There is a big variety of EU funding programmes to finance energy projects, those particularly relevant for offshore renewable energy (wind and ocean) are presented below, as well as in a document which provides an overview of the various instruments, which is updated regularly. For each programme listed, there is also information about eligible investments, previously funded offshore projects and how different EU programmes can be combined.
As a general rule, when combining multiple EU funding instruments, state aid rules apply and double funding of the same elements within one project is not possible (meaning that the co-financing rate exceeds 100%).
Horizon Europe is the European Commission’s key funding programme for research and innovation until 2027. Its Cluster 5 covers climate, energy and mobility, and aims to fight climate change by better understanding its causes, evolution, risks, impacts and opportunities, and by making the energy and transport sectors more climate and environment-friendly, more efficient and competitive, smarter, safer and more resilient.
- Overall budget and type: €15.1 billion in grants
Eligible investments in the field of offshore energy
Horizon Europe publishes each year several calls for proposals, which, amongst others, also covers specific topics in the field of offshore renewables. Each work programme is designed for 2 years and is established with topics, amongst others, in the field of energy supply, energy systems and grids, energy storage and climate science and solutions.
The following list contains examples from Horizon 2020, which was the Framework Programme prior to Horizon Europe:
- FLAGSHIP - Floating Offshore Wind Optimisation for Commercialisation (September 2020 – August 2024, EU contribution EUR 24.920.289,50)
- TiPA - Tidal Turbine Power Take-off Accelerator
- DTOceanPlus - Advanced Design Tools for Ocean Energy Systems Innovation, Development and Deployment
- SATH - New twin floating platform for offshore wind turbines
- OpTiCA - Optimisation of Tidal energy Converter Arrays
- ATLANTIS - The Atlantic Testing Platform for Maritime Robotics: New Frontiers for Inspection and Maintenance of Offshore Energy Infrastructures
- InnoDC - Innovative tools for offshore wind and DC grids
- SEAFLOWER - Strategies for the Exploitation of Anchors for FLoating Offshore Wind Energy Reaping
- FLOATECH - Optimization of floating wind turbines using innovative control techniques and fully coupled open source engineering tool
- PowerModule - Demonstration of the Next Generation Wave Energy Device
- Carbo4Power - New generation of offshore turbine blades with intelligent architectures of hybrid, nano-enabled multi-materials via advanced manufacturing
- FLOTANT - Innovative, low cost, low weight and safe floating wind technology optimized for deep water wind sites
The Directorate-General for research and innovation list more Horizon 2020 project examples in their factsheet (November 2020).
Combining Horizon Europe with other EU funding instruments
In Horizon Europe, the base funding rate for companies is up to 70% of eligible project costs for innovation actions (Technology Readiness Level 6/7). For research and innovation actions (up to TRL 5), the funding can be up to 100% of the eligible project costs. If the funding rate falls below 70%, then the project can in principle be supported by additional national, regional and/or EU funding instruments, such as InvestEU, Innovation Fund, Modernisation Fund, Connecting Europe Facility, and RRF, but projects should respect state aid rules.
Additional information is detailed on Horizon's Europe Work Programme 2021-2022 and support can be provided through National Contact Points for Horizon Europe.
Established under the Horizon Europe programme, the EU Innovation Council (EIC) supports game-changing innovations throughout the lifecycle from early stage research to proof of concept, technology transfer and the financing and scale up of start-ups and SMEs. Applications to EIC are continuously ongoing, with up to 4 cut-off dates for evaluation per year.
- Budget and type: €10.1 billion in grants (under Horizon Europe 2021-2027)
Instrument
The EIC Accelerator supports individual SMEs, in particular start-ups, and spinout companies to develop and scale up game-changing innovations. In some cases, small mid-caps (up to 500 employees) are supported. All offshore renewable energy technologies are eligible for funding.
The accelerator provides substantial financial support with grant funding. In addition, EIC selected companies receive coaching, mentoring, access to investors and corporates, and many other opportunities as part of the EIC community. It is possible to apply for the EIC Accelerator funding at any time through the EIC platform. Although the EIC Accelerator (TRL 6-9) is the main EIC instrument, there are also options for lower TRL projects through the EIC Pathfinder (TRL 1-3) and EIC Transition (TRL 3-5).
