Changes from report parliamentary committee draft to plenary report

Added3. Following the discussions in the Groups, the Commission may request the ENTSO for Electricity or the ENNOH to provide a common cost-benefit analysis for the proposed bundles of two or more projects on the Union list. The common cost-benefit analysis shall be consistent with the Union strategic scenario and sensitivities referred to under Article 11, and the methodology drawn up pursuant to Article 15. The ENTSO for Electricity or the ENNOH shall provide the common cost-benefit analysis within 2 months of the request to the Commission.

Added4. The relevant Member States, with the involvement of the relevant national regulatory authorities, and with the support of the Commission, shall conclude on the bundle of projects and, where appropriate, invite project promoters to add projects to the bundle or delete projects from the bundle, if this facilitates discussions on cost-sharing, provided that the number of projects on the Union list included in the bundle remains manageable.

Added5. The relevant Member States may decide to endorse the bundles and invite project promoters to submit a joint investment request under Article 17(4). That decision shall be shared with the relevant Groups and the Commission. For the purpose of Article 17(4), only one up-to-date cost-benefit analysis and one proposal for a cross-border cost-allocation shall be included in the investment request in view of facilitating a possible application for Union financial assistance pursuant to Article 21.

Added1. TSOs shall set aside 30 % of the congestion rents not allocated for guaranteeing the actual availability of the allocated capacity pursuant to Article 19(2), point (a), of Regulation (EU) 2019/943 and for compensation to offshore renewable electricity generation plant operators pursuant to Article 19(2), point (c), of Regulation (EU) 2019/943, for network investments into projects on the Union list relevant to reducing interconnector congestion pursuant Article 19(2), point (b), of Regulation (EU) 2019/943. Congestion rents arising from internal bidding zone borders within a Member State shall not be subject to the obligations laid down in this paragraph.

Added2. TSOs shall place the funds referred to in point 1 of this Article on a separate account line until it can be spent for financing projects on the Union list relevant to reducing interconnector congestion, or until they have demonstrated that the priority objectives set out in Article 19(2), point (b), of Regulation (EU) 2019/943 have been adequately fulfilled and there is no need for additional cross-border capacity to be built at the borders of the Member States concerned to reduce interconnector congestion. Funds already allocated to the separate internal account line before … [the date of entry into force of this Regulation] shall be considered to fall outside the scope of this Article.

Added3. The use of the funds referred to in paragraph 1 shall be timely and shall:

Added(a) address the financing gap of projects on the Union list which are located in the Member State where congestion revenue is collected and have significant benefits outside their hosting countries, taking due account of expected tariff financing;

Added(aa) address the financial gap of infrastructure projects which enhance infrastructure flexibility of the whole Union energy system;

Added(ab) be determined in advance by transmission system operators and their actual use shall be reported to the national regulatory authorities in accordance with Article 19(5) of Regulation (EU) 2019/943;

Added(b) be made transparent in requests for cross-border cost allocation decisions pursuant to Article 17 of this Regulation;

Added(c) avoid double funding and ensure proportionality, transparency and non-discrimination;

Added(d) not compromise the fulfilment of the priority objectives under Article 19(2) of Regulation (EU) 2019/943;

Added(da) support, where appropriate, bundles of projects pursuant to Article 18 of this Regulation for the purpose of reducing congestion more efficiently at corridor level.

Added4. The Commission is empowered to adopt delegated acts in accordance with Article 23 of this Regulation to supplement this Regulation by specifying the conditions under which TSOs may use the funds referred to in paragraph 1 of this Article and the conditions under which the objective of Article 19(2), point (b), of Regulation (EU) 2019/943 is considered adequately fulfilled.

Added5. Within [6 months] after the entry into force of the delegated acts referred in paragraph 4, the Agency shall update the methodology on the use of revenues from congestion income pursuant to Article 19(4) of Regulation (EU) 2019/943. The updated methodology shall be consistent with paragraphs 1, 2 and 3 of this Article and with the delegated acts adopted pursuant to paragraph 4 of this Article.

Added5a. By 31 October … [1 year from the date of entry into force of this Regulation], and every year thereafter, the Agency, taking into account the reports pursuant to Article 19(5) of Regulation (EU) 2019/943, shall publish and submit to the Commission a report assessing the use of congestion income pursuant to this Article. The report shall cover the 12-month period ending on 31 December of the previous year. Where appropriate, the Agency may include in the report recommendations to ensure that the congestion income is used in accordance with the conditions laid down in the methodology referred to in Article 19(4) of Regulation (EU) 2019/943 for the purpose of this Article. The regulatory authorities and the TSOs shall provide to the Agency the information necessary for the purpose of carrying out the Agency’s task under this Article.

