Today Member States agreed to
allocate €647 million to support key priority infrastructure projects.
The bulk of the support goes to gas projects in the Baltic region as
well as in Central Eastern and South Eastern Europe. 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. They will
also contribute to the completion of a European energy market and the
integration of renewables to the electricity grid.
Vice-President of the European Commission, responsible for energy, Günther H. Oettinger said: "I
welcome today's decision, which will help us to quickly build the
infrastructure we need 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."
Most of the money will directly
or indirectly finance gas projects. Besides the construction of new
pipelines, these gas projects also include terminals to ship liquefied
natural gas (LNG) in the Baltic region, Central Eastern and South
Eastern Europe.
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).
Of the 34 grants given :
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16 are in natural gas and 18 in electricity sector;
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28 grants are paidfor studies, such as environmental impact assessments (€91.4 million);
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6 grants go to construction works project (€555.9 million).
A number of projects supported
have been identified as key security of supply projects in the European
Energy Security Strategy of 28 May 2014. The Connecting Europe Facility
(CEF) provides funding for those projects that have clear benefits
beyond national borders and are commercially not viable or not
affordable to users in certain Member States.
The grants under CEF 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.
Background...
Under the Connecting Europe
Facility a total of €5.85 billion has been allocated to Trans-European
energy infrastructure for the period of 2014-2020.
In order to be eligible for a
grant, a proposed action has to relate to a project included in the list
of 'projects of common interest'. The first list was adopted by the
European Commission in October 2013. It consists of 248 energy
infrastructure projects which, when completed, would each ensure
significant benefits for at least two Member States; enhance security of
supply, contribute to market integration and further competition as
well as reduce CO2 emissions.
Under the first call for CEF-energy 64 eligible proposals have been received requesting
in total €1.370 billion of financial support. Proposed actions that
have been rejected during the evaluation as they were not yet mature at
the time of closure of the call may again apply for funding during the
next call scheduled for 2015 .