EIC Transition funds innovation activities that go beyond the experimental proof of principle in laboratory to support both the maturation and validation of novel technology in the lab and in relevant application environments and to develop a business case and model towards the innovation’s future commercialisation. Grants of up to €2.5 million and more are available to validate and demonstrate technology in application-relevant environments and develop market readiness. EIC Transition has open funding for projects in any field of science or technology and challenge-driven funding on specific strategic fields. Single applicants (SMEs, spin-offs, start-ups, research organisations and universities) or small consortia (max. 5 partners) may apply.
The following list includes a few EIC examples
- Saitec offshore technologies SL - New twin floating platform for offshore wind turbines (May 2019 - October 2021, Horizon 2020 contribution of €1.9 million)
- Electricity Distribution Services Ltd - Distributed Acoustic Sensing for Cable Monitoring and Surveying for Offshore Wind Farms providing movement, depth, surface disruption and free-span readings (July 2017 - June 2019, Horizon 2020 contribution of €1.3 million)
- Seatwirl AB - The first robust and cost-effective floating vertical axis wind turbine for deep water offshore (Sep 2019 - May 2022, Horizon 2020 contribution of 2.4 million)
Combining the EIC Accelerator with other EU funding instruments
For the EIC Accelerator, the base funding rate for companies is 70% of eligible project costs. If the co-funding rate falls below 70%, then the project can in principle be supported by additional EU funding instruments, such as InvestEU, Innovation Fund, Modernisation Fund, Connecting Europe Facility and Recovery and Resilience Facility. However, this is unlikely due to the direct equity investment option available through the EIC Fund. In other words, the total project costs have to be above €18 million for any top-up from other EU funding sources to be possible.
Activities from TRL 9 may however be relevant for European Investment Bank (EIB) loans or Venture Debt, including investments in research and development (purchase or renovation of assets, increasing working capital, etc.), which are undertaken over a period of up to 3 years and with a minimum commitment of €7.5 million, covering a maximum of 50% of the total investment costs. Companies must be able to demonstrate sound corporate governance, viable business plans and sustainable capital structures. The investments must target EIB priorities (especially innovation and skills).
Type of finance provided
- Pathfinder (TRL 1-3): Grants of up to €4 million
- Transition (TRL 3-5): Grants up to €2.5 million
- Accelerator (TRL 6-9): Grants up to €2.5 million + equity up to €15 million
Support and additional information
The LIFE Clean Energy Transition sub-programme aims at facilitating the transition towards an energy-efficient, renewable energy-based, climate-neutral and resilient economy by funding coordination and supporting actions across Europe. Its objective is to break market barriers that hamper the socio-economic transition to sustainable energy by engaging multiple small and medium-size stakeholders, actors including local and regional public authorities, non-profit organisations and consumers. It is one of the 3 sub-programmes of the LIFE Programme for environment and climate action. Under certain conditions, it can be combined with other EU instruments such as EU Innovation Council, Horizon Europe and European Maritime, Fisheries and Aquaculture Fund.
- Budget and type: €527 million for 2021-2024
LIFE CET sub-programme will contribute to the implementation of the energy-related actions of the European Green Deal, including the ‘Renovation wave’ initiative for the building sector, and will give due consideration to territories not connected to the European grids, such as the EU outermost regions. It will also contribute to the Just Transition objectives by accompanying the territories and citizens negatively affected by the transition from fossil fuels to clean energy, building capacity and fostering clean energy investments, mainly in energy efficiency and locally available and sustainable renewable energy sources. Activities related to technology development are not included.
