Billions of euros released for energy projects

Gas and electricity projects to receive €2.3bn from the European economic recovery package.

The European Commission announced today (4 March) that it will provide €2.3 billion to help fund 43 pipeline and electricity projects across Europe.

Günter Oettinger, the European commissioner for energy, said the plans will help the EU’s 27 member states lessen their dependence on Russian gas and oil imports, and help them to forge better energy network ties and markets within Europe.

“We have selected key projects which will help create a more integrated energy network in Europe, ensuring flexible energy flows across member states’ borders,” Oettinger said.

The spending announced today is part of a €4bn ‘economic recovery package’ approved by EU member states last year. The money, which must be spent over the next 18 months, is in part intended to avert the risk that the financial crisis could delay important, long-term infrastructure projects.

In December, the Commission announced that a first tranche of funds from the recovery package, totalling €1.5bn, would be spent on co-financed offshore wind farms and carbon-capture projects.

The majority of the second tranche of funding – €1.39bn of the €2.3bn – will be spent on 31 gas pipeline projects, including €200 million for the development of the Nabucco pipeline, which will run for 3,300 kilometres from the Caspian region, through Turkey to Europe. The aim is to jump-start construction of the €8bn pipeline.

Oettinger said Nabucco would be the “centre of attention” of his work during his term.

Another €910m is earmarked for 12 electricity interconnection projects. The focus is on connecting the EU’s three Baltic member states to energy grids in western Europe. Ireland and Malta will also be connected to the mainland.