Brussels, 14 June 2016
Energy efficiency, renewables,
smart grids: with 24 financed projects and 29% of the available funding
channelled into the energy sector, the Investment Plan For Europe is driving
the Commission's goal of building an Energy Union forward.
From renovating buildings to
make them energy efficient in France, to a new onshore wind farm in Sweden, 11
Member States have received support for sustainable, low-carbon projects which
are in line with the EU's energy and climate goals. An additional €16.9 billion
in investment is expected in sustainable and low-carbon energy projects over
the coming years.
The Investment plan for Europe and the Energy Union
are making change real, just one year after their launch. With key projects in energy infrastructure (in particular interconnections), renewable
energy and energy efficiency, the financial cornerstone of the
Investment Plan (EFSI, European Fund for Strategic investments)has allocated to
the energy sector 29% of financing approved by the
European Investment Bank (EIB). This adds up to the actions undertaken to
leverage investments for small and medium enterprises (SME), in particular
through the European Investment Fund (EIF), which has channelled EUR 3.5
billion for 185[1] SME financing agreements
in the energy sector. Altogether, these operations in the energy
sector are expected to have the knock-on effect of attracting additional
investments of over EUR €16.9 billion in the coming years.
"The ambition to create an Energy Union is a
priority for the Juncker Commission. The money we save on oil and gas imports
and at the pump creates room for manoeuvre for intelligent, forward-looking
investments in energy efficiency, renewables, innovation and modern energy
infrastructure, all key objectives of the Energy Union. It also provides a
window of opportunity to reduce and phase out fossil fuel subsidies",
said theVice-President Jyrki Katainen.
"The Paris Climate Agreement has sent a clear
message: the transition into a low carbon and climate-resilient economy is now
irreversible. European industry is at the forefront, but when the market alone
does not deliver the investments we need, then public money can be used wisely.
We need to leverage private investments through public support, in particular
when it comes to building interconnections and infrastructure, energy
efficiency and renewable energy" added Climate Action and Energy
Commissioner Miguel Arias Cañete.
Investing where it is needed
Energy efficiency projects are often fragmented and
relatively small-scale. As a result, they generate high transaction costs for
lenders, a relatively high risk-perception from financiers and unclear
underlying business cases for the corporate world. These factors explain the
current under-investment in energy efficiency projects. EFSI aims to make a
difference to the availability of long-term financing for energy efficiency
projects: it helps de-risk energy efficiency
operations, up-scale existing financial instruments or create
specific investment tools that enable a pooling of capital resources and
bundling of investment projects into larger portfolios.
Bringing change in the real
world
The 24 projects already funded are helping to achieve
a carbon-free electricity sector. By 2030 half of all Europe's electricity will
be powered by renewables and it will be carbon-free in about 35 years. A smart meters project in the UK, the construction of affordable energy efficiency housing units in France and
the creation of an infrastructure investment fund to support financing for
larger renewable energy projects, in wind, biomass and the transmission of electricity generated offshore in Denmark are
expected to contribute to reaching the 2030 energy and climate goals, in line
with the Paris Agreement.
Beyond financing
In addition to funding, the EU helps to make
investments easier, more predictable and more attractive. Energy stakeholders,
both from the public and the private sector, can benefit from technical
assistance by registering a project to reach potential
investors worldwide through the European Investment Project
Portal (EIPP); up to now, more than one third of the submitted
projects are energy-related, mostly in renewables sector, with Greece, Romania,
Bulgaria and Lithuania as leading submitters. They can also make use of the advisory servicesof the European Investment Advisory Hub (EIAH), who is
engaging proactively in energy efficiency as well as in emerging areas such as
smart cities or electro-mobility; it devotes a particular attention to
public-private partnerships and cross-border projects[2].
Making funding accessible
Opportunities to secure financingunder EFSI are available on
the EIB
website. Projects can be directly submitted by promoters to the EIB or to
established investment platforms, such as "IF Tri en
Nord-Pas-de-Calais", a regional investment platform in the North of
France. Infrastructure and innovation projects can consult the dedicated EIB webpage.Small and medium enterprises can
consult a dedicated EIF page SME
Window implemented through the EIF.
Background
The Investment Plan for Europe is the European
Commission's tool to kick-start sustainable growth in Europe. Its cornerstone,
EFSI, supports investments and provides financing instruments for risky
operations. It is an initiative launched jointly by the EIB, the EIF and the
European Commission. The Investment Plan for Europe goes beyond EFSI, and
provides other funding opportunities to the energy sector, such
as: the European Energy Efficiency Fund (EEEF), an innovative public-private
partnership dedicated to mitigating climate change through energy efficiency
measures and renewables; the Private Finance for Energy Efficiency (PF4EE), a
financial instrument funded by the EU through the LIFE programme and
implemented via the EIB; the Connecting Europe Facility (CEF) for
trans-European energy infrastructure projects; and the European Structural
Investment Funds (ESIF), with a dedicated fund for energy efficiency.
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