7 February 2025

EU boosts energy infrastructure with €1.25bn in grants

The European Commission has allocated nearly €1.25bn in grants under the Connecting Europe Facility (CEF). The grants will support 41 cross-border energy infrastructure projects, among them three important wind energy-related projects. That’s good news for Europe’s wind industry and its wider energy transition.

The European Commission announced the results of the largest funding round of its Connecting Europe Facility (CEF) to date. It was the first CEF call that included offshore electricity grids, hydrogen and CO₂ networks. The CEF aims to integrate European energy markets and accelerate affordable decarbonisation across the EU.

The allocation round awarded more than €850mn to a total of 41 projects. These projects are recognised as Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) under the revised Trans-European Network for Energy (TEN-E) regulation.

Good news for (hybrid) offshore wind projects

The results are great news for the Bornholm Energy Island project – which received nearly 52% of the total budget allocated in this round. Besides that, CEF grants went to Triton Link, an offshore hybrid interconnector between Denmark and Belgium, and an offshore wind connection in South Brittany, France.

“These are key projects to deliver affordable electricity for European companies and households. So far Europe only has one hybrid offshore wind farm. We need many more to build an integrated offshore grid. It’s great news that the European Commission is enabling these promising projects to happen”, says Vasiliki Klonari, Director of Energy System Integration at WindEurope.

Offshore hybrids are interconnectors between two or more countries which are directly connected to offshore wind farms. Therefore, offshore hybrids combine generation and cross border transmission. They transmit electricity to all the interconnected countries and optimise energy flows. Connecting wind farms directly to an interconnector reduces the need for cable connections and ultimately improves the use of maritime space. That reduces the impact on environment and maritime biodiversity.

Offshore hybrids are key projects on the way to an integrated offshore grid. According to the European Offshore Network Development Plans 14% of all offshore renewables could be connected via offshore hybrids.

Not enough money for electricity grids

Europe needs to invest more in interconnectors and cross-border electricity infrastructure to ensure our electricity networks support the transition to a more electrified economy. Without greater investment in grid infrastructure Europe risks falling short of its clean energy ambitions. Grids are already the number one bottleneck to the expansion of wind energy in Europe today.

In this context it is disappointing that the CEF round awarded only three smart electricity grid projects. They received less than 4% of the total budget. Meanwhile, hydrogen, ammonia, and CO₂ projects secured around 40% of the budget.

Without stronger EU support for grid infrastructure, integrating renewables, boosting electrification, and ensuring affordable electricity for consumers and industries will be a challenge.

“Europe must prioritise putting its money into proven and ready-to-use solutions. Electricity grid infrastructure and renewables-based electrification are key here. We need technology neutrality but only among proven climate-neutral technologies. Otherwise the energy transition will be neither affordable nor effective – and Europe will keep relying on imported fossil fuels compromising its energy security”, says Vasiliki Klonari.

The EU Action Plan for Grids foresees an investment need of €584bn of investment in electricity grids by 2030. The CEF is only funding cross-border projects. But the biggest investments are required to optimise and expand the national electricity grids. Here the European Union, including the European Investment Bank, and the Member States need to come up with additional funding tools.

Overview of grants under the latest CEF allocation round:

Background:

The Connecting Europe Facility plays a crucial role in creating a connected, resilient, secure and smart electricity infrastructure, which is the backbone of a well-functioning energy market. The next funding round expected in 2025 should support more electricity grids projects that will maximise the benefits of affordable and clean power for consumers, strengthen security of supply and support the climate ambitions.