Regulation (EC) No 663/2009 of the European Parliament and of the Council of 13 July 2009 establishing a programme to aid economic recovery by granting Community financial assistance to projects in the field of energy

CHAPTER I

INTRODUCTORY PROVISIONS

Article 1

Subject matter

This Regulation establishes a financing instrument entitled the European Energy Programme for Recovery (the EEPR) for the development of projects in the field of energy in the Community which, by providing a financial stimulus, contribute to economic recovery, the security of energy supply and the reduction of greenhouse gas emissions.

This Regulation establishes sub-programmes to advance those objectives in the fields of:

(a) gas and electricity infrastructures;

(b) offshore wind energy; and

(c) carbon capture and storage.

This Regulation identifies projects to be financed under each sub-programme and lays down criteria for identifying and implementing actions to realise these projects.

This Regulation provides for the creation of a financial facility (the facility) to support energy efficiency and renewable energy initiatives.

Article 2

Definitions

For the purposes of this Regulation, the following definitions shall apply:

(a) ‘carbon capture and storage’ means the capture of carbon dioxide (CO2) from industrial installations, its transport to a storage site and its injection into a suitable underground geological formation for the purposes of permanent storage;

(b) ‘eligible costs’ has the same meaning as in Regulation (EC, Euratom) No 2342/2002;

(c) ‘gas and electricity infrastructures’ means: (i) all high-voltage lines, excluding those of distribution networks, and submarine links, provided that this infrastructure is used for interregional or international transmission or connection; (ii) high-pressure gas pipelines, excluding those of distribution networks; (iii) underground storage facilities connected to the high-pressure gas pipelines referred to in point (ii); (iv) reception, storage and regasification facilities for liquefied natural gas (LNG); and (v) any equipment or installations essential for the infrastructure referred to in points (i), (ii), (iii) or (iv) to operate properly, including protection, monitoring and control systems;

(d) ‘part of a project’ means any activity that is independent financially, technically or over time and which contributes to the completion of a project;

(e) ‘investment phase’ means the phase of a project during which construction takes place and capital costs are incurred;

(f) ‘offshore wind energy’ means the electric power generated from turbine engines powered by wind and situated in the sea, whether near or far from the shore;

(g) ‘planning phase’ means the phase of a project that precedes the investment phase, during which project implementation is prepared, and includes, where appropriate, feasibility assessment, preparatory and technical studies, obtaining licences and authorisations and incurring capital costs.

Article 3

Budget

The financial envelope for the implementation of the EEPR for 2009 and 2010 shall be EUR 3 980 000 000 , allocated as follows:

(a) gas and electricity infrastructure projects: EUR 2 365 000 000 ;

(b) offshore wind energy projects: EUR 565 000 000 ;

(c) carbon capture and storage projects: EUR 1 050 000 000 .

CHAPTER II

SUB-PROGRAMMES

SECTION 1

Gas and electricity infrastructure projects

Article 4

Objectives

The Community shall promote gas and electricity infrastructure projects having the highest Community added value and contributing to the following objectives:

(a) security and diversification of sources of energy, routes and supplies;

(b) the optimisation of the capacity of the energy network and the integration of the internal energy market, in particular concerning cross-border sections;

(c) the development of the network to strengthen economic and social cohesion by reducing the isolation of the least favoured regions or islands of the Community;

(d) the connection and integration of renewable energy resources; and

(e) the safety, reliability and interoperability of interconnected energy networks, including the ability to use multidirectional gas flows where necessary.

Article 5

Priorities

The EEPR shall serve urgently to adapt and develop energy networks of particular importance to the Community in support of the operation of the internal energy market and, in particular, to increase interconnection capacity, security and diversification of supply and to overcome environmental, technical and financial obstacles. Special Community support is necessary to develop energy networks more intensively and to accelerate their construction, notably where the diversity of routes and sources of supply is low.

Article 6

Granting of Community financial assistance

Article 7

Eligibility

Proposals may be submitted:

(a) by one or several Member States, acting jointly;

(b) with the agreement of all Member States directly concerned by the project in question: (i) by one or several public or private undertakings or bodies acting jointly; (ii) by one or several international organisations acting jointly; or (iii) by a joint undertaking.

Article 8

Selection and award criteria

In assessing the proposals received under the call for proposals referred to in Article 6(2), the Commission shall apply the following selection criteria:

(a) the soundness and technical adequacy of the approach;

(b) the soundness of the financial package for the full investment phase of the action.

