Connecting Europe Facility - Energy (2023)


The objective of the Connecting Europe Facility (CEF) is to accelerate investments in Europe’s transport, energy and digital infrastructure networks, so it is a key EU funding instrument for targeted infrastructure investment at European level.

CEF supports the development of high performing, sustainable and efficiently interconnected trans-European networks in the fields of transport, energy and digital services. CEF investments fill the missing links in Europe's energy, transport and digital backbone, and the facility is divided into three distinct instruments. The revised CEF Regulation for the MFF 2021-2027, which underpins this programme, iis expected to enter into force in July 2021.

CEF for Energy (CEF-E) is an envelope of CEF that supports the implementation of the Regulation on Trans-European Networks for Energy (TEN-E), a policy framework focused on linking the energy infrastructure of EU countries. To address the energy infrastructure needs at regional and European level, nine priority corridors and three priority thematic areas have been identified in the TEN-E framework. CEF supports the implementation of Projects of Common Interest (PCIs) in these priority corridors and thematic areas. Under the revised CEF Regulation the programme will also support cross-border projects in the field of renewable energy.

Under the revised CEF Regulation, an action that has received a contribution under CEF may also receive a contribution from any other Union funding programme, provided that the contributions do not cover the same costs.

For instance, CEF can benefit from synergies from the EU’s Innovation Fund. At the moment, only actions of electricity storage (except pumped hydro) and CO2 (Carbon Capture and Storage transportation part) Projects of Common Interest (PCIs) are eligible under both the Innovation Fund (IF) and the CEF. However, new types of project may be added in the revised TEN-E Revision including hydrogen-related projects (see next section for further details).

The general maximum co-funding rate for CEF is 50% of the project capital expenditure (CAPEX).

What type of hydrogen related actions can be funded

The fund is suited to demonstration projects, studies, and co-financing of development of energy infrastructure. Priority is given to projects with the highest value for all of Europe, particularly those which complete missing cross boarder links, remove bottlenecks or deploy EU-wide systems.

(Video) Connecting European Facilities

CEF-E can finance Projects of Common Interest (PCIs) as identified under the TEN-E Regulation as well as cross-border projects in the field of renewable energy which shall be included in a cooperation agreement between at least two EU countries or arrangement between at least one EU country and a third country or countries as set out in Articles 6, 7, 9 or 11 of Directive 2009/28/EC. The TEN-E Regulation currently in force does not include hydrogen infrastructure, electrolysers, or smart gas grids as eligible projects, however it does include CO2 (Carbon Capture and Storage transportation chunk) pipelines as eligible.

TEN-E revision and hydrogen related projects

In December 2020, the Commission presented a legislative proposal to revise the TEN-E Regulation. The Commission’s proposal envisages to support the roll-out of cross-border hydrogen infrastructure, certain types of electrolysers, and smart gas grids as new PCI categories. Negotiations with the European Parliament and the Council are currently under way, with a political agreement expect by early to mid-2022.

Turning to electrolysers, under the conditions in the Commission’s proposal, only 100 MW electrolysers and above can be eligible, if they have a network related function. Furthermore, hydrogen production must comply with life cycle greenhouse gas emissions savings requirement of 70 % relative to a fossil fuel comparator of 94g CO2e/MJ as set out in Article 25(2) and Annex V of the Renewable Energy Directive. Additionally, any related equipment for electrolyser equipment would fall under this category.

The Commission’s proposal includes cross-border hydrogen infrastructure that match some project archetypes of Transmission & Distribution, notably transmission pipelines for hydrogen, giving access to multiple network users on a transparent and non-discriminatory basis, which mainly contains high-pressure hydrogen pipelines, but excluding pipelines for the local distribution of hydrogen.

The category also includes underground storage facilities connected to the high-pressure hydrogen pipelines. The reception, storage and regasification or decompression facilities for liquefied hydrogen or hydrogen embedded in other chemical substances with the objective of injecting the hydrogen into the grid would also be eligible under the TEN-E revision, as well as any equipment or installation essential for the hydrogen system to operate safely, securely and efficiently or to enable bi-directional capacity, including compressor stations. Importantly, the provision also specifies that any of the above “may be newly constructed assets or assets converted from natural gas dedicated to hydrogen, or a combination of the two.”

