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Innovation and Networks Executive Agency

The Connecting Europe Facility

Mid-term results

Investing in European networks

The Connecting Europe Facility (CEF), launched in January 2014, is a flagship funding programme of the Europe 2020 Strategy in the sectors of transport, energy and telecommunications. It is key to supporting the European Commission’s priorities related to investment, jobs and growth. By providing targeted EU investment for infrastructure projects in these sectors across all Member States, the programme contributes to connecting Europe and its regions, to ensuring a sustainable and efficient transport network, integrating the European Single Market, as well as supporting a connected Digital Single Market and a resilient Energy Union with a forward-looking climate change policy.

The results presented in this brochure clearly show that, at mid- term, the CEF is already delivering on its promises and providing European added-value for the completion of the sectorial networks, facilitating synergies between them and leveraging private finance. So far, three and a half years on, the Commission has allocated €23.1 billion in grants (i.e. over 80% of the CEF grant budget) for projects in the three sectors, which have mobilised total investments of more than €45 billion. CEF-related financial instruments, including those under predecessor programmes, have generated additional investments in the three CEF sectors of €13.9 billion, out of which around €4.5 billion since 2014.

The Commission Directorates-General responsible for CEF Transport, Energy and Telecommunications, in cooperation with the Innovation and Networks Executive Agency (INEA), ensure that the CEF targets investments in essential infrastructure that contribute to transforming Europe into a knowledge-intensive, low-carbon and highly competitive economy through flexible and modern transport, energy and digital networks.

ForewordTable of Contents

The Commission is evaluating the CEF as a whole at its mid- term to report on progress made in achieving its objectives and on the programme’s efficiency and European added value. It will enable conclusions to be drawn contributing to the preparation of the next Multi-Annual Financial Framework in early 2018. Through a wealth of data and interesting facts, this publication presents the key features of the CEF, its mid-term achievements so far and gives a brief outlook on the challenges up to 2020.

FOREWORD

INTRODUCING THE CEF

CEF TRANSPORT

CEF ENERGY

CEF TELECOM

CEF SYNERGY

COMPLEMENTARITY WITH RESEARCH

CEF FINANCIAL INSTRUMENTS AND EFSI

EFFICIENT PROGRAMME IMPLEMENTATION

OUTLOOK 2017-2020

3

4

14

32

44

56

62

66

70

74

Henrik HOLOLEIDirector-General for Mobility and Transport

Dominique RISTORIDirector-General for Energy

Roberto VIOLADirector-General for Communications Networks,

Content and Technology

Dirk BECKERSDirector of the Innovation and

Networks Executive Agency

32

In line with the Treaties, the European Union implements the CEF programme to support the development of high performing, sustainable and efficiently interconnected trans-European networks in the fields of transport, energy and digital services. CEF investments focus on initiatives that will lead to a further integration of the European Single Market. Rail and other transport connections, electricity and gas transmission grids, as well as digital networks are vital for a well-functioning, integrated economic area and for its social and territorial cohesion. The CEF benefits people across all Member States, as it makes travel easier and more sustainable, it enhances Europe’s energy security while enabling wider use of renewables, and it facilitates cross-border interaction between public administrations, businesses and citizens.

This is the first time that funding at EU level for the development of infrastructure in these three sectors has been combined in one programme.

This enables the creation of synergies between the three sectors, as well as complementarities with other programmes, such as Horizon 2020, the EU’s flagship programme for

research and innovation. It also supports the complementarity with structural funds, such as the Cohesion fund, as well as the European Fund for Strategic Investments (EFSI).

The CEF creates significant leverage by attracting additional public and private funding and it allows for economies of scale and simplification. The role of the European Commission’s Directorates-General responsible for the CEF, is to establish Trans-European Network (TEN) policy and notably the Work Programmes with the priorities for funding and their indicative amounts. INEA manages CEF projects, as well as some Programme Support Actions

(PSAs). The European Investment Bank is responsible for the implementation of the CEF financial instruments, notably the CEF Debt Instrument.

With regard to the grants for CEF projects, under the CEF 2014 – 2016 calls for proposals, 1,852 eligible proposals have been evaluated across the 3 sectors, leading to 925 projects, currently receiving a total CEF support of €23.1 billion - 81% of the CEF indicative envelope for grants of €28.6 billion.

Introducing CEF

The CEF is implemented through a mix of grants, procurement and financial instruments in the programming period 2014-2020. The level of CEF funding is unprecedented with a total financial envelope of €30.5 billion, of which an indicative envelope of €28.6 billion is available for grants.

Removing bottlenecks

Enhancing rail interoperability

Bridging missing links

Improving cross-border connections

Ensuring long term sustainable and efficient transport systems

Optimising integration and interconnection � transport modes

Enhancing the interoperability � transport services

CEFTransport

fundsprojects that are:

Supporting the creation � an ecosystem � interoperable digital services that make the European Digital Single Market work in practice

Deploying Digital Service Infrastructures that support cross-border interaction between public administrations, businesses and citizens

Support targeted broadband initiatives, including the ongoing Connected Communities Initiative financed by financial instruments, and the soon to be established Connecting Europe Broadband Fund

CEFTelecom


Supporting the development and interoperability � important EU energy transmission infrastructure with significant cross-border impact between Member States

Boosting the internal energy market and competition

Enhancing Union security � energy supply

Fostering sustainability and environmental protection through i.a. integrating renewable energy sources and developing smart energy networks and carbon dioxide networks

CEFEnergy


Specific funding objectives have been established for the three sectors based on comprehensive guidelines for the development of the trans-European networks for

TRANSPORT, ENERGY and TELECOMMUNICATIONS

54

€4.4 billion

CEF projects are spread widely across the EU and certain neighbouring countries with priority given to projects with the highest value for all of Europe, particularly those which complete missing cross-border links, remove bottlenecks, or deploy EU-wide systems.

The Connecting Europe Facility provides dedicated financing for infrastructure projects. This is so that important investments can be made across the European Union in the trans-European (TEN) transport, telecommunications and energy network infrastructure - to help Europe reach its full potential in terms of growth and cohesion. The CEF has been tailored to support projects in different ways – grants for studies and/or works and financial instrument support.

For the entire programming period, the CEF plans to finance projects in three sectors for a total of €30.5 billion, out of which an indicative amount of €28.6 billion is available in the form of grants. Over 80% of this budget has already been allocated through the 2014-2016 calls for proposals – with a remaining budget of €5.4 billion.

Funding a success story

CONNECTING EUROPE FACILITY

Allocated €21.3 billion (Transport)

€12 million (Synergy)

TRANSPORT €24.1 billion

GRANTS* €23.4 billion

Remaining€2 bn

2017 Blending Call €1 billion

Future Calls**€1 billion

Remaining€2 billion

Allocated€1.6 billion (Energy)

€10 million (Synergy)

ENERGY€5.35 billion

Grants €4.7 billion

Remaining€2 bn

2017 Call€800 million

Future Calls€2.3 billion

Remaining€3.1 billion

TELECOM€1.04 billion

Grants €500 million

Remaining€2 bn

2017 Calls€77 million

Future Calls€295 million

Remaining€372 million

Allocated€128 million

* Including additional €185 million revenues from predecessor programmes and excluding the MFF midterm review.

