Brussels, 29/10/2014 (Agence Europe) - On Wednesday 29 October, the EU member states agreed on the allocation of €647 million for 34 key priority infrastructure projects, which is to be paid under the Connecting Europe Facility (CEF).
Most of the funding will directly or indirectly finance gas projects in the Baltic Sea region and in Central and South-Eastern Europe, including the construction of new gas pipelines and the development of terminals to export liquefied natural gas (LNG). In the electricity sector, innovative technologies will benefit from EU co-financing. These include a feasibility study for a 700 km long subsea high-voltage direct current cable between Norway and the UK (the North Sea Network) and a smart grids project on the border of Ireland and the UK (Northern Ireland). Out of the 34 projects receiving grants, 16 concern the gas sector and 18 the electricity. sector. The financial support is allocated to 28 feasibility studies or environmental impact assessments (€91.4 million) and to six construction sites (€555.9 million). Several of the projects supported are key infrastructure projects for the EU's security of supply, and are listed in the European energy security strategy of 28 May.
As part of the CEF, €5.85 billion is planned for trans-European energy infrastructure for 2014-2020. The CEF finances projects that must bring cross-border benefits but which are not commercially viable or are too costly for users in certain member states. Subsidies under the CEF can finance up to 50% of a project's eligible costs, or even 75% when it is proved that the project is clearly beneficial for energy security or solidarity, or when it offers highly innovative solutions.
The first list of projects of common interest (PCI), adopted by the Commission in October 2013, comprises 248 energy infrastructure projects. Under the first CEF-energy call, 64 eligible proposals were received, requesting in total €1.370 billion of financial support. Project proposals that were rejected during the evaluation because they were not yet mature at the time of closing the call can still apply for funding again during the next call in 2015. (EH)