When it comes to categories of smart gas grids, the TEN-E revision would support equipment or installation aiming at enabling and facilitating the integration of renewable and low-carbon gases (including biomethane or hydrogen) into the network. These would be digital systems and components integrating ICT, control systems and sensor technologies to enable the interactive and intelligent monitoring, metering, quality control and management of gas production, transmission, distribution and consumption within a gas network. Furthermore, such projects may also include equipment to enable reverse flows from the distribution to the transmission level and related necessary upgrades to the existing network.

(Video) Synchronisation with Continental Europe Frequency Area


Financing details

CEF shall contribute 60% of its overall financial envelope to climate objectives.

CEF-E has total budget of €5.84 billion, out of which 15%, subject to market uptake, should be allocated to cross-border renewable energy projects (which may be increased to 20% should that threshold be reached).

CEF is implemented through a mix of grants, procurement and financial instruments.

Conditions for application

The specificities of the conditions for application will be defined in specific calls under the upcoming Work Programme. In terms of eligible entities, only legal entities and joint ventures established in EU countries, from third country associated to the Programme shall be eligible. See the Guidelines on the Eligibility of Costs under the Connecting Europe Facility, a guidance document from CEF 2014-2020, illustrating examples of eligible and non-eligible costs.

Importantly, project promoters seeking to benefit from CEF Energy funding for PCIs need to be linked to a Project of Common Interest. The process of applying for inclusion on a PCI list is reported in the next section.

How to apply and when

CINEA, the European Climate, Infrastructure and Environment Executive Agency implements the Connecting Europe Facility. Applicants are invited to apply for financial support for eligible projects following a call for proposals issued by the European Commission after consultation with EU countries. Proposals can apply via the EU Funding and Tenders portal.

For PCIs, the Project of Common Interest (PCI) status is a pre-requisite for any CEF-E funding. The Commission, with the assistance of its implementing executive agency, will carry out the evaluation and selection of submitted proposals for the PCI list. Proposals which meet the eligibility criteria and formal requirements specified for a call are evaluated on the basis of the criteria defined in the relevant Work programme and call texts (see 2019 example). These are primarily linked to maturity, quality, cross-border dimension, positive externalities, the need to overcome financial obstacles, stimulating effect of the CEF financial assistance, priority and urgency, and complementarity with other actions financed by the CEF. A list of proposals recommended for funding is then prepared by Commission. Successful applicants are then invited by the implementing executive agency to prepare and sign individual grant agreements.

(Video) The Connecting Europe Facility 2021-2027

The identification and selection of PCIs is carried out by Regional Groups consisting of representatives of competent ministries, national regulatory authorities, individual gas and electricity transmission system operators and other project promoters, the European Network of Transmission System Operators (ENTSO) for electricity and gas, the EU Agency ACER and the Commission. The meetings of the Regional Groups are open to all interested parties.

The project proposals become candidates for the status of Project of Common Interest by submitting their project proposals for electricity, gas, smart grids, oil and CO2 networks to the dedicated Regional Groups for assessment through the responding to a number of Commission public calls. See past examples here and here and here. Regional Groups evaluate the projects against the general and specific criteria as defined in the TEN-E Regulation, focusing especially on the contribution of these projects to market integration, sustainability, security of supply and competition.

Before and during the implementation of PCIs, impact assessments and public consultation processes are organized with a wide range of stakeholders.

For cross-border projects in the field of renewable energy, the status of ss-border projects in the field of renewable energy is a prerequisite for funding for sutdies and works except for pre-feasibility studies.

Award criteria

The position agreed between the EU institutions on the upcoming revised Regulation on CEF sets general elements that need to be taken into account. The specificities of the award criteria shall be defined in the Work Programme for CEF, which is planned to be released in 2021 following the entry into force of the revised Regulation. Likewise, in light of the revision of the TEN-E Regulation and the PCI selection, the award criteria remain unfinalized. However, it must be underlined that obtaining a PCI status does not automatically presuppose a successful funding application for CEF funding.

Payment modalities

The grant support is provided in the form of lump-sum payments, in the form of reimbursement of costs actually incurred by the beneficiary. The disbursement of grants are governed by grant agreements and by Title VIII EU Financial Regulation.