** Out � which EUR 290 million is earmarked �r a specific call �r proposals �r SESAR in 2017/2018

Wide geographical spread

AT

BE

BG

CY

CZ

DE

DK

EE

EL

ES

FI

FR

HR

HU

IE

IT

LT

LU

LV

MT

NL

PL

PT

RO

SE

SI

SK

UK

€769.0

€487.0

€476.9

€77.7

€1,125.2

€2,167.2

€684.1

€376.8

€645.1

€991.2

€225.4

€2,021.1

€557.6

€1,086.6

€206.9

€1,432.4

€508.7

€75.2

€397.3

€48.5

€371.0

€4,429.7

€683.4

€1,413.4

€198.9

€239.6

€766.2

€430.8

BA

CH

IL

IS

MK

NO

RS

TR

€0.1

€14.0

€7.0

€1.4

€0.1

€37.8

€11.8

€10.3

Other countries FUNDING (€mill ion)

EU Member States FUNDING (€mill ion)Financing progress

The table and the map show funding per country excluding international organisations, European Economic Interest Groupings (EEIG) and Joint Undertakings

76

100

300

600

900

2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

Innovative approach

The programme has an innovative approach, since due to its multiannual character, it can financially support projects over several years, thereby enhancing their financial stability and viability. In the transport and energy sectors the average

project duration is 3.8 years and 2.5 years respectively, while for the telecom sector the average duration is less than two years. The first projects started on 1 January 2014 and some projects will run until the end of 2023.

NUMBER OF PROJECTS IN PROGRESS

Leveraging support

Infrastructure planning and financing from a national perspective does not give a sufficiently high priority to multi-national cross-border investments to achieve the infrastructure that the Single Market needs.

The CEF is an example of the added value of the EU budget as it can help secure funding for the pan-European projects that connect the centre, and the periphery as well as in certain cases for neighbouring countries - for the benefit of all. The CEF funding currently allocated via grants amounts to €23.1 billion.

CEF GRANT FUNDING PER SECTOR(number of projects)

€21.3(604)

€1.6(93)

€128(221)

€22(7)

CEF Transport

CEF Energy

CEF Synergy

CEF Telecom

billion

billion

million

million

CEF Transport CEF Energy CEF Telecom CEF Synergy

98

13.0

6.6

3.5

2014 2015 2016

Key figures

Between 2014 and 2016, 39 calls for proposals were launched, of which 11 for CEF Transport, five for CEF Energy, 22 for CEF Telecom and one for Synergies between Transport and Energy. As a result of these calls, €23.1 billion, or 81% of the total CEF budget, is currently allocated to the implementation of projects.

€13 billion is currently allocated to projects under the 2014 calls1, €6.6 billion to projects under the 2015 calls2 and €3.5 billion to projects under the 2016 calls3.

NUMBER OF CALLS PER YEAR (2014-2016)

CEF FUNDING PER CALL YEAR (2014-2016) € billion

INVESTMENT PER SECTOR

1 €12.4 billion under CEF Transport, €581.8 million under CEF Energy and €16.4 million under CEF Telecom2 €6.2 billion under CEF Transport, €299.9 million under CEF Energy and €45.9 million under CEF Telecom3 €2.7 billion under CEF Transport, €707.4 million under CEF Energy, €66.1 million under CEF Telecom and €22 million under CEF Synergy

€41.6

€3.5

€193

€37

billion

billion

million

million

CEF Transport

CEF Energy

CEF Synergy

CEF Telecom

7

13

19

2014 2015 2016

CEF Transport CEF Energy CEF Telecom CEF Synergy

From the budget already allocated, the CEF support will mobilise €45.3 billion of total investment in the European economy, of which:

1110

47.0(1,419)

22.4(623)

21.3(604)

0

50

Eligible proposals Selected proposals Grant Agreements*

*Includes grant agreements under preparation

REQUESTED/SELECTED FUNDING AND NUMBER OF PROPOSALS PER SECTOR

CEF TRANSPORT € billion

(number of proposals)

CEF ENERGY€ billion


REQUESTED/RECOMMENDED FUNDING AND NUMBER OF PROPOSALS PER SECTOR

CEF TELECOM€ million


CEF SYNERGY€ million


158.4(274)

130.6(224)

128.3(221)

0

180


3.6(150)

1.7(96) 1.6

(93)

0

4


34.2(9)

22.1(7)

22.1(7)

0

40


500 independent external experts were contracted to evaluate the eligible proposals. In total 950 projects were finally selected, resulting in a success rate of 51%.

Following grant agreement preparation, 925 projects* receiving €23.1 billion in CEF funding are currently being implemented.

Under the 39 calls, a total of 1,852 eligible proposals requested €50.8 billion in CEF funding, representing an oversubscription rate of 2.1 times the available budget.

1312

CEF

1514

CEF Transport Funding per country

€4.2 billion

AT

BE

BG

CY

CZ

DE

DK

EE

EL

ES

FI

FR

HR

HU

IE

IT

LT

LU

LV

MT

NL

PL

PT

RO

SE

SI

SK

UK

€759.3

€482.9

€406.3

€55.2

€1,117.3

€2,107.1

€670.7

€208.1

€628.6

€976.5

€126.6

€1,997.3

€424.4

€1,081.5

€91.6

€1,423.7

€392.6

€71.6

€266.8

€45.3

€356.9

€4,153.1

€677.6

€1,229.1

€195.2

€209.4

€704.7

€349.0

BA

IL

MK

NO

RS

€0.1

€7.0

€0.1

€9.2

€11.7

Other countries FUNDING (€ mill ion)

EU Member States FUNDING (€ mill ion)In 2013, the EU embarked on a new era in EU transport policy and created the basis for Europe to build a modern integrated transport system that strengthens Europe’s global competitiveness and can meet the challenges for sustainable, smart and inclusive growth. With a new policy for the Trans-European Transport Network, the EU aims to build a high-performance EU-wide transport infrastructure network, using the Connecting Europe Facility and other EU funding programmes and initiatives.

They provide for a strong focus on infrastructure of topmost strategic importance. Both the core and comprehensive networks focus on modal integration, interoperability and the coordinated development of infrastructure, in particular in cross-border sections, to eliminate missing links and remove bottlenecks.

Nine multi-modal Core Network Corridors are the pillars of the core network. Support is also provided for innovation and new technologies and telematic solutions applied to all modes of transport in order to improve the use of infrastructure, reduce the environmental impact of transport, enhance energy efficiency and increase safety.

