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COMMISSION STAFF WORKING DOCUMENT Accompanying the document REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL on the Implementation of the European Energy Programme for Recovery and the European Energy Efficiency Fund

SWD/2016/0374 final
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Brussels, 28.11.2016

SWD(2016) 374 final

COMMISSION STAFF WORKING DOCUMENT

Accompanying the document

REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL

on the Implementation of the European Energy Programme for Recovery and the European Energy Efficiency Fund

{COM(2016) 743 final}


Data on the budgetary and technical implementation of the European Energy Programme for Recovery



EEPR – STATE OF PLAY 30 June 2015

Project

Grants

Awarded

(a)

Cumulative Payments

(b)

Payment ratio

(b/a)

Date of finalisation of the EEPR Action

PCI

I

State of play

Million €

%

Gas and electricity infrastructure

2,267,574,463

1,366,479,618

60%

Gas interconnectors

Slovenia-Austria Gas transmission system (border to Ljubljana, excluding the section Rogatec-Kidričevo)

COMPLETED

40,000,000

36,950,081

92%

30/12/2012

The EEPR supported the construction of the “Ceršak – Kidricevo” section and the procurement of the equipment for the “Rogaška Slatina – Trojane” and “Trojane – Vodice” sections.

Construction works for “Ceršak – Kidricevo” section have been completed. Equipment for the “Rogaška Slatina – Trojane” and “Trojane – Vodice” sections has been supplied.

Final payment has been executed at the end of 2012. The EEPR grant has not been fully used as €3 million were not finally paid due to more favourable procurement conditions than initially planned.

The EEPR funds helped to improve the safety and reliability of the system operation, enhance cross-border gas transmission between Austria and Slovenia and contribute to the development of European gas market.

Romania (Pecica) -Hungary (Algyő)interconnector

COMPLETED

16,093,470

4,673,509

29%

31/12/2010

EEPR supported the construction of a 47 km long between Algyő (in Hungary) and the Hungarian-Romanian border, combined to a 26 km pipeline section between the Hungarian–Romanian border and Pecica (in Romania).

The project has been completed according to schedule in October 2010. Final payment has been executed at the end of 2011. The EEPR grant has not been fully used as €7. 5 million were not finally paid due to ineligibility of costs.

The construction of this interconnection is of key importance for both Romania and Hungary, as this is the first interconnection between the high pressure pipeline networks of the two countries.

Hungary-Croatia interconnection

(Városföld–Slobodnica)

COMPLETED

20,000,000

20,000,000

100%

28/02/2011

The EEPR subsidy aimed at financing the purchase of pipeline material and compressor units necessary to build the first gas interconnector between Hungary and Croatia (Városföld–Slobodnica.)

The project is completed and final payment was done in 2011.

The interconnector has regional benefits in improving security of supply and diversification. The financial contribution of the EERP fund was necessary for the realization of the project.

Western Axis Larrau interconnection branch

(Yela-Vilar de Arnedo)

COMPLETED

45,000,000

33,396,765

75%

31/12/2012

The project aims at reinforcing the Spanish network and create a reversible flow interconnection at Larrau. The EEPR supported, for the 251km pipeline, the purchase of pipe and other materials and for the compression station, the purchase of materials and equipment and the construction of the mechanical works.

Final payment was made at the end of 2013. The EEPR grant has not been fully used as €11 mill. were not finally paid due to more favourable procurement conditions than initially planned.

The project is completed. The Vilar de Arnedo compression station entered into operation in February 2011 and the pipeline (Yela-Vilar de Arnedo) is operational since September 2012.

The project will increase security of supply in the region, market competition and help integrate the Iberian gas market to the European one. The EEPR funds have secured the development of the project.

Germany-Belgium-United Kingdom pipeline

(Landen and Raeren)

COMPLETED

35,000,000

34,941,730

100%

01/06/2011

The project covered the construction of a second gas pipeline with a reverse flow capacity between the Dutch/German borders to Zeebrugge. The EEPR supported the purchase of pipes and the construction works for specific sections between Landen and Raeren.

The action financed is completed. The pipes were laid down and operational since November 2011. Final payment was made in 2011.

The upgrade of the Belgian network is contributing to the development of the European gas market by providing reverse flow gas capacities on the France-United-Kingdom-Belgium-Germany axis.

Baltic pipe–Denmark

(Ellund-Egtved)

COMPLETED

100,000,000

94,049,787

94%

02/10/2014

X

The EEPR supported the procurement of material including pipes, valves and any other equipment necessary for the construction of the project in Denmark. The project includes the compression station in South Jutland and the construction of 94km pipeline between Ellund tp Egtved.

The action is completed and is operational since 2014. The compression station and the 94 km pipeline are also operational. The part related to the Baltic pipe (Denmark-Poland interconnection) has not been implemented due to the market reasons independent from Energinet.dk.

The final payment has been done in July 2015.

The new pipeline is significantly increasing the security of natural gas supply in Demark offsetting the impact of depleting offshore fields.

Baltic pipe – Poland

(Świnoujście – Szczecin)

COMPLETED

50,000,000

22,424,666

45%

30/09/2015

X

The EEPR supported construction works and the procurement of equipment needed for the construction of the compressor station in Goleniów and the natural gas pipeline between Świnoujście and Szczecin in Poland.

Construction work on the compressor station has been completed, final testing and commissioning completed, the construction works on the pipeline completed. All facilities consisting of a DIN 800 (812) pipeline, intermediate node, pig launcher and receiver, compressor stations and metering units have been assembled, commissioned and are ready for operations.

