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EU announces EUR998 million funding for energy projects under CEF [free access]

October 6, 2020

The European Union (EU) has announced EUR998 million funding for key European energy infrastructure projects under the Connecting Europe Facility (CEF). The move will provide financial aid for works and studies for ten projects.


According to the EU, the selected projects will contribute to a more modern, secure and smart energy infrastructure system, which is crucial for meeting ambitious 2030 climate targets. The allocation of funds is also in line with the objectives of the European Green Deal, with 84 per cent of funds going to green electricity or smart grid projects.


The largest amount of funding worth EUR720 million goes to Phase II of the Baltic Synchronisation Project, to better integrate the electricity markets of Estonia, Latvia, Lithuania and Poland. The EU has allocated EUR102 million to a smart electricity grid linking Hungary and Slovakia, and EUR14 million to a study of the North Sea Wind Power Hub (NSWPH) to support the development of offshore wind in the North Sea.


The second phase of Baltic synchornisation project provides for the construction of a direct current (DC) cable from Lithuania to Poland (Harmony Link), reinforcement of internal networks in Lithuania and Poland, installation of inertia and frequency control equipment, as well as modernisation of system protection and control schemes. This funding will also cover investments such as synchronous condensers in Estonia, Latvia and Lithuania.


The NSWPH, being developed by a consortium of TenneT, Denmark’s transmission system operator (TSO) Energinet, and Dutch natural gas infrastructure and transportation company Gasunie and Port of Rotterdam, is an important, possible alternative path of an internationally coordinated roll-out towards accomplishing Europe’s green energy transition and achieving the Paris Agreement within the United Nations Framework Convention on climate change.



The Danube Ingrid smart electricity grid project in Hungary and Slovakia aims to integrate more renewables to the distribution grid by the application of smart technologies, and to manage them in a smarter way, along with keeping the security and quality of supply of electricity high for the consumers in the region. The project will adopt smart grid technologies both internally and on a cross-border level for the evolvement of modern energy infrastructure. It will be executed during the period between 2020 and 2027.