CEF Transport funding supports studies (including pilot deployment activities) and works for building new transport infrastructure, or rehabilitating and upgrading existing ones - to deliver on its top priority of creating jobs and boosting growth in Europe. CEF transport’s grant budget is €23.4 billion, including €11.3 billion reserved for the Member States eligible for cohesion funding.

Following 11 calls for proposals, €21.3 billion have been allocated to 604 projects, most of which are ongoing, which account for 91% of the CEF Transport budget. A predominant part of the CEF grants (73%) are allocated to railway projects. Member States eligible for support from the Cohesion Fund receive over 54% of the total CEF funds (mainly from the Cohesion envelope, but also from the General envelope). A CEF Transport Blending call was launched in February 2017 with the aim to combine CEF grants with financial instruments (indicative CEF budget: €1 billion).

Funding is mainly oriented to projects on the TEN-T core network and projects linked to horizontal priorities, such as the deployment of ERTMS4, SESAR5, ITS6, RIS7, Motorways of the Sea and new technologies and innovation.

The TEN-T Guidelines establish a comprehensive and a core network to promote better accessibility to European and global markets.


4 European Railway Traffic Management Systems5 Single European Sky Air Traffic Management Research6 Intelligent Transport Systems (Road)7 River Information Services

1716

27%

46%

27%Mixed €1.7

Studies €1.8

Works €2.9

59%

7%

34%

Studies €1.5

Mixed €7.2

Works €12.6

Improving transport infrastructure

CEF Transport currently contributes €21.3 billion in EU grant support to the realisation of transport infrastructure projects, for a total investment of €41.6 billion. It is expected that this investment will create more than 450,000 job years by 20308.

8 Assessment based on average ratio of permanent and temporary employment per billion invested evaluated by the EIB: http://www.eib.org/attachments/thematic/report_2015_on_eib_operations_inside_the_eu_en.pdfAdditional, wider economic benefits stemming from the projects’ contribution to the corridors / network is expected, which increases the net effect of the CEF Transport programme on jobs. The EIB Annual Report 2016 provides some additional estimations based on economic models http://www.eib.org/attachments/general/reports/ar_2016_en.pdf

CEF FUNDING PER TRANSPORT FUNDING OBJECTIVE€ billion

(number of projects)

Shifting to more advanced stages of developmentCompared to its predecessor, the 2007-2013 TEN-T Programme, CEF Transport allocates more funding to projects in advanced stages of implementation (works or mixed projects rather than studies).

The charts below compare the distribution of funding by type of project in the two programmes.

TEN-T FUNDING BY TYPE € billion

CEF TRANSPORT FUNDING BY TYPE€ billion

Building cross-border infrastructure and bridging missing links

Deploying sustainable and efficient transport

Interconnecting transport modes and enhancing interoperability

€18.3 (287)

€0.5 (101)

€2.5 (216)

1918

Developing the Core Network Corridors

9 Funding for sections, which geographically belong to more than one corridor, is accounted for in each corridor.

CEF FUNDING PER CORE NETWORK CORRIDOR

(€ billion)

1.5

1.7

1.9

2.1

2.1

2.6

Rhine-Danube

North Sea-Baltic

Mediterranean

Scandinavian-Mediterranean

Baltic-Adriatic

Orient/East-Med

North Sea-Mediterranean

Atlantic

Rhine-Alpine

3.6

3.1

2.6

2.1

2.1

1.9

1.7

1.5

0.7

86% of the total CEF funding is invested in projects contributing to the development of the nine Core Network Corridors.

The Rhine-Danube Corridor receives the largest share of funding (19%), followed by the North Sea-Baltic Corridor (16%)9. In terms of the number of projects, the Mediterranean Corridor is in the lead (108) followed by the Rhine-Danube Corridor (82).

Focus on sustainability

CEF Transport contributes to the decarbonisation of the European economy by investing heavily in environmentally friendly transport modes, including 236 railway projects across the EU. The investment in railway projects accounts for €15.7 billion, 73% of the total funding. Investments in road and air transport focus on cross-border and missing

link projects as well as traffic management and alternative fuels and on Single European Sky ATM Research (SESAR) respectively, thus increasing safety and sustainability. By investing in the sustainability of transport, the CEF is also contributing significantly to the climate change objectives set by the Commission.

CEF FUNDING BY TRANSPORT MODE€ billion

(number of projects) 15.7(236)

1.6(48)

1.6(128)

1.4(54) 0.9

(76) 0.3(62)

Rail InlandWaterways

Road Air Maritime Multimodal

2120

Removing obstacles

181 projects selected under the 2014-2016 calls will remove 239 bottlenecks by 2020, including 68 on cross-border sections. The total investment in projects contributing to the removal of bottlenecks is €32 billion, of which €16.9 billion is CEF grant funding.

NUMBER OF BOTTLENECKS PER TRANSPORT MODE

10

6

51

4

19

28

119

14

20

34

170

Multimodal

Road

Maritime

Inland Waterways

Rail

cross-border sections other sections with cross-border impact

1

Project example

Among the projects removing 51 rail cross border bottlenecks, the Brenner Base Tunnel project is one of the largest.

The 64 km-long rail tunnel that stretches between Austria and Italy removes a major cross-border bottleneck in an environmentally sensitive area. It is constructed to shift the heavy goods and passenger transport across the Alps from road to high-quality rail service. Once completed, the tunnel will slash travelling times from Innsbruck to Bolzano from two hours to 50 minutes.

CEF Transport funding €1.2 billion

Member States Austria and Italy

2322

Ensuring rail interoperability

In total 95 projects co-funded by CEF Transport aim to adapt, upgrade and improve several thousand kilometres of railway lines all over Europe. The total investment in these projects is €14.4 billion, of which €9.1 billion is CEF grant funding.

CEF Transport projects will:

The 29 projects adapting 1,580 km of railway to the European nominal gauge standard are thereby enhancing the integration and interconnection of the European transport sector, as shown in the example on the next page.

Fit 5,439 km � railway with ERTMS

Electrify 1,854 km � line tracks and sidings

Improve 2,759 km � freight lines

Adapt 1,580 km � railway to the European nominal gauge standard

Project example

Rail Baltica - 1435 mm standard gauge railway line development in Estonia, Latvia and Lithuania

The Global Project will implement a double track, European nominal gauge railway line ensuring along the North Sea-Baltic Corridor, the integration of the three Baltic States into the European rail freight and passenger transport network - promoting the continuity of long distance and cross-border flows.

CEF Transport funds four projects which contribute with studies and works to the implementation of the Global Project.

Total CEF Transport funding € 789 million

Member States involved Estonia, Latvia and Lithuania

2524

4

1

5

5

6

Maritime portsto Railway

Inland Waterwaysto Railway

Rail Road Terminals

NewImproved

Linking modes of transport

By 2020, transport will be more integrated by connecting four maritime ports10 to the railway and adding one new road terminal11 as well as by improving the connection of five maritime ports12, five inland ports13 and six rail-road terminals14.