The action is completed.

The nominal capacity of the pipeline to Goleniow node is indicatively 5 bcm of pure feed per year. The line is currently supplied by Świnoujście LNG terminal.

The pipeline will have a positive impact by strengthening the Polish gas transmission system and allowing for additional gas flows from the future Polish LNG terminal.

Bulgaria-Greece Interconnection (Stara Zagora –Dimitrovgrad-Komotini)

ONGOING

45,000,000

0

0%

31/12/2018

X

The project is developing a new interconnection between Greece and Bulgaria. The EEPR supports the technical studies, the purchase of the pipes, included other long lead items and the construction works.

The project is progressing as technical studies were completed and the environmental authorisations were granted in Bulgaria and Greece. The project has suffered 3 years delays due to legal and regulatory issues as the project promoters requested exemptions from the 3rd Energy Package rules which are foreseen to be granted in 2015.

The beneficiary requested extending the end date of the Decision by 4 years (until December 2018) in order to secure a timely realization of the project. The delay of the project is due to ongoing permitting and regulatory procedures and changes under the Greek and Bulgarian legislation.

The completion of the IGB project is crucial for Greece and Bulgaria's security of supply as well as for the South East Europe and it would finally ensure a diversification of supply and a long-term reliable access of the broader region to the Southern Corridor.

Expansion of Gas Storage Capacity in the Czech hub

(Tvrdonice and Třanovice)

COMPLETED

35,000,000

21,573,591

62%

31/12/2012

The EEPR supported construction works and the purchase of material and equipment required to increase storage capacity at the two gas storage facilities in Tvrdonice and Třanovice.

The expansion of the storage facility in Třanovice is completed. The storage of Tvrdonice has been partially implemented (40%) due to decrease of market interest and lack of commercial viability.

Final payment was made in 2013. The EEPR grant has not been fully used as €10 mill. were not finally paid due to the fact that the project was partially implemented. €3 mill. were also not finally paid due to ineligibility of costs.

 

The storage capacity in the Czech Republic is increasing by 10% and thus enhancing cross-border gas trading.

Bulgaria-Romania interconnection

(Giurgi-Ruse)

ONGOING

8,929,000

2,678,700

30%

31/12/2016

The project aims at constructing a new interconnection between Bulgaria and Romania (Giurgiu-Ruse). The EEPR supports technical studies, procurement of material and the construction works.

The project is progressing with 18 months delay due to complex procurement procedures on the cross-border section and permitting process on the Bulgarian side. Construction is well advanced on the Romanian and has started in early 2013 in Bulgaria. The project will be finalised in 2016.

The project promoter requested an extension of the implementation period until December 2016.

The completion of the Bulgaria - Romania gas interconnection project is crucial for securing Bulgaria's security of supply and the developments in gas infrastructure will allow a better integration of the gas markets in the region but also for the opening of the Southern Gas Corridor (SGC).The EEPR funds have helped to minimise the delays by encouraging the beneficiaries to take their investment decision in 2010.

Reinforcement of FR gas network on the Africa-Spain-France axis

(Saint-martin de Crau-Saint Avit and Lacal-Lussagnet)

ONGOING

175,765,000

70,796,300

40%

31/12/2016

X

The project will develop the gas network in France in order to reinforce the Africa-Spain-France axis. On the Eastern side, the EEPR supports the purchase of 215 km pipes (Saint-martin de Crau-Saint Avit). On the Western side, the EEPR supported the construction works of the compression station in Chazelles, 60km of pipelines (Lacal-Lussagnet) and the upgrade of the Lacal sub-station.

The beneficiary GRTgaz SA requested the Commission in April 2015 to move the implementation of Sub-Action 1 from the Rhône area to the Val de Saône area. The reason for this had been the drop, since 2009, in Liquid Natural Gas (LNG) supplies in Europe, and especially in France. LNG supplies had been reduced to minimum levels in South of France and in Spain, partially offset by more gas coming from Norway and Russia. Since 2012, this situation had become a priority and the main issue to be resolved for consumers and market players South of the North South Liaison. In this new environment, it appeared that a reinforcement of the network at the level of the Saône valley was a more effective way to enhance west European markets integration on a short term basis than the Rhône pipeline project.

The project is progressing well as 6 out 7 activities are completed.

The project will increase security of supply and market competition in the region and help integrate the Iberian gas market to the European one. The EEPR funds have secured the development of the project notably on the eastern side by encouraging the beneficiaries to take their investment decision.

France-Belgium interconnection

(Berneau, Winksele) and (Pitgam-Nedon & Cuvilly-Dierrey-Voisines sections)

COMPLETED

174,864,500

170,989,075

98%

31/12/2013

X

The project aims to increase gas capacities between France and Belgium. The EEPR supports procurement of pipes in France (Pitgam-Nedon section & Cuvilly-Dierrey-Voisines section) and the construction of two compression stations (Berneau and Winksele) in Belgium.

On the Belgian side, the project is completed; the two compression stations (Berneau and Winksele) are in operation. On the French side, the pipes were delivered. The works are completed for Pitgam-Neon and on-going for the section Cubilly-Dierrey-Voisines.

The final payment has been done at the end of 2014.

The increase of the cross-border capacities between France and Belgium enhances the security of supply for Western Europe. The EEPR funds have helped to secure the investment programme.

Cyprus project

(Vasilikos, Moni, Dhekelia)

PRE-TERMINATION

 

10,000,000

0

0%

30/12/2019

The government of Cyprus decided to establish a natural gas receiving terminal. The EEPR supports the technical studies, the purchase of material and the construction works to connect the natural gas receiving terminal to the three existing power stations (Vasilikos, Moni, Dhekelia).

