EU countries have until the 15th of March to fill in and submit a template for the EU renewable energy financing mechanism. The objective of the European Commission is to draft the conditions for the first-ever EU-wide tender for renewable energy projects. The financing mechanism should offer enough flexibility to support various technologies, project types, locations and other criteria which the EU countries put forward.
On one hand, countries can participate by being contributors and pay into the mechanism by financing renewable energy projects, through competitive tenders for grants in all EU countries that are willing to host such projects and benefit from resources not accessible in their own country. On the other hand, host countries will receive additional local investment in renewable energy projects without burdening their national budget.
The private sector has 2 ways to participate in the mechanism:
- As a private investor making a payment to the mechanism, which can form part of the sustainability and decarbonisation portfolio of the company and diversify its investment agenda. Private contributors can request the guarantees of origins for the energy production that corresponds to their contribution.
- As a project developer competing for support in the tender that will be published by the Commission. The successful participants will conclude a grant award agreement and will turn the financial support into new renewable projects across the EU which will contribute to the national targets for renewables in both contributing and hosting countries.
At the end of 2022, a call for proposals will be launched and selected proposals will receive a grant from the mechanism in order to implement their projects.