The European Commission has launched the second cross-border competition for renewable energies under the EU funding mechanism
The new call is based on the commitments of Luxembourg, Finland and Estonia
Remember the European Union Renewable Energy Financing Mechanism? The time came for a second round, after the one in 2023, which saw the participation of Finland and Luxembourg. The bis was announced today with the publication by the European Commission of the new RENEWFM 2024 call. As always, the invitation is based on expressions of interest and binding commitments by the Member States. In this particular case, those employed by Luxembourg, Finland and Estonia cooperate within the framework of the instrument. But it is appropriate to take a few steps backwards to understand the main elements.
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EU funding mechanism, the advantages
The Community Renewable Energy Financing Mechanism is one of the instruments developed by the European Commission to encourage greater diffusion of clean energy sources in the bloc. Introduced in 2020 through the governance regulation 2018/1999/EC, the mechanism links countries willing to finance new FER installations (contributing countries) with those that agree to build such installations on their soil (paesi ospitanti).
That being said, the relationship between taxpayers and hosts may seem completely unbalanced. In fact, the mechanism provides essential benefits for both. The mechanism starts with the allocation of the new green capacity achieved in their respective national statistics. In other words, one state puts the money, the other the land, but the final capacity of the plants is virtually divided to meet the EU 2030 renewable targets.
Countries that take control of the portfolio also have the advantage of being able to invest in places where the energy produced is potentially cheaper than that generated at the national level. They can also access sources that may be absent in their territory. In return, the host countries receive economic and employment benefits from local investment, along with the system’s modernisation.
The RENEWFM 2024 call
Luxembourg is once again sponsoring the RENEWFM 2024 tender, with a voluntary payment of EUR 52.4 million. Finland and Estonia, on the other hand, will host the projects that will compete for support.
After the summer – the press release reads – the European Executive Agency for Climate, Infrastructure and the Environment (CINEA) will organize an information day to explain the conditions of the tender, the award criteria and the grading of tenders, as well as the rules for granting grants. “During the information day it will be possible to ask questions during a question-and-answer session and find out the conditions for participating in the call. The event will also be broadcast in the webcast”.
To learn more about RENEWFM, the Commission has made a series of FAQs available here. Here’s the access to the ban.