The EEPR funds were supposed to be used swiftly to alleviate the impact of the financial crisis, but to date there is no indication on when and how natural gas would be brought to Cyprus neither is it clear what the design of the future infrastructure would be. Gas discoveries in the Cyprus Exclusive Economic Zone (EEZ) in 2011 interfered with the planning and decision-making on the supply of gas and the infrastructural solutions for the island. The "Aphrodite" gas field has been explored and is shared by a consortium of Noble Energy (USA), British Gas (UK), Delek (IL) and Avner Oil (IL); according to the most recent estimates it holds 4.54 tcf of high quality natural gas. It is currently the only assessed gas field. Since the discovery of the "Aphrodite" field, several options were under consideration by the Cypriot authorities (different combinations of LNG and pipelines and different suppliers of gas). Three unsuccessful tenders were called and no bidder emerged to supply the future domestic gas system on the island on an interim basis until "Aphrodite" comes on line. The interim solution is no longer considered and was politically rejected by the CY Government on 7 February 2016.

Despite the indication of 2022 for the early production at "Aphrodite", to date no final decision on exploitation and gas export has been taken.

This project is capital to attain the objectives of the European Union, in particular the full liberalisation of the internal energy market by facilitating the competition in power generation from gas from independent producers.

The natural gas receiving terminal will contribute to the diversification of the Cypriot energy mix and will stop the energy isolation of the island. Nevertheless, considering that there is no indication on when and how natural gas will be brought to Cyprus, and the design construction of the infrastructure is highly uncertain, the Commission proposes to terminate the Grant Agreement with Natural Gas Public Company (DEFA).

Polish LNG Terminal

(port of Świnoujście)

ONGOING

79,561,868

53,291,639

67%

31/12/2016

EEPR funds support the engineering, construction, implementation of two LNG storage tanks (Polskie LNG S.A.) and the docking area (ZMPSiS) for the LNG infrastructure in Swinoujscie.

Implementation of the Project is almost completed; however the project had two years delay due to procurement procedures. The project promoter requested an extension until end 2016. An agreement has been signed with the contractor, ending the majority of conflictual issues.

The construction of berth and jetty facilities was already completed in September 2014. Additional works required by the new authority concerning jetty and piers were completed in 2015.

The construction of two LNG tanks was completed early 2016 with some works, flow and system testing and safety systems ongoing. According to the expert who visited the LNG terminal on behalf of European Commission, there are some security and other issues to be checked and improved.

The commercial activity has started in June 2016 (the cargos will discharge the liquefied gas on 17, 25 June and on 17 July). Therefore the Action can be considered as completed. The beneficiary informed that the final payment will be requested as soon as the amendment regarding the description of the activities (not impacting on the duration) will be submitted and adopted.

The terminal consisting of jetty, storage tanks and relative flowing and processing facilities, of nominal capacity 3-5 bcm year connected to 32'' pipeline (subject of EEPR project "Baltic-PL") is completed. However, the various units, which compose it, do not share yet common operations flows and controls. In view of subsequent expansion of operations this aspect of Processes and Control systems must be corrected as a pre-condition to granting further project extensions.

The LNG terminal will have a significant impact not only on diversification of supply sources, but will also increase market competition and will provide an important synergy with other infrastructure projects.

Slovakia-Hungary Interconnector

(Vel'ký Krtiš – Vecsés)

COMPLETED

30,000,000

10,308,317

34%

01/01/2015

X

The project aims to establish a new two-way high pressure gas connection between Slovakia and Hungary. The EEPR subsidy aims at financing the purchase of pipeline and other materials necessary to build the first gas interconnector between Slovakia and Hungary. The bidirectional gas pipeline is 113 kilometres long, out of which 94 kilometres are in Hungary and 19 kilometres are in Slovak territory.

The project is operational since 1 July 2015. 

The final payment request was submitted in September 2015.

Nabucco

TERMINATED

200,000,000

0

0%

26/09/2014

X

The grant intended to support tendering procedures and the procurement of the pipes, bends and valves needed for the construction of this important project linking Europe to gas fields in the Caspian region and the middle-East.

The competition for Shah Deniz resources has been concluded in favour of Trans-Adriatic Pipeline project promoters (TAP) Thus, the Commission has decided to take a Decision to terminate the EEPR Financial aid. The termination procedure has been formally adopted by the Commission.

ITGI – Poseidon

TERMINATED

100,000,000

5,690,257

6%

26/09/2014

X

The grant intended to support the finalisation of the technical studies (Front End Engineering and Design), the purchase of pipeline and related equipment for the construction of the offshore interconnector between the Italian and Greek gas transmission networks.

The project sponsors however, did not succeed in the commercial negotiations with gas producer (Shah Deniz in Azerbaijan) to secure the necessary shipping agreements. Thus, the Commission has decided to take a Decision to terminate the EEPR Financial aid. The termination procedure has been formally adopted by the Commission.

GALSI

(Gazoduc Algéria-Italy)

TERMINATED

120,000,000

0

0%

30/06/2014

X

Galsi is a new pipeline that will connect gas reserves in Algeria to Italy. The EEPR supports the purchase of pipes and the construction works. The project will improve the security of supply in Italy and the European Union, will allow the access to natural gas of isolated regions (Sardinia and Corse islands) and will contribute to the creation of an Italian gas hub for gas supply to Europe

By a decision of 18 May 2013, the Algerian gas company has decided to postpone, for the third time, the decision on the construction of the pipeline between Algeria and Italia (Galsi project).. The authorisations to build the project have not yet been granted after 5 years of procedures and the commercial agreements for the gas supply have not yet been concluded. Thus, the Commission has decided to take a Decision to terminate the EEPR Financial aid. The termination procedure has been formally adopted by the Commission.

