Recovery and Resilience Facility for clean energy

The Recovery and Resilience Facility (RRF) is a temporary instrument, launched in 2021, to help the EU emerge stronger and more resilient from the coronavirus pandemic and increase the resilience of the national economies.

The facility in figures

€648 billion

to invest in reforms and projects

42%

average % dedicated to green transition per country

€184 billion

for energy-related measures

The RRF is the largest EU funding programme, with €648 billion committed overall.

All EU countries must dedicate at least 37% to measures supporting the green transition in their Recovery and Resilience Plans (RRPs), and all countries exceeded this target, reaching 42%, on average by May 2024.

In total, climate expenditure amounts to around €275 billion, with more than €184 billion supporting energy-related measures.

Objective and result

The Recovery and Resilience Fund (RRF) has the two-fold objective of helping EU countries recover from the COVID-19 pandemic, as well as bolstering their resilience and making our economies and societies greener, more digital and more competitive. It channels EU funding for the implementation of the REPowerEU plan to accelerate the clean energy transition and boost EU competitiveness.

Through the RRF, the Commission raises funds by borrowing on the capital markets, issuing bonds on behalf of the EU, which are then available to EU countries for their implementation of ambitious reforms and investments that

make their economies and societies more sustainable, resilient and prepared for the green transition and digital transition
address the challenges identified in country-specific recommendations under the European Semester framework of economic and social policy coordination

2024 RRF implementation report

According to the third Annual Report on RRF implementation, published by the Commission on 10 October 2024, the RRF resulted in 34 million MWh of energy consumption being saved, over 100 GW additional renewable energy capacity installed, and has driven € 82 billion in investments to EU businesses.

The implementation of the RRF is accelerating. By the end August 2024, EUR 265.4 billion (representing over 40% of the total RRF funds) have been disbursed. Furthermore, 85% of the milestones and targets due by the first quarter of 2024 have either been assessed by the Commission as fulfilled or self-reported by EU countries as completed.

Video source: EC audiovisual portal, 10 October 2024.

Energy efficiency

More than half of the total energy-related funding of €106.5 billion is allocated to energy efficiency measures, to help European citizens, businesses and industry to save energy and reduce their dependence on fossil fuel imports.

This includes €25.5 billion for energy efficiency measures in industry and about €81 billion for energy efficiency in buildings, comprising €45 billion for private buildings, €22.5 billion for public buildings and €13.5 billion to construct new buildings.

The photograph shows a person's hands, from the perspective of the person themselves, holding a tablet which displays the EU energy label — © AdobeStock/Rido

26 EU countries included investments in energy efficiency in their RRPs. Portugal and Slovakia allocate more than 30% of their RRP’s funds to this area, followed by the Netherlands and France, with 29% and 26% respectively allocated to energy efficiency. In absolute terms, Spain, Italy, France and Poland are the countries allocating the largest amounts to energy efficiency measures.

By the end of 2023, about 34 million megawatt hours (MWh) of savings in the EU’s annual energy consumption were achieved thanks to support from the RRF. That’s more than the entire annual energy consumption of Denmark, according to the Commission’s 2024 RRF Annual Report.

Renewables

About €34.2 billion is allocated to supporting a faster deployment of renewable energy. 23 EU countries have included reforms on renewables permitting and 9 have included reforms to enhance the regulatory framework for the operation of energy communities.

These reforms are aligned with the Commission’s guidance and recommendations on permitting, adopted in May 2024, as part of the 'REPowerEU – 2 years on' package.

In the foreground of the picture, on the left, a man wears a hard hat and high-visibility vest, he is working on the tablet he holds in his hands. In the background of the photograph, in front of the man, are rows of solar panels and one wind turbine — ©AdobeStock/DisobeyArt

Luxembourg fully allocated its RRP energy-related allocation to support renewable energy. In absolute amounts, Italy, Spain and Poland are the countries allocating the largest amounts to renewable energy sources.

Energy infrastructure

Approximately €25 billion is allocated to support electricity networks, storage and smart meters, and €1.6 billion to support 3 gas infrastructure projects needed to address immediate security of supply concerns in Croatia, Italy and Poland.

Many EU countries included reforms to enhance the power grid's ability to manage the variability of renewable energy sources, focusing on

easing the integration of distributed energy resources
enabling demand response to improve grid flexibility and efficiency
implementing technological upgrades, such as energy storage solutions

The photograph is taken from the ground looking up. It show and electricity pylon, with sunshine and clouds in the background — ©AdobeStock/Quality Stock Arts

For example, the Czech plan includes reforms to maximise available grid capacity and facilitate the connection of renewables to the grid for self-consumption.

Hydrogen

The RRF also supports the production and uptake of renewable and low carbon hydrogen (about €13.6 billion), including for Important Projects of Common European Interest (IPCEIs) on hydrogen.

The measures include supporting isolated, self-standing hydrogen systems of production and consumption (‘hydrogen valleys’) and strengthening the supply chain, including through pioneering projects.

The photograph shows 3 large silver cylindrical hydrogen containers — ©AdobeStock/AA+W

Germany has allocated the largest share of its RRP energy-related measures (about 44%) to renewable and low carbon hydrogen.

National Recovery and Resiliency Plans 2024

The Council has approved all 27 revised Recovery and Resiliency Plans (RRPs), of which 26 include a REPowerEU chapter.

Implementation and expected results

The RRPs will help EU countries achieve the 2030 targets for renewables and energy efficiency, and paves the way towards reaching the EU’s objectives for 2040.

Already by 2026, the RRPs are expected to bring tangible deliverables, such as

60 GW of additional renewable capacity, including more than 15 GW for offshore wind
promote 28 million MWh of savings in annual primary energy consumption
modernise 14 000 km of electricity transmission and distribution lines
deploy more than 2.5 GW of hydrogen electrolyser capacity

The RRPs are a significant part of the measures included in the National Energy and Climate Plans (NECPs). The measures included in the REPowerEU chapters, and more generally in the RRPs, will also bring tangible results aligned with the EU Solar Energy Strategy, the Wind Power Package, the Action Plan on electricity grids and the recommendation and guidance on speeding up permit-granting for renewable energy and related infrastructure projects.