EU agrees draft rules for greener energy projects
Electricity pylon - Photo by Markus Spiske from Pexels
(BRUSSELS) - EU Council and European Parliament negotiators reached provisional agreement Wednesday on updated rules for selecting which cross-border energy infrastructure projects will receive EU support.
The revision of the Trans-European Networks for Energy (TEN-E) Regulation sets criteria and the methodology for selecting energy projects of common interest (PCIs), such as high-voltage transmission lines, pipelines, energy storage facilities or smart grids, which would benefit from fast-track administrative procedures and be eligible to receive EU funds. The aim is to align the existing regulation to the Green Deal objectives of the Union.
"The agreement reached today makes sure that in the future, no new fossil fuel projects will receive funding from the Connecting Europe Facility" said Slovenia's Minister of Infrastructure Jernej Vrtovec, for the EU presidency: "Today's deal makes sure we will invest in a green and climate-neutral future that guarantees efficiency, competitiveness and security of supply, while leaving no one behind."
The Council's and Parliament's negotiators agreed among other things to:
- end support for new natural gas and oil projects and introduce mandatory sustainability criteria for all projects
- simplify and accelerate permitting and authorisation procedures, notably by creating a unique point of contact per project for permitting and authorisation
- allow during a transitional period until 31 December 2029, for dedicated hydrogen assets converted from natural gas to be used to transport or store a pre-defined blend of hydrogen with natural gas or biomethane. Eligibility for EU financial assistance for such projects will end on 31 December 2027
- allow for projects no longer on the list of projects of common interest, but for which an application file has been accepted for examination by the competent authority, to maintain their rights and obligations in terms of faster permitting
- in the case of Cyprus and Malta, that are still not interconnected to the trans-European gas network, allow for one interconnection per Member State under development or planning that has been granted the Project of Common Interest status and is necessary to secure permanent interconnection of Cyprus and Malta to the trans-European gas network
- add an explicit reference to article 136 of the EU financial regulation that enumerates the situations where a person or entity shall be excluded from being selected for receiving EU financing, such as fraud, corruption or conduct related to criminal organisations
- include in the scope of the Regulation certain types of electrolysers that account for at least 50 MW capacity, provided by a single electrolyser or by a set of electrolysers that form a single, coordinated project and that contribute to sustainability. Electrolysers will not be eligible for financing
- emphasise the role of energy from renewable sources regarding all assets, including smart gas grids
- create a possibility for non-binding cooperation in the field of offshore grid planning
- strengthen the governance process for TEN-E with a stronger role for relevant stakeholders
- include in the scope of the Regulation projects of mutual interest, where they are sustainable and demonstrate benefits at EU-level
The revised Regulation will continue to ensure that new projects respond to market integration, competitiveness and security of supply objectives. It will continue to support projects that connect regions currently isolated from European energy markets, that strengthen existing cross-border interconnections and that promote cooperation with countries outside of the EU.
The informal agreement will now have to be formally endorsed by Parliament and Council to come into force.
Further information, European Parliament
Legislative train schedule: Revision of the TEN-E Regulation