Added1. Where a project promoter incurs higher risks for the development, construction, operation or maintenance of a project of common interest falling under the competence of national regulatory authorities, when compared to the risks normally incurred by a comparable infrastructure project, national regulatory authorities may grant appropriate incentives to that project in accordance with Regulations (EU) 2019/943 and 2024/1789 and Directives (EU) 2019/944 and (EU) 2024/1788.

AddedThe first subparagraph shall not apply where the project of common interest benefits from one or more of the following:

Added(a) an exemption from Articles 31, 32, and 33, and Articles 78(7) and (9) of Directive (EU) 2024/1788, pursuant to Article 78 of Regulation (EU) 2024//1789;

Added(b) an exemption from Article 19(2) and (3) of Regulation (EU) 2019/943 or from Article 6, Article 59(7) and Article 60(1) of Directive (EU) 2019/944 pursuant to Article 63 of Regulation (EU) 2019/943;

Added(c) an exemption pursuant to Article 36 of Directive 2009/73/EC;

Added(d) a derogation pursuant to Article 17 of Regulation (EC) No 714/2009.

Added2. In the case of a decision to grant the incentives referred to in paragraph 1 of this Article, national regulatory authorities shall consider the results of the cost-benefit analysis consistent with the methodology drawn up pursuant to Article 14 and in particular the regional or Union-wide positive externalities generated by the project. The national regulatory authorities shall further analyse the specific risks incurred by the project promoters, the risk mitigation measures taken and the reasons for the risk profile in view of the net positive impact provided by the project, when compared to a lower-risk alternative. Eligible risks shall in particular include risks related to new transmission technologies, both onshore and offshore, risks related to under-recovery of costs and development risks.

Added3. The decision to grant the incentives shall take into account the specific nature of the risk incurred and may grant incentives covering, inter alia, one or more of the following measures:

Added(a) the rules for anticipatory investment;

Added(b) the rules for recognition of efficiently incurred costs before commissioning of the project;

Added(c) the rules for providing additional return on the capital invested for the project;

Added(d) any other measure deemed necessary and appropriate.

AddedFinancing

AddedArticle 21 Eligibility of projects for Union financial assistance under Regulation (EU) 2021/1153

Added1. Projects of common interest falling under the energy infrastructure categories set out in Article 27 and Annex II shall be eligible for Union financial assistance in the form of grants for studies and financial instruments.

Added2. Projects of common interest falling under the energy infrastructure categories set out in Article 27 and in points (1)(a), (b), (c), (d), (e), (f) and (h) and point (2) of Annex II and under the competence of national regulatory authorities shall also be eligible for Union financial assistance in the form of grants for works where they fulfil all of the following criteria:

Added(a) the project specific cost-benefit analysis drawn up pursuant to Article 17(4), point (a), provides evidence concerning the existence of significant positive externalities, such as security of supply, system flexibility, solidarity or innovation;

Added(b) the project has received a cross-border cost allocation decision pursuant to Article 17, subject to paragraphs 2a and 2b of this Article and the exceptions specified in Article 17(16a);

Added(c) the project cannot be financed by the market or through the regulatory framework in accordance with the business plan and other assessments, in particular those carried out by potential investors, creditors or the national regulatory authority, taking into account any decision on incentives and reasons referred to in Article 20(2) when assessing the project’s need for Union financial assistance.

Added2a. Projects of common interest falling under the energy infrastructure categories set out in point (2) of Annex II may apply for financial support from designated Union funds and may benefit from a European guarantee. The Commission shall adopt delegated acts in accordance with Article 23 to supplement this Regulation by establishing an EU-level de-risking and financing mechanism for cross-border hydrogen transport infrastructure. Those delegated acts shall lay down the necessary framework for the operation of the mechanism, ensure its integration with existing Union regulatory and funding frameworks, including InvestEU, and specify the eligibility criteria and conditions for the participation of hydrogen infrastructure projects in the EU-level de-risking mechanism, as well as the applicable budgetary framework. The mechanism shall apply on a non-discriminatory basis to all cross-border hydrogen infrastructure projects falling under the energy infrastructure categories set out in point (2) of Annex II, ensuring equal treatment of network operators with regard to the risks associated with investments in cross-border hydrogen infrastructure. Before adopting the delegated acts, the Commission shall consult ENNOH, the Agency and other relevant stakeholders. For the avoidance of doubt, compliance with the criterion laid down in paragraph 2, point (b), of this Article shall not be required for a project to apply for support under the Union-level de-risking mechanism backed by a Union guarantee. The Commission shall adopt the first of those delegated acts by … [12 months from the date of entry into force of this Regulation].