This will be achieved through a total investment of €361.6 million, of which €107 million is CEF grant funding.

10 Bahía de Algeciras, Barcelona, Valencia (ES); Porto (PT)11 Badajoz (ES)12 Zeebrugge (BE); A Coruña , Huelva, Sevilla (ES); Gdansk (PL)13 Strasbourg, Lyon (FR); Bremerhaven, Regensburg (DE); Sevilla (ES)14 Ostrava, Melnik (CZ); Bremen (Bremerhaven) (DE), Barcelona(ES); Padova, Genova (Vado) (IT)

NUMBER OF NEW OR IMPROVED MULTIMODAL CONNECTIONS TO THE RAILWAY

Project example

Studies and works for connections by rail of four existing freight terminals along the Mediterranean Corridor in Spain

The project will create intermodal terminals in the most important ports of Spain (Algeciras, Valencia, Barcelona) and in the most important economic centre (Madrid), all located along the Mediterranean Core Network Corridor. This will significantly decrease road freight to the advantage of rail, thereby reducing transport costs, down time and energy consumption. In addition, the terminal in Barcelona will be equipped with both the Iberian gauge and the European Nominal Gauge Standard, enabling trains to circulate between Spain and the rest of the EU.

CEF Transport funding €5 million

Member States involved Spain

2726

Investing in greener road transport

53 projects aim to install 2,829 supply points for alternative fuel for road transport. Furthermore, supply points for alternative fuel will be installed in eight inland ports15 and 12 maritime ports16.

The total investment in projects contributing to the installation of supply points for alternative fuel for road transport is €622.4 million, of which €334.7 million is CEF grant funding.

15 Antwerp (BE), Köln (DE), Mannheim (DE), Duisburg (DE), Budapest (HU), AlbertKanaal (BE), Brussels (BE), Gent (BE)16 Barcelona (ES), Bremen (DE), Valencia (ES), Cartagena (ES), Marseille (FR), Las Palmas (ES), Palma Mallorca (ES), Santa Cruz Tenerife (ES), Bari (IT), Cagliari (IT), Napoli (IT), Gdansk (PL)

2,383 171 57

56162

ElectricityCompressed Natural Gas

Liquefied Petroleum Gas

HydrogenLiquefied Natural Gas

NUMBER OF SUPPLY POINTS FOR ALTERNATIVE FUELS FOR ROAD TRANSPORT

Project examples

FAST-E (DE/BE)This project foresees the deployment of 241 standard fast chargers in Germany and 37 in Belgium. As a result of this, vehicles will be able to travel 100 km with a 30 minute charge.

CEF Transport funding €8.8 million

Member States involved Germany and Belgium

ULTRA-EThis project foresees the deployment of a pilot of 25 ultra-chargers on the TEN-T corridors connecting the Netherlands, Belgium, Germany and Austria. Thanks to these technologically advanced chargers, vehicles will be able to travel 100 km with a 10 minute charge.

CEF Transport funding €6.5 million

Member States involved Austria, Germany and Belgium

2928

Supporting Cohesion

Following dedicated Cohesion calls for proposals from 2014 to 2016 the entire €11.3 billion Cohesion envelope has been allocated due to the very robust project pipeline in the Cohesion Member States.

NUMBER OF PROJECTS PER COHESION ENVELOPE

CEF FUNDING PER COHESION ENVELOPE

(€ million)

706.0

174.7

1,234.5

508.9

4,138.9

41.7

1,073.1

371.8

247.0

45.0

422.5

577.8

196.0

1,116.3

405.7

Slovakia

Slovenia

Romania

Portugal

Poland

Malta

Hungary

Lithuania

Latvia

Cyprus

Croatia

Greece

Estonia

Czech Republic

Bulgaria

28

10

20

12

29

2

33

5

3

4

28

8

4

47

11

3130

CEF

3332

V

CEF Energy

The upgrading of the existing infrastructure and the

development of new energy transmission infrastructure

in Europe needs major investment in order to match

future demand for energy, to ensure security of supply

and to support large-scale deployment of energy from

renewable sources.

The Trans-European Networks - Energy (TEN-E)

Regulation identifies nine priority corridors and three

thematic areas in the field of cross-border energy

infrastructure and establishes a list of Projects of

Common Interest (PCIs) that will help the EU to meet

its short and longer-term energy and climate objectives.

PCIs have a significant impact on energy markets and

market integration (covering at least two EU countries),

contribute to the EU’s energy security by diversifying

sources, increase competition on energy markets by

offering alternatives to consumers, and contribute

to the EU’s climate and energy goals by integrating

renewables. PCIs benefit from accelerated planning and

permit granting, a single national authority for obtaining

permits, improved regulatory conditions, increased

public participation via consultations and increased

visibility to investors.

CEF Energy has a grant budget of €4.7 billion for the period 2014-2020 and supports studies and works in the areas of gas, electricity and smart grids that contribute to the programme’s objectives. CEF Energy supports the key objectives of the Energy Union by promoting further integration of the internal energy market, enhancing security of energy supply and integrating energy from renewable sources into the network.

Funding per country

€0.3 billion

AT

BG

CY

CZ

DE

DK

EE

EL

ES

FI

FR

HR

HU

IE

LT

LV

MT

PL

PT

RO

SI

SK

UK

€0.01

€69.1

€15.8

€5.0

€50.1

€7.2

€166.4

€9.3

€6.3

€94.1

€17.9

€128.2

€2.5

€110.4

€112.7

€128.7

€0.4

€271.7

€1.0

€180.8

€27.5

€59.7

€73.5

CH

NO

TR€14.0

€26.4

€10.3


EU Member States FUNDING (€mill ion)


Established in 2013, the PCI list is updated every two years to

integrate newly needed PCIs and to remove obsolete ones. The

current list, updated in 2015, comprises 195 PCIs, of which 108 are

electricity, 77 gas, 7 oil and 3 smart grids. Only proposals related to

the PCIs are eligible to apply for CEF Energy funding.

The vast majority of the investments in TEN-E and the PCIs are meant

to be financed by the market, mainly through regulated transmission

tariffs. However, some energy projects are not commercially viable

and would therefore not be implemented despite the fact that they

provide important socio-economic benefits at macro-regional level.

CEF Energy is engineered to address the gap between the socio-

economic value at regional/European level (such as security of

supply, innovation and solidarity) and the commercial viability of

projects through the regulatory framework.

3534

CEF Energy portfolio

CEF Energy currently contributes €1.6 billion in EU support to the implementation of energy projects, for a total investment of €3.5 billion. The current CEF energy portfolio consists of 93 projects, most of which are studies, which account for 17% of the total CEF Energy funding.

The largest share of funding goes to work projects (83%), especially those supporting the development of gas infrastructure (58%), followed by electricity infrastructure (22%) and smart grids (3%).

