The European Union has announced that it will invest close to €650 million in several cross-border energy infrastructure projects aimed at strengthening energy security and bolstering the bloc’s renewable footprint.
The funding will take the form of a series of grants allocated through the Connecting Europe Facility (CEF), which will support 14 cross-border electricity and hydrogen infrastructure projects.
Electricity projects
Close to €470 million of the funding has been earmarked for six electricity projects, including smart electricity grids – the largest of which is the AGUAYO II reversible pumped-storage hydroelectric plant in Spain, which will receive a €180 million grant.
Other projects set to receive funding include the modernisation of Slovakia’s Čierný Váh hydro storage facility, a smart grid project linking Romania and Bulgaria, and the Baltic Synchronisation project, which seeks to enhance the resilience of critical energy infrastructure in the Baltic Region.
Hydrogen projects
Hydrogen projects set to receive funding include the Gronau hydrogen storage project in Germany, which will receive a grant of €120 million to develop an underground hydrogen storage facility.
Additional grants will go to projects in Austria, Bulgaria, France, Germany, the Netherlands, and Slovakia, with a total of €176 million being invested in boosting hydrogen infrastructure across the EU.
“A strong and independent Energy Union which delivers clean and cheap energy to consumers must be built on integrated and safe energy infrastructure,” commented Dan Jørgensen, Commissioner for Energy and Housing. “The projects we are supporting financially will enhance Europe’s competitiveness and energy security, bringing us on a steady pathway towards independence.”
The funding decisions follow an evaluation process that was carried out under the first PCI/PMI (Projects of Common Interest and Projects of Mutual Interest) list of the Trans-European Networks for Energy (TEN-E) policy framework.
Projects were assessed for their ability to enhance cross-border energy connections, facilitate the integration of renewable energy, and contribute to the EU’s climate and energy objectives. The European Climate, Infrastructure and Environment Executive Agency (CINEA) has been tasked with finalising grant agreements with the beneficiaries.
The next CEF call for proposals for energy infrastructure is planned for the second quarter of 2026. Read more here.
