The European Commission has selected 43 major energy projects, which will significantly contribute to the economic recovery in the EU, while increasing our security of energy supply by creating cross-border infrastructure. With this decision, the Commission grants € 2.3 billion to 31 gas and 12 electricity projects. This is the second financial decision under the Economic Recovery Package which amounts to almost 4 billion Euros. It is the largest amount the EU has ever spent on energy infrastructure.

Commission's decision grants € 910 million for 12 electricity interconnection projects and € 1,390 million for 31 gas pipeline projects. The projects selected will help to deliver major investment projects which were at risk of major delay because of the economic slowdown.

By co-financing parts of these projects up to 50% the EU contribution will help to lever up to 22 billion euros of private sector investment. The 2,3 billion Euro will be granted to project developers over the next 18 months. This is the second batch of the almost €4 billion set aside by the EU in May 2009 for energy projects to support economic recovery.

The electricity and gas infrastructure projects selected reflect the energy priorities of the EU and the binding targets of greenhouse gas emission reduction and renewables by 2020 and beyond. These include the need to better interconnect all EU Member States and to reduce the isolation of remoter parts, such as the three Baltic States, Ireland and Malta. They also confirm the need for greater security of gas supplies by supporting projects for reverse flow in 9 Member States and the Nabucco and Galsi projects to diversify gas imports.

These investments will help stimulate employment and ensure the survival of many small businesses in the construction and services industries. They will make energy supplies more reliable for millions of people especially in the event of a supply crisis.

Background

In March 2009 the EU set aside €3.98 billion to assist European economic recovery. With the Carbon Capture and Offshore Wind Projects which the Commission agreed to support on 9 December 2009, the budget for energy projects in the European energy Recovery Programme is 97 % committed.

The Commission will report to the European Council in March 2010.