EU consulting on new renewable energy financing mechanism

Posted On: 07-05-2020

The EU Commission has opened a four-week public consultation on draft rules to establish a new EU financing mechanism to support renewable energy projects. The new mechanism opens a possibility for the member states to collectively benefit from renewables projects funded through tenders using an EU-wide financing mechanism. The mechanism enables “contributing” member states to pay voluntary financial contributions into the scheme, which will be used to tender support for new renewable energy projects in all member states willing to host such projects. For the “hosting” member state, the advantage is that it
receives additional local investment in renewables projects – and can therefore enjoy the benefits in terms of local employment, lower greenhouse gases emissions, improved air quality, modernisation of the energy system and reduced dependency on imports, the EU
Commission states. However, there is no direct link or negotiation between the contributing and hosting member states, since the Commission runs the process and allocates the statistics. The mechanism, which will see the member states working more closely to
achieve their individual and collective renewable energy targets, will also allow for a more cost-effective deployment of renewables across the EU. “This new mechanism will provide another option for Member States to contribute to our energy and climate targets, investing in locations where renewable resources are abundant and developing them makes the most
sense”, Commissioner for Energy, Kadri Simson, said.