.

Gas reverse flow

Austria 01

(Baumgarten- HAG pipeline)

COMPLETED

1,854,000

1,092,284

59%

30/06/2011

The project consisted to establish a reverse gas flow on the WAG pipeline system (running from the Slovakian/Austrian border to the Austrian/German border) through the Baumgarten compressor and metering station towards Slovakia and Hungary (HAG pipeline). The EEPR supported the engineering, material procurement, construction and commissioning of the installations.

The final payment has been made in 2012. The EEPR grant has not been fully used as €761,716 were not finally paid due to more favourable procurement conditions than initially planned.

This project contributes to the security of supply of Central and Eastern European countries by allowing transport of gas from Germany to countries adjacent to Austria, in particular in case of a disruption of the supply of gas entering EU at the Ukraine / Slovak border.

Austria 02

(Baumgarten –TAG pipeline)

COMPLETED

425,000

425,000

100%

31/12/2011

The project connected the TAG pipeline to a collector at the Baumgarten import facility with short distance pipe connection to establish a star like structure and to increase the flow capacity for gas coming from western sources from 7 to 21,4 bcm/y. The EEPR supported the engineering, material procurement, construction and commissioning of the installations.

The final payment was made in 2012.

The project eliminates the bottleneck at Baumgarten for a physical flow of gas from western sources into south-eastern part of Austria, into Croatia, Slovenia and Italy and vice versa. The project allows optimisation of the capacity of the internal network in Austria and of its interconnected neighbouring countries on multidirectional routes.

Austria 03

(Überackern)

COMPLETED

1,150,000

1,150,000

100%

30/06/2011

The project consisted of upgrading of the "Überackern" Export Facility by establishing reverse flow capacities between Austria and Germany as well as connecting West-Austrian gas storages to the main Austrian gas pipelines. The EEPR supported the engineering, material procurement, construction and commissioning of the installations.

The final payment was made in 2012.

Austria 04

(TAG pipeline)

COMPLETED

3,317,000

3,221,416

97%

31/12/2011

The project aimed at technical modification along the Trans-Austrian (TAG) pipeline, leading from the Austrian-Italian border to the Baumgarten gas hub ensuring the possibility of physical reverse flow in the TAG pipeline. The EEPR supported the engineering, material procurement, construction and commissioning of the installations.

The final payment has been made in 2012. The EEPR grant has not been fully used as €95,584 were not finally paid due to more favourable procurement conditions than initially planned.

The project gives Austria, Slovenia, Croatia, Slovakia as well as Germany access to southern gas sources which increases the interoperability and optimises the capacity of the South and East European network.

Slovakia-01

(Gajary-Baden)

COMPLETED

2,936,121

2,151,696

73%

30/06/2011

The project aimed to enable re-routing of up to 10 Million Standard Cubic Meters per Day from Underground Gas Storage Lab complex into the Transit System in the event of short term supply disruption. EEPR funding supported the delivery and construction of two pipelines with a total length of 2334m, between two underground gas storage gathering stations and the transmission network.

Final payment was done in 2012 and it appeared that the project was less costly than expected as the technical solution finally used was most less expensive than initially planned and the procurement was more favourable, then €800.000 of the EEPR funds remain unspent. The project connects existing UGS Lab complex to the Transit System and consequently increases the security of gas supply and strengthening the flows not only within Slovakia, but as well towards the other European countries.

Slovakia 02

(Plavecký Peter and Ivanka pri Nitre)

COMPLETED

664,500

502,092

76%

30/11/2011

The project covers the installation of specific technical equipment in three existing gas transmission facilities in Slovakia. The EEPR supports the engineering, purchase and installation of specific technical equipment in two existing gas transmission facilities in Slovakia (respectively at node Plavecký Peter and at the compressor station Ivanka pri Nitre).

Final payment was done in 2012 and it appeared that the project was less costly than expected as the procurement was more favourable, then €162.000 of the EEPR funds remains unspent.

The measures enable bidirectional transmission flow between Slovakia and the Czech Republic and between Slovakia and Austria.

Czech Republic 01

(Hora Svaté Kateřiny, Hospozín, Kralice nad Oslavou, Malešovice, Břeclav)

COMPLETED

3,675,000

2,292,586

62%

30/06/2011

The project increased the transmission capacity through the Czech Republic by 15 mcm/d in the northwest-east direction. It involves the adaptation of the pipelines, the compressor and transfer stations in six locations along the Czech gas transmission system. The EEPR supported technical studies, material supply and construction works.

The project is completed and fully operational since May 2011. Final payment was done in 2011 and it appeared that the project was less costly than expected as the procurement was more favourable, then €1.000.000 of the EEPR funds remains unspent.

The project allows the diversification of gas supplies for the Slovak Republic, Austria, Hungary and Southern Germany (Bavaria).

Hungary

(Városföld, Algyő, Pilisvörösvár, Adony and Vecsés)

COMPLETED

8,078,500

6,679,398

83%

31/05/2012

The Project consists of establishing reverse flow connections and flow control systems at five nodes of the Hungarian natural gas transmission system and EEPR supports the construction work.

The project is completed since Spring 2013 with a 5 month delay due to regulatory issues.