SmartGrids

Gas Electricity

1 project€40.5 million

1 project€40.5 million

9 projects€928.1 million


49 projects€1.02 billion



43 projects€530 million


Studies


Works


EU funding

Focus on priority corridors and thematic area

CEF Energy supports projects under eight priority corridors, four in the electricity sector, four in the gas sector and one thematic area on smart grids. The Baltic Energy Market Interconnection Plan (BEMIP) in electricity, whose goal is to end the isolation of the Baltic States and to foster market integration, receives

the largest share of funding in the electricity sector with €205 million (13% of the total).So far, one CEF Energy project was signed in the smart grids thematic area (which covers the entire EU) for a total of €40.5 million.

1. Northern Seas Offshore Grid (NSOG)

2. North-South Electricity interconnections in Western Europe (NSI West Electricity)

3. North-South Electricity interconnections in Central Eastern and South Eastern

Europe (NSI Electricity)

4. Baltic Energy Market Interconnection Plan in electricity (BEMIP Electricity)

€185.2 million14 projects

€50.3 million 5 projects


€205 million 6 projects

CEF FUNDING PER PRIORITY CORRIDOR (ELECTRICITY)€ million

number of projects

3736

14.8

40.3

42.1

Interconnection between Revsing (DK) and Bicker Fen (UK) (Viking Link)

Germany internal line between Brunsbüttel-Groβgartachand Wilster-Grafenrheinfeld to increase

capacity at Northern and Southern borders

Norway - United Kingdom interconnection

179.3

187.5

266.4

Interconnector between Estoniaand Finland (Balticconnector)

PCI Poland-Lithuania interconnection (GIPL)

Development of the Romanian gas transmissionsystem on the Bulgaria-Romania-Hungary-Austria

corridor (BRUA/ROHUAT project)

The Baltic Energy Market Interconnection Plan (BEMIP), whose goal is to end dependency on a single supplier, to reinforce internal gas networks and to increase diversification

and security of gas supply in the Baltic region, receives the largest share of funding in the gas sector with €513.4 million.

CEF FUNDING PER PRIORITY CORRIDOR (GAS)€ million

number of projects

5. North-South Gas interconnections

in Western Europe(NSI West Gas)

6. North-South Gas interconnections in Central Eastern and South Eastern Europe (NSI East Gas)

7. Southern GasCorridor (SGC)

8. Baltic Energy Market Interconnection Plan in Gas(BEMIP Gas)


€240 million21 projects


€513.4 million8 projects

Supporting Projects of Common Interest

The 93 CEF Energy projects contribute to the implementation of 74 PCIs. For works, the PCIs that receive the largest share of CEF Energy funding are in the gas sector.

On the other hand, for studies the largest funding goes to PCIs in the electricity sector, indicating the complex nature of large electricity projects.

TOP 3 PCIs BY CEF ENERGYFUNDING – STUDIES€ million

TOP 3 PCIs BY CEF ENERGY FUNDING - WORKS€ million

GAS ELECTRICITY

3938

Developing infrastructure

Gas transmission and electricity transmission assets attract the largest share of funding under the CEF Energy programme (83%).

CEF FUNDING PER INFRASTRUCTURE TYPE€ million

Ending energy isolation and enhancing energy security

The completed projects below contribute to CEF Energy objectives by eliminating energy isolation, through the construction of the Litpol Link electricity line, and by enhancing the security of supply, through the elimination of a bottleneck between Klaipeda and Kursenai in the gas transmission system in Lithuania.

ELECTRICITY

Litpol Link Electricity line

The new 51 km electricity line between Alytus (Lithuania) and the Lithuanian border with Poland connected the grids of Baltic countries to those of Western Europe for the first time. The power link ended the energy isolation of Lithuania, Latvia and Estonia.

Part of PCI 4.5.1 Interconnection between the Lithuanian and the Polish electricity system at the Lithuanian/Polish border, known as “LitPol Link”

Beneficiary Litgrid AB

CEF Energy funding €27.4 million

GAS

Construction of the Klaipeda-Kursenai Gas Transmission Pipeline

The construction of a 111 km gas transmission pipeline connected the Liquefied Natural Gas (LNG) terminal infrastructure in Klaipeda to the gas transmission network towards Kursenai in Lithuania. It eliminated a bottleneck in the gas transmission system in Lithuania and enhanced the region's security of gas supply, as well as competition in the gas market of the Baltics.

Part of PCI 8.2.3 Capacity enhancement of Klaipeda-Kiemenai pipeline in Lithuania

Beneficiary AB Amber Grid


417.0

104.7

8.1 0.340.5

898.5

10.7

109.3

Electricitytransmission

Electricitystorage

Hydro-pumpedstorage

Balticsynchronisation

Gas transmission Underground gasstorage

LNG

Electricity Smart grids Gas

PROJECT EXAMPLE PROJECT EXAMPLE

4140

Improving interconnections between Member States

The integration of the energy market can also be assessed by looking at projects effectively interconnecting European networks and removing internal constraints. Two examples of this are: the studies of the new electricity lines which will interconnect France and Spain, including necessary internal grids reinforcement, and the reverse flow pipeline from Switzerland to Germany in the gas sector.

ELECTRICITY

Studies for the new Atlantic electrical interconnection between Spain and France

The main objective of the two supported projects is to complete the set of studies, such as geological, environmental, technological and social acceptance, needed to determine the precise feasibility and impact of the envisaged new interconnection between Spain and France, studying the entire route from the substations in both countries. The length of the cable is approximately 370 km – of which 280 km submarine crossing the Bay of Biscay – with a total maximum capacity of 2000 MW. The project will help double the interconnection capacity between France and Spain.

Part of PCI 2.7 for the construction of an interconnector between Spain and France

Beneficiaries Réseau de Transport d’Electricité (RTE), RED Eléctrica de España (REE)


GAS

Reverse Flow on TENP (studies and works)

The two supported projects aim to design and engineer the reversal of the TENP pipeline to transport gas from Switzerland to Germany. The study will simulate and assess the operative conditions under which the gas flow from North to South could be reversed. The works include the procurement and execution of works necessary to enable the creation of 10 GWh/h of entry capacity at the cross-border interconnection point Wallbach towards the Virtual Trading Point of the NetConnect Germany market area. It also includes building an innovative large-scale deodorisation facility, representing a breakthrough in interoperability technology in Europe, as it will enable imports into Germany of gas from countries with other odorisation practices like France.

Part of 5.10 “Reverse flow interconnection on TENP pipeline in Germany”

Beneficiaries Fluxys TENP GmbH


Developing smart energy networks

CEF Energy also contributes to developing smart energy networks by investing in a smart grid project.

SMART GRIDS

Implementation of the SINCRO.GRID PCI, phase 1

The project aims at solving network voltage, frequency control and congestion issues, as well as enabling further deployment of renewables (RES) and displacement of conventional generation. This will be done by integrating new active elements in the transmission and distribution grids into the virtual cross-border control centre based on advanced data management and common system optimisation.The project will complete the PCI with the exception of one of the compensation devices in Slovenia which will be deployed at a later stage.

