EU Calls for New Funding Proposals for Cross-Border Energy Projects

The European Commission is accepting proposals for funding under a new round of the Connecting Europe Facility (CEF) for Energy.

The new EUR 600 million ($659.54 million) offer is for projects on the first list of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) adopted under the revised Trans-European Networks for Energy (TEN-E) Regulation. The regulation, which aims to link national and regional power, low-carbon gas, hydrogen and carbon dioxide infrastructure, gets its funding from CEF for Energy, budgeted with EUR 5.88 billion for 2021-27.

The first list includes north-south power interconnections in the Baltics, Central Eastern Europe, Southeastern Europe and Western Europe; offshore grids in the Atlantic, North Sea, Eastern Europe, Southern Europe and Western Europe; hydrogen production-distribution networks in the Baltics, Central Eastern, Southeastern and Western Europe; and carbon capture and storage networks in the Baltics, the Mediterranean, the North Sea and between Croatia and Hungary.

The new call “addresses funding proposals for studies and construction works”, the Commission said in an online statement. Developers have until September 16 to submit proposals. Results will come out “early next year”.

“Now, more than ever, we must intensify our investments to ensure a genuine Energy Union”, said EU Energy and Housing Commissioner Dan Jørgensen. “This is key to power our competitiveness, ensure our energy security and bring down energy costs for all”.

For the inaugural call, which initially had a budget of EUR 850 million, the European Commission said January it was set to award nearly EUR 1.25 billion to 41 projects, mostly in the study stage.

The selected projects announced January 30, consisting of 36 studies and five work proposals, had obtained the status of PCI or PMI in 2024, the Commission said.

Nearly EUR 750 million has been earmarked for eight power grid projects, including offshore and smart grids. The bulk of the grid allotment at EUR 645 million would support the Bornholm Energy Island project. The project involves the building of a first-of-a-kind hybrid interconnector in the Baltic Sea that links to Denmark and Germany. The project will integrate three gigawatts (GW) of offshore wind capacity, according to the Commission.

“Another grant for construction works of almost EUR 33 million will go to Danube InGrid, a cross-border smart electricity project between Hungary and Slovakia that will integrate renewable energy and more efficiently balance the system”, the Commission said.

The other six - located in Belgium, Bulgaria, Denmark, France, Slovakia and Spain - would receive study support.

“To help decarbonize EU industry, hydrogen infrastructure will benefit from grants for 21 development studies amounting to over EUR 250 million”, the Commission added.

The hydrogen portion of the awards would support projects in Austria, Belgium, Czechia, Denmark, Estonia, Finland, France, Germany, Greece, Italy, Latvia, Lithuania, Poland, Portugal, Spain and Sweden.

For carbon dioxide infrastructure, three projects would receive construction support and nine more would receive aid in securing financing - totaling EUR 250 million.

The Prinos storage facility in Greece, which will help establish the first carbon capture and storage value chain in the southeast Mediterranean, has been allotted EUR 120 million. The other two projects to receive construction support are in Denmark and the Netherlands.

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