Final payment done in 2013. The EEPR grant has not been fully used as €1,440,621 were not finally paid due to more favourable procurement and exchange rate conditions than initially planned.

The objective of the project is to enable the safe West-to-East natural gas flow within Hungary, further to Romania and eventually to the SEE region in case of supply disruptions.

Czech Republic-Poland

(Třanovice–Cieszyn–Skoczów)


COMPLETED

14,000,000

12,087,950

86%

30/04/2012

The project concerns the construction of a bidirectional cross-border interconnector between the Czech and Polish gas transmission systems, the first between these two countries. The EEPR supports the procurement of material and equipment and the construction of the pipeline.

This interconnector was put into technical operation in September 2011 and is completed since Spring 2012. Final payment was done in 2012. The EEPR grant has not been fully used as €1,9 million were not finally paid due to more favourable procurement conditions than initially planned.

This project contributes to the security of supply as it diversifies supply routes and increases reverse-flow capacities in the region.

Czech Republic 02

(Tvrdonice)

COMPLETED

2,300,000

2,300,000

100%

30/09/2013

The project covers the construction of a new gas pipeline connecting Tvrdonice underground gas storage (UGS) to the Czech gas transit system. The EEPR supports activities related to land and building permit, supply of material and construction works.

Project is completed and operational since September 2013.

The final payment was done in 2013.

The project aims to increase the transmission capacity and allow reversible gas flow from/to Tvrdonice Underground Gas Storage. It will enhance the security of supply for the Czech Republic and also for neighbouring countries in case of supply disruption.

Portugal

(Portalegre-Guarda and Cantanhede-Mangualde)

COMPLETED

10,700,750

10,700,750

100%

31/03/2014

The project involves the construction of a reverse flow gas pipeline between Portalegre-Guarda and Cantanhede-Mangualde. The EEPR supports the construction of a 48 km section of this 75 km pipeline.

The project is completed and operational since 2014. The final payment was made in July 2015.

The project will reinforce security of supply in the Iberian peninsula as it will be further developed to create a third interconnection with the Spanish gas network. The EEPR funds helped to secure the investment programme.

Romania

(Isaccea, Negru Vodă and Siliştea)

Terminated

1,560,000

202,718

13%

26/09/2014

The project intended to ensure gas supply to Bulgaria from Romania's domestic production and reserves, if a natural gas supply disruptions from the Russian Federation in the two countries happens, on a limited time period, as well as to allow reverse flow between Romania and Bulgaria, by performing works on TSO's existing facilities on the Romanian territory.

As the project has not been implemented due to technical and commercial difficulties, the Commission decided to take a Decision to terminate the EEPR Financial aid. The termination procedure has been formally adopted by the Commission.

Latvia- Lithuania

(Inculkalns, Daugava, Panevezys)

COMPLETED

12,940,000

12,687,009

98%

31/12/2013

The project aims at improving the infrastructure and equipment for bi-directional gas flow between Lithuania and Latvia. EEPR funding supports the reconstruction of wells in Incukalns gas storage complex, the reconstruction of the underwater pass over the Daugava river in Latvia and the modernisation of Panevezys gas compressor station and gas pipelines in Lithuania.

The project entered into operation in December 2013.

The final payment was made at the end of 2013.

This project provides for bi-directional gas flow between Lithuania and Latvia, eliminating bottlenecks and safeguards required capacities in both directions.

Poland

COMPLETED

14,405,248

8,055,820

56%

31/12/2014

The project includes the development and the modernisation of the Polish gas transmission system at the cross-border connection point between Poland and Germany. The EEPR funding supports the modernisation and construction works at the Lasow node and connecting pipelines in Poland.

The project is completed and the final payment was requested and paid in 2015.

This project will enhance the security of supply by increasing the capacity between Poland and Germany. It will also have a positive impact on the overall development of gas market in Poland.

ELECTRICITY

Wien-Győr

COMPLETED

12,989,800

11,329,559

87%

31/12/2011

The 380 kV overhead line transmission link Wien – Györ provides considerable transfer capacity in the north-south direction for the regional electricity market. The EEPR supported the installation of the overhead lines and works in the transformer station and sub-stations.

The final payment was made in 2012. The EEPR grant has not been fully used as €1,659,517 were not finally paid due to more favourable procurement conditions than initially planned.

The project improves the interoperability of the Austrian and Hungarian electricity networks and thus enhances the market integration. This increases the security of supply.

Portugal-Spain interconnection reinforcement 01

(Portimão (PT) - Tavira (PT) -
P. Gusman (ES) - Guillena (ES))

COMPLETED

17,490,919

17,490,919

100%

30/04/2011

The project aimed to upgrade and extend the Portuguese electricity network to increase capacities with Spain between the Algarve and Andalucía regions. The EEPR supported the procurement of the material and the construction works.

Final payment made in 2011.

This project greatly contributes to the development of the Iberian electricity market and connects the Algarve region to renewable energy sources. It also reinforces conditions and reliability for the Algarve region supply, by establishing a completely closed 400 kV ring crossing this area.

Portugal-Spain interconnection reinforcement 02

(Douro Internacional area (PT)- Aldeadavila (ES))

COMPLETED

28,873,787

28,873,787

100%

31/03/2011

The project aimed to upgrade and extend the Portuguese electricity network to increase capacities with Spain in the Douro region. The EEPR supported the procurement of the material and the construction works.

Final payment made in 2011.

This project greatly contributes to the development of the Iberian electricity market and connects the Douro region to renewable energy sources.

