{"id":17686,"date":"2022-09-17T12:06:35","date_gmt":"2022-09-17T12:06:35","guid":{"rendered":"http:\/\/legalblog.ie\/?p=17686"},"modified":"2022-09-25T14:23:20","modified_gmt":"2022-09-25T14:23:20","slug":"renewables-financing","status":"publish","type":"post","link":"https:\/\/legalblog.ie\/renewables-financing\/","title":{"rendered":"Renewables Financing [EU]"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_63 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/legalblog.ie\/renewables-financing\/#EU_renewable_energy_financing_mechanism\" title=\"EU renewable energy financing mechanism\">EU renewable energy financing mechanism<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/legalblog.ie\/renewables-financing\/#Key_Points\" title=\"Key Points\">Key Points<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/legalblog.ie\/renewables-financing\/#Application_Background\" title=\"Application &amp; Background\">Application &amp; Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/legalblog.ie\/renewables-financing\/#MAIN_DOCUMENT\" title=\"MAIN DOCUMENT\">MAIN DOCUMENT<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/legalblog.ie\/renewables-financing\/#ER_300_programme_%E2%80%94_increasing_low-carbon_technologies\" title=\"ER 300 programme \u2014 increasing low-carbon technologies\">ER 300 programme \u2014 increasing low-carbon technologies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/legalblog.ie\/renewables-financing\/#Key_Points-2\" title=\"Key Points\">Key Points<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/legalblog.ie\/renewables-financing\/#Application_Background-2\" title=\"Application &amp; Background\">Application &amp; Background<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/legalblog.ie\/renewables-financing\/#MAIN_DOCUMENTS\" title=\"MAIN DOCUMENTS\">MAIN DOCUMENTS<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"EU_renewable_energy_financing_mechanism\"><\/span>EU renewable energy financing mechanism<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Implementing Regulation (EU) 2020\/1294 on the EU\u2019s renewable energy financing mechanism<\/p>\n<p>This implementing regulation sets out the rules on the functioning of the new EU renewable energy financing mechanism in line with Regulation (EU) 2018\/1999 on governance of the energy union.<\/p>\n<p>The mechanism supports new renewable energy projects across the EU and contributes to the renewable energy deployment in accordance with Directive (EU) 2018\/2001 on renewable energy.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Points\"><\/span>Key Points<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Funding comes from three sources:<\/p>\n<p>EU countries\u2019 governments may provide voluntary payments;<br \/>\nother EU programmes and funds may make contributions, especially to reduce the cost of capital for renewable energy projects or to support regional cooperation inside the EU and with non-EU countries;<br \/>\nthe private sector may offer finance, with the option of indicating the project, technology or end-use it would like to support.<\/p>\n<p>All financing must respect EU financial rules as set out in Regulation (EU, Euratom) 2018\/1046 (see summary).<\/p>\n<p>The European Commission asks EU governments every year whether they would like to provide voluntary payment (contributing country) or to allow renewable energy to be installed on their territory (host country).<\/p>\n<p>Host countries must provide certain information, such as:<\/p>\n<p>maximum total capacity or renewable energy available to projects financed by the mechanism;<br \/>\npreferred technologies or end-use sectors;<br \/>\nany site or geographical restrictions.<\/p>\n<p>Contributing countries must provide certain information, such as:<\/p>\n<p>volume of renewable energy they intend to support and benefit from in statistical allocations;<br \/>\ntheir maximum financial contribution;<br \/>\npreference for technology-neutral, multi-technology, technology-specific, project-specific or end-use specific grant award procedures.<\/p>\n<p>The Commission:<\/p>\n<p>designs, on the basis of the offers and requests received, tenders (referred to as calls for proposals) specifying, for instance:<br \/>\ncall\u2019s objectives,<br \/>\nform of grants (investment or operating support) and award criteria,<br \/>\nceiling price of proposals,<br \/>\neligible technologies;<br \/>\ninforms EU countries it intends to launch a call for proposals;<br \/>\nlaunches the call or calls, including the eligibility and selection criteria, after receiving binding commitments from host countries, whereby they will allow installations on their soil to receive the financial support, and from contributing countries, whereby they will provide the money they offered.<br \/>\nIf a project promoter fails to deliver on their commitment, the rules on suspension, termination and reduction in Regulation (EU, Euratom) 2018\/1046 apply.<\/p>\n<p>The grant award system:<\/p>\n<p>contains principles to ensure a competitive process, mitigate financial risk and limit transactions costs;<br \/>\nprovides scope for different procedures depending on the technology or projects involved;<br \/>\nallocates grants to:<br \/>\nincrease renewable energy production capacity (investment support),<br \/>\ngive incentives to operate renewable energy installations by providing premiums in addition to market revenues (operating support).