In assessing the proposals received under the call for proposals referred to in Article 6(2), the Commission shall apply the following award criteria:

(a) maturity, defined as reaching the investment stage, and incurring substantial capital expenditure by the end of 2010;

(b) the extent to which lack of access to finance is delaying the implementation of the action;

(c) the extent to which EEPR assistance will stimulate public and private finance;

(d) socioeconomic impacts;

(e) environmental impacts;

(f) the contribution to the continuity and interoperability of the energy network, and to the optimisation of its capacity;

(g) the contribution to the improvement of service quality, safety and security;

(h) the contribution to the creation of a well-integrated energy market.

Article 9

Funding conditions

Article 10

Instruments

Article 11

Member States’ financial responsibilities

SECTION 2

Offshore wind projects

Article 12

Granting of EEPR assistance

Article 13

Eligibility

Article 14

Selection and award criteria

In assessing the proposals received under the call for proposals referred to in Article 12(1), the Commission shall apply the following selection criteria:

(a) the soundness and technical adequacy of the approach;

(b) the soundness of the financial package for the full investment phase of the project.

In assessing the proposals received under the call for proposals referred to in Article 12(1), the Commission shall apply the following award criteria:

(a) maturity, defined as reaching the investment stage, and incurring substantial capital expenditure by the end of 2010;

(b) the extent to which lack of access to finance is delaying the implementation of the action;

(c) the extent to which the project improves or increases the scale of installations and infrastructures that are already under construction, or are in the planning phase;

(d) the extent to which the project includes the construction of full-size and industrial-scale installations and infrastructures, and addresses in particular the following matters: (i) the balancing of the variability of wind electricity through integrative systems; (ii) the existence of large-scale storage systems; (iii) the management of wind farms as virtual power plants (more than 1 GW); (iv) the existence of turbines placed further from the shore or in deeper waters (20 to 50 m) than is currently standard; (v) novel sub-structure designs; or (vi) processes for assembly, installation, operation and decommissioning and testing of these processes in life-size projects;

(e) the innovative features of the project and the extent to which it will demonstrate the implementation of such features;

(f) the impact of the project and its contribution to the Community’s offshore wind grid system, including its replication potential;

(g) the commitment demonstrated by the beneficiaries to disseminate to other European operators the results of technological advances made by the project in a manner compatible with Community law and in particular with the objectives and structures outlined in the Strategic Energy Technology Plan for Europe.

Article 15

Funding conditions

Article 16

Instruments

SECTION 3

Carbon capture and storage projects

Article 17

Granting of EEPR assistance

Article 18

Eligibility

Proposals shall be eligible for EEPR assistance only if they implement the projects listed in Part C of the Annex, fulfil the selection and award criteria under Article 19 and the following conditions:

(a) the projects demonstrate that they have the ability to capture at least 80 % of CO2 in industrial installations and to transport and geologically store this CO2 safely underground;

(b) in power installations, CO2 capture is demonstrated on an installation of at least 250 MW electrical output or equivalent;

(c) project promoters make a binding declaration that the generic knowledge generated by the demonstration plant will be made available to the wider industry and to the Commission to contribute to the Strategic Energy Technology Plan for Europe.

Article 19

Selection and award criteria

In assessing the proposals received under the call for proposals referred to in Article 17(2), the Commission shall apply the following selection criteria:

(a) the soundness and technical adequacy of the approach;

(b) maturity, defined as reaching the investment stage, which includes exploration and development of storage options, and incurring substantial investment-related expenditure for the project by the end of 2010;

(c) the soundness of the financial package for the full investment phase of the project;

(d) identification of all necessary permits required for construction and operation of the project at the proposed site(s) and the existence of a strategy to secure those permits.

In assessing the proposals received under the call for proposals referred to in Article 17(2), the Commission shall apply the following award criteria:

(a) the extent to which lack of access to finance is delaying the implementation of the action;

(b) requested funding per tonne of CO2 to be abated in the first five years of operation of the project;

(c) the complexity of the project and level of innovation of the overall installation including other accompanying research activities and the commitment demonstrated by the beneficiaries to disseminate to other European operators the results of the technological advances made by the project in a manner compatible with Community law and in particular with the objectives and structures outlined in the Strategic Energy Technology Plan for Europe;

(d) the soundness and adequacy of the management plan including, in relation to the scientific, engineering and technical information and data contained therein, demonstration of readiness of the proposed concept to achieve operation of the project by 31 December 2015.

Article 20

Funding conditions

Article 21

Instruments

CHAPTER IIa

FINANCIAL FACILITY

Article 21a

Funding that cannot be committed under Chapter II

CHAPTER III

COMMON PROVISIONS

Article 23

Programming and implementing arrangements

Article 24

Member States’ general responsibilities

Within the sphere of their responsibility, Member States shall make every effort to implement the projects which receive EEPR assistance, notably through efficient administrative authorisation, licensing and certification procedures.

