Brussels, 17/10/2011 (Agence Europe) - On 19 October, the European Commission will unveil its legislative draft for promoting investment in EU energy infrastructure. Selection criteria for funding priority projects will be subject to improved procedures for granting licences and the draft aims to speed things with a view to an integrated internal energy market.
As part of its November 2010 communication (EUROPE 10236 and 10258), the draft regulation put on the table by the European Commission prioritises 12 major infrastructures and trans-European strategic areas. These include the offshore North Sea wind turbine network, the Baltic region electricity and gas interconnection, the North-South gas interconnection in western Europe, the electricity interconnection between Central Europe and Southeast Europe, the North-South gas interconnection and oil supply project in Eastern Europe, the electricity grid in South Europe, in combination with North Africa, and the southern corridor for channelling gas from the Caspian Sea to Europe through the Nabucco gas pipeline. This initiative also sets out rules for identifying projects of common interest required for project implementation. From high voltage lines to gas pipelines including storage capacity, the Commission proposes a list of criteria aiming to guarantee that projects submitted to it will contain added European value. Minimum thresholds have been defined, such as increased capacity to facilitate the planned infrastructure (at least 500 additional megawatts for electricity lines, 20% more capacity for channelling gas etc). Proof will have to be provided that shows these projects are necessary for implementing priority infrastructure, as well as their economic, social and environmental viability. They will also have to involve at least two member states in a joint project. An initial list of these projects is expected to be adopted by the end of July 2013, which will then be updated every two years.
To reduce the timescale for the launch of projects to somewhere between 3 and 5 years maximum (rather than the current 12 to 20 years), the Commission is proposing new rules in an effort to speed up procedures for granting planning permission. The member states will be given six months to set up an appropriate authority, a one stop shop, which will decide which projects are priorities at a national level. The procedures should therefore not exceed three years and there must be implementation within two years unless there is good reason. A European coordinator may be appointed to supervise respective operations.
The Commission considers that almost 70% of the €210 billion investment required by 2020 - €140 billion in the electricity transmission system (€70 billion for the land network, €30 billion for the offshore network and €40 billion for storage and smart grid operations in terms of transmission and distribution) and €70 billion for gas pipelines, could be funded by the private sector, given their profitability potential. On the other hand, the European Commission is planning Community co-funding for interconnection projects in sparsely populated areas or linking islands, or in the innovative wind and solar sectors. In an effort to facilitate this investment, the Commission is proposing innovative funding mechanisms, ranging from the use of own capital resources through venture capital, loans and guarantees, in addition to other instruments based on shared risk, such as project bonds. The amount of financial aid from the EU must not exceed 50% of eligible costs in studies and work undertaken. This amount could, however, be increased to 80% for action that is of particular importance to energy supply security and solidarity. (EH/transl.fl)