Programme to aid economic recovery: financial assistance to projects in the field of energy, European Energy Programme for Recovery (EEPR)

PURPOSE: to contribute to economic recovery through the establishment of a financing instrument entitled the European Energy Programme for Recovery (the EEPR).

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

CONTENT: the Council adopted this Regulation, approving all the European Parliament's first reading amendments. The 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. The Regulation is part of the European economic recovery plan endorsed by the European Council in December 2008 in response to the global financial crisis and economic slowdown.

It 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.

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

The plan provides a framework for measures taken by each Member State in response to its specific circumstances, and identifies a number of actions to be taken at EU level. It lists 47 projects and the Community contribution for each of them, with a total financial envelope for implementation in 2009 and 2010 of EUR 3 980 million, divided as follows:

• 18 gas infrastructure projects: EUR 1 440 million;
• 9 electricity infrastructure projects: EUR 910 million;
• 2 small island projects: EUR 15 million;
• 5 offshore wind-energy projects: EUR 565 million;
• 13 carbon capture and storage projects: EUR 1050 million.

For each project, specific proposals - in particular for implementing the project on the ground - will be submitted to management committees which will check whether the proposals meet the selection criteria set in the Regulation. The award criteria include maturity, defined as reaching the investment stage, and incurring substantial capital expenditure by the end of 2010, and the extent to which lack of access to finance is delaying the implementation of the action, as well as socio-economic and environmental impacts.

Owing to the urgent need for stimulus, all individual legal commitments implementing the budgetary commitments made in 2009 and 2010 will be made by 31 December 2010 at the latest.

The EEPR will 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.

Evaluation: the Commission shall carry out an evaluation of the EEPR by 31 December 2011 in order to assess its contribution to the effective use made of the appropriations. It will also, each year, on presentation of the preliminary draft budget, present a report to the European Parliament and to the Council on the implementation of the EEPR.

ENTRY INTO FORCE: 01/08/2009.