(1)

Directive (EU) 2018/2001 of the European Parliament and of the Council (2) introduced a new, binding, renewable energy target for the Union for 2030. It also promotes the use of cooperation mechanisms as effective tools that contribute to the achievement of that target.

(2)

Regulation (EU) 2021/1153 widens the scope of the instrument beyond trans-European networks to renewable energy production and establishes a new category of projects for funding under the Connecting Europe Facility (CEF) – ‘cross-border projects in the field of renewable energy’.

(3)

Cross-border projects in the field of renewable energy (‘renewable energy cross-border projects’) should aim to enable the cost-effective deployment of renewables in the Union, support the achievement of the Union’s binding target for renewable energy in 2030 as referred to in Directive (EU) 2018/2001 and contribute to the strategic uptake of innovative renewable technologies. The projects should also contribute to decarbonisation, completing the internal energy market and enhancing the security of supply by promoting cross-border cooperation between Member States in the field of planning, development and the cost-effective exploitation of renewable energy sources.

(4)

To be eligible for financing, cross-border projects in the field of renewable energy should first be included on a list of renewable energy cross-border projects. Having the official status of ‘cross-border project in the field of renewable energy’ may provide benefits such as higher visibility, increased investor certainty, and stronger support from Member States.

(5)

A project promoter whose project has been selected for inclusion on the list of cross-border projects in the field of renewable energy may also apply for funding under Regulation (EU) 2021/1153 for studies or works relating to that project.

(6)

The objectives, general criteria to be met, and procedure to be followed for the cross-border projects in the field of renewable energy are provided for in Annex Part IV to Regulation (EU) 2021/1153. Article 7 of that Regulation empowers the Commission to adopt a delegated act to lay down the specific selection criteria and the details of the process for selecting the cross-border projects to be included in the list of cross-border projects in the field of renewable energy.

(7)

Renewable energy cross-border projects should be set up by a cooperation mechanism. That mechanism can take any of the forms of cooperation agreement provided for in Articles 8, 9, 11 and 13 of Directive (EU) 2018/2001 and can be set up between two or more Member States, or between one or more Member States and one or more non-EU countries. For this criterion to be met, it is important that there is evidence of a certain degree of support from the Member States and, where relevant, the non-EU countries, involved. For this reason, a written declaration expressing willingness to support the project through a cooperation agreement, validated by a responsible institution in all participating Member States and, where relevant, non-EU countries, should be presented. There are no specific restrictions on the format of the declaration.

(8)

According to Article 11 of Regulation (EU) 2021/1153, legal entities – including joint ventures – established in a Member State, are eligible for the programme. As such, they can submit an application set up by a cooperation agreement for a joint project, including one that involves a non-EU country, under Articles 9 and 11 of Directive (EU) 2018/2001. However, in the specific case of a joint support scheme, according to Article 13 of Directive (EU) 2018/2001 only a Member State can submit an application. If the cooperation mechanism takes the form of a stand-alone statistical transfer according to Article 8 of Directive (EU) 2018/2001, there is no additional investment attached to it and, therefore, support under the CEF may only be necessary for studies in accordance with Article 7(3) of Regulation (EU) 2021/1153.

(9)

According to points 2(b) and (c) of Annex Part IV to Regulation (EU) 2021/1153, cross-border projects should provide a more effective solution to the deployment of renewables as compared to projects implemented by one of the participating Member States alone. Therefore, in addition to being set up by a cooperation mechanism, to be included on the list of cross-border projects in the field of renewable energy, the socioeconomic net benefits of a project must also be demonstrated.

(10)

The socioeconomic net benefits of a cross-border project in the field of renewable energy should be demonstrated by means of a cost-benefit analysis that covers all elements of point 3 of Annex Part IV to Regulation (EU) 2021/1153, prepared by the project promoter. Together with this delegated act the Commission will publish a methodology that sets out how the cost-benefit analysis should be performed and how the Commission should assess the project’s compliance with the general criteria (3).

