In the period 2022-2030, the European Union will allocate significant sums for investments in renewable energy production and storage capacities, energy efficiency, modernization and expansion of electricity networks and other energy fields. The implementation of these projects was envisaged in the context of the European Union’s energy efficiency and decarbonisation policies and objectives.
The need for these investments is amplified by the new political discourse on increasing the European Union’s energy independence, generated in the context of the conflict in Ukraine.
National Recovery and Resilience Program – the first calls scheduled for 2022
Through the PNRR, in the period 2022-2026, 1.62 billion euros will be allocated under the Energy component, money allocated for investments in wind and solar energy production and storage capacities, green hydrogen production capacities, cogeneration, investments in the entire value chain of photovoltaic batteries, cells and panels, but also to ensure energy efficiency in the industrial sector. For Measure I1, intended for investments in new renewable energy production and storage capacities, the Ministry of Energy published, in February 2022, State Aid Schemes and Specific Guidelines for Financing, and the call for projects is to be opened on March 31, 2022 .
Also within the PNRR, Component 5 (Renewal Wave) provides subsidies of 2.2 billion euros for investments in increasing the energy efficiency of residential and public buildings. According to the PNRR schedule, the first calls for these investments would be launched by June 30, 2022.
Modernization Fund – public consultation for the institutional management framework
The Modernization Fund will provide grants totaling 15 billion euro over 2022-2030 through eight key programs aimed at investing in renewable energy, energy infrastructure, gas plants, nuclear energy, cogeneration, energy efficiency. and biofuel production.
On March 9, 2022, the Ministry of Energy published in a public consultation the Emergency Ordinance establishing the institutional framework for the management of the Modernization Fund, the investment areas for each key program will be published and, subsequently, the specific Guidelines for each area of investment.
EY Energy FiT – the platform for identifying EU funding opportunities for projects planned by investors
Given the strategic importance of energy investments, but also the diversity and complexity of the programs that will provide financing for this field, EY Romania has developed the EY Energy FiT (“Financing Transition”) platform. EY Energy FiT is an online platform that aims to help investors identify financing opportunities for the projects they plan for the next period.
“We created this platform to help investors finalize their investment plan for the coming years. We have noticed significant delays in some cases in the preparation of technical documentation, which negatively influences the degree of maturity and implicitly the chances of financing. We hope that this approach will increase the chances of all interested parties to obtain funding and to meet the implementation deadlines, which in many cases we expect to be short, given the scale and complexity of the projects,” said Cristian Cârstoiu, Partner, EY Romania.
Other funding programs
Investments in the energy field will also be supported by the Operational Programs (OPs) for the period 2021-2027, with implementation until 2030. In this sense, there are financial allocations through the OP Just Transition (2.03 billion euros, for the transition to an economy climate-neutral OP), the Sustainable Development OP (4.615 billion euro, of which approximately 850 million for the energy sector) and the Regional OP (4.018 billion euro, of which over 1 billion dedicated to the energy sector).
At present, the Operational Programs are published in public consultation, so that financial allocations may be subject to change until they are approved by the European Commission. Once their final form has been approved, specific guidelines will be published and project calls will be launched. Given the current state, we estimate that the first calls will take place in the second half of 2022.
Another source of funding for energy efficiency projects is the energy efficiency program in public buildings, run by the Environmental Fund Administration. With a total budget of 280 million euros for 2022, this program is aimed at territorial administrative units. The first call for projects is scheduled for September 2022.
The European Commission is running other energy funding programs. Thus, innovative projects that lead to a reduction in greenhouse gas emissions can be funded through the Innovation Fund. With a budget of 10 billion euros, the Innovation Fund runs two types of calls: for small-scale projects (less than 7.5 million euros) and calls for large-scale projects (more than 7.5 million euros). The next call will be for small-scale projects in March 2022, with an estimated submission deadline of August 2022.
The CEF – Energy Program (Energy Interconnection Mechanism, Energy Component) is another program managed by the European Commission, dedicated to the financing of projects that lead to the achievement of the objectives of energy market integration, increase of renewable energy production and decarbonization. The Connecting Europe Facility (CEF) 2021-2027 program was approved by the European Commission in July 2021, with an allocation of 5.84 billion euros for the energy component.