Part of PCI 10.3 SINCRO.GRID (Slovenia/Croatia)

Beneficiaries ELES ltd, Croatian Transmission System operator, SODO Electricity distribution system, HEP-Operator distribucijskog sustava


PROJECT EXAMPLE PROJECT EXAMPLE

PROJECT EXAMPLE

4342

CEF

4544

CEF Telecom

CEF Telecom is anchored to the Europe 2020 Strategy for smart, sustainable, and inclusive growth via the Digital Single Market Strategy.

The strategy highlights the importance of digital infrastructure and a digital economy for improving services, expanding choice and creating employment.

CEF Telecom invests in Digital Service Infrastructures, promote connectivity and interoperability (CEF Digital), and stimulates investment for deploying and modernising broadband networks (CEF Broadband).

CEF Digital is organised around the promotion of Digital Service Infrastructures (DSIs) providing support to two different types:

The five ‘building blocks’ provide basic functionality, facilitate cross-border and sector interaction between EU public administrations and are reusable in more complex DSIs.

eIdentification

eSignature

eInvoicing

eDelivery

eTranslation

The ten sector-specific DSIs, provide more complex trans-European online services for citizens, businesses and public administrations:

Safer Internet

Online Dispute Resolution (ODR)

Public Open Data

eHealth

eProcurement

Business Registers Interconnection System (BRIS)

Electronic Exchange of Social Security Information (EESSI)

European e-Justice Portal

Europeana

Cyber Security

CEF Digital plays a key role in supporting Member States to comply with EU Regulations and Directives – and facilitating coordination among Member States to share solutions, develop standards and enable interoperable solutions. This has resulted in faster and more efficient online public and cross-border services for the benefit of citizens, businesses and public administrations across Europe.

CEF BROADBAND

Under the Connected Communities Initiative the Commission has called for expressions of interest for broadband projects interested in the use of financial instruments and received 120 responses from 24 Member States. The World Bank is supporting the Commission by providing targeted technical assistance. The CEF Equity instrument plans to establish the Connecting Europe Broadband Fund which will provide equity to smaller-scale, higher-risk broadband projects in outlying areas and without sufficient access to financing.

CEF Digital

The two pillars of CEF Telecom are CEF Digital and CEF Broadband

These are all essential elements for sustaining a Digital Single Market and supporting the competitiveness of the European economy. They also support the Commission’s broadband targets, as well as the more recent strategic objectives to be reached by 2025 under the European Gigabit Society strategy.

4746

€8.9 million

Funding per country

AT

BE

BG

CY

CZ

DE

DK

EE

EL

ES

FI

FR

HR

HU

IE

IT

LT

LU

LV

MT

NL

PL

PT

RO

SE

SI

SK

UK

€5.5

€3.3

€1.5

€4.1

€2.9

€8.9

€6.2

€2.3

€5.4

€8.4

€4.7

€5.9

€3.9

€2.6

€4.9

€8.7

€3.3

€3.6

€1.8

€2.2

€7.6

€3.9

€4.8

€3.5

€1.9

€2.7

€1.8

€8.2

IS

NO

RS€1.4

€2.2

€0.03



The table and the map show grant funding for generic services per country excluding international organisations, European Economic Interest Groupings (EEIG) and Joint Undertakings

CEF Digital

All DSIs have a double layer structure: ‘Core Service Platforms’ (CSPs) – that work as central hubs which enable trans-European connectivity – and ‘Generic Services’ which link the national services to the Core Service Platforms. So far, €115 million have been allocated to the deployment of 14 Core Service Platforms and €128.3 million have been awarded for 221 projects for generic services.

Funding opportunities in the area of Digital Service Infrastructures are offered via the procurement of services for the development, maintenance and operation of CSPs, and via calls for proposals (grants) for the connection of the national service infrastructures developed in the Member States to the CSP. €500 million of the CEF Telecom total budget of €1.04 billion is reserved for these grants.

Between 2014 and 2016, 22 calls for proposals were organised, allocating €128.3 million of CEF Digital funding – or 26% of the overall CEF Telecom grant budget - to 221 projects. The total investment leveraged through these calls is €193 million. In 2017, INEA launched 12 additional calls with a total available budget of €77 million. All Member States – plus Norway, Iceland and Serbia - have thus far benefitted from CEF Digital investment (based on the funding received by beneficiaries in each Member State).

4948

15.7(30)

14.8(23)

2.6(9)

6.1(6)

Funding per DSI building block

CEF Digital projects aim to be mutually reinforcing and complementary. There are many potential links between the digital services – in particular the building blocks that are reused in more complex DSIs. This possibility not only contributes to creating economies of scale but also speeds up implementation of more complex projects. Apart from the

development of the respective Core Service Platform with a dedicated budget of €40 million, the Commission supports their deployment through dedicated calls for proposals. In 2014-2016, eight dedicated calls were launched for these building blocks, allocating €39.2 million in CEF Telecom funding to 68 projects.

eTranslation Exchanging information across language barriers in the EU Member States

eID Extending the use of online services to citizens of other EU Member States through mutual recognition of national electronic identification

CEF GRANT FUNDING PER DSI BUILDING BLOCK€ million


Supporting cross-border recognition of electronic identification

EIDAS 2018 MUNICIPALITIES

The eIDAS 2018 Municipalities Project is one of the early implementations of the mutual recognition principle of European eIDs to access public services introduced by the eIDAS Regulation. It enables citizens of EU Member States and EEA countries to electronically prove their identity with their nationally issued eID when seeking access to around 300 services in 81 municipalities across the Netherlands. The solution is currently available for Austrian, German and Belgian eID holders, and should progressively be extended to other countries connecting to the eIDAS network.

CEF Digital funding €1.4 million

Member States involved The Netherlands

eSignature Creating and verifying electronic signatures

&

eDelivery Supporting electronic registered delivery of data and documents

eInvoicing Helping public entities adopt the European standard on electronic invoicing

PROJECT EXAMPLE eIDENTIFICATION

More and more Europeans use electronic identification to access public and private online services in their country. But what happens when someone travels or moves to another European country?

The eID building block addresses the challenge of cross-border recognition of nationally issued eIDs, enabling Europeans to access online public services across Europe seamlessly.

The CEF eID building block supports the Member States and Service providers in recognising foreign eIDs.

Businesses are also encouraged to connect to the eIDAS network in order to allow EU consumers to benefit from a secure and easy identification process.


