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European Commission
The European Union picks up the pace
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Energy
With a budget of 600 million euros, CEF Energy will support cross-border projects in this field
The European Commission opened a funding call last week for key cross-border projects in energy infrastructure, with a budget of up to 600 million euros from the Connecting Europe Facility for Energy (CEF Energy). The call is open to Projects of Common Interest (PCIs), which connect or significantly impact the energy systems of two or more EU countries, and Projects of Mutual Interest (PMIs), which connect the energy infrastructure of one or more EU countries to neighboring non-EU countries. Applicants can submit their proposals until September 16, 2025, with results expected early the following year.
This initiative, managed by the Executive Agency for Climate, Infrastructure, and Environment (CINEA), aims to fund energy infrastructure projects that promote greater market integration and improve supply security. PCIs and PMIs must contribute to at least one of the 11 priority energy infrastructure corridors identified by the European Union in areas such as electricity, offshore electrical grids, hydrogen, and electrolyzers. They must also contribute to one of the three key European infrastructure areas: smart electrical grids, smart gas networks, and systems for transporting carbon dioxide. In addition, the European Union, along with other countries, has created a plan to identify, plan, and implement PMIs in the electricity, hydrogen, and carbon dioxide transport sectors.
Selected projects may benefit from an accelerated permitting process and improved regulatory treatment, facilitating the implementation of these initiatives within shorter timeframes.
“Cross-border energy infrastructures are essential for the decarbonization of the European energy system,” says Carolina Simón, consultant on European Projects and Energy Expert at Zabala Innovation, who adds, “This call offers a key opportunity to support projects that improve energy connectivity, facilitating the integration of renewable energy and contributing to supply security.”
The Projects of Common Interest (PCIs) are key infrastructures that link or have a significant impact on the energy systems of at least two EU countries, while the Projects of Mutual Interest (PMIs) focus on interconnecting the energy infrastructure of the EU with non-member countries. The creation of these cross-border infrastructures is essential to achieving the EU’s climate and energy goals, as well as ensuring a stable and efficient energy supply.
The CEF Energy Mechanism, launched by the EU, is part of efforts to achieve the objectives set out in the European Green Deal. This agreement, which sets the goal of climate neutrality by 2050, focuses on the need to reduce greenhouse gas emissions, which currently represent more than 75% of the EU’s emissions.
The CEF Energy program also aims to accelerate the modernization of Europe’s energy infrastructure, enabling the large-scale integration of renewable energy and the development of innovative solutions such as smart grids and energy storage systems. These projects not only promote decarbonization but also help the EU reduce its dependence on fossil fuels and improve the efficiency of its internal energy market.
The selected projects under this call can request funding for both preparatory studies and construction works. PCIs and PMIs selected as projects of interest for the European Union are entitled to preferential treatment, which includes an accelerated granting of permits, allowing them to move forward at a faster pace in their implementation.
Regarding the evaluation of proposals, priority will be given to those that significantly contribute to the integration of the European energy market, the improvement of supply security, and the decarbonization of the energy system. Participation in the call represents, in this sense, an opportunity for companies and public entities in the energy sector who wish to contribute to the transformation of the European energy system.
“Cross-border projects are crucial to ensure that the European energy market is fully interconnected and able to tackle future energy challenges,” says Simón. “Projects like these help create a more efficient network, capable of integrating renewable energy sources more effectively and reducing the gaps that still exist between the energy systems of different countries,” emphasizes the expert.
According to the European Commission’s intentions, the promotion of cross-border infrastructure projects will also have an impact on the EU’s economy, as improving the efficiency of the grid and reducing costs associated with the lack of interconnection will contribute to greater competitiveness for its industries and a reduction in energy prices for consumers.
In this context, “international collaboration is key to ensuring that energy infrastructure projects can meet the EU’s ambitious sustainability and energy security objectives,” concludes Simón.
News
European Commission
Brussels drives new initiatives in the first four months of Ursula von der Leyen’s second term
Opinion
ENERGY
Carolina Simón
European projects consultant, Energy expert
Publication
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