Ireland/Wales interconnector

(Meath-Deeside)

COMPLETED

110,000,000

110,000,000

100%

30/09/2012

The project consists of a new 500MW cable connection between Republic of Ireland and Wales (UK). The EEPR supports the procurement of cable and the construction works.

The project is completed. Final payment done in 2013.

The project improves the security of supply and the expansion of renewables in Ireland. The EEPR have been instrumental for obtaining loans from International Financial Institutions (IFIs) and also political support to the project.

Estlink-2

(Püssi-Antilla)

COMPLETED

100,000,000

100,000,000

100%

31/08/2014

The Estlink2 project covers the construction of an interconnection between Finland and Estonia. The EEPR supports the manufacture, delivery and construction of the overhead line, the undersea and underground cables and the converter stations in Finland and Estonia.

The project is completed and entered into operation in March 2014.

The project is important for the integration of the Baltic States into the internal electricity market and will increase transmission capacity between Finland and Estonia up to 1000MW.

Nordbalt 01

(Klaipeda-Nybro)

ON-GOING

131,000,000

90,700,000

69%

30/06/2016

Nordbalt 01 is a subsea interconnection between Lithuania to Sweden. The EEPR supports the construction, the installation, and the commissioning of the sub-sea cable and the converter station in Sweden and Lithuania.

The cable was handed over on 30 September 2015 and the final documentation was submitted on 15 December 2015.

The trial operation of the converters is completed successfully and only a few tests remain to be performed and approved. Handover of converters is estimated to take place in July 2016 and the final documentation will be settled in November 2016.

An extension request has been submitted in May 2016 to extend the Projects's end date of 3 month. The final payment request will be submitted end of 2016 / beginning 2017.

The project aims at removing the Baltic states isolation from the internal energy market. The construction of Nordbalt 01 is prerequisite for the integration of the Baltic states electricity market into the NordPool spot market.

Nordbalt 02

(Milgravis-Bolderaja, Riga-Imanta, Grobina-Ventspils)

COMPLETED

44,000,000

38,702,218

88%

31/12/2014

Nordbalt 02 refers to the necessary upgrade in the internal Lithuanian transmission grid to facilitate the flow of electricity through the interconnector. The EEPR supports the construction works.

The Action was completed ahead of its end date stipulated in Commission Decision C (2010)5317, while all activities were performed in line with their description.

The final payment was made in September 2015.

The project aims at further removing the Baltic states isolation from the internal energy market. The construction of Nordbalt 02 is prerequisite for the integration of the Baltic states electricity market into the NordPool spot market.

France-Spain Interconnection (Baixas - Sta Llogaia)

COMPLETED

225,000,000

225,000,000

100%

30/06/2015

X

The project aims to construct a new 320 kV underground interconnection between France and Spain the Eastern Pyrenees and double the existing capacities by 1400MW. The EEPR supports the technical studies, the procurement of material and the construction works.

This completed project was inaugurated in February 2015.

The final payment was executed in December 2015.

The project connects the renewable energy sources to the network and contributes to the integration of the French and Spanish markets, as well as to reinforce the security of electricity supply on a regional, national and European level.

Sicily – Continental Italy

New submarine cable (Sorgente – Rizziconi)


COMPLETED

110,000,000

33,000,000

30%

30/06/2016

The project covers the construction of a new 380 kV interconnection between Italian mainland and Sicily with an additional capacity of 2000MW. The EEPR supports detailed design, procurement of material and works.

The Civil Law Court of Messina issued two restraint orders against the construction of one overhead line tower. In compliance with Italian laws, Terna was obliged to immediately suspend all the works in progress on the overhead line. The official tower releases from the orders were granted and Terna promptly restarted the remaining works on the line. Further to this delay, Terna requested an extension of the end date of the Action till 30/06/2016 which has been accepted by the Commission.

The project is completed and has been officially inaugurated by the Italian Government on 28/05/2016

The project will enhance the security of supply and the expansion of renewables in Sicily, while improving the reliability of the grid both in Sicily and in continental Italy (Calabria).

Malta-Italy interconnection

(Pembroke-Marina di Ragusa)

COMPLETED

20,000,000

20,000,000

100%

31/12/2014

The project consists of a new 225MW sub-sea cable connection between Italy and Malta. The EEPR supports the technical studies and the procurement of the submarine cable.

The action financed is completed. The sub-sea cable has been laid down and the project is operational since spring 2015.

The project puts an end to the isolation of the Maltese grid from the rest of Europe. It improved the security of supply and contributes to the reduction in use of fossil fuels and the expansion of renewables in Malta.

Malta

Electricity project

(Kappara)

COMPLETED

5,000,000

5,000,000

100%

30/06/2013

The project concerns the upgrading of the transmission network in Malta to connect to Italy. EPPR supports the procurement of equipment and the construction of the Kappara distribution center.

The project is completed since June 2013 with a delay due to longer tendering procedures and some technical difficulties. The final payment has been made in March 2014.

The project enhances security of supply and the reliability of the electricity grid in Malta. It allows the connection of renewable energy sources to the grid, enabling export capacities to Italy.

Halle/Saale – Schweinfurt

ONGOING

100,000,000

41,070,000

41%

31/12/2017

X

The project will couple the North-Eastern part to the South-Eastern part of Germany. The project will facilitate the transport of renewable energy produced in North Germany and in the North Sea region to the rest of the German grid. The EEPR supports the construction works of the 3 New HV transmission lines including sub-stations:

- between Vieselbach – Altenfeld : final taking over completed;

- between Altenfeld and borderline Thuringia/Bavaria: 77 pylons built; first system is in trial operation since 17.12.2015; one section still has to be constructed;

- between borderline TH/BY – Redwitz : Construction works were finished, One 380 kV circuit was taken into operation in Dec. 2015, 110 kV lines were commissioned in Dec. 2015;

- Retrofit of the transmission line Redwitz - Eltmann – Grafenrheinfeld: commissioned.

