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European Climate, Infrastructure and Environment Executive Agency
News article15 November 2021

Renewables: New financing mechanisms to deliver the European Green Deal

Renewables

In October, on the occasion of the European Sustainable Energy Week, two new EU financing instruments for the EU renewable energy sector were presented: the Connecting Europe Facility (CEF) Energy window on cross-border renewable energy projects and the Renewable energy financing mechanism (RENEWFM).

In a bid to achieve EU green targets and decarbonisation, these two key funding opportunities will be made fully available in 2022 to exploit the renewables potential of Europe in a cost-effective and sustainable manner. At the same time, they will promote growth, jobs, competitiveness and cooperation between regions and countries.

On one side, CEF Energy (which traditionally focuses on funding the upgrading of existing and development of new energy infrastructure) has been extended to cover a new window for cross-border projects in the field of renewables. The goal is to optimise national planning and development in the field, all by encouraging and strengthening cross-border cooperation. The first call under this new window is open until 1 February with EUR 1 million to fund preparatory studies to assist project promoters in selecting the best project concept and setting up the cooperation agreement. A second call will be published at the beginning of 2022 for projects to be selected for the Union list (the so called “status”). Later in 2022, a call for studies and works will be open to projects having received the status. The actions supported will promote joint planning, development and cost effective exploitation of renewables, their integration through energy storage and conversion facilities, and the uptake of innovative technologies for decarbonisation.

On another side, the upcoming Renewable Energy Financing Mechanism (foreseen to be launched in 2022) is a EU-wide tender that will result in grant agreements with private project promoters that will receive support to generate renewable energy (namely through investment support to build and operate new renewable energy installations or operating support to already existing installations) on the territory of the host countries.

Both instruments are part of the EU long-term decarbonisation strategy and encourage Member States to collectively contribute to the achievement of the 2030 renewable energy target of 40% and climate neutrality by 2050.

Watch the recording of the session at EUSEW where the two instruments were explained!

Details

Publication date
15 November 2021