One billion to finance European electricity grid projects

Member states agree to give the green light to the European Commission’s request to invest one billion euros in ten key projects for European electricity grid infrastructure.

The European Union continues to focus on the energy sector as a key driver of economic and social recovery in the coming years. This is demonstrated by the approval of an investment package of nearly one billion euros, which member states have endorsed to undertake ten major projects related to improving European electricity grids and their interconnection, as well as reducing their carbon footprint.

The proposal, which comes from the European Commission, will focus its efforts on various projects framed within the European Union’s strategy with theGreen Deal rolloutThus, this Thursday a vote will take place for the implementation of the Baltic synchronization project, with an investment of 720 million; five projects for the capture, transport, storage and use of CO2, with an amount close to 30 million euros; the implementation of a CO2 transport network, which will garner 102 million euros of investment; the development of a plan for the smart grid in Hungary and the Slovak Republic, with an allocation of 102 million euros; the implementation of the electrical interconnection project between Bulgaria and Serbia, for which 28 million euros will be allocated; and finally, the development of the so-called North Sea Wind Power Hub, which will require an investment of 14 million euros.

The Green Deal as a focus of economic recovery

The European Green Deal will be a key element in the European strategy to address the economic consequences of the Covid-19 pandemic in Europe.a press releasePublished in the last week of May, the European Commission made known what the strategy of the body chaired by Ursula Von der Leyen was to deal with this situation, which is embodied in a plan called “Next Generation EU”, and did so highlighting the European Green Deal as one of its recovery pillars.

Von der Leyen unveiled a plan that, if approved by all member states, would make up to €750 billion available in subsidies and loans. Next Generation EU would be further bolstered by the EU’s long-term budget for 2021-2027, raising the Union’s total financial capacity to €1.85 trillion. This represents a significant boost to reform European electricity grids, strengthening the EU economy with the Green Deal, among other initiatives, as a pillar of growth.