The permitting process for 2 out of 4 sections, especially environmental authorisations, delayed the implementation of the project. An extension until end 2017 was granted.

The interconnector is almost completed. The first electrical system of the double circuit 400 kV overhead line was made operational .The compensation nature works – especially the forest related ones – are ongoing in close contact with the nature authorities.

The commissioning of the second circuit is expected early 2017.

The project will facilitate the transfer of electricity produced from renewable energy sources in the Northern sea to the consumption centres in Germany.

OFFSHORE WIND

564,990,893

221,985,224

39%

OFFSHORE WIND-GRID INTEGRATION

KRIEGERS FLAK



ONGOING

150,000,000

49,298,709

33%

15/01/2019

Description :

Designing, installing and operating a Combined Grid Solution (CGS) for

the grid connection of the offshore wind farms (several hundred MW)

at Kriegers Flak in the Baltic Sea, based on the new multi-terminal

HVDC voltage source converter (VSC) technology.

State of play :

In September 2015, the amendment of the Grant Agreement for the new technical solution was approved by EC. The beneficiaries 50Hertz and Energinet.dk have made the Final Construction Decision (FCD) and the EU tender procedures are in process. The first main components (Back-to-Back converter and Offshore platform) for the CGS infrastructure have been ordered. Both TSOs Energinet.dk and 50Hertz have agreed on the process for obtaining the required permits together with their respective regulatory authorities. The offshore interconnector KF CGS is planned to be commissioned by end of 2018.

COBRA CABLE




ONGOING

86,540,000

4,922,476

6%

31/12/2017

Description:
Realization of a sub-sea power link (VSC-HVDC) between Denmark and The Netherlands with the purpose of allowing the integration of more renewable energy into the Dutch and Danish power systems and to increase the security of supply.

State of play:
The obstacles linked to the business case, the licensing and the regulatory framework were overcome. These caused a delay of about 3 years and the project duration was extended until December 2017.

The project is now on track.

The Final Investment Decision was taken in December 2015, 6 months ahead of schedule. The contracts for converters and DC cables were as well awarded earlier than foreseen. All permits for the routing have been obtained. In these conditions, the cable should be operational in the beginning of 2019.

Offshore HVDC hub

TERMINATED

74,100,000

3,097,512

4%

Terminated as of 31/12/2012

Description :

Addition of an intermediate offshore platform on a planned HVDC link for connecting offshore wind and marine generation (North of Scotland, UK)

State of play :

The coordinator wished to change the project significantly from that originally proposed. The project was also far from being realised. As a result, the coordinator and the Commission agreed to terminate the project as of 31st December 2012. Final report was received November 2014. However, the report was not complete and the last required elements are expected by end of July 2015.

OFFSHORE TURBINES AND STRUCTURES

Thornton Bank wind farm

COMPLETED

10,000,000

10,000,000

100%

31/12/2011

Description :

Optimised logistics for up scaling the far-shore deep-water Thornton Bank wind farm and demonstration of innovative substructures (jacket foundations) for deep water off shore parks. The installation of jacket structures with an innovative installation frame will allow speeding up the installation pace of the 5-6 MW multi offshore wind farm, with a target to install 24 wind turbine generators per year.

State of play :

EEPR Action has been successfully completed in September 2011.

BARD Offshore 1

COMPLETED

 

53,100,000

53,100,000

100%

31/12/ 2013

Description :

Production of innovative tripile foundations and production and installation of innovative cable in-feed system for a 400 MW offshore wind–farm.

State of play :

The full offshore wind farm was installed by October 2013. This means that the EEPR action, including the manufacturing of 80 pile sets and tripiles and 162 cable feed-in systems has been successfully completed. The Commission made the final payment in March 2014.

Global Tech I

TERMINATED

58,540,893

4,494,476

8%

Terminated as of 01/01/2014

Description:
The EEPR supports the design and serial manufacturing of gravity foundations for multi MW turbines, including an innovative and fast installation process. The gravity foundations are installed in deep water on an offshore site in the German Exclusive Economic Zone.


State of play:

This EEPR action has been considerably delayed because of difficulties to obtain the permit for installing the gravity offshore foundations and in finding a co-investor.


In the end, the project did not find co-investor and therefore the Commission confirmed in April 2015 the project's termination as of 1 January 2014. Final financial settlement was completed by end of 2015.

Nordsee Ost offshore wind farm

ONGOING

50,000,000

49,882,408

100%

31/12/2015

Description :

Supply of innovative wind turbine generators (6.15 MW) for a 295 MW offshore wind farm.

State of play :

The offshore installation is practically completed, but due to a combination of bad weather conditions as well as technical issues with grid connection and the windturbines the project is delayed.

Borkum West II

COMPLETED

42,710,000

42,710,000

100%

31/12/2013

Description :

Supply of innovative wind energy converters and tripod foundation structures, including implementation of an innovative installation method, for the first phase of a 400 MW wind farm (2x200 MW).

State of play :

All wind energy converters and tripods have been installed. The final report was received at the end of April 2014 and the Commission made the final payment in September 2014.

