Finland, Luxembourg Commit For EU’s Renewable Energy Financing Mechanism

The implementation of the EU renewable energy financing mechanism has taken an important step forward as binding commitments have come from Finland and Luxembourg who will now take part in a cross-border tender for renewable energy.

The announcement by the two countries follows an invitation by the Commission to all EU countries last year to participate in the mechanism and a series of detailed discussions with interested parties.

As committed, Luxembourg will participate as a contributing country, voluntarily contributing EUR 40 million to the mechanism. EU wants a faster but holistic renewable energy growth to tackle the challenges of climate change.

Finland will participate as a host country, allowing solar PV projects located in its territory with a total capacity of up to 400 MW to take part in the renewable energy tender.

On the basis of these binding commitments, the European Climate Infrastructure and Environment Executive Agency (CINEA) will publish the first-ever cross-border tender for renewable energy in the coming weeks.

The tender will contribute to the deployment of new renewable energy projects in line with the objectives of the European Green Deal and REPowerEU. It will also help the participating countries to strengthen their ambition for decarbonisation in a collective, cost-effective and mutually beneficial manner.

The Commission has welcomed and strongly supported the active role of Luxembourg and Finland in the implementation of this new instrument. “Their involvement builds upon an excellent track record of participation in cooperation mechanisms on renewables and cements their position as front-runners on cross-border initiatives,” said the European Commission.

In parallel with the finalisation and publishing of the first tender, the Commission will soon launch a further call for expression of interest among EU countries for renewable energy. On the basis of the preferences in this second call, the Commission will prepare and launch a second tender under the mechanism by the end of 2023.

The renewable energy is on a fast upward trajectory. An analysis by Ember – an energy think tank – has revealed that the European Union has saved more than EUR 12 million in 2022 through a switch from Russian gas imports to the wind and solar power.