<\/p>\n<p>Implementation periods reflect realistic delivery periods and are technology-specific and uniform across the EU, unless the Commission determines otherwise.<\/p>\n<p>Projects financed by the renewable energy scheme may receive funding from other EU, national, public or private programmes provided they respect State aid rules and the EU budget does not finance the same costs twice.<\/p>\n<p>The statistical benefits of renewable energy from installations financed by the scheme are, in general, divided 80:20 between contributing and host countries \u2014 however, the Commission may alter this ratio \u2014 during the implementation or support period. Afterwards, they remain entirely with the host. These statistical benefits count towards the national share of renewable energy regardless of where and how the actual renewable energy from the installations is consumed.<\/p>\n<p>The Commission:<\/p>\n<p>calculates annually, on the basis of the available energy production data from participating EU and non-EU countries, the actual statistical benefits that participating countries receive;<br \/>\nreports by 31 October every year to the:<br \/>\nEnergy Union Committee, and makes public how the financing mechanism is helping to meet the EU\u2019s 2030 binding renewable targets and European Green Deal objectives (see summary),<br \/>\nEnergy Union Committee and to the European Parliament on the mechanism\u2019s finances, including sums received, allocated and remaining.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Application_Background\"><\/span>Application &amp; Background<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It has applied since 7 October 2020 and does not have a deadline.<\/p>\n<p>The legislation aims to help EU countries cooperate more closely to meet their individual and collective renewable energy targets.<br \/>\nFor more information, see:<br \/>\nEU renewable energy financing mechanism (European Commission).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MAIN_DOCUMENT\"><\/span>MAIN DOCUMENT<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Commission Implementing Regulation (EU) 2020\/1294 of 15 September 2020 on the Union renewable energy financing mechanism (OJ L 303, 17.9.2020, pp. 1-17)<\/p>\n<p>RELATED DOCUMENTS<\/p>\n<p>Communication from the Commission to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions \u2014 The European Green Deal (COM(2019) 640 final, 11.12.2019)<\/p>\n<p>Regulation (EU) 2018\/1999 of the European Parliament and of the Council of 11 December 2018 on the Governance of the Energy Union and Climate Action, amending Regulations (EC) No 663\/2009 and (EC) No 715\/2009 of the European Parliament and of the Council, Directives 94\/22\/EC, 98\/70\/EC, 2009\/31\/EC, 2009\/73\/EC, 2010\/31\/EU, 2012\/27\/EU and 2013\/30\/EU of the European Parliament and of the Council, Council Directives 2009\/119\/EC and (EU) 2015\/652 and repealing Regulation (EU) No 525\/2013 of the European Parliament and of the Council (OJ L 328, 21.12.2018, pp. 1-77)<\/p>\n<p>Directive (EU) 2018\/2001 of the European Parliament and of the Council of 11 December 2018 on the promotion of the use of energy from renewable sources (recast) (OJ L 328, 21.12.2018, pp. 82-209)<\/p>\n<p>Successive amendments to Directive (EU) 2018\/2001 have been incorporated in the original text. This consolidated version is of documentary value only.<\/p>\n<p>Regulation (EU, Euratom) 2018\/1046 of the European Parliament and of the Council of 18 July 2018 on the financial rules applicable to the general budget of the Union, amending Regulations (EU) No 1296\/2013, (EU) No 1301\/2013, (EU) No 1303\/2013, (EU) No 1304\/2013, (EU) No 1309\/2013, (EU) No 1316\/2013, (EU) No 223\/2014, (EU) No 283\/2014, and Decision No 541\/2014\/EU and repealing Regulation (EU, Euratom) No 966\/2012 (OJ L 193, 30.7.2018, pp. 1-222)<\/p>\n<h3><span class=\"ez-toc-section\" id=\"ER_300_programme_%E2%80%94_increasing_low-carbon_technologies\"><\/span>ER 300 programme \u2014 increasing low-carbon technologies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Commission Decision 2010\/670\/EU laying down criteria and measures for the financing of commercial demonstration projects that aim at the environmentally safe capture and geological storage of CO2, as well as demonstration projects of innovative renewable energy technologies under the scheme for greenhouse gas emission allowance trading within the EU<\/p>\n<p>The NER 300 decision sets out the rules and conditions under which the European Union (EU) finances innovative low-carbon demonstration projects to capture and geologically store carbon dioxide (CO2) gases. These are known as carbon capture and storage (CCS) and renewable energy sources (RES) projects.<\/p>\n<p>The decision has been amended twice:<\/p>\n<p>Commission Decision (EU) 2015\/191 extended time limits for the final investment decision and the date of entry into operation due to the economic crisis (see Articles 9 and 11(1)).<br \/>\nCommission Decision (EU) 2017\/2172 allowed funds not disbursed by NER 300 to be channelled to other financial instruments (InnovFin EDP and the Connecting European Facility debt instruments).