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EU Renewable Energy Financing Mechanism – First Tender Oversubscribed

The first tender under the EU renewable energy financing mechanism was launched in April and closed on 27 September 2023 with bids significantly exceeding target volumes. Projects located in Finland with a minimum capacity of 5 MW and a maximum of 100 MW competed for a budget of EUR 40 million, provided by the voluntary contribution of Luxembourg.

The tender saw several projects submitted for building solar photovoltaics renewable energy installations. The total capacity of the projects that applied was 516 MW, which represents an oversubscription for the tender and is a clear sign of strong competition for the available budget. The Commission welcomes the positive results.

As a next step, the European Climate, Infrastructure and Environment Executive Agency (CINEA) will carry out an evaluation of the eligibility of the projects and will award them, based on the price. This means that the most competitive bids will be selected first, followed by the next lowest bid until the budget is fully allocated.

After the evaluation, the selected project developers will be invited to prepare a grant agreement by January 2024 and will have to put online their solar PV project within 24 months following the grant signature.

The EU financing mechanism was established by the Commission in 2020, aimed at better supporting renewable energy projects and encouraging a greater uptake of renewables across the EU. Its main objective is to enable EU countries to work more closely together in the take-up and promotion of renewables.

Source: Energy Europe