EU countries have approved a Commission proposal to invest €1.037 billion ($1.18 billion) in five cross-border infrastructure projects under the Connecting Europe Facility (CEF) for trans-European energy networks. The CEF will provide financial support for 4 construction projects and 1 study. The largest amount of funding will go to the EuroAsia interconnector project (€657 million or $746 million) to support the first electricity interconnection between Cyprus and the European grid.

“The past few months have reminded us again how crucial a well-integrated European energy market is to ensure affordable energy and security of supply, as well as the transition to clean energy. Although we have made remarkable progress over the past decade in making our market better connected, more can and should be done. I particularly want to highlight the EuroAsia interconnector which will end the energy isolation of Cyprus and connect it to the rest of Europe,” said Kadri Simson, Commissioner for Energy.

Well-integrated energy infrastructure networks are necessary for the energy transition, as they facilitate the integration of renewable energies, strengthen the security of supply and help control energy prices. The allocation of CEF funds therefore supports the implementation of the European Green Deal. Today’s agreement provides financial assistance for the construction of 3 electricity transmission and 1 gas storage projects, as well as support for a study on CO₂ transport:

EuroAsia interconnection (€657 million or US$746 million)

This electricity project interconnects the transmission networks of Cyprus and Greece, allowing the transmission of electricity in both directions and ending the energy isolation of Cyprus. The 898 km of submarine cables and the maximum sea depth of 3000 meters will set new world records for a project of this type. This investment is a continuation of the financial and political support of the EuroAsia project. The CEF grant comes on top of the €100 million (US$113 million) Grant awarded under the Recovery and Resilience Facility instrument.

Baltic Synchronization Project Phase II (€170 million or $192 million)

The second phase of the Baltic project includes funding for grid reinforcement in Poland and the modernization of transmission infrastructure in Lithuania, Latvia and Estonia – thus supporting the integration of the Baltic States’ electricity system with other European networks . The Baltic Synchronization project has also received funding under previous CEF calls, leading to total CEF support of over €1.2 billion (US$1.35 billion), highlighting the political importance of this project.

Aurora Line (127 million euros or 143 million US dollars)

CEF funding will support the development of a third transmission line between Sweden and Finland to increase electricity transmission capacity between the two countries and support the integration of onshore and offshore renewable electricity.

Extension of Chiren (78 million euros or 88.3 million US dollars)

This project involves increasing the capacity of a gas storage facility in Bulgaria, necessary for regional security of supply in South-Eastern Europe, as well as reducing gas supply costs. It also supports the phase-out of coal in the region, facilitating the transition to clean energy.

Northern Lights Phase II (4 million euros or 4.53 million US dollars)

This study looks at the expansion of CO₂ transport and temporary storage capacity in Norway, open to industrial clusters across the EU, with the aim of meeting additional demand.

context

A final and formal Commission decision on CEF grants is expected in the coming weeks. Only Projects of Common Interest (PIC) appearing on the community list adopted by the Commission are eligible for a CEF Energy PCI subsidy for studies or works. To be defined as an PCI, a project must either contribute to the interconnection of the energy networks of EU countries, bring significant advantages in terms of integration of renewable energy sources, ensure energy security or diversification, or offer consumers choices and competitive prices. The September 2021 call marks the final CEF call under the 4th PCI list; subsequent calls will fund projects from the 5th PCI list.

During the period 2014-2020, CEF Energy allocated 4.7 billion euros (5.32 billion US dollars) to studies and works supporting the implementation of 107 PICs. Over the 2021-27 period, €5.35 billion ($6.06 billion) is available for CEF Energy, including a new window for cross-border renewable energy projects, with an allocation up to 15% of the CEF budget. to market adoption. A first call for projects (in the form of pre-feasibility studies) is currently open until February 1st.