Specific websites

Connecting Europe Facility | European Commission (

(Video) INEA (Innovation and Networks Executive Agency)

Background: Connecting Europe Facility (2014-2020) (European Commission).

Policy background: Trans-European Networks for Energy (European Commission).

CINEA Executive AgencyEnergy Infrastructure (Connecting Europe Facility) (

Example(s) of supported projects

Not available yet

Database of examples

CINEA data hubs

Interactive map of past CEF funded projects


What is the Connecting Europe Facility for energy? ›

The Connecting Europe Facility (CEF) for Energy is the EU funding programme to implement the Trans-European Networks for Energy policy. It aims at supporting investments in building new cross-border energy infrastructure in Europe or rehabilitating and upgrading the existing one.

How can we solve the European energy crisis? ›

Europe must reduce its consumption of gas, oil, and electricity fast. And it must be done in a way that ensures sustainability without exacerbating energy poverty. Households need fair reduction and fair redistribution to address the cost-of-living crisis.

Why is Europe having an energy shortage? ›

Demand has increased for several reasons, experts say, including that Europe had a colder winter so people were heating their homes for longer than usual. That coupled with a phasing out of coal and a bad year for wind production has driven up the need for natural gas.

What are the top two energy resources in Europe? ›

Gross available energy, EU, 1990-2020

Oil (crude oil and petroleum products) continued to be the most significant energy source for the European economy, despite a long-term downward trend, while natural gas remained the second largest energy source.

What is the main source of energy in Europe? ›

In 2021, two-thirds (76 percent) of Europe's energy was made by burning fossil fuels – gas (34 percent), oil (31 percent) and coal (11 percent). Renewable energy, including hydropower, solar, wind and biofuels, accounted for 14 percent, with nuclear making up the remaining 10 percent.

Why is Europe so dependent on Russia for energy? ›

Russian gas has been attractive to Europe because it was easy to transport and almost always available. Its importance grew in recent years as some countries moved to end coal and nuclear power generation and production from their own gas fields declined.

Can Europe survive without Russian gas? ›

"In 2023, Europe will likely, for the first time, need to survive a full calendar year with only minimal volumes of Russian pipeline gas," S&P Global analysts Michael Stoppard and Alun Davies said in a recent report.

Will the US supply natural gas to Europe? ›

The United States looks set to remain Europe's top LNG seller in 2023 as U.S. LNG exporters have greater volumes of LNG available for spot market purchases than other major exporters like Qatar, and as additional U.S. export capacity comes on line.

Who supplies most of Europe's energy? ›

Russia is the EU's main supplier of fossil fuels.

How serious is the energy crisis in Europe? ›

Europe's energy system faces an unprecedented crisis. Supplies of Russian gas—critical for heating, industrial processes, and power—have been cut by more than 80 percent this year. Wholesale prices of electricity and gas have surged as much as 15-fold since early 2021, with severe effects for households and businesses.

Is the European energy crisis over? ›

The energy crisis is not gone. We are not experiencing the worst-case scenario, but the factors of uncertainty are not gone.”

What are the 3 most common resources in Europe? ›

Minerals and other power resources of Europe
Name of the Mineral ResourceImportant countries/regions
1. CoalNorth-Eastern France, Poland, Spain, Ukraine and Russia
2. Petroleum and Natural GasThe North Sea, Romania and Russia
3. Iron OreFrance, Ukraine, Sweden, the United Kingdom, Germany, Russia, Spain and Azerbaijan
3 more rows

What is the main source of energy? ›

The energy of the sun is the original source of most of the energy found on earth. We get solar heat energy from the sun, and sunlight can also be used to produce electricity from solar (photovoltaic) cells. The sun heats the earth's surface and the Earth heats the air above it, causing wind.

What is the energy capital of Europe? ›

Aberdeen has been hailed as the 'Oil and Gas Capital of Europe' for decades and latterly the 'Energy Capital of Europe', but that could all be set to change.

What are three sources of energy? ›

There are three main categories of energy sources: fossil fuel, alternative, and renewable. Renewable is sometimes, but not always, included under alternative. Fossil fuels formed over millions of years ago as dead plants and animals were subjected to extreme heat and pressure in the earth's crust.

