The European Commission has launched a public consultation on draft rules to create a new EU financing mechanism to support renewable energy projects. The scheme would allow contributing EU member states to pay voluntary financial contributions into the scheme, which will be employed to tender support for new renewable projects in all EU member states willing to host such projects. Thanks to the proposed mechanism, contributing countries would be able to finance renewable projects elsewhere, which count towards their targets and are potentially more cost effective than renewables produced on their own territory. Hosting countries would receive additional investment in renewables.
Under current regulations, EU member states can achieve their individual and collective renewable energy targets based on the amount of renewables deployed on their territory through national measures. In addition, under the revised Renewable Energy Directive, EU member states can use cooperation mechanisms with other member states such as statistical transfers or joint projects. The new financing scheme would open a third possibility, which is expected to be operational by early-2021.
In January 2020, the EC unveiled its Sustainable Europe Investment Plan, aimed at financing its Green Deal to make the continent climate neutral by 2050. The planned investments, which would reach €1,000bn over a 10-year period, are expected to come both from the EU budget and private funds, with an important role played by the European Investment Bank (EIB). The EC will provide incentives to unlock and redirect public and private investment towards sustainable projects, most notably by encouraging green budgeting and procurement. The Commission will also directly help public authorities and projects developers.
In addition, a scheme has been designed to raise at least €100bn over the period 2021-2027 to mitigate the impact of the energy transition in the most affected regions of the European Union (EU). The so-called Just Transition Mechanism (JTM) is expected to receive €7.5bn of additional funding from the EU’s long-term budget (2021-2027), €45bn of investment mobilised under InvestEU (to attract private investments) and €25-30 bn of investments mobilised thanks to a public sector loan facility with the EIB backed by the EU budget.
Searching for proven generation costs?
Then CAPEX & LCOE is the database you need. The module provides exclusive insights on both Capital Expenditure and Levelised Cost of Electricity.
Make informed decisions in terms of which technologies to invest in and where. In just a few clicks, access unique, premium data on both thermal and renewable power generation costs by technology and by country. Put our detailed, reliable information to use and benchmark your project.