<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Key_Points-2\"><\/span>Key Points<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Eligible CCS projects focus on power generation and various industrial applications, such as refineries and iron and steel production.<br \/>\nEligible RES projects cover bioenergy, solar power, photovoltaics, geothermal, wind, ocean, hydropower (electricity generated by moving water) and smart grids (modernised energy networks that automatically monitor energy flows).<\/p>\n<p>A first call for proposals, launched in December 2012, made \u20ac1.1 billion available to 20 renewable energy projects. They were due to start operating by December 2016, a deadline which was extended by Decision (EU) 2015\/191 to December 2019, including a grace period of 1 year.<br \/>\nA second round, organised in July 2014, awarded \u20ac1 billion to 18 RES projects and one CCS project. These were originally meant to start operating by 30 June 2018, but this deadline was extended by Decision (EU) 2015\/191 to June 2021, including a grace period of 1 year. Due to the COVID-19 outbreak, the dates of entry into operation have been further extended on a project-by-project basis, with the latest date being July 2022.<\/p>\n<p>No further NER 300 calls for proposals are planned. The European Commission is now focusing on the projects already selected for funding and is monitoring their progress.<br \/>\nBy 15 July each year, EU Member States must submit a report to the Commission on the state of implementation of projects in operation. This will contain information about the amount of CO2 stored or clean energy produced, the disbursement of the funding and the details of any significant problems.<\/p>\n<p>Unspent funds from withdrawn projects under the second NER 300 call are channelled into the Innovation Fund.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Application_Background-2\"><\/span>Application &amp; Background<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>It has applied since 5 November 2010.<\/p>\n<p>For more information, see:<\/p>\n<p>NER 300 programme (European Commission)<br \/>\nInnovation Fund (European Commission).<br \/>\nKEY TERMS<\/p>\n<p>NER 300: the programme was given its name because it is funded from the sale of 300 million emission allowances (rights to emit 1 tonne of CO2) in the new entrants\u2019 reserve of the EU\u2019s emissions trading system. It subsidises installations of innovative RES technologies and CCS.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"MAIN_DOCUMENTS\"><\/span>MAIN DOCUMENTS<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Commission Decision 2010\/670\/EU of 3 November 2010 laying down criteria and measures for the financing of commercial demonstration projects that aim at the environmentally safe capture and geological storage of CO2, as well as demonstration projects of innovative renewable energy technologies under the scheme for greenhouse gas emission allowance trading within the Community established by Directive 2003\/87\/EC of the European Parliament and of the Council (OJ L 290 of 6.11.2010, pp. 39-48)<\/p>\n<p>Successive amendments to Decision 2010\/670\/EU have been incorporated into the original text. This consolidated version is of documentary value only.<\/p>\n<p>RELATED DOCUMENTS<br \/>\nCommission Delegated Regulation (EU) 2019\/856 of 26 February 2019 supplementing Directive 2003\/87\/EC of the European Parliament and of the Council with regard to the operation of the Innovation Fund (OJ L 140, 28.5.2019, pp. 6-17)<\/p>\n<p>Directive 2003\/87\/EC of the European Parliament and of the Council of 13 October 2003 establishing a scheme for greenhouse gas emission allowance trading within the Community and amending Council Directive 96\/61\/EC (OJ L 275, 25.10.2003, pp. 32-46)x<\/p>\n<!--themify_builder_content-->\n<div id=\"themify_builder_content-17686\" data-postid=\"17686\" class=\"themify_builder_content themify_builder_content-17686 themify_builder tf_clear\">\n    <\/div>\n<!--\/themify_builder_content-->\n","protected":false},"excerpt":{"rendered":"<p>EU renewable energy financing mechanism Implementing Regulation (EU) 2020\/1294 on the EU\u2019s renewable energy financing mechanism This implementing regulation sets out the rules on the functioning of the new EU renewable energy financing mechanism in line with Regulation (EU) 2018\/1999 on governance of the energy union. The mechanism supports new renewable energy projects across the [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[219,215],"tags":[],"_links":{"self":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17686"}],"collection":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/comments?post=17686"}],"version-history":[{"count":5,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17686\/revisions"}],"predecessor-version":[{"id":18388,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/posts\/17686\/revisions\/18388"}],"wp:attachment":[{"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/media?parent=17686"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/categories?post=17686"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalblog.ie\/wp-json\/wp\/v2\/tags?post=17686"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}