Financing of energy infrastructure by the European Union

The transition of Europe to a clean and modern economy is an objective of the European Union and a priority of the Juncker Commission. To achieve this goal, it is necessary to adapt European infrastructure to the future needs of the energy system.

Proper interconnection of electricity lines and gas pipelines is the backbone of an integrated European energy market based on the principle of solidarity.

A fully interconnected European energy market will contribute:

improve security of supply in Europe,
will reduce dependence on individual suppliers and
will give consumers more choices.

It is also an important factor for the development of renewable energy sources and the fulfillment of the commitments made by the European Union under the Paris Climate Change Agreement.

Financing Energy Infrastructures

In this context, on 16 July 2018 the Member States of the EU agreed on a Commission proposal to invest EUR 48.4 million in several critical European energy infrastructure projects.

EU funding will come from the Connecting Europe Facility (CEF), the European Trans-European Infrastructure Support Program, and in particular its energy sector (CEF-Energy). This decision will provide financial assistance to 8 proposals for studies. Of these, 4 concern the electricity sector, 2 gas, 1 for smart grids and 1 for carbon capture technology.

Eligible Actions

These are important projects the implementation of which will provide substantial cross-border benefits. Their implementation will strengthen the energy resilience of the Member States of the European Union. These projects include:

Electricity Sector

In the electricity sector, a grant was approved for the design of an internal electricity interconnection link between Stanisławów and Ostrołęka in Poland.

This project will make it possible to double the capacity of LitPol and increase the participation of the Baltic States in the internal energy market.

Smart Grids

For smart grids, support was given to the smart borders initiative between France and Germany. The project will enable the Saarland and Lorraine regions to develop common solutions, making better use of the potential for energy efficiency and renewable energy in the region.

Natural Gas Sector

In the gas sector, funding will support the strengthening of the Polish and Danish gas interconnection. It will transport natural gas from the North Sea directly to Poland and beyond Central and Southeastern Europe.

Carbon capture technology

Finally, funding will also be available for a study on CCS in the United Kingdom.