An indicative amount of €527 million is allocated to this programme. A significant part of this budget will be used to finance coordination and support actions under OAs grants for 2021-2024. Some examples of these actions are
- building a national, regional and local policy framework supporting the clean energy transition
- accelerating technology roll-out, digitalisation, new services and business models and enhancement of the related professional skills on the market for the clean energy transition
- attracting private finance for sustainable energy
- supporting the development of local and regional investment projects
- involving and empowering citizens in the clean energy transition
LIFE CET can support local offshore renewable investments through its support mechanisms for the development of local renewable energy communities, its technical support to clean energy transition strategies and plans in municipalities and regions and its project development assistance for local sustainable energy investments. LIFE has supported ocean energy projects such as
- LIFE DEMOWAVE - Demonstration of the Efficiency & Environmental impact of Wave Energy Converters (WEC) in high-energy coasts
- LIFE NOVIOCEAN - Upscaling and demonstration of NoviOcean, a breakthrough wave energy converter - The Hydro Power Plant at Sea
- BLUETEC - Demonstration of the technological, economic and environmental sustainability of a full-scale tidal energy device in an offshore environment
Support and additional information
- For upcoming calls: Funding and tender opportunities (SEDIA) and Life Clean Energy Transition call for proposals (May 2022)
- CINEA webpage on LIFE calls for proposals
- Presentation: introduction to the LIFE CET sub-programme (2021)
The European Maritime Fisheries and Aquaculture Fund (EMFAF) runs from 2021 to 2027 and supports the EU common fisheries policy, the EU maritime policy and the EU agenda for international ocean governance. It provides support to develop innovative projects ensuring that aquatic and maritime resources are used sustainably.
- Budget and type: Grants and loans with a total budget under direct management of €797 million in 2021-2027. The EMFAF may provide funding in any of the forms laid down in the Financial Regulation ((EU) 2021/1139), in particular procurement and grants. It may also provide financing in the form of financial instruments within blending operations.
Instrument
The programme is divided between shared management (€5.3 billion is provided through national programmes co-financed by the EU budget and EU countries, for which the Common Provision Regulation 2021-2027 is applicable) and direct management (€797 million is provided directly by the Commission). Funding for the offshore renewable energy sector is mainly done under direct management and therefore with a relatively limited amount.
The fund helps to fulfil the objectives of the European Green Deal, the roadmap for the EU climate and environmental policies and the UN’s Sustainable Development Goal 14 (‘conserve and sustainably use the oceans, seas and marine resources’). Currently, about €20 million has been granted to innovation projects on offshore renewables. Another part of the fund is dedicated to support policies such as the Maritime Spatial Planning Directive and the sea-basin strategies, which are essential enablers for the deployment of offshore renewables.
Eligible investments in the field of offshore energy
Eligible investments include
- renewable energy development – including energy from wind, tide, wave and thermal gradients; however, only ancillary, logistic or supporting activities in that area are covered, not the capital investment in electricity generation or grid installations
- enabling technologies such as sensors, corrosion or biofouling resistant materials or coating, digitisation, electricity transmission equipment and multi-purpose platforms
- enabling policy instruments that relate to the implementation of the Maritime Spatial Planning Directive and to strengthen the sea basin cooperation
Examples from the European Maritime and Fisheries Fund (EMFAF's predecessor)
- DOCC-OFF - Project on digitalisation of turbine pitch system, remote monitoring and data collection/analysis
- Study on windfarm effects on aquaculture and fisheries - Overview of existing and potential future effects of offshore wind farms on fisheries and aquaculture.
- Ocean Energy Forum - Developed strategic roadmap for environment/consenting, technology and finance
- NESSIE - Advanced materials to tackle erosion in offshore energy, applicable to wave, tidal and wind
- WaveRoller Wave Farm - Scale-up preparing to deploy the world’s first commercial wave energy farm
- ATOMS - Auxiliary Towable Operation and Maintenance System for offshore wind towers
- Aerones - Offshore Robotic Wind Turbine Blade Care System
- SATHScale - Engineering and upscaling of new floating renewable wind energy platform
- DOCC-OFF - Digitalization Of Critical Components in OFFshore wind turbines
- FreShER - Floating Solar Energy mooRing: Innovative mooring solutions for floating solar energy
- LEAPWind - Leading Edge Advanced Protection using novel thermoplastic materials and processes for offshore Wind turbine blades
- WESE - Wave energy in Southern Europe
Combining the EMFAF with other EU funding instruments
The EMFAF can be complementary to other EU funding sources.that also support the maritime policy goals. For example, projects supported in earlier stages of development (TRL levels) under the EU research and innovation funding programmes, such as Horizon Europe and the EIC, could be taken forward under the EMFF Blue Economy Window calls to bring innovation closer to the market. Learnings from EMFF/EMFAF projects can be used and taken forward in larger, higher budget calls for proposals under Horizon Europe. There is also scope for cross-learning between LIFE and EMFF/EMFAF projects.