(11)

Annex Part IV to Regulation (EU) 2021/1153 establishes the main steps of the procedure for selecting a project to be included in the list of cross-border projects in the field of renewable energy. The selection procedure will entail: (a) a first evaluation by the Commission of the applications for a cross-border project in the field of renewable energy against the general criteria; (b) the establishment by the Commission of a group for cross-border projects in the field of renewable energy with the competence to adopt a draft list and monitor the implementation of the projects in the list in view of maintaining their status; (c) agreement by the group on the draft list; and (d) adoption of the final list by the Commission and review of the list every 2 years.

(12)

The Commission, when adopting the final list of cross-border projects in the field of renewable energy, should aim to ensure an appropriate geographical balance. It may also use regional groupings for the selection of projects keeping in mind that not all Member States are currently part of such a grouping and that cross-border cooperation on renewables deployment can also be between countries not sharing a physical border.

(13)

Renewable energy cross-border projects may involve various technologies that are deemed eligible. For example, renewables generation from on- and offshore wind, solar energy, sustainable biomass, ocean energy, geothermal energy or combinations thereof, their grid connection and additional elements such as storage or conversion facilities.

(14)

To directly enable the achievement of the EU 2030 renewable energy target, the cross-border projects should always include a renewables generation facility as an integral part of the project. Additional components of the project that indirectly enable the achievement of the EU 2030 renewable energy target and the cost-effective deployment of renewable energy by contributing to the effective integration of the renewables generation can be eligible, however not as stand-alone projects, but as integral part of the cross-border project which is deployed in addition to the renewables generation. Such additional components can be cross-border transmission grid, thermal storage, battery storage, compressed air and liquid air storage, pumped hydro and electrolysis of water coupled with hydrogen storage. Eligible action is not limited to the electricity sector and can cover other energy carriers and potential sector coupling, for example with heating and cooling, power to gas, storage and transport.

(15)

Renewable energy cross-border projects do not necessarily entail a physical link between the cooperating Member States. These projects can be located on the territory of only one involved Member State provided that the general criteria of Annex part IV are met.

(16)

Cross-border projects in the field of renewable energy should comply with the applicable legal requirements on sustainability, greenhouse gas-emission savings, as well as the principle of ‘do no significant harm’ in accordance with Article 17 of Regulation (EU) 2020/852 of the European Parliament and of the Council (4).

(17)

Regulation (EU) 2021/1153 allows the CEF programme to support studies to help develop and identify renewable energy cross-border projects, in accordance with Article 7(3) of that Regulation. These studies aim to prepare cooperation mechanisms for renewables planning and deployment and to overcome initial barriers to setting up such cooperation. Support for such studies can precede a project’s inclusion in the list of cross-border projects in the field of renewable energy and can also be used to prepare for its application to the list and/or the cost-benefit analysis.

(18)

A project that has been awarded support for a study under Article 7(3) should not have an advantage in the procedure to be included in the list of cross-border projects in the field of renewable energy and/or receive CEF funding for studies and works. Benefiting from a study under Article 7(3) does also not result in an obligation to apply either to be included in the list of cross-border projects in the field of renewable energy or to apply for CEF funding for studies and works.

(19)

As the risks and profitability of eligible projects may differ and may also evolve over time, it may be appropriate to allow for a part of the available allocation for renewable energy cross-border projects to be provided through contributions to blending operations or a blending facility under Invest EU.

(20)

All relevant provisions under Union legislation, notably on sustainability of bioenergy, capacity allocation at the borders, unbundling, competition and state aid, biodiversity and environmental protection should be fully respected by the renewable energy cross-border projects.

(21)

All projects included in the list of renewable energy cross-border projects should be implemented swiftly and be monitored and evaluated closely and regularly, while keeping reporting requirements for project promoters to a minimum,