What of European energy is renewable? ›

More than a fifth of energy used in the European Union in 2021 came from renewables, new data shows. Solar, wind and other 'green' sources contributed 21.8 per cent to the EU's total energy consumption, according to Eurostat. This was a 0.3 per cent drop on 2020; the first decrease ever recorded.

What are four sources of energy? ›

Learn more about America's energy sources: fossil, nuclear, renewables and electricity.

What will happen if Russia stop gas supply to Europe? ›

A full shutdown, while not their base case, could drive European household energy costs up by about 65% to around €500 ($512) per month, according to estimates by Goldman Sachs Research. Industries like chemicals and cement in Germany and Italy might have to cut their gas usage by as much as 80%.

How long can Europe last without Russian gas? ›

Even in a worst-case scenario, in which there is no piped Russian gas and low demand destruction, BNEF estimates Europe would still have enough gas to endure the coldest winter of the last 30 years without depleting its inventories. Looking further ahead, the region could be well-positioned for winter 2023-24 as well.

How will Europe replace Russian gas? ›

The EU will need an interconnected system of power networks and hydrogen pipelines to substitute hydrocarbon imports with clean energy flows from low cost producers such as Iberia, parts of Southern Europe and the U.K. to the rest of Europe.

Can the US replace Russian gas in Europe? ›

U.S. LNG Cannot Replace The Russian Natural Gas That Europe Has Lost. Europe has relied on U.S. LNG imports to offset the loss of Russian gas, with nearly 70% of U.S. LNG exports heading to Europe in September.

Can China replace Europe for Russian gas? ›

China to boost gas imports from Russia by 50B cubic meters through construction of Power of Siberia 2 pipeline, which is expected to be operational by 2030. China is set to overtake the European Union (EU) as the main consumer of Russian natural gas after the Power of Siberia 2 pipeline comes online by 2030.

Can the world live without Russian oil? ›

But much of that increased output would require further investment and much more time. As a result, a total loss of Russian oil exports would be very damaging for global GDP in the short/medium term. Much higher prices would drive demand destruction (less economic activity) to rebalance the market.

How can we reduce energy shortage? ›

Move to renewable energy

Homegrown renewable energy is the cheapest form of energy, far cheaper than gas, and onshore wind and solar farms are the fastest to build. Soaring gas prices are fuelling the cost of living and climate crisis.

What is the most practical solution to the global energy crisis? ›

Energy efficiency and conservation

One way to prevent an energy crisis is learning how to conserve energy, improving, and modernizing energy infrastructure such as smart grid solutions. It is also essential that we use devices LEDs and replace old devices. They use fewer watts of electricity and last longer.

What are the two main causes of energy crisis? ›

The causes of the energy crisis are: Increasing population. Excessive use of non-renewable sources of energy.

Can US replace Russian oil? ›

Replacing Russian imports with domestic oil

Most experts agreed that the U.S. could replace Russian oil by increasing domestic production — though some cautioned there might be a lag.

Can US supply enough LNG to Europe? ›

The United States will be able to export more gas, but it will take time. The seven big U.S. LNG plants, including Freeport LNG, currently have the capacity to export about 13.6 bcfd. That will rise to 13.8 bcfd later in 2022 when the last units at Venture Global LNG's Calcasieu Pass plant in Louisiana enter service.

Who will replace Russian oil? ›

The EU plans to replace two-thirds of Russian gas imports by the end of the year, as Russia's war in Ukraine continues to wage on.

What is the energy issue in Europe? ›

A new report from the IEA found that Europe could face a natural gas shortage of 27 billion cubic meters in 2023. That's equivalent to nearly 7% of the region's annual consumption.

Does Europe import gas from the US? ›

Area chart showing market shares and values for various suppliers of gas to the EU between January and November 2022. Between January and November 2022, LNG imports from the US accounted for over 50 bcm (billion cubic meters). This is more than twice as much as in the whole of 2021 (over 22 bcm).

How long will European energy crisis last? ›

Energy crisis will erode Europe's competitiveness in 2023. Natural gas storage in Europe is likely to be completely depleted by spring 2023, and little new import capacity will be available.