EMFF funding facilitated demonstration of solutions by SMEs, allowing them to apply for financial support under the EIC Accelerator for the scale-up phase. Blue Economy EMFF funding has been used to take forward specific blue economy technological solutions in support of previous LIFE supported work to promote the protection of the marine environment.
Eligible entities
- legal entities established in a EU country or in a third country listed in the work programme under the conditions specified in paragraphs 3 and 4
- any legal entity created under Union law or any international organisation
- legal entities established in a third country shall be exceptionally eligible to participate where this is necessary for the achievement of the objectives of a given action
Legal entities established in a third country that is not associated to the programme shall in principle bear the cost of their participation
Support and additional information
BlueInvest provides customised coaching for entrepreneurs whose business skills might not always match their technical skills. It helps SMEs and start-ups in accessing private capital to finance their innovations. BlueInvest I operated between 2019 and 2022, and BlueInvest II started in April 2022 and will be operated for another 2 + 2 years.
- Budget and type:
- grants and loans for technical assistance (under EMFAF): €6 million (2022-2026)
- BlueInvest Fund (2020-2026): €75 million (European Fund for Strategic Investments plus European Investment Fund Own Resources)
- Combination possibilities with other EU instruments: EIC and InvestEU. They can include calls tailored to smaller projects that cannot access Horizon Europe
Instrument
By mobilising investors and providing them with access to mature investment opportunities, as well as setting up dedicated financial instruments, the BlueInvest initiative attempts to close the funding gap and foster the emergence of a self-sufficient Blue Economy Venture Capital ecosystem that successfully attracts private investment. Achievements so far include, among others
- 200 SMEs have received investment readiness support through tailored coaching meeting their individual needs
- an online project pipeline of 2400 projects and its online projects showcase 300 high-profile companies looking for investment
- company-investor matchmaking facilitated through 40 events and 3400 B2B meetings
- more than €100 million public EU funds allocated through the EIF BlueInvest Fund pilot to intermediaries (Venture Capital Funds) for their investments in the sustainable blue economy
Eligible investments in the field of offshore energy
The 2020 pilot ‘BlueInvest Fund’ is an equity instrument that will leverage circa €300 million investments through intermediaries (Blue Horizon Ventures, Sofinnova Partners, Astanor Ventures, Ocean 14 and Sarsia) to be invested in Blue Tech companies until 2026 by these venture capital fund managers. A new blending instrument is planned to be launched in 2022 by the European Investment Fund, and the European Commission will mobilise additionally around €500 million. EU funds resulting in €1.5 billion of risk-finance are to be made available to the market through financial intermediaries.
For the BlueInvest Fund and the new blending instrument, equity investments at the level of the funds/intermediary in ocean energy SMEs and start-ups are eligible. At project level, it depends on the investment strategy of the intermediary/venture capital fund, which can be specialised in specific subsectors of the Blue Economy.
BlueInvest TA Alumni that have secured third-party finance during the programme or after its completion include the following products/innovations such as offshore wind platform technology (Ireland), wave energy technology (Sweden), wave energy and potable water production (Denmark), offshore floating solar solution (Netherlands), tidal energy floating platform solution (Spain) and wave energy converter (Germany), among others.
Support and additional information
The Innovation Fund (IF) is designed to scale up innovative clean tech and to finance the demonstration of first-of-a-kind highly innovative projects.
- Budget and type: Grants, circa €38 billion, 2020-2030 (at €75 carbon price, total budget depends on revenues from the EU Emissions Trading System - with higher EUA prices, the budget increases)
- Upcoming calls: Large-scale call (total capital costs above €7.5 million) in autumn 2022
- Combination possibilities with other EU funding instruments: InnovFin Energy Demo Projects, Connecting Europe Facility, Horizon Europe, InvestEU, Modernisation Fund, Just Transition Fund, Enhanced European Innovation Council (EIC) pilot. There are several options on how the IF may be combined with other public support
Instrument
The IF will provide around €38 billion of support over 2020-2030, depending on the carbon price for the commercial demonstration of innovative low-carbon technologies, aiming to bring to the market industrial solutions to decarbonise the EU and support its transition to climate neutrality. The IF supports up to 60% of the relevant costs of projects.
