hungary and the Slovak Republic will improve network management and increase the quality and security of supply for all market participants; it will also support the efficient integration of renewables.
= The Porthos CO2 transport network project (€102 million): this project between the Netherlands and Belgium will develop an open access CO2 transport network in three of European main ports (Rotterdam, Antwerp and North Sea Port) leading to an offshore storage site in the North Sea.
= The Bulgaria-Serbia Interconnector (€28 million): this priority project agreed under the CESEC High-Level Group will improve security of supply and diversification of gas imports in Southeast Europe.
= North Sea Wind Power Hub (€14 million): a study to support the development of an important project for the roll-out of offshore wind in the North Sea.
Source and citations from: https://ec.europa.eu/commission/presscorner/detail/en/ip_20_1803