Number of projects managed by INEA 30

5150

32.2(58)

19.5(22)

10.9(14)

10.7(16)

5.5(17) 3.6

(7)3.1(7) 2.1

(3)1.7(8) 0.1

(1)

Safer Internet EESSI Cyber Security eHealth eProcurement Public OpenData

European e-Justice Portal

Europeana BRIS ODR

Funding and projects per sector-specific DSIs

The sector-specific DSIs provide solutions that enable citizens businesses and administrations to access online services across Europe, enabling interoperability in fields as diverse as cybersecurity, health, and justice or social security rights. In 2014-2016, 14 calls were launched for

their generic services, funding 153 projects with €89.2 million in 10 sector specific DSIs. Most of these DSIs will reuse basic functionalities provided by the building blocks. At the same time, for the sector specific DSI Core Service Platforms, a total of €75.1 million have been invested.

CEF GRANT FUNDING PER SECTOR SPECIFIC DSI€ million


Making data more accessible

PROJECT EXAMPLE

OASIS

One of the projects is the “Open Applications for Semantically Interoperable Services” (OASIS).

OASIS will involve the sourcing of public open data in Spain and Belgium, and will focus on public transport and local public services. At least two mobile applications and/or other innovative services will be developed. These innovative services will prove that applications using Linked Open Data can be used across borders and sectors and that they can be made multi-lingual. The results will initially affect two cities (Madrid and Ghent), and will be sufficiently innovative to inspire others to develop similar products using the available public open data.

CEF Digital funding € 0.4 million

Member States involved Belgium and Spain

PUBLIC OPEN DATA

Every day, public institutions across Europe publish data in categories as broad as health, traffic, public spending and agriculture, which have large economic potential. Open Data encourages the reuse and analysis of existing data to create new products and services.

The Public Open Data DSI makes it easier for public services and businesses to access and reuse public data through the online European Data Portal. The portal collects metadata (data about the data) published by public bodies across Europe, collating it into a searchable tool accessible by anyone.

There are currently over 750,000 data sets published on the European Data Portal, freely accessible by citizens and businesses.

Building Blocks integrated

eTranslation (translation of metadata in 24 EU official languages) eID (identification of users)

INEA currently supports seven projects under the Public Open Data DSI, which receive €3.6 million in CEF funding and involve 17 Member States.

5352

IRI FOR EUROPE

One of the projects is “IRI for Europe”. Its objective is to support five Member States (Germany, Italy, Romania, Croatia and France) in connecting to the European e-Justice Portal, in order to improve the information provided from the insolvency registers to the relevant debtors, creditors and courts involved, and to prevent the opening of parallel insolvency proceedings.

The interconnection of the national insolvency registers via the European e-Justice Portal will also facilitate access to that information for the relevant stakeholders domiciled or located in other Member States. The project will contribute to the creation of a single point of access to all insolvency information in the European Union and it will contribute to the further development of the European e-Justice portal to become the onestop-shop for all judicial information.


Member States involved Germany, Italy, Romania, Croatia and France

PROJECT EXAMPLE

Support to the efficient functioning of the judiciary

Over 10 million citizens are involved in cross-border judicial procedures each year. That means a far greater need for cooperation between different national judicial systems, and improved access to information on the judicial process in different European countries.

The European e-Justice Portal facilitates this cooperation by providing information and access to justice services across the EU. It works like a one-stop-shop for citizens, businesses and legal professionals across Europe. Whether a prosecutor in Amsterdam needs to connect with a judge in Luxembourg, or a Greek citizen needs to look for a lawyer in Ireland, the European e-Justice Portal provides a wealth of legal information and access to legal services.

Building Blocks integrated

eTranslation (translation of metadata in 24 EU official languages)

eID (identification of users)

eDelivery (transmission of documents)

eSignature (validation of electronic signatures)

EUROPEAN E-JUSTICE PORTAL

INEA currently supports seven projects under the European e-Justice DSI, which receive €3.1 million in CEF grant funding and involve 15 Member States.

5554

CEF

5756

€6.5 million

CEF Synergy Funding per country

Under the CEF, synergies between the three sectors are particularly encouraged in order to enhance the effectiveness of Union action and optimise implementing costs. The first CEF Synergy call including transport and energy was launched in 2016, with an indicative budget of €40 million, to support the deployment of sustainable and efficient transport and energy infrastructure through the creation of synergies and where the objectives of both sectors were met. The call supported studies only, with or without pilot deployment.

AT

BE

CY

DE

EL

HR

MT

NL

PL

SE

UK

€4.2

€0.9

€2.6

€1.0

€1.7

€1.0

€0.6

€6.5

€1.0

€1.8

€0.2



For the Transport sector this should lead to decarbonisation through transition to innovative low-carbon and energy-efficient transport technologies, while optimising safety.

For the Energy sector it should lead to increasing competitiveness by promoting the further integration of the internal energy market and the interoperability of electricity and gas networks across borders, by reducing or eliminating energy isolation, by increasing interconnectivity in electricity and by achieving price convergence between the energy markets.

5958

1.0 (1)

1.7 (2)

2.6 (1)

4.5 (1)

7.1 (1)

5.2 (1)

Railways

Maritime ports

Motorways of the Sea

Multimodal

Multimodal

Roads

SMART GRIDS

GAS

ELECTRICITY

Increasing efficiency

Examples of areas of synergy betweenTRANSPORT and ENERGY

Smart energy grids

Electricity transmission systems facilitating

the integration of electromobility

Joint use of facilities for compressed natural

gas (CNG), liquefied natural gas (LNG) for

energy purposes and for the use of alternative

fuels in mobility

Electricity and gas storage facilities

Intelligent transport systems

Joint rights of way or infrastructure coupling

CEF SYNERGY FUNDING PER ENERGY SECTOR and TRANSPORT MODE

€ million (number of projects)

Through this Synergy Call, the Commission awarded €22.1 million of CEF funding to seven study projects. In total beneficiaries from 11 Member States are involved.

The chart shows the CEF Synergy funding per combination of energy sector and transport mode.

Project example

Optimisation of electric traction power supply from transmission network for increasing energy efficiency

Along the TEN-T core network in Croatia, the project aims to increase the competitiveness and efficiency of the Croatian railway system in line with the smart grid approach developed under the SINCRO.GRID Project of Common Interest.

The project aims to analyse the electricity consumption, the impact of bidirectional power flows and the current state and impact of reactive power. A proposal for a new regulatory framework and payment model for the purchase of electricity will be developed. The pilot project includes the installation of bidirectional meters in Electric Traction Substations (ETS) and unidirectional meters in vehicles, the installation of a dynamic reactive power compensation facility and the development of associated IT systems in Croatia.

Beneficiary HŽ INFRASTRUKTURA

CEF Synergy funding €1 million

6160

Complementarity with research

CEF intends to build complementarities with the

HORIZON 2020 PROGRAMME.

Horizon 2020 is the largest ever EU research and innovation programme, with nearly €80 billion of

funding available over the 2014-2020 period.It couples research and innovation with excellence,

industrial leadership and tackling societal challenges. Horizon 2020 focuses on developing concepts, testing

and demonstrating.

