One of the first initiatives of new Commission President Juncker is the EU Investment Plan. Also called the Juncker Package, this plan is progressively taking shape. Funds have been moved from other budget lines, innovative financing methods explored, and a list of 2,000 projects drawn up. The newly created fund will be operational by mid-2015 after having been endorsed by EU member states. What does the plan contain on energy and in particular electricity?
The €315bn investment plan was announced early in the Commission’s term by the newly elected Commission President, Jean-Claude Juncker. His Vice-President for Jobs, Growth, Investments and Competitiveness, Jyrki Katainen, is holding the pen. The plan has three parts: risk financing, transparent project pipeline, as well as deepening the Single Market in various areas.
A new fund, the European Fund for Strategic Investment, was created in mid-January, as the key vehicle to mobilise financing of about €315bn over a period of three years. The project pipeline has to contain well structured, reliable and viable infrastructure projects. The European Investment Advisory Hub (EIAH) represents a one-stop-shop for technical and financial assistance for investors and project developers. The fund is in particular devoted to supporting projects that are riskier than the usual European Investment Bank (EIB) projects in order to support projects in countries and sectors where job creation and investment is most needed.
As for the often discussed question ‘where does the money come from?’ the Commission has proposed a structure with a €16bn guarantee by the Commission to the EIB. This amount has been taken from various budgets, for example from Horizon 2020. The Commission expects important leverage effects and has identified 2,000 projects across the EU, with the support of the member states, worth €1.3 trillion of potential investments. A task force composed of independent experts, Commission officials and the EIB has been responsible for gathering the projects in the potential growth areas of knowledge, innovation and digital economy, energy union, transport infrastructure, social infrastructure, natural resources and the environment.
The Energy Union on the other hand is a top priority for the Juncker Commission and is slowly starting to take shape. The 25th of February 2015 should see the publication of a Communication on the Energy Union from the Commission, and from 2016 onwards an annual Energy Union Forum in Riga will complement the Florence, Madrid, London and Berlin Fora.
Katainen, but also the responsible DGs, will soon start so called ‘roadshows’ on the opportunities of the Fund. Energy related projects and in particular projects like smart grids will figure high on the agenda. EURELECTRIC encourages its members to discuss opportunities with the Commission and the member states’ representations. EURELECTRIC will regularly brief members on emerging opportunities and keep up its constant exchange with DG ENER and other EC services. Indeed, Commissioner Oettinger’s new portfolio of Digital Economy, but also DG MOVE and e-mobility, have to be kept in mind when considering projects relevant to the EU power sector.