EU has received bids significantly exceeding target volumes in its first tender under the bloc’s renewable energy financing mechanism.
The European Commission said in a media release the tender closed on September 27 after launching in April.
According to the commission, the main objective of the renewable energy financing mechanism, established in 2020, is to enable EU countries to work more closely together in the take-up and promotion of renewables. The mechanism aims to boost renewable projects in line with the European Green Deal. By realizing the untapped potential of cross-border cooperation between EU countries, it will facilitate a more cost-effective rollout of renewables across the EU, particularly in areas that have greater access to natural resources, or are better suited for it, in terms of geography, the commission said.
The tender attracted several projects for solar photovoltaic installations. The total capacity of the projects that applied was 516 megawatts (MW), which represent an oversubscription for the tender and strong competition for the available budget, the commission said. Projects located in Finland with a minimum capacity of 5.0 MW and a maximum of 100 MW competed for a budget of $41.87 million (EUR 40 million), provided by the voluntary contribution of Luxembourg, the commission said.
The European Climate, Infrastructure and Environment Executive Agency will carry out an evaluation of the eligibility of the projects and will make awards based on the price so that the most competitive bids will be selected first, followed by lower bids until the budget is fully allocated.
After the evaluation, the selected project developers will be invited to prepare a grant agreement by January 2024 and will have to put online their solar PV projects within 24 months following the grant signature, the commission said.
ENB Top News
ENB
Energy Dashboard
ENB Podcast
ENB Substack
The post EU’s Renewable Energy Financing Tender Oversubscribed appeared first on Energy News Beat.