The mechanism will facilitate a more cost-effective roll-out of renewables across the EU, particularly in areas that have a greater access to natural resources or are better suited for it in terms of geography.
the mechanism links countries that voluntarily pay into the mechanism (contributing countries) with countries that agree to have new projects built on their soil (hosting countries). However, there is no direct link or negotiation between contributing and hosting countries, as is required under other EU cooperation mechanisms.
For contributing countries, the advantages are that
- they can finance renewable energy projects elsewhere that are potentially more cost effective than renewable energy produced on their own territory would be
- they can access renewable energy production that is absent or scarce on their own territory; land-locked countries can for example benefit from offshore renewable projects
The advantages for host countries are that
- they can receive additional local investment in renewable energy projects without burden to the national budget
- they can enjoy the benefits in terms of local employment, lower greenhouse gas emissions, improved air quality, modernisation of the energy system and reduced dependency on imports.
The financial contributions that enter the financing mechanism scheme will, through competitive tenders for grants, support new renewable energy projects in all EU countries that are willing to host such projects.
- DG ENER
- CINEA
EU Renewable Energy Financing Mechanism & open calls