EU Invests €9.1bn in Energy Infrastructure Upgrade

Further to our article on 15 October, which mentioned the need to upgrade Europe’s energy infrastructure to support the renewable energy industry’s rapid development, the EU has announced a €9.1 billion plan to do just that. In the first ever plan of its kind, the EU will use a combination of project bonds, loan guarantees and grants to enable 12 selected infrastructure projects to benefit from a fast-track permit granting process. These projects will then receive 50-80% of their funding from the EU.

Although this is great news for Europe’s energy infrastructure, concerns have been raised around how the funding will be used. Most of the 12 selected projects relate to gas and oil infrastructures, such as the Southern Gas Corridor which will pipe gas from the Caspian basin into Europe, and not electricity. European Wind Energy Association CEO Christian Kjaer warned that: ‘A clear priority should be given to financial support for electricity infrastructure. This will bring clear benefits for Europe’s energy security, the internal electricity market and integrating very large amounts of renewable energy.’

Wilding says: We welcome this new plan, which forms part of a longer-term EU investment of 200 million. But it’s vitally important that the right balance is struck and Europe’s electrical infrastructure doesn’t miss out and gets the funding it so badly needs.

Source:Supplier Scan