According to a memo put out by Energy Commissioner, GüntherOettinger, “this is the very first time the EU is co-financing theconstruction of a large energy infrastructure from its regularbudget.”
In the next ten years, the EC estimates that around EUR 140 billionare needed for the construction of high-voltage electricitytransmission systems, storage and smart electricity grid applications,EUR 70 billion for gas pipelines, storage, Liquefied NaturalGas terminals and infrastructure to allow gas to flow in twodirections, while EUR 2.5 billion needs to be available fortransporting captured CO2 for storage. However, according tothe EC, the investment is not likely to be made in time to meet theEU’s 2020 energy goals, partly because it takes too long to obtain thevarious building permits and also because the private sector isreluctant to invest where projects are not commercially viable, forexample, to enable Member States with a relatively small population,such as the Baltic States and Finland, to diversify their gassupply.
At the heart of the EC’s plan will be an EU-wide list of “Projectsof Common Interest”, to be drawn up and adopted by 31 July 2013 “at thelatest”. These are projects that involve at least two Member States andare economically, socially and environmentally viable. If finance forworks is required, though, they must prove that they are notcommercially viable. In such cases, the EU will co-finance up to 50% ofthe costs for studies and works. If the projects are “crucial forregional or EU-wide security of supply or solidarity,” or needinnovative solutions, grants of up to 80% will be available. An examplemight be an offshore electricity grid in the northern seas to transportenergy from offshore wind parks to major cities. In all, the EC hasdrafted a list of 12 such ‘energy infrastructure priority areas andcorridors,’ including the deployment of smart grids and a cross-bordercarbon dioxide network.
A central objective of the EC plan is to speed up the paperworkinvolved in developing the energy infrastructure. “Large-scale projectstake far too long to be planned, approved and built,” says Oettinger,pointing out that the construction of a power line across the Pyreneeshas taken 30 years to come on stream. “Even 10, 12, 15 years isunacceptable.” The planning and permitting process, he says, needs tobe completed within three years. One way to achieve this is tostreamline the bureaucracy. “At national level we need a singleauthority to be responsible for the various parts of a project. What wewant is a one-stop shop.” The aim is also to involve stakeholdersand citizens at a much earlier stage of the planning and approvalprocess, as well as to increase cooperation between Member States inregional areas, such as those bordering the northern seas. Within thethree-year period, projects will also have to ensure that they areenvironmentally friendly and respect the interests of users.
The European Parliament and the Council are expected to adopt thenew regulation by the end of 2012, so that it can enter into force atthe beginning of 2013. This will leave just enough time, says theCommission, to finalise the first EU-wide list of projects of commoninterest for funding under the Connecting Europe Facility, which willenter into force in 2014.
For further information:
http://ec.europa.eu/energy/infrastructure