Eligible investments in the field of offshore energy
The 5 Innnovation Fund's award criteria are the potential for greenhouse gases emission avoidance, degree of innovation, project maturity, scalability and cost efficiency. Eligible projects must focus on generation and use of innovative renewables (no requirements regarding TRL).
Support and additional information
The cohesion funds include the European Regional Development Fund (ERDF), the Cohesion Fund and the Just Transition Fund (JTF).
- Budget and type: Grants, loans, equity, financial instruments.
There is no dedicated budget pre-identified for offshore renewables (as for other sectors) within the ERDF, the Cohesion Fund and JTF. The final allocation to offshore renewables is the result of the discussions between the Commission and the EU countries/regions on the selection of priorities in each programme.
- Combination with other EU instruments: any other EU funding instrument, considering the applicable regulations of cohesion policy funds and the other funding instruments.
The projects are selected and implemented by the managing authorities (such as ministries) in the EU countries and regions, based on the priorities identified in the relevant 2021-27 programmes.
Instrument
The ERDF, Cohesion Fund and JTF contribute to strengthening economic, social and territorial cohesion in the European Union. They aim to correct imbalances between countries and regions and to support a just transition delivering on the EU's political priorities, especially the green and digital transition.
Eligible investments in the field of offshore energy
These 3 funds can in principle support offshore energy at any stage of the value chain. The scope of interventions and priorities are set at the level of each specific programme. Depending on the priorities selected in each programme for the 2021-27 period, direct or indirect support to offshore renewable energy sources could be available. Fund specific provisions apply (for instance, the JTF can only support such investments if they contribute to the JTF’s Specific Objective and to implementation of the relevant territorial just transition plan).
European Territorial Cooperation (Interreg)
The ERDF supports cooperation between regions and countries to help their economic and social development and tackle the obstacle of borders. Interreg is organised under multiple strands: cross-border (Interreg A), trans-national (Interreg B), interregional (Interreg C) and outermost regions’ cooperation (Interreg D).
Many Interreg programmes have supported offshore energy projects. Some of them have a strong sea-based dimension, such as the Baltic sea region programme, the North-West Europe programme, the North Sea programme or the Mediterranean programme. Some examples of these programmes
- PLOCAN - Oceanic Platform of the Canary Islands
- AFLOWT - Interreg: Accelerating market uptake of Floating Offshore Wind Technology
- ENCORE - Energising Coastal Regions with Offshore Renewable Energy
- HelioRec - Floating solar power plant
Final recipients
Final beneficiaries can be any public and private entity. For non-SMEs (large enterprises) there is a number of restrictions that only allow support to SMEs in certain areas, such as energy efficiency or renewable energy.
Implementation
Cohesion policy funding is under shared management. The programmes that provide the framework for the available investments, such as for the period 2021-2027, are discussed between the Commission and the relevant managing authorities at national and/or regional levels. Once approved, programme implementation is fully in the hands of the managing authorities, including the potential call for proposals.
As a first step, it is necessary to check whether a specific programme (at a national or regional level) includes the possibility of funding offshore energy directly or indirectly. Once adopted, the programmes are accessible public documents. The selection of the priorities for investments in each programme indicates whether offshore energy can and will be supported during the 2021-2027 period. Where this is the case, further contacts should be made with the managing authorities to get information on possible funding that will be made available.
Support and additional information
CEF Transport supports the European transport infrastructure policy by helping realise key projects across Europe.
- Budget and type: €25.8 billion in the form of grants
- Combination with other EU instruments: CEF Energy and CEF Digital, Recovery and Resilience Fund and InvestEU
- Calls for proposals are launched in the second part of each year.
Instrument
The general objective of the CEF Transport programme is to build, develop, modernise and complete the trans-European transport network (TEN-T). It contributes to the development of projects of common interest on efficient, interconnected and multimodal networks and infrastructure for sustainable, smart, interoperable, inclusive, accessible, resilient, safe and secure mobility. It also contributes to the adaptation of the TEN-T network to the civilian-defence dual use.
Eligible investments in the field of offshore energy
Eligible investments include the development of basic maritime port infrastructure to improve port capacities and facilities in relation to offshore wind farms. Examples of such interventions are the development of quays, berths and utilities installations for the pre-assembly, construction, operation, maintenance and decommissioning of offshore wind farms.