What is causing high energy prices in Europe? ›

Energy companies pay a wholesale price to buy the gas and electricity they sell to consumers. As in any market, this can go up or down, driven by supply and demand. Typically, prices rise in response to higher demand for heating and lighting in winter, and fall in summer.

When did the Europe energy crisis start? ›

What's causing the European energy crisis? Europe began to see some problems with energy supply back in 2021. Usually, during the winter months, the EU imports liquefied natural gas (LNG) from the United States, Latin America, and Russia.

Is Europe still getting energy from Russia? ›

Europe is taking another step to prevent Russia from getting money to pay for its war in Ukraine. The EU has already stopped buying Russian crude. Now it's going to stop buying Russian oil products, like diesel fuel. That's key to European transportation.

Is Europe still buying energy from Russia? ›

EU countries have dramatically cut down their imports of Russian energy supplies, imposing sanctions in response to Moscow's brutal, full-scale invasion of Ukraine. Gas exports from Russian state energy giant Gazprom to Switzerland and the EU fell by 55% in 2022, the company said earlier this month.

Has Europe got enough gas? ›

The regulation has been swiftly implemented. In September 2022, the EU had its storage facilities filled by 80% on average. In October 2022, filling level reached 90%. In December 2022, gas reserves started to be used up due to the weather, but as of January 2023, the filling level remains above 80%.

What are 5 facts about Europe? ›

Top 10 Facts about Europe
  • Europe is the second smallest continent. ...
  • Europe has the world's smallest country, the Vatican City. ...
  • Three Quarters of world's potatoes comes from Europe. ...
  • The continent of Europe has 50 countries. ...
  • The country with the biggest population in Europe is Russia.
Feb 2, 2023

What are the two most important natural resources in Europe? ›

Europe has abundant supplies of two natural resources—coal and iron ore—needed for an industrialized economy. The map above shows a band of coal deposits stretching from the United Kingdom across to Belgium and the Netherlands and from there to France, Germany, and Poland.

What are Europe's most important resources? ›

These include wood, soil, water, fish, natural gas, coal, and iron. The resource of fish and water can be found in the Mediterranean Sea. Water is an abundant resource in Europe because there are so many bodies of water in/near Europe.

What energy sources does USA use? ›

The United States uses a mix of energy sources

Primary energy sources include fossil fuels (petroleum, natural gas, and coal), nuclear energy, and renewable sources of energy. Electricity is a secondary energy source that is generated (produced) from primary energy sources.

What is the largest source of energy in the world? ›

Oil is the world's largest energy source today. It is the dominant source of energy for the transport sector in particular.

What is the best energy source? ›

The most popular renewable energy sources currently are:
  • Solar energy.
  • Wind energy.
  • Hydro energy.
  • Tidal energy.
  • Geothermal energy.
  • Biomass energy.

Who owns European energy? ›

Ownership and subsidiaries

EEX AG is majority owned by Deutsche Börse.

Where is the energy capital of the US? ›

As the Energy Capital of the World, Houston is the headquarters and the intellectual capital for virtually every segment of the energy industry including exploration, production, transmission, marketing, supply, and technology. Houston employs nearly a third of the nation's jobs in oil and gas extraction.

What is the electrical system in Europe? ›

American appliances run on 110 volts, while European appliances are 220 volts. If you see a range of voltages printed on the item or its plug (such as "110–220"), you're OK in Europe. Some older appliances have a voltage switch marked 110 (US) and 220 (Europe) — switch it to 220 as you pack.

Who is the biggest energy supplier in Europe? ›

In 2020, the EU mainly depended on Russia for imports of crude oil, natural gas and solid fossil fuels, followed by Norway for crude oil and natural gas.

Where does Europe's gas supply come from? ›

Between January and November 2022, Russia (pipeline gas + LNG import) stood for less than a quarter of EU gas import. Another quarter came from Norway, 11.6% from Algeria. LNG import (excluding Russia - mainly from US, Qatar and Nigeria) stood for 25.7%.

Why are national electricity grids in Europe interconnected? ›

Europe's national power grids are interconnected by cross-border lines, what are known as “interconnectors”. This creates the fundamental physical structure that enables electricity to be traded across borders and will lead to prices converging across Europe. Experts talk about the European internal energy market.

