Modernisation Fund with app. 14 billion EUR ready to modernise energy sectors in 10 Member States in Central Europe

Modernisation Fund with app. 14 billion EUR ready to modernise energy sectors in 10 Member States in Central Europe

The Commission adopted last week implementing act setting the rules on the operation of the Modernisation Fund, a funding mechanism to support 10 EU Member States in their transition to climate neutrality by helping to modernise their energy systems and improve energy efficiency. The Member States to benefit by the Modernisation Fund are Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania and Slovakia. Set up under the revised EU Emissions Trading System Directive, the Modernisation Fund will allocate around EUR 14 billion from the auctioning of allowances from the EU Emissions Trading System for the period 2021-2030, depending on the carbon price. Every beneficiary Member State has its own share of allowances to be used under the Modernisation Fund, as determined by the revised EU Emissions Trading System Directive. The Modernisation Fund will support low-carbon investments in the generation and use of energy from renewable sources, energy efficiency, energy storage, modernisation of energy networks, including district heating, pipelines and grids, and a just transition in carbon-dependent regions, supporting the redeployment, re-skilling and upskilling of workers, education, job-seeking initiatives and start-ups. Each beneficiary Member State can determine its own investment strategy within these areas. The Modernisation Fund will be operational in January 2021 under the responsibility of the beneficiary Member States, who will work in close cooperation with the European Investment Bank (EIB), the European Commission and the Investment Committee set up for the purpose of the Modernisation Fund. CEEP in cooperation with European Roundtable on Climate Change and Sustainable Transition (ERCST) have been working on Modernisation Fund since 2018 and have issued two reports and organised six debates. We will continue to [...]
Krk LNG terminal fully booked for next years

Krk LNG terminal fully booked for next years

Croatia’s floating liquefied natural gas (LNG) terminal on the Adriatic island of Krk will start operating on Jan. 1, 2021, having its full capacity booked for the next few years. The capacity of the Krk LNG terminal is 2.6 billion cubic metres (bcm) of gas per year. According to LNG Croatia, the company which runs the project, the terminal capacities have been sold out until October 2023, while for the following four years, until October 2027, the capacity of some 2.1 bcm of gas annually has already been locked in. From 2027 to 2030 LNG Croatia has already sold the capacity of 1.14 bcm of gas annually. The companies that booked the capacities include Powerglobe Qatar LLC, Hungary’s state-owned energy group MVM, the Croatian unit of Swiss-based MET Holding, which is involved in energy trading in central and eastern Europe, and two Croatian energy firms INA and HEP. “By this project we achieve security of gas supply for Croatia and we contribute to the security of gas supply for the European Union. Due to the higher competition on the gas market we expect that the gas prices in Croatia may fall,” said Croatian Minister for Energy Tomislav Coric. The total investment costs to build the terminal amount to 233.6 million euros, financed through a direct equity contribution of 32.2 million euros from the LNG terminal company shareholders; a contribution of 101.4 million euros from the Connecting Europe Facility (CEF) and a direct financial contribution of 100 million euros from the Croatian State budget. The KrK LNG project has been included in the lists of European Projects of Common Interest [...]
‘Back on track’ – the Polish Presidency of the Visegrad Group (V4) 2020-2021

‘Back on track’ – the Polish Presidency of the Visegrad Group (V4) 2020-2021

On 1 July 2020 the rotating presidency of the Visegrad Group (V4) began. This is the sixth Polish presidency of V4 and it will end on the 30 June 2021. The Polish Presidency will run under the motto "Back on track". The Visegrad cooperation will focus not only on reconstruction after the pandemic, but also on giving impetus to regional cooperation, its improvement and supporting interpersonal contacts between the societies of the four countries of the Group after the lifting of pandemic restrictions. V4 initiatives and activities under the Polish Presidency will be divided into three areas: Economy and connectivity Security Society In these three areas PL PRES has set 4 objectives: Strong V4 in a strong Europe – a goal related to the coordination of activities of the V4 countries in the EU. Return to normality – a goal aimed at the fight against the COVID-19 pandemic and its aftermath. People-to-people contacts – a goal related to strengthening the integration and cohesion between V4 countries and communities. Digital V4 ‘e-V4’ – a goal targeting the development of V4 cooperation in the digital sector. The debate and actions will focus also on climate and energy. Climate policy During the Polish V4 Presidency work will continue to update nationally determined contributions (NDC) of EU members and draft legislation supporting the European Green Deal. In particular, publishing an evaluation of effects of the Climate Law regulation, which assumes achieving climate neutrality by 2050, is expected in the autumn of 2020, as is the proposal to revise climate legislation in order to allow achieving the mentioned higher energy saving target (June 2021). [...]
Start-up Woola wins €50,000 PowerUp! Challenge for eco-friendly bubble wrap solution made from sheep’s wool