In addition, synergetic (ancillary) elements of an action relating to another sector of the CEF programme, i.e. energy or digital, may be eligible under the CEF Transport programme if these synergetic elements allow to significantly improve the socio-economic, climate or environmental benefits of the action. Co-funding may be provided as long as the cost of these synergetic elements does not exceed 20% of the total eligible costs of the action.
Maritime ports on the TEN-T core and comprehensive network are eligible to apply for funding. Support will be provided both under the general envelope (maximum co-funding rate for studies: 50%; for works: 30%) and under the cohesion envelope (maximum co-funding rate both for studies and works: 85%).
Combining CEF Transport with other EU funding instruments
In accordance with the point 11.3 of the CEF Transport multiannual work programme, no EU financial support shall be awarded for actions receiving funds from other sources of EU financing, with exception of the Recovery and Resilience Facility and the InvestEU, and without prejudice to Articles 6, 17 and 19 of the CEF Regulation.
Support and additional information
Contact the European Commission Directorate-General for Mobility and Transport: MOVE-B2-CEF-COMMITTEE@ec.europa.eu.
CEF Energy supports sustainable energy infrastructure projects.
- Budget and type: €5.83 billion in grants for the period 2021-2027. Up to 15%, subject to market uptake, should be allocated to cross-border projects in the field of renewable energy. Co-funding rate: 50%
- Combination with other EU instruments: CEF Projects of Common Interests (PCIs): Recovery and Resilience Fund, InvestEU, CEF Transport and CEF Digital. CEF cross-border renewables: Renewable Energy Financing Mechanism, Cohesion policy funds
Instrument
CEF Energy aims to enable projects of common interest to be prepared and implemented within the framework of the trans-European networks (TEN) policy in the energy sector as well as cross-border projects in the field of renewable energy. It supports the development of high performing, sustainable and efficiently interconnected trans-European networks. CEF is used to boost investment by addressing market failures, where actions are not commercially viable but do have a clear added value for the EU.
The actions dedicated to renewable energy projects support the cooperation between EU countries in the field of renewable energy and helps them achieve the 2030 EU target for renewables in a cost-effective manner.
Eligible investments in the field of offshore energy
In order to be eligible for CEF Energy, projects need to first receive the status of either Project of Common Interest or cross-border project in the field of renewable energy.
Project of Common Interest (PCIs)
The CEF Energy budget is directed to studies contributing to the preparation and implementation of a PCI. In order to be eligible, an action needs to be part of the PCI list. To be defined as a PCI, a project must either contribute to the interconnection of EU countries’ energy networks, provide significant benefits in terms of integrating renewable energy sources, ensuring energy security or diversification or provide consumers with choices and competitive prices, as laid out in the TEN-E Regulation.
Cross-border projects in the field of renewable energy
Up to 15% (which may be increased to up to 20%), subject to market uptake and to be reached over the entire 2021-2027 period, of the CEF Energy budget should be allocated to cross-border projects in the field of renewable energy, which enable the cost-effective deployment of renewable energy in the EU. These projects also contribute to the achievement of the EU’s binding target of at least 32% renewable energy in 2030 and to the strategic uptake of innovative renewable energy technologies, such as offshore wind and ocean energy. An example is the CEF Energy funding (€13.6 million) for feasibility and preparation studies of the North Sea Wind Power Hub (PCI 1.19 on the 5th list) with the aim to build hubs in the North Sea with interconnectors to bordering countries (Denmark, Germany and Netherlands).
Final recipients
Legal entities established in a EU country, legal entities established in a third country associated to the Programme under the conditions set in Article 5 of the CEF regulation, legal entities created under Union law and international organisations are eligible to apply for funding.
In compliance with Article 11 of the CEF Regulation, legal entities established in a third country which is not associated to the Programme may not receive financial support under the Programme except where this is indispensable for the achievement of the objectives of a given project of common interest or a cross-border project in the field of renewable energy.
Support and additional information
Contact the European Commission Directorate-General for Energy about PCIs: ENER-CEF-ENERGY-INFO@ec.europa.eu or ENER-CEFRENEWABLES@ec.europa.eu for cross-border renewables.
The InvestEU Fund is the centerpiece of the InvestEU Programme, comprising 3 components: the InvestEU Fund, the InvestEU Advisory Hub for technical assistance and the InvestEU Portal database for projects.