Aberdeen Offshore Wind Farm - Wind Deployment Centre

ONGOING

40,000,000

4,479,643

11%

31/12/2016

Description :

The overall project objective is to connect a commercial offshore wind farm with a Deployment Centre, consisting of an ocean laboratory, environment monitoring and testing centre. The facility will allow for testing of multi MW turbines with innovative structures and substructures and optimisation of manufacturing capacities of offshore wind energy production equipment.

State of play :

After a positive court decision about the offshore and onshore consents (which were legally challenged), the Coordinator is still aiming for a FID in July 2016. Afterwards, the structure procurement should start in September 2016 and the construction commencement in December 2017 with commissioning in September 2018.The Grant Agreement will need to be amended.



Carbon Capture Storage

1,000,000,000

432,227,825

43%

Project

Grants awarded

(€)

(a)

Payments

(€)

(b)

Payment ratio

(b/a)

Date of finalisation

State of play

PorteTolle (IT)

TERMINATED

100,000,000

34,656,262

35%

Terminated as of 11/08/ 2013



The EEPR Grant covered investment in all stages of the CCS integrated project from source to an offshore storage site. Detailed front-end engineering design (FEED) studies for Porto Tolle Capture Unit as well as modelling activities, providing a characterisation of the selected storage site, had been completed. The feasibility study and cost evaluation for an appraisal well to verify reservoir information of the structure located in Adriatic Sea was performed. Feasibility study and cost evaluation of the surface system was finalised. A pre-injection monitoring survey had been carried out. However, the promoter decided to file for termination in June 2013 due to insurmountable delays in project execution caused by the decision of the Italian State Council to annul the environmental permit for the Porto Tolle power plant. Additionally, the promoter saw no prospects for achieving the closure of the financial structure of the project.

Rotterdam (NL)

ROAD

ONGOING

180,000,000

63,768,076

35%

31/12/ 2019 1

The EEPR Grant covers investment in all stages of the integrated CCS project from source to an offshore storage site. In 2012 the project concluded all preliminary technical, costing and permitting work and was consequently ready for the adoption of the Final Investment Decision (FID). Despite being ready for FID since mid-2012, the worsening of the business case for CCS, i.e. CO2 price projections, opened a funding gap which has postponed the decision. Following progress in discussions on additional sources of funding, restructuring of the project and change to a less costly storage site, the Commission and the project are in the final phase of negotiating an amendment to the grant agreement which would extend the EEPR Action until end of 2019. After completing the necessary updating of previous technical, costing and permitting work, FID is planned for early 2017 for the installations to be operational in 2020.

Belchatow (PL)

TERMINATED

180,000,000

20,690,188

11%

Terminated as of 06/05/2013

The EEPR Grant covered investment in all stages of the CCS integrated project from source to an onshore storage site. Very limited progress was achieved in 2012 due to critical financing, legal, technical risks and public acceptance issues as regards CO2 storage. Against this background, the promoter decided to file for termination in March 2013 and the project was terminated in May 2013.

Compostilla (ES)

COMPLETED

180,000,000

165,931,981

92%

31/10/ 2013

The EEPR Grant covered investment in all stages of the integrated CCS project from source to an onshore storage site. The EEPR Action was successfully completed in October 2013 resulting in the construction of three pilot plants covering capture, transport and storage. The results of the tests made in the pilot plants and other preparatory work contributed to knowledge sharing in the CCS Project Network which also published a report on the project. The project developer subsequently decided not to proceed with constructing the demonstration plant, which would not have been covered by the EEPR grant. The pilot plants will remain as very useful testing facilities which continue to be operational based on support by the Spanish government and also offer their services on the market.

Don Valley (UK)

ENDED WITHOUT COMPLETION

180,000,000

132,160,611

73%

31/12/ 2015

The EEPR funds covered investment in all stages of the CCS chain (capture, transport and offshore storage) and related front-end engineering design (FEED) studies, permits and environmental impact studies. While the project achieved considerable progress developing a CO2 transport and storage infrastructure which was planned to be jointly used by the Don Valley and White Rose CCS power plants, the decision of the UK government (announced in October 2012) not to support the project via the national CCS Commercialisation programme and NER300 was a serious setback for the capture part of the project. Recently, the decision of the UK government to discontinue its CCS Commercialisation Competition resulted in another setback to the project: Due to the withdrawal of UK government funding to the White Rose project, synergies and hence lower costs by joint use of the CO2 transport and storage infrastructure are now unlikely to be achieved. So far the project has not managed to secure the necessary additional funding for constructing the CO2 capture, transport and storage installations. Generally, the implemenation of the project is critically delayed. Therefore, the Commission sees no reasonable prospect for the project to take positive Final Investment Decision in a timely manner and has hence rejected the project's request to extent the grant agreement.

Jänschwalde (DE)

TERMINATED

180,000,000

15,020,706

8%

Terminated as of 05/02/2012

The EEPR Grant covered investment in all stages of the integrated CCS project from source to an onshore storage site. All detailed engineering studies were concluded for the capture unit by mid-2011. However, significant delays were incurred in the exploration phase of the storage sites largely due to regulatory uncertainties and public opposition. The failure to timely transpose the CCS Directive into German law lead the promoters to file for termination in December 2011 as it was deemed that the project could not obtain the necessary CO2 storage permits in time to realise the project within schedule.

(1)  Planned date of finalisation conditional to the successful conclusion of the amendment currently under discussion between the Commission and the project.
(I)

PCI: Project of Common interest. PCI indicates that project promoters proposed their project to receive the PCI status. It does not mean that the PCI status has been granted.

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