The European Commission seeks stakeholders’ feedback until 18 November on its proposal to define cross-border projects in the field of renewable energy generation that would be eligible to receive EU funding under Connecting European Facility instrument.

In July 2021, the European Union adopted its Connecting Europe Facility (CEF) program for the period 2021-2027 worth EUR 33.71 billion to fund the development of high-performing infrastructures in the transport, energy and digital sectors.

Out of the CEF program devoted to energy (EUR 5.83 billion), 15% (EUR 875 million) is earmarked for a new category of eligible projects, namely ‘cross-border projects in the field of renewable energy’, including for instance the generation of renewable energy from on- and offshore wind, solar energy, sustainable biomass, ocean energy, geothermal energy, or combinations thereof, their connection to the grid and additional elements such as storage or conversion facilities.

The Commission is now consulting stakeholders on its draft delegated act aiming at laying down the specific selection criteria and selection procedure of cross-border projects in the field of renewable energy. The consultation closes on 18 November, at midnight.

The proposed procedure may be seen as a fastidious process without guarantee for promoters that their selected projects will be funded under the CEF. In this respect, the Commission stresses that a promoter may wish to apply for the status of cross-border project in the field of renewable energy but not for CEF funding. That status must indeed be seen as a ‘quality label’ of a project, allowing promoters to obtain appropriate financing on the market, or from Member States. In this context, the CINEA (European Climate, Infrastructure and Environment Executive Agency) has already launched a call for proposals open until 30 November 2021 and making available EUR 1 million to support preparatory studies for projects before they are included in the Union list of cross-border renewable energy projects.

Companies who plan to develop cross-border projects in the field of renewable energy within the EU may wish to give their views to the Commission on the selection criteria and the selection process. They may also envisage applying for grants for their studies to identify and develop such projects.

Covington has a dedicated team with significant experience to help you structure your EU energy projects, from an early stage. We can help you draft a response to the consultation – something we do frequently on a range of issues – and later, design your project and its funding under CEF, EU State aid law, energy regulation, public contracting, project finance. Our team includes Carole Maczkovics, who has cutting-edge expertise in State aid law, regulation and public contracts, particularly in the energy sector, and Cándido García Molyneux, who has deep knowledge of EU requirements on renewable energies and helps clients influence EU legislation and guidance. Visit our website to learn more about our Energy and Project Development and Finance teams.

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Photo of Carole Maczkovics Carole Maczkovics

Carole Maczkovics is a market leader in State aid law, with a robust background in the economic regulation of network industries (energy and transport) and in public contracting (EU subsidies, public procurement, concessions).

Carole has a proven track record of advising public and…

Carole Maczkovics is a market leader in State aid law, with a robust background in the economic regulation of network industries (energy and transport) and in public contracting (EU subsidies, public procurement, concessions).

Carole has a proven track record of advising public and private entities in administrative and judicial proceedings on complex State aid and regulatory matters before the European Commission as well as before the Belgian and European courts. She also advises clients on the application of the EU Foreign Subsidy Regulation (FSR) and UK subsidy control regime.

Carole has published many articles on State aid law and on the FSR, and contributes to conferences and seminars on a regular basis. She is a visiting lecturer at King’s College London on the FSR and at the Brussels School of Competition on the application of regulation and competition law (including State aid) in the railway sector. Carole gives trainings on State aid law at EFE, in Paris. She also acts as Academic Director of the European State aid Law Institute (EStALI).

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Photo of Cándido García Molyneux Cándido García Molyneux

Cándido García Molyneux provides clients with regulatory, policy and strategic advice on EU environmental and product safety legislation. He helps clients influence EU legislation and guidance and comply with requirements in an efficient manner, representing them before the EU Courts and institutions.

Cándido…

Cándido García Molyneux provides clients with regulatory, policy and strategic advice on EU environmental and product safety legislation. He helps clients influence EU legislation and guidance and comply with requirements in an efficient manner, representing them before the EU Courts and institutions.

Cándido co-chairs the firm’s Environmental Practice Group.

Cándido has a deep knowledge of EU requirements on chemicals, circular economy and waste management, climate change, energy efficiency, renewable energies as well as their interrelationship with specific product categories and industries, such as electronics, cosmetics, healthcare products, and more general consumer products.

In addition, Cándido has particular expertise on EU institutional and trade law, and the import of food products into the EU. Cándido also regularly advises clients on Spanish food and drug law.

Cándido is described by Chambers Europe as being “creative and frighteningly smart.” His clients note that “he has a very measured, considered, deliberative manner,” and that “he has superb analytical and writing skills.”

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