Electricity, Gas, Smart Grids and CO₂ networks

It is expected that the financial assistance contributes to further the development and the implementation of PCIs, helping to achieve the broader TEN-E energy policy objectives.

As indicated in section 4 of the Annex to the Multi-annual Work Programme, it is expected that the financial assistance contributes to the further development and implementation of PCIs in electricity, smart grids, gas and cross-border carbon dioxide networks helping to achieve the broader CEF energy policy objectives of:

• further integration of an efficient and competitive internal energy market,
• interoperability of networks across borders and sectors,
• facilitating decarbonisation of the economy, promoting energy efficiency and ensuring security of supply;

In accordance with recital 5 of the CEF Regulation (EU) 2021/1153 and in line with the Multi-annual Work Programme, this call for proposals aims at financing projects contributing to the goals and objectives of the Green Deal, as well as the Paris Agreement and the 2030 climate and enegy targets and the EU's mid-term and long-term objectives in terms of decarbonisation.

Both topics under this call aim to enable PCIs to be implemented within the framework of the deployment of trans-European networks in the energy sector. In particular, the call shall contribute to supporting energy infrastructure PCIs that have significant socio-economic benefits and ensure greater solidarity among Member States, but which do not receive adequate financing from the market.

The European Green Deal has emphasized the key enabling role of energy infrastructure in the transition to a climate neutral economy. Projects supported by this call pursue the goals and objectives of the Green Deal, as well as the Paris Agreement and the 2030 climate and energy targets and long-term decarbonisation objectives. Therefore, financial assistance provided under this call for proposals should maximise its added value towards decarbonisation.

The objective of studies and works is to support and contribute to the implementation of PCIs.

This topic refers to projects for works contributing to the implementation of a PCI. Works in the meaning of CEF-Energy include the purchase, supply and deployment of components, systems and services including software, the development, construction and installation activities relating to a PCI, the acceptance of installations and the launching of a PCI.

Only projects contributing to PCIs as identified in the Commission Delegated Regulation 2020/389 shall be eligible for support through EU financial aid in the form of grants.

Pursuant to Articles 14(2) and 14(3) of the TEN-E Regulation, PCIs falling under the categories set out in Annex II.1(a) to (d) and Annex II.2 of the TEN-E Regulation, except for hydro-pumped electricity storage PCIs, are also eligible for EU financial assistance in the form of grants for works if they fulfil all of the following criteria:

• the project specific cost-benefit analysis (CBA), consistent with ENTSOG /ENTSO-E methodology and pursuant to Article 12(3)(a) of Regulation (EU) No 347/2013 provides evidence concerning the existence of significant positive externalities, such as security of supply, solidarity or innovation;
• the PCI has received a legally valid cross-border cost allocation (CBCA) decision pursuant to Article 12 of Regulation (EU) No 347/2013; or, for PCIs falling under the category set out in Annex II.1(c) of Regulation (EU) No 347/2013 and that therefore do not receive a CBCA decision, the PCI shall aim to provide services across borders, bring technological innovation and ensure the safety of cross-border grid operation;
• the PCI is commercially not viable according to the business plan and other assessments carried out, notably by possible investors or creditors or the national regulatory authority. The decision on incentives and its justification referred to in Article 13(2) of Regulation (EU) No 347/2013 shall be taken into account when assessing the PCI’s commercial viability. The project-specific CBA and the CBCA decision should be included in the application as standalone documents as well as the business plan. The business plan should be complemented with a separate calculation model (financial spreadsheet), as per application form B.

Pursuant to Article 14(4) of of Regulation (EU) No 347/2013, PCIs falling under the categories set out in Annex II.1(e) and 4 of of Regulation (EU) No 347/2013, i.e. "smart grids and crossborder carbon dioxide networks", are also eligible for EU financial assistance in the form of grants for works, if the concerned project promoters can clearly demonstrate the significant positive externalities generated by the PCIs and their lack of commercial viability, according to the business plan and other assessments carried out, notably by possible investors or creditors or, where applicable, a national regulatory authority.

The contents of the supporting documents and whether the proposed project demonstrates evidence concerning the existence of significant positive externalities, namely security of supply, solidarity or innovation; provides services across borders, brings technological innovation and ensures the safety of cross-border grid operation; or is commercially not viable will be assessed during the evaluation under the applicable award criteria.

The proposals requesting grants for works which fail to provide the relevant supporting documents or that provide supporting documents that are not legally valid at the time of their submission or which fail to comply with any of the eligibility criteria indicated above may not be eligible.