Projects of Common Interest

Projects of Common Interest
Name	Projects of Common Interest
Caption	Cross-border infrastructure schematic
Established	2013
Jurisdiction	European Union

Projects of Common Interest

Projects of Common Interest are designated transnational infrastructure initiatives within the European Union energy and transport sectors that seek to integrate markets and enhance resilience across the European Commission's internal market. They link priority corridors and thematic groups, aiming to connect member states such as Germany, France, Poland, Italy, and Spain while interfacing with neighboring countries like Norway and Switzerland. The instrument emerged from policy packages associated with the Third Energy Package, the Trans-European Networks (TEN-T), and legislation tied to the Connecting Europe Facility.

Overview

The mechanism identifies cross-border projects that address bottlenecks in interconnection among regions such as the Baltic Sea Region, the Mediterranean Region, the North Sea Region, the Central and Eastern Europe corridor, and the Balkan routes. Prominent beneficiaries include national system operators like TenneT, RTE (Réseau de Transport d'Électricité), Red Eléctrica de España, and transmission entities such as ENTSO-E and ENTSO-G. Projects intersect with major initiatives and institutions including the European Investment Bank, the European Bank for Reconstruction and Development, and the European Council. They contribute to EU objectives articulated in strategies like the European Green Deal and the Energy Union.

Legal Framework and Criteria

The legal backbone derives from EU regulations enacted by the European Parliament and the Council of the European Union, notably provisions accompanying the TEN-E Regulation and amendments related to the Regulation (EU) No 347/2013 on trans-European energy infrastructure. Eligibility criteria reference technical standards promulgated by agencies such as the Agency for the Cooperation of Energy Regulators and the European Network of Transmission System Operators for Electricity. Selection criteria include cross-border impact, market integration potential, sustainability goals reflected in the Paris Agreement commitments, and compliance with environmental directives like the Habitat Directive and the Environmental Impact Assessment Directive.

Selection and Governance Process

Project lists are compiled in bids and assessed through multi-stage procedures involving advisory bodies such as the Project of Common Interest (PCI) list secretariat, independent experts, and stakeholders including national authorities like the Bundesnetzagentur and regulatory commissions such as the Commission de Régulation de l'Énergie. The European Commission publishes proposed lists after consultation with forums like the Regional Grouping for Energy Security and coordination platforms exemplified by the North Seas Countries' Offshore Grid Initiative. Governance relies on promoter consortia comprising entities such as Iberdrola, Enel, Siemens Energy, RWE, Ørsted, and state transmission operators; contractual frameworks invoke instruments used by European Commission Directorate-General for Energy units and procurement rules tied to the EU Financial Regulation.

Priority Projects and Categories

Priority projects span electricity interconnectors, gas pipelines, hydrogen corridors, carbon dioxide transport networks, offshore grid elements, and smart grid deployments. Examples map onto corridors recognized by TEN-T and include linkages affecting ports like Rotterdam, Antwerp and Piraeus as well as strategic nodes such as Aarhus, Valencia, Gdansk, and Trieste. Categorization distinguishes between electricity projects involving entities like Nord Pool and ENTSO-E, gas infrastructure interfacing with operators such as Gazprom (where geopolitical considerations apply), and emerging hydrogen projects associated with consortia including Hydrogen Europe and industrial champions like Shell and BP.

Funding and Implementation

Financing channels combine grants from the Connecting Europe Facility, loans and guarantees from the European Investment Bank (EIB), risk-sharing instruments via the European Commission Directorate-General for Budget, and private capital from utilities and institutional investors like BlackRock or Allianz. Implementation models include regulated asset frameworks used by national regulators such as the Autorité de régulation de l'énergie and public-private partnerships resembling arrangements seen in major European transport concessions like HS1 and Gotthard Base Tunnel. Project promoters must satisfy procurement rules, state aid assessments overseen by the European Commission Directorate-General for Competition, and comply with cross-border permitting regimes involving authorities like Maritime Safety Authority offices and environmental regulators.

Impacts and Criticism

Advocates cite enhanced market liquidity in platforms such as EPEX SPOT and Nord Pool, increased security of supply in episodes involving Crimea-era tensions, and accelerated decarbonization pathways aligned with the European Green Deal and commitments under the Klimaschutzgesetz in Germany. Critics highlight concerns raised by NGOs such as Greenpeace and Friends of the Earth regarding environmental impacts under the Habitats Directive, regulatory capture allegations involving major utilities like Eni or TotalEnergies, and debates in the European Court of Auditors over cost-benefit assessments. Political disputes have emerged between member states including Hungary and Poland versus western capitals, and in contexts like the Eastern Partnership and relations with Russia and Turkey.

Category:Energy infrastructure Category:European Union law