Call for Proposals: Electricity, Gas, Smart Grids, Hydrogen and CO₂ networks – Works

Scope

• This topic refers to projects for works contributing to the implementation of a PCI or a PMI. Works in the meaning of CEF-Energy include the purchase, supply and deployment of components, systems and services including software, the development, construction and installation activities relating to the eligible infrastructure items of a given PCI or PMI, the acceptance of installations and the launching of a project.
• In particular, specific provisions apply in relation to, inter alia, the existence of significant positive externalities, a cross-border cost allocation decision, and the project’s inability to be financed by the market or through the regulatory framework. Specific co-funding rates may also apply according to the level of demonstrated positive externalities of the action.
• Only projects contributing to PCIs and PMIs as identified in the in the First Union list of PCIs and PMIs shall be eligible for support through EU financial aid in the form of grants.
• Pursuant to Article 18(2) and (3) of the TEN-E Regulation, PCIs/PMIs falling under the categories set out in Article 24 (derogation for gas interconnections in Cyprus and Malta) and in Annex II, point (1)(a), (b), (c), (d) and (f) (electricity projects, except smart electricity grids and electricity storage projects that are not regulated) and point (3) (hydrogen projects), are also eligible for Union financial assistance in the form of grants for works if they fulfil all of the following criteria:
  • the project specific cost-benefit analysis drawn up pursuant to Article 16(4), point (a), of the TEN-E Regulation provides evidence concerning the existence of significant positive externalities, such as security of supply, system flexibility, solidarity or innovation;
  • the project has received a cross-border cost allocation decision pursuant to Article 16 of the TEN-E Regulation or, as regards projects of common interest falling under the energy infrastructure category set out in point (3) of Annex II (hydrogen projects), where they do not fall under the competence of national regulatory authorities and therefore they do not receive a cross-border cost allocation decision, the project aims to provide services across borders, brings technological innovation and ensures the safety of cross-border grid operation;
  • the project cannot be financed by the market or through the regulatory framework in accordance with the business plan and other assessments, in particular those carried out by possible investors, creditors or the national regulatory authority, taking into account any decision on incentives and reasons referred to in Article 17(2) of the TEN-E Regulation when assessing the project’s need for Union financial assistance.
• Pursuant to Article 18(4) of the TEN-E Regulation, PCIs/PMIs falling under the energy infrastructure categories set out in Annex II, point (1)(e) (smart electricity grids) and points (2) (smart gas grids) and (5) (carbon dioxide projects), are also eligible for Union financial assistance in the form of grants for works, where the concerned project promoters, in an evaluation carried out by the relevant national authority or, where applicable, the national regulatory authority, can clearly demonstrate significant positive externalities generated by the projects, such as security of supply, system flexibility, solidarity or innovation, and provide clear evidence of their lack of commercial viability, in accordance with the cost-benefit analysis, the business plan and assessments carried out, in particular by possible investors or creditors or, where applicable, a national regulatory authority. Electricity storage projects that are not regulated need to meet, by analogy, the requirements of Article 18(4), as it should not be possible for them to request a CBCA decision.
• The proposals requesting grants for works which fail to provide the relevant supporting documents or that provide supporting documents that are not legally valid at the time of their submission or which fail to comply with any of the eligibility criteria indicated above may not be eligible.

Funding Information

• Budget: EUR 600 000 000.

Expected Outcomes

• This topic aims to enable PCIs and PMIs to be implemented within the framework of the deployment of trans-European networks in the energy sector. In particular, the call shall contribute to supporting energy infrastructure PCIs and PMIs that have significant socio-economic benefits and ensure greater solidarity among Member States, but which do not receive adequate financing from the market.
• Projects supported by this call pursue the goals and objectives of the European Green Deal, as well as the Paris Agreement and the 2030 climate and energy targets and long-term decarbonisation objectives. Therefore, financial assistance provided under this call for proposals should maximise its added value towards decarbonisation of the energy sector. The EU Grid Action Plan underlines the critical importance of electricity grids in the energy transition.

Expected Impact

• As indicated in section 1 the Multi-annual Work Programme, it is expected that the financial assistance contributes to the further development and implementation of PCIs and PMIs helping to achieve the broader TEN-E policy objectives and the CEF energy policy objectives of:
  • further integration of an efficient and competitive internal energy market,
  • interoperability of networks across borders and sectors,
  • facilitating decarbonisation of the economy, promoting energy efficiency and ensuring security of supply.
• In accordance with Recital 5 of the CEF Regulation (EU) 2021/1153 and in line with the Multi-annual Work Programme, this call for proposals aims at financing projects contributing to the goals and objectives of the European Green Deal, as well as the Paris Agreement and the 2030 climate and enegy targets and the EU’s mid-term and long-term objectives in terms of decarbonisation.

Eligibility Criteria

• In order to be eligible, the applicants (beneficiaries and affiliated entities) must:
  • be legal entities (public or private bodies)
  • be established in one of the eligible countries, i.e.:
    • EU Member States (including overseas countries and territories (OCTs))
    • non-EU countries associated to the CEF Programme or countries which are in ongoing negotiations for an association agreement and where the agreement enters into force before grant signature (list of participating countries)

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