Europe Funds Key Energy Infrastructure Projects

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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--The European Commission (EC) has released 150 million euros ($165 million) for 20 key trans-European energy infrastructure projects to boost Europe's energy security. The selected projects will increase the European Union's (EU) energy security and help to end the isolation of member states from EU-wide energy networks.

The successful projects were chosen under the Connecting Europe Facility (CEF), an EU funding program for infrastructure. A total of 5.35 billion euros ($5.9 billion) has been allocated to trans-European energy infrastructure for 2014-2020 under the CEF. Industrial Info reported on the launch of the program last November. For additional information, see November 11, 2014, article - Europe Funds Gas and Electricity Infrastructure.

The bulk of the support will go to projects in Central Eastern and South Eastern Europe, as well as to projects in the Baltic region, the commission confirmed. The creation of a gas and electricity "supergrid" will contribute to the completion of a single European energy market and the integration of renewable energy sources into the electricity grid.

"The completion of a truly competitive EU-wide energy market is essential in order to turn the Energy Union into a reality," said European Commissioner for Climate Action and Energy Miguel Arias Cañete. "But without reliable and well-connected energy networks, this will not happen. This is why we are investing in projects to integrate the market further and to diversify sources and routes, in particular in Central Eastern and South Eastern Europe, as well as in the Baltic region."

Of the 20 proposals selected for funding, 17 relate to studies, such as environmental impact assessments (30 million euros), and three to construction works (120 million euros). Of the 20, 11 are in the gas sector (financial aid worth 80 million euros) and nine in the electricity sector (70 million euros).

Electricity projects selected include feasibility studies for the Celtic interconnector, which will link France and Ireland--two previously unconnected markets--through a long-distance subsea cable. Ireland's state-owned electricity grid operator, EirGrid, welcomed the 3.8 million euros in funding.

"Part of EirGrid's role is to explore interconnection with other EU countries, in order to ensure security of supply and drive down prices through increased competition," said EirGrid Chief Executive Fintan Slye. "An interconnector with France is the strongest prospect after an interconnector with Britain, which we have already constructed. A decision on whether or not to proceed with the Celtic Interconnector is expected from mid-2016. Today's European funding will continue to ensure that we carry out the strongest feasibility study possible."

Funding has been allocated to aid the construction of a new 40- kilovolt (kV) internal transmission line in Bulgaria--one of four lines increasing the connectivity between Bulgaria and Greece. There is also support for the Lithuanian part of the Litpol Link, which will integrate the power system of Lithuania and those of other Baltic States further into the grid of Continental Europe.

On the gas front, funding will cover studies for the Chiren underground storage expansion project in Bulgaria and works on the interconnection between Poland and the Czech Republic. There is also research funding to help remove what the Commission termed "a major obstacle to the free flow of gas in the EU," namely the different practices of odorizing gas in the transmission system. This study will identify solutions to allow bidirectional flows on a major north-south pipeline in Germany.

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