How does European wiring work? ›

European secondaries are largely three-phase and most European countries have a standard secondary voltage of 220, 230, or 240 V, twice the North American standard. With twice the voltage, a circuit feeding the same load can reach four times the distance.

What is three phase power Europe? ›

In Europe, the AC three phase voltage is a “harmonised” 400Vac. Actually, the voltage in mainland Europe is 380Vac and 415Vac in the UK. In the US, however, the three phase voltage can be 208Vac or 480Vac.

Why is electricity different in Europe? ›

Companies in Europe realized that supplying power at 220 volts instead of 110 volts would be cheaper. At a higher voltage, electric companies can deliver the same power with less current – picture a narrow stream flowing quickly compared to a wider stream flowing slowly. And less current allows for thinner wires.

Can the US supply gas to Europe? ›

In other words, U.S. sellers have been able to supply more gas to Europe by diverting export cargoes, rather than by selling gas that would otherwise have been used domestically.

Who is the US largest energy supplier? ›

American Electric Power Company, Inc. (NASDAQ:AEP), Duke Energy Corporation (NYSE:DUK), NextEra Energy, Inc. (NYSE:NEE), and The Southern Company (NYSE:SO) are the biggest utility companies in the U.S.

Why is energy so expensive in Europe? ›

Europe's energy system faces an unprecedented crisis. Supplies of Russian gas—critical for heating, industrial processes, and power—have been cut by more than 80 percent this year. Wholesale prices of electricity and gas have surged as much as 15-fold since early 2021, with severe effects for households and businesses.

What if Russia stops gas to Europe? ›

A full shutdown, while not their base case, could drive European household energy costs up by about 65% to around €500 ($512) per month, according to estimates by Goldman Sachs Research. Industries like chemicals and cement in Germany and Italy might have to cut their gas usage by as much as 80%.

Does the US buy oil from Russia? ›

In 2021, imports from Russia accounted for 8% of all U.S. petroleum imports, which includes the 3% share of crude oil imports and the 20% share of petroleum product imports.

What is Europe interconnection target? ›

The EU has set an interconnection target of at least 15% by 2030 to encourage EU countries to interconnect their installed electricity production capacity.

Is the US power grid interconnected? ›

North America is comprised of two major and three minor alternating current (AC) power grids or “interconnections.” The Eastern Interconnection reaches from Central Canada Eastward to the Atlantic coast (excluding Québec), South to Florida and West to the foot of the Rockies (excluding most of Texas).

What are the advantages of interconnected grid system? ›

The grid system can improve the diversity factor of each generating station connected to the grid. The grid covers a smaller number of consumers than that of an individual generating station. The arrangement can exchange the peak load of a plant. The interconnected grid increases the reliability of power system.


1. Connecting Europe Facility (CEF) – investments in Polish transport. Achievements and challenges
(Fundusze Europejskie)
2. Connecting Europe Facility - kratak video 1.
(Appy Development)
3. Connecting Europe Facility - Full video on English
(Appy Development)
4. CEF Energy: Supporting key cross-border energy infrastructure projects
(CINEA - European Commission Executive Agency)
5. CEF Energy info day: call to obtain the status for CB RES projects 2023
(CINEA - European Commission Executive Agency)
6. CEF Energy : results of the 2019-1 call for proposals
(CINEA - European Commission Executive Agency)


Top Articles
Latest Posts
Article information

Author: Dr. Pierre Goyette

Last Updated: 10/30/2023

Views: 5925

Rating: 5 / 5 (50 voted)

Reviews: 89% of readers found this page helpful

Author information

Name: Dr. Pierre Goyette

Birthday: 1998-01-29

Address: Apt. 611 3357 Yong Plain, West Audra, IL 70053

Phone: +5819954278378

Job: Construction Director

Hobby: Embroidery, Creative writing, Shopping, Driving, Stand-up comedy, Coffee roasting, Scrapbooking

Introduction: My name is Dr. Pierre Goyette, I am a enchanting, powerful, jolly, rich, graceful, colorful, zany person who loves writing and wants to share my knowledge and understanding with you.