- Budget and type: €26.2 billion in the form of an EU Budgetary Guarantee (2021-2027) for the InvestEU Fund (EU Compartment), supporting equity or loan finance
- Calls: The 2nd call for expression of interest to select Implementing Partners (other than the EIBG) is foreseen in 2023.
Instrument
Underpinned by an EU budgetary guarantee of €26.2 billion for the period 2021-2027, the InvestEU Fund (EU Compartment) provides risk-bearing capacity to support finance for investments in EU priority policy areas. The InvestEU Fund is expected to mobilise across the EU additional investments of around €370 billion by crowding in other public and private investors.
The InvestEU Fund is a demand-driven and market-based instrument that operates within the policy framework of the InvestEU Regulation. It operates through 4 policy windows: sustainable infrastructure (€9.9 billion), research, innovation and digitisation, SMEs and social investment and skills.
The InvestEU Programme is set to contribute to mainstreaming climate actions and to the achievement of an overall target of at least 30% of the EU's budget expenditures supporting climate objectives. Furthermore, at least 60% of the investments under InvestEU Fund's sustainable infrastructure policy window shall contribute to meeting the EU's climate and environmental objectives.
The InvestEU Fund supports finance only to final recipients deemed economically viable according to internationally accepted standards at the time of the EU's financial support.
Eligible investments in the field of offshore energy
Eligible investment include
- generation, supply or use of clean and sustainable renewable energy,with afocus on projects with high-perceived risk and capital intensity enabling the further integration of renewables in all sectors, as well as other zero and low-emission energy sources and solutions
- development, smartening and modernising of sustainable energy infrastructure targeting the transmission and distribution level. This includes supporting PCIs, digitalising and modernizing energy grids to facilitate a greater uptake of renewables, as well as projects on demand-side flexibility and energy storage
- deployment of floating wind farms, developments to convert ports from transport nodes to offshore industry hubs, cabling for offshore grids and wave and tidal energy devices
Combining InvestEU Fund with other EU funding instruments
InvestEU Fund-supported finance can be combined with other EU support schemes or funding instruments established to increase investments in offshore energy investments, for instance Horizon Europe, the Innovation Fund, the Connecting Europe Facility, financial support provided to projects through the Recovery and Resilience Facility and Structural Funds as well as finance supported under the Invest EU Fund’s Member States Compartment.
Final recipients
Eligible final recipients, depending on the purpose of support under the four policy windows of the InvestEU Fund, may be natural or legal persons, including private entities such as special-purpose vehicles (SPV) or project companies, SMEs and micro-enterprises, midcap companies and larger corporates, public sector entities and public-sector type entities, mixed entities, such as public-private partnership (PPPs) and private companies with a public purpose and non-profit organisations.
Type of finance provided
Under the InvestEU Fund, different types of loan or equity finance can be supported, depending on the financial products offered by InvestEU implementing partners and financial intermediaries. Finance provided may take the form of direct loans to companies or special purpose vehicles, equity investments into funds or intermediated finance supported by a portfolio guarantee, among others. In terms of volume, the InvestEU Fund can support small-ticket finance up to larger project finance, depending on the financial products offered by implementing partners.
Implementation
The main EU's implementing partner for the deployment of the InvestEU Fund are the European Investment Bank (EIB) and the European Investment Fund (EIF), with whom the European Commission signed the Guarantee Agreement on 7 March 2022. The European Commission is currently negotiating Guarantee Agreements with further implementing partners (International Financial Institutions and National Promotional Banks and Institutions) that were selected through a first call for expression of interest in 2021.
The EIB, the EIF and further implementing partners may provide finance either directly to final recipients or indirectly through financial intermediaries (commercial banks, investment funds and other financiers). Companies, project promoters and other potential final recipients must contact implementing partners or financial intermediaries to obtain finance for their investments.
Support and additional information
The Modernisation Fund (MF) is a dedicated funding programme to support 10 lower-income EU countries (Bulgaria, Croatia, Czech Republic, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia) in their transition to climate neutrality by helping them to modernise their energy systems and improve energy efficiency.
