European Union Member States have agreed to allocate EUR 647 million to support priority infrastructure projects in the energy sector. The European Commission noted in a statement that while the bulk of this support would go to gas projects in the Baltic region as well as in Central Eastern and South Eastern Europe, the funding would also support projects that will contribute to the completion of the European energy market and the integration of renewables into the electricity grid.
Funding will come from an EU programme called the Connecting Europe Facility (CEF). The supported projects will increase Europe’s energy security and help end the isolation of Member States from EU-wide energy networks, the statement said.
Commenting on the programme, the European Commissioner for Energy at the time Günther Oettinger (currently Commissioner for Digital Economy and Society) said that he welcomed the decision as it would help to quickly build the infrastructure needed to ensure Europe’s energy security. “The geopolitical crisis has highlighted the need to better connect energy networks. This is also crucial for an integrated energy market where consumers get the best value for their money," Oettinger said.
While most of the money will directly or indirectly finance gas projects, innovative technologies in electricity will also be co-financed. These include a feasibility study for a 700 km long subsea high-voltage direct current cable between Norway and the United Kingdom and a smart grids project on the border of Ireland and the UK (Northern Ireland).
According to the statement, the CEF grants can finance up to 50% of the eligible costs of actions. However, in exceptional circumstances - when an action clearly benefits security of supply, strengthens solidarity between Member States or enables highly-innovative solutions - up to 75% of the costs for works can be covered by the facility.
The European Commission proposal was supported by the CEF Coordination Committee, which consists of representatives from Member States. Later this year the Commission will formally adopt the list of proposals which will receive financial assistance under CEF-Energy.