European energy programme for recovery

SUMMARY OF:

Regulation (EC) No 663/2009 — programme to aid economic recovery by granting EU financial assistance to projects in the field of energy

WHAT IS THE AIM OF THE REGULATION?

It sets up the European energy programme for recovery (EEPR) to fund projects in key areas of the energy sector:

gas and electricity infrastructures*;
offshore wind energy*; and
carbon capture and storage*.

It was established to support the EU’s:

economic recovery from the 2008 economic and financial crisis; and
energy policy objectives.

KEY POINTS

The programme finances gas and electricity infrastructure projects which aim to:

secure and diversify sources of energy and supplies;
make the interoperability (i.e. the interconnection) of networks safe and reliable;
develop and optimise the capacity of the network; and
connect renewables to the energy grid or network.

Offshore wind projects are given funding when they meet certain criteria which take into account the construction of the infrastructure, the innovative features of the project and the project’s contribution to the existing wind energy grid.

Carbon capture and storage projects are given funding when the project demonstrates that it can capture at least 80 % of carbon dioxide (CO₂) in industrial installations.

The programme’s budget totals €3.98 billion, broken down as follows:

€2.3 billion going to gas (€1.4bn) and electricity (€910 million) infrastructure projects;
€565 million to offshore wind projects;
€15 million to two small island projects;
€1.05 billion to 13 carbon capture and storage projects;
€146 million to the programme’s financial instrument, later set up under Regulation (EU) No 1233/2010 which amended Regulation (EC) No 663/2009 to support projects relating to energy efficiency.

The European Energy Efficiency Fund, established in 2011, took over the role of allocating money to projects that support energy efficiency. It supports projects concerning:

public and private buildings incorporating energy efficiency and/or renewable energy solutions, including those using information and communication technologies (ICTs);
investments in high energy-efficient combined heat and power, including micro-cogeneration, and district heating/cooling networks, in particular from renewable energy sources;
decentralised renewable energy sources embedded in local settings and their integration in electricity grids;
micro-generation from renewable energy sources;
clean urban transport supporting increased energy efficiency and integrating renewable energy sources (public transport, electric and hydrogen vehicles);
local infrastructure, including efficient public outdoor lighting such as street lighting, electricity storage solutions, smart metering, and smart grids, that make full use of ICTs;
energy efficiency and renewable energy technologies with innovation and economic potential using the best available procedures.

Reports

The European Commission publishes reports every year on the EEPR’s implementation. A report on the EEPR published in 2018 after 7 years of implementation shows that:

35 out of 44 gas and electricity infrastructure projects have been completed;
4 out of 9 offshore wind projects are operational; but
only 1 of the 6 carbon capture and storage projects has been completed and 3 have been terminated prematurely.

FROM WHEN DOES THE REGULATION APPLY?

It has applied since 1 August 2009.

BACKGROUND

The EEPR forms part of the economic recovery plan, established to remedy the effects of the financial and energy crisis that affected the European economy in 2008.

For more information, see:

Objective of the fund (European Energy Efficiency Fund)
European Energy Programme for Recovery — projects (European Commission)
Energy — funding (European Commission).

KEY TERMS

Gas and electricity infrastructures:

all high-voltage lines, other than distribution networks, and underwater links, provided that this infrastructure is used for interregional or international transmission or connection;
high-pressure gas pipelines, excluding those of distribution networks;
underground storage facilities connected to the high-pressure gas pipelines;
reception, storage and regasification facilities for liquefied natural gas; and
any equipment or installations essential for the above forms of infrastructure to operate properly, including protection, monitoring and control systems.

Offshore wind projects: wind farms out at sea.

Carbon capture and storage: a way of reducing the effect of climate change, consisting of the capture of CO₂ from industrial installations, its transport to a storage site and its injection into underground geological formations.

MAIN DOCUMENT

Regulation (EC) No 663/2009 of the European Parliament and of the Council of 13 July 2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy (OJ L 200, 31.7.2009, pp. 31-45)

Successive amendments to Regulation (EC) No 663/2009 have been incorporated in the original text. This consolidated version is of documentary value only.