Added2b. In the case of projects falling under the energy infrastructure categories set out in point (2) of Annex II where the cross-border cost-allocation process is still ongoing, the project promoter may request Union financial assistance for works on a conditional basis, subject to the finalisation and adoption of the cross-border cost-allocation decision.

Added3. Projects of common interest carried out in accordance with the procedure referred to in Article 5(7), point (d), shall also be eligible for Union financial assistance in the form of grants for works where they fulfil the criteria set out in paragraph 2 of this Article.

Added4. Projects of common interest falling under the energy infrastructure categories set out in Annex II other than those referred to in paragraph 2, with the exception of the infrastructure category set out in point (3) of that Annex shall also be eligible for Union financial assistance in the form of grants for works where they fulfil all of the following criteria:

Added(a) the project specific cost-benefit analysis drawn up by the project promoter in application of the relevant cost-benefit analysis methodology developed in accordance with Article 11 provides evidence concerning the existence of significant positive externalities, such as security of supply, system flexibility, solidarity or innovation;

Added(b) the project cannot be financed by the market in accordance with the business plan drawn-up by the project promoter and other assessments, in particular those carried out by potential investors, creditors or the national regulatory authority;

Added(c) the project has received an evaluation carried out by the relevant national authority or, where applicable, the national regulatory authority, in consultation with the TSOs or relevant DSOs from the Member States where the project provides a significant net positive impact, that clearly demonstrates the existence of significant positive externalities, such as security of supply, system flexibility, solidarity or innovation, generated by the project and include an evaluation thereof, and provides clear evidence of their lack of commercial viability, in accordance with the cost-benefit analysis, the business plan and assessments carried out by the project promoter and potential investors or creditors and, where applicable, a national regulatory authority.

Added5. The evaluation referred to in paragraph 4, point (c), of this Article shall be based on the scenario and, if appropriate, sensitivities established under Article 11 and any existing sensitivity analyses thereof and shall include an accurate evaluation and assessment of the efficiently incurred costs, an accurate description of the benefits of the project including their split across borders for individual Member States or third countries including non-hosting countries, a description of the split of costs across-borders and of all financing sources relevant for the project and already certain.

Added5a. Projects of common interest falling under the energy infrastructure category set out in point (1)(c) of Annex II and located in peripheral and island Member States, which do not provide direct benefits to non-hosting countries, shall remain eligible for Union financial assistance, provided that they have a significant cross-border impact as set out in point (1) of Annex IV.

Added6. This Article shall apply mutatis mutandis to projects of mutual interest and bundles of projects pursuant to Article 18.

AddedProjects of mutual interest shall be eligible for Union financial assistance under conditions set out in Regulation (EU) 2021/1153. With regard to grants for works, projects of mutual interest shall be eligible for Union financial assistance provided that they fulfil the criteria set out in paragraph 2 or 4 of this Article, as applicable, and where the project contributes to the Union’s overall energy and climate policy objectives.

Added6a. Grants for works covering projects of common interest and projects of mutual interests shall also cover digitalisation projects with high operational expenditure, where such projects demonstrably contribute to the objectives of this Regulation.

Added6b. Electricity infrastructure projects located in the outermost regions within the meaning of Article 349 TFEU shall be eligible for Union financial assistance in the form of grants for works under Regulation (EU) 2021/1153, including projects at distribution level, where they contribute to the development, reinforcement, resilience or efficient operation of the transmission network, provided that the following conditions are met:

Added(a) the project contributes to one or more of the following objectives in the outermost region concerned:

Added(i) the integration of renewable or low-carbon energy sources into the local electricity network;

Added(ii) the reduction of dependence on fossil fuels for electricity generation;

Added(iii) the security of electricity supply, including through diversification of generation sources or modernisation of distribution infrastructure;

Added(iv) the electrification of end-use sectors, in particular transport and heating;

Added(b) the project cannot be financed by the market or through the applicable regulatory framework, having regard to the structural energy isolation of the region, the limited local market size and the constrained capacity of operators to recover investment costs through network tariffs;

Added(c) the relevant Member State has carried out an assessment demonstrating the necessity of the project for the energy transition and security of supply of the outermost region concerned, taking into account the specific structural constraints recognised under Article 349 TFEU.

AddedMember States shall ensure that the investment needs of outermost regions

Addedidentified pursuant to this paragraph are duly reflected in their NRPP.

AddedArticle 21a Eligibility of projects under financial assistance other than Union financial assistance under Regulation (EU) 2021/1153

AddedMember States shall assess electricity network capacity and constraints, including at

Addeddistribution level, and identify corresponding investment needs. For projects on distribution