In the pursuit of a sustainable, interconnected, and secure energy future, the need to transform the energy infrastructure is crucial. In the European Union, the collaboration of Member-States is the pillar for achieving the common energy objectives. The challenges such as energy security, market integration, and the incorporation of renewable energy sources into the grid will be better faced with the development of projects that transcend borders and promote the interconnection of Member-States. These are the Projects of Common Interest (PCIs).
Definition and Objectives
Projects of Common Interest (PCIs) are cross-border infrastructure projects which connect energy systems of European Union’s member states. Their aim is to achieve the EU’s energy objectives, such as decarbonization, sustainability and affordability. Projects of Mutual Interest (PMIs) are such projects in cooperation with countries outside the EU.
The concept was introduced by TEN-E Regulation (Regulation No 347/2013) which focuses on the development of infrastructure projects that are crucial for the EU energy policy. The Regulation was revised in 2022 to be in conformity with the European Green Deal.
For a project to be labeled as PCI, it must follow some criteria. Firstly, it must involve at least two Member States by directly crossing their borders, in a territory that has significant cross-border impact. It must also align with the criteria outlined for at least one of the energy infrastructure priority corridors or areas specified in the Regulation. The criteria are further specified depending on the nature of the project (electricity, gas, smart grids, oil transport, carbon dioxide transport). It is essential that each project has to contribute to the EU’s energy goals not only by the focus on sustainability and renewable energy but also by promoting energy security and market competitiveness.
If a project is selected as PCI, it is benefited by an advantageous regulation process, which facilitates and accelerates the permit granting. Firstly, there is a binding time limit of 3,5 years and the demand of a single national authority to be responsible for coordinating the whole procedure. In parallel, it demands a streamlined environmental assessment process and increases visibility to investors. Lastly, the project can be eligible for financial assistance under the Connecting Europe Facility. These special requirements are meant to reduce administrative barriers which can be very limiting for the development of such projects.
The role of ACER
The role of ACER (European Union Agency for the Cooperation of Energy Regulators) is to ensure cooperation among the EU’s energy National Regulatory Authorities (NRAs) and ensure the functioning of the single energy market. Regarding the PCIs, it provides inputs during the process of assessment of the candidates, in collaboration with NRAs, and it delivers an Opinion on whether the selection criteria and cost-benefit analysis have been uniformly applied across all regions. It also monitors and reports on the progress achieved in the implementation of the projects.
Examples
The list of PCIs is drawn up by the European Commission every two years, and it is submitted to the European Parliament and Council.
Some examples are the IGB Pipeline (Greece-Bulgaria), the Baltic Pipe (Denmark-Poland), the COBRAcable (Denmark-Netherlands), and Biscay Gulf Interconnector (France-Spain). These indicative examples show the diversification of the gas routes and suppliers and also the potential development of interconnection and efficiency in electricity.
In conclusion, PCIs may play a vital role in transforming Europe’s energy infrastructure to meet the challenges of sustainability, security, and market integration. A successful evolution and integration of numerous of these projects will pave the way for the transition to a sustainable and resilient future in the energy sector.
For further information:
https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A02013R0347-20240428
https://www.acer.europa.eu/electricity/infrastructure/projects-common-interest