Start-up Woola wins €50,000 PowerUp! Challenge for eco-friendly bubble wrap solution made from sheep’s wool

CEEP is proud to be a partner of the PowerUp Challenge, which is a benchmarking event for innovative Central European start-ups. EIT InnoEnergy, the European innovation engine for sustainable energy, has crowned Woola the winner of PowerUp! The start-up has been awarded a €50,000 cash prize and a place on its coveted investment programme – the Highway for its eco-friendly bubble wrap solution made from sheep’s wool. Woola was established at the end of 2019 and produces packaging material from sheep wool residues. The Estonian start-up aims to disrupt the e-commerce market by significantly decreasing the production, consumption and landfill waste of environmentally harmful materials like Styrofoam and plastic. The product is shockproof, heat-proof, and at-home compostable within six months. Woola makes use of an abundant resource that would otherwise be thrown away. The annual competition organised by EIT InnoEnergy, attracts start-ups specialising in sustainable energy innovation. At a difficult time for many start-ups, this competition highlights the importance of continuing innovation in the energy sector. Alongside the cash prize, the winner gains access to a network of connections and business services through EIT InnoEnergy’s global energy ecosystem. Key partners such as Amazon Web Services offered credits to their AWS Activate program and business support. Other partners such as Vestbee and the SpeedUp Group also awarded the winner with services and grants. Whilst the final was held online for the first time due to COVID-19, a record 360 start-ups from 20 countries entered the competition. In a series of regional rounds, innovators battled it out putting forward their business cases for innovations across sustainable energy, cleantech, mobility, cybersecurity, and smart cities. Anna-Liisa Palatu, Co-Founder [...]
New funding available – the Just Transition Mechanism and the Next Generation EU

New funding available – the Just Transition Mechanism and the Next Generation EU

With the European Green Deal (EGD) the EU wanted to become the first climate neutral continent within 30 years, by mobilising research and fostering innovation, financing the transition while also making sure that no one is left behind. In March 2020 everything changed for Europe – all priorities and debates were pushed aside by the outbreak of COVID-19. Member State after Member State went into lockdown putting entire sectors of the economy on standby. By the end of May the Commission proposed to create a new recovery instrument, Next Generation EU, embedded within a revamped long-term EU budget. The crisis forced some changes and accelerated other decisions within the European policies. The European Green Deal became therefore a core part of the EU's recovery strategy and its key areas are: A massive renovation wave of our buildings and infrastructure and a more circular economy, bringing local jobs; Rolling out renewable energy projects, especially wind, solar and kick-starting a clean hydrogen economy in Europe; Cleaner transport and logistics, including the installation of one million charging points for electric vehicles and a boost for rail travel and clean mobility in our cities and regions; Strengthening the Just Transition Fund to support re-skilling, helping businesses create new economic opportunities. Next Generation EU with a total amount of EUR 750 bn, as well as targeted reinforcements to the long-term EU budget for 2021-2027, will bring the total financial firepower of the EU budget to EUR 1.85 trillion. Still, the EGD means first of all raising not only public but private investment – it will not all be coming from the EU budget. Secondly it is an unprecedented plan, so a number of adjustments can be expected. Thirdly [...]

Joint non-paper from 8 countries on the role of natural gas in climate-neutral Europe

Bulgaria, Czechia, Greece, Hungary, Lithuania, Poland, Romania, Slovakia have issued a joint non-paper on the future role of gas and gas infrastructure. Key points: gas provides the fastest and the most affordable intermediate path to a less carbon-intensive economy, an improvement of air quality (reducing premature deaths due to air pollution) and allows for gradual and effective contribution to EU’s climate neutrality by 2050. gas turns out to be a substantial back-up and balancing source for development of renewable energy and electricity system the discontinuation of support for further development of gas infrastructure contributing and enhancing the energy transition will make it very difficult for many Member States to mobilise enough investment to cover massive needs for key energy infrastructure projects Gas infrastructure should be therefore considered as one of enablers of sustainable and swift transition towards cleaner heat and electricity generation, transport, industrial processes and residential heating and cooling it is of crucial importance to maintain EU support and financial assistance for the development of gas infrastructure through enabling framework, structural funds and investment loans. You can download the full paper [...]