- Budget and type: circa €48 billion for 2021-2030 (at €75 carbon price, total budget depends on evolution of the carbon price as the Fund is financed through revenues from the EU Emissions Trading System - with higher carbon price, the budget increases). The type of financing is decided by EU countries: either grants, premium, guarantee instruments, loans or capital injections (to be specified in the investment proposals that EU countries submit to the EIB and the Commission)
- Combination with other EU instruments: Cohesion policy funds including Just Transition Fund and Recovery and Resilience Fund. Governments can use the MF to fund either schemes or single projects
- No calls at EU level, but bi-annual investment cycles. Investment proposals are submitted to the EIB by EU countries. Calls may be organised at national level.
Instrument
The Commission disburses MF financing to EU countries, which select the final beneficiaries. The fund envisages 2 types of investments
- priority investments (covering at least 70% of the resources of the MF) that have to fall into at least one priority area as defined by the EU Emission Trading System Directive, namely generation and use of electricity from renewable sources, improvement of energy efficiency, energy storage, modernisation of energy networks and support to a just transition in carbon-dependent regions in the beneficiary EU countries
- non-priority investments that do not fall into a priority area but meet the MF objectives and demonstrate reduction of greenhouse emissions
Eligible investments in the field of offshore energy
Investments on the generation and use of offshore renewables only for mature technologies (no specific TRL) are eligible.
There are some renewable energy generation investments currently supported by the Fund in Poland and Slovakia (for a total amount of EUR 11mn and EUR 20 mn respectively which include support to wind energy generation, but no offshore investments are planned so far.
Final recipients
The specificities of the conditions for application are defined in specific calls organised individually by beneficiary EU countries.
Implementation
- EU countries select the investments they wish to submit for Modernisation Fund support and submit the proposed investments to the EIB, the Investment Committee and the Commission. Submissions can be made on a rolling basis.
- The EIB confirms if the investment is a priority investment as defined by the ETS Directive. For non-priority investments, the EIB conducts a technical and financial due diligence assessment and the Investment Committee assesses the proposal and makes its recommendation on its financing.
- The Commission takes a disbursement decision once an investment is confirmed as priority by the EIB or recommended for financing by the Investment Committee as non-priority. There are two disbursement decisions per year. The EIB transfers the resources to the beneficiary EU country in accordance with the disbursement decision.
For more information, contact the EIB: modernisation-fund@eib.org.
The EU renewable energy financing mechanism helps EU countries to work more closely together, hosting or contributing financially to new renewable energy projects.
- Budget and type: grants, to be defined each year on the basis of the binding commitments of the contributing countries
- Combination with other EU funding instruments: InvestEU and CEF-Energy.
- Upcoming call: planned for the second part of 2022
Instrument
The mechanism serves as a voluntary platform that links EU countries that provide financial contributions with EU countries that allow renewable energy projects on their territory to receive support by the mechanism. The main incentive for the contributing and host EU countries is that they share the statistical benefits originating from the renewable energy generated by the projects. Those benefits count towards EU countries’ contributions to the EU’s 2030 renewable target and help them maintain their 2020 renewable target baseline.
Eligible investments in the field of offshore energy
The mechanism supports new renewable energy projects, but only the generation facilities, not the infrastructure.
The implementing regulation allows for various types of design of the calls for proposals, including technology-specific calls for offshore technology. The final design of the call for proposals is established by the Commission taking into account the preferences of the participating EU countries.
Any offshore generation project (wind and ocean) that is located on the territory of a host country and submitted competitive bid in the call for proposals is eligible. Calls under the mechanism can be technology-specific or technology-neutral, depending on the preferences of the participating EU countries.
Combining with other EU funding instruments
The project developer that has received support from the mechanism can combine this support with other sources, provided that the rules on no double funding are maintained. For example, a project developer of a hybrid offshore wind park can benefit from investment support by the mechanism on the renewable energy production component of the project, and from CEF support on the infrastructure component of the project. Or a project developer of a solar park can benefit from investment support by the mechanism and from loan or other financial instrument from InvestEU.
Implementation
The mechanism will be implemented through calls for proposals where project promoters will submit bids for investment support that they aim to receive to build a renewable energy project. As a rule, the budget of the call will be disbursed to the cheapest bids until it is depleted.
The implementation partner is CINEA.
For additional information, contact the European Commission Directorate-General for Energy: ENER-FIN-MECH-SUPPORT@ec.europa.eu .