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Grant Analysis

Purpose & Target

This grant aims to support the implementation of large-scale infrastructure 'works' for Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) within the EU's energy sector. It targets strategic projects in electricity, gas, smart grids, hydrogen, and CO₂ networks that contribute to the European Green Deal, Paris Agreement, and 2030 climate and energy targets. - Explicit identification of target recipient type and size: 'Project promoters' undertaking significant energy infrastructure 'works'. This typically includes large utility companies, national grid operators, and infrastructure developers, or consortia thereof. - MUST state if grant is 'SECTOR-SPECIFIC' or 'SECTOR-AGNOSTIC': SECTOR-SPECIFIC - Geographic scope and any location requirements: Projects contribute to trans-European networks and demonstrate solidarity among EU Member States. Specific eligible countries are described in section 6 of the call document, which is not provided. - Key filtering criteria for initial grant screening: Project must be a designated PCI or PMI, involve 'works', and demonstrate significant positive externalities and lack of commercial viability. - Grant frequency and program context: Part of the multi-annual Connecting Europe Facility (CEF) Energy Work Programme (2021-2027), indicating recurring calls.

Financial Structure

Funding is provided as Union financial assistance in the form of grants for 'works'.
Budget for the 'CEF-E-2025-PCI-PMI-WORKS' topic for 2025: 600000000.0 EUR.
Eligible costs are related to the defined 'works': purchase, supply, deployment of components/systems/services (including software), development, construction, installation activities, acceptance of installations, and project launching.
Co-financing requirements: 'Specific co-funding rates may also apply according to the level of demonstrated positive externalities of the action.' This implies co-financing is expected, but specific percentages are not provided.
A critical condition for funding is that the project cannot be financed by the market or through the regulatory framework.

Eligibility Requirements

Organizational Eligibility

Eligible organization types: 'Project promoters' of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs). These are typically large entities such as energy companies, utility providers, public bodies, and infrastructure developers.
Organizational size and capacity requirements: Implied capacity to undertake large-scale infrastructure 'works'.
Geographic location requirements: Eligible countries are defined in section 6 of the call document, not provided.
Track record and experience requirements: Implied by the nature of large infrastructure projects.
Partnership or consortium requirements: Not explicitly stated as mandatory, but projects often involve cross-border collaboration.

Specific Project Criteria (pursuant to TEN-E Regulation)

Only projects identified in the First Union list of PCIs and PMIs are eligible.
For electricity projects (except smart grids/storage), gas interconnections (derogation for Cyprus/Malta), and hydrogen projects (Article 18(2) & (3) TEN-E Regulation), all of the following must be met:
- Project-specific cost-benefit analysis must provide evidence of significant positive externalities (e.g., security of supply, system flexibility, solidarity, innovation).
- Must have received a cross-border cost allocation decision (CBCA) or, for hydrogen projects not under national regulatory authority competence, must aim to provide services across borders, bring technological innovation, and ensure safety of cross-border grid operation.
- Project cannot be financed by the market or through the regulatory framework (demonstrated lack of commercial viability).
For smart electricity grids, smart gas grids, and carbon dioxide projects (Article 18(4) TEN-E Regulation), all of the following must be met:
- Clear demonstration of significant positive externalities (e.g., security of supply, system flexibility, solidarity, innovation).
- Clear evidence of their lack of commercial viability.
For electricity storage projects that are not regulated: Must meet the requirements of Article 18(4) by analogy.
For Cyprus and Malta gas interconnections (Article 24 TEN-E Regulation):
- Designed to ensure access to future energy markets, including hydrogen.
- Must not lead to a prolongation of the lifetime of natural gas assets.
- Must ensure interoperability of neighboring networks across borders.
- Any request for Union financial assistance for works must clearly demonstrate the aim to convert the asset into a dedicated hydrogen asset by 2036 if market conditions allow, via a roadmap with a precise timeline.

Exclusion Criteria

Proposals failing to provide relevant supporting documents or providing documents that are not legally valid at the time of submission.
Failure to comply with any of the eligibility criteria indicated above.

Application Process

Application Deadlines and Submission

Application deadline: 2025-09-16 00:00:00+0000.
The submission session became available on: 2025-04-03.
Submission format and platform: Applications are submitted via the Funding & Tenders Portal's Electronic Submission Service.

Required Documentation and Materials

Application Form – Part B (updated template as of 2025-05-15).
TEN-E Compliance Form (updated template as of 2025-05-15).
Business Plan Financial Spreadsheet (updated template as of 2025-05-15).
Environmental compliance file.
Letter of support (Member State agreement).
Detailed budget table.
Timetable / Gantt chart.

Submission Process

Select the correct type of action ('CEF-E-2025-PCI-PMI-WORKS') and model grant agreement ('CEF Action Grant Budget-Based') in the submission system.
Confirm your choice as it cannot be changed after selection.
Access existing draft proposals via the 'My Proposals' page in the 'My Area' section of the Funding & Tenders Portal.

Post-Award Requirements

Monitoring and evaluation requirements: Not explicitly detailed in the provided text, but expected for 'works' projects.

Evaluation Criteria

Award Criteria

Assessment is based on criteria described in section 9 of the call document, which is not provided in full. However, the scope indicates the following will be assessed:
- Existence of significant positive externalities: Such as security of supply, system flexibility, solidarity, or innovation.
- Capacity to provide services across borders.
- Contribution to technological innovation.
- Ensuring the safety of cross-border grid operation.
- Demonstration that the project is commercially not viable and cannot be financed by the market or through regulatory frameworks.
- The aim to convert natural gas assets into dedicated hydrogen assets by 2036 for specific derogation cases (Cyprus/Malta), including a roadmap with a precise timeline.

Compliance & Special Requirements

Regulatory Compliance Requirements

Compliance with TEN-E Regulation (EU) 2022/869.
Compliance with CEF Regulation (EU) 2021/1153.
Compliance with EU Financial Regulation 2024/2509.
Proposals must provide all relevant supporting documents that are legally valid at the time of submission; otherwise, they may not be eligible.

Environmental Compliance Requirements

An Environmental compliance file is a mandatory annex for application.
Projects must align with European Green Deal, Paris Agreement, and 2030 climate and energy targets, maximizing added value towards decarbonisation.

Special Considerations

Strategic Alignment: This call is designed to support the implementation of strategic energy infrastructure projects (PCIs and PMIs) that are crucial for integrating the internal energy market, ensuring interoperability, facilitating decarbonisation, promoting energy efficiency, and securing energy supply.
Market Failure Focus: A key unique aspect is the requirement to demonstrate that the project cannot be financed by the market or through the regulatory framework. This grant specifically targets projects with significant positive externalities that struggle to secure commercial financing.
Hydrogen Transition Focus: For gas interconnections falling under the Cyprus and Malta derogation, there is a specific requirement to demonstrate the aim to convert the asset into a dedicated hydrogen asset by 2036, including a precise roadmap.

Grant Details