Article 25

Protection of the European Communities’ financial interests

CHAPTER IV

IMPLEMENTING AND FINAL PROVISIONS

Article 26

Committees

The Commission shall be assisted by the following committees:

(a) for gas and electricity infrastructure projects, the committee established by Article 15 of Regulation (EC) No 680/2007 of the European Parliament and of the Council of 20 June 2007 laying down general rules for the granting of Community financial aid in the field of the trans-European transport and energy networks (¹);

(b) for offshore wind projects, the committee established by Article 8 of Council Decision 2006/971/EC of 19 December 2006 concerning the Specific Programme Cooperation implementing the Seventh Framework Programme of the European Community for research, technological development and demonstration activities (2007 to 2013) (²);

(c) for carbon capture and storage projects, the committee established by Article 8 of Decision 2006/971/EC.

The period laid down in Article 4(3) of Decision 1999/468/EC shall be set at one month.

Article 27

Evaluation

By 30 June 2013 the Commission shall submit to the European Parliament and the Council a mid-term evaluation report on the measures taken under Chapter IIa focusing in particular on:

(a) the cost-effectiveness, leverage effect and additionality demonstrated by the facility;

(b) evidence of sound financial management;

(c) the extent to which the facility has achieved the objectives set out in this Regulation;

(d) the extent to which continued support under the facility for projects relating to energy efficiency and energy from renewable sources is required.

The mid-term evaluation report shall, if appropriate, and in particular if the Commission’s assessment of the measures taken under Chapter IIa is positive, be accompanied by a legislative proposal for the continuation of the facility.

Article 29

Entry into force

This Regulation shall enter into force on the day following its publication in the Official Journal of the European Union.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

ANNEX I

ELIGIBLE PROJECTS

A. Gas and Electricity infrastructure projects

Project	Location of projects supported	Envisaged Community contribution (EUR million)
Southern Gas Corridor
NABUCCO	Austria, Hungary, Bulgaria, Germany, Romania	200
ITGI – Poseidon	Italy, Greece	100
Baltic interconnection
Skanled/Baltic pipe	Poland, Denmark, Sweden	150
LNG network
Liquefied Natural Gas terminal at Polish coast at port of Świnoujście	Poland	80
Central and South East Europe
Slovakia-Hungary Interconnector (Veľký Krtíš - Vecsés)	Slovakia, Hungary	30
Gas transmission system in Slovenia between the Austrian Border to Ljubljana (excluding the section Rogatec-Kidričevo)	Slovenia	40
Interconnection Bulgaria-Greece (Stara Zagora — Dimitrovgrad-Komotini)	Bulgaria, Greece	45
Romania-Hungary gas interconnector	Romania, Hungary	30
Expansion of Gas Storage Capacity in the Czech hub	Czech Republic	35
Infrastructure and equipment to permit reverse gas flow in the event of short term supply disruption	Austria, Bulgaria, Czech Republic, Estonia, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Romania, Slovakia	80
Slovakia-Poland interconnection	Slovakia, Poland	20
Hungary-Croatia interconnection	Hungary	20
Bulgaria-Romania interconnection	Bulgaria, Romania	10
Mediterranean
Reinforcement of FR gas network on the Africa-Spain-France axis	France	200
GALSI (Gazoduc Algérie-Italie)	Italy	120
Gas Interconnection Western Axis Larrau Branch	Spain	45
North Sea area
Germany-Belgium-United Kingdom pipeline	Belgium	35
France-Belgium connection	France, Belgium	200
TOTAL		1 440

Project	Location of projects supported	Envisaged Community contribution (EUR million)
Baltic interconnection
Estlink-2	Estonia, Finland	100
Interconnection Sweden-Baltic States, and strengthening of the grid in Baltic States	Sweden, Latvia, Lithuania	175
Central and South East Europe
Halle/Saale – Schweinfurt	Germany	100
Wien-Győr	Austria, Hungary	20
Mediterranean
Portugal-Spain interconnection reinforcement	Portugal	50
Interconnection France-Spain (Baixas - Sta Llogaia)	France, Spain	225
New 380 kV AC submarine cable between Sicily – Continental Italy (Sorgente – Rizziconi)	Italy	110
North Sea area
500 MW Ireland/Wales interconnector (Meath-Deeside)	Ireland, United Kingdom	110
Electricity interconnection Malta-Italy	Malta/Italy	20
TOTAL		910

Small isolated island initiatives	Cyprus	10
Malta	5
TOTAL		15

B. Offshore wind projects