CEF complements H2020 through projects deploying new ideas and concepts in real life

infrastructure across Europe.

TO ENSURE THESE COMPLEMENTARITIESINEA manages projects under both CEF and

Horizon 2020 (Transport and Energy).1-2 3-4 5-6 7-8 9

PROOF OF CONCEPT& VALIDATION

PRINCIPLES & FORMULATION VALIDATION INREAL ENVIRONMENT

PROTOTYPE DEMONSTRATION &

COMPLETION

PROVEN ANDOPERATIONAL

TRL TRL TRL TRL TRL

H O R I Z O N 2 0 2 0 C E F

BASIC RESEARCH APPLIED RESEARCH PROTOTYPE SCALE-UP PILOT DEMONSTRATION DEPLOYMENT

CEF and Horizon 2020WORKING TOGETHER

The complementarity between HORIZON 2020

and CONNECTING EUROPE FACILITY can best be described with the aid of TECHNOLOGY READINESS LEVELS

6362

BASIC RESEARCH APPLIED RESEARCH PROTOTYPE SCALE-UP PILOT DEMONSTRATION DEPLOYMENT

They can also be illustrated with the examples below, which show different projects, some running in parallel, tackling different phases of development of a new technology.

BUILDING BLOCKS H2020: SPICY

Battery technologiesCharging cycle, discharge rate, materials and integration

INTEGRATIONH2020: OPTEMUS

Optimisation of energy management and use in electric vehicles

VEHICLE/PILOTH2020: ESPRIT

New stackable urban electric vehicles

DEPLOYMENT

53 CEF Transport projects receiving €334.7 million will install 2,829 supply points, of which 2,383 are electricity supply points for road transport.

Electric Mobility for Cars

6564

CEF financial instruments and EFSI

Financial instruments support bankable projects by providing enhanced financing conditions. The CEF financial instruments are used to address specific market needs where there is insufficient private finance to support investment. As with grants, they are oriented to projects which have a clear European added-value, whilst optimising the use of the Union budget.

So far, the CEF Debt Instrument and its legacy instruments, the Europe 2020 Project Bonds Initiative (PBI) and the Loan Guarantee Instrument for TEN-T (LGTT) have mobilised €13.9 billion of additional investment in TEN-T, out of which around €4.5 billion since 2014. In the Energy sector, the Instrument aims to support the Projects of Common Interest by facilitating access to debt capital from lending institutions (including the European Investment Bank) and institutional investors. For CEF Telecom, under the Connected Communities Initiative, the Commission has called for expressions of interest from broadband projects to use financial instruments.

CEF’s financial instruments are loans, guarantees, EU-support

to project bonds, or dedicated equity funds.

TRANSPORT

47 operations contributing to transport objectives triggering a total €21 billion in related investment. This represents around 15% of the overall investment from the IIW.

ENERGY

87 operations contributing to energy objectives triggering a total € 49 billion in related investment. This represents around 33% of the overall investment from the IIW. Of these operations, € 2 billion relate to three projects of common interest under the TEN-E.

TELECOMMUNICATIONS

30 operations (17 in broadband and 13 in other digital projects) contributing to digital objectives triggering a total €10.6 billion in related investments. This represents around 7% of the overall investment from the IIW and includes an investment of €8.2 billion for broadband-related projects and €2.4 billion for other digital projects. The Connecting Europe Broadband Fund will be one of the two EFSI investment platforms with a full EU-28 coverage. Investments will be made in a minimum of 10 Member States and will target 20 Member States and aim at investing in at least five projects per year by 2021.

The EUROPEAN FUND FOR STRATEGIC INVESTMENTS (EFSI) was established in July 2015 - with a contribution of €2.8 billion transferred from the CEF budget to the EFSI guarantee (of which €2.2 billion from CEF Transport, € 0.5 billion from CEF Energy and €100 million from CEF Telecom). Although it has wider eligibility coverage than CEF, EFSI also finances TEN infrastructure projects from its Infrastructure and Innovation Window (IIW).

SO FAR, EFSI HAS SUPPORTED17

17 As of July 2017

6766

Riga Transport Company (€175 million) has been financed both under EFSI and under CEF and are also part of a new initiative, the Cleaner Transport Facility, which targets the deployment of alternative fuels in the transport sector.

The Romanian section of the gas transmission pipeline on the Bulgaria-Romania-Hungary-Austria Corridor has been financed under CEF with a grant of €179.3 million and has also received EFSI support of €100 million.

Project examples

The Green Shipping Guarantee Programme (GSGP) combines both the financial instruments component and EFSI. With a time-span of three years and a budget of €750 million, it aims at mobilising €3 billion of investment to equip vessels with clean technologies. The pilot phase of the programme, with an estimated budget of up to €250 million, is supported by the CEF Debt Instrument while the remaining budget, €500 million, will be supported by EFSI. To date, two framework agreements with commercial banks have been signed.

6968

Efficient programme implementation

The Innovation and Networks Executive Agency (INEA) manages the implementation of projects and certain Programme

Support Actions for the CEF in all three CEF sectors.

This has resulted in sound financial management, streamlined and harmonised procedures for the best use of EU funds and maximised programme efficiency, as well as increased visibility

of EU actions and promotion of the programme.

It has also enabled the

development of synergies and

economies of scale, and the

bringing of innovative ideas and

products to CEF implementation.

Integrated tools and services

are used across the programme,

from the technical and financial

implementation of the entire

project cycle to programme

reporting and reviews.

INEA: 3.5 YEARS OF MANAGING CEF – 10 YEARS OF EXPERIENCE IN PROGRAMME & PROJECT MANAGEMENT

Preparation & launch of the calls for

proposals

Evaluation & Selection

Preparation of the grant agreements

Technical & financial

follow-up of projects

Key feedback to the european

comission PROJ ECTLI FECYCLE

Single contact point for applicantsSignature of grant agreementsCommunication actions

Reception of proposalsEligibility and admissibility checkSelection of evaluatorsOrganisation of evaluationInformation to applicants

Preparation of call textOrganisation of Info DayCommunication actionsHelpdesk

Communication actionsPayments & recoveriesDay to day follow up of projectsAudits

Synergies between H2020 & CEFProject portfolio reviewsTailored reportsStatistics

Collaboration on Info DayCommunication activities

Final selection of projectsReporting to Member States

Definition & adoption of Work Programme (WP)Monitoring of the AgencyStakeholder consultationsDissemination of WP results

EC action(s)

EC action(s)EC action(s)

INEA action(s)

INEA action(s)INEA action(s)

INEA action(s)

INEA action(s)

7170

Benefits, simplifications and synergies for CEF implementation

INEA's website is the single point of access for all CEF funding opportunities and project data ensuring high-quality information on calls for proposals, maintaining a high transparency in the allocation of EU funds, providing individual project information, and promoting project results and achievements for increased visibility of CEF and other EU actions.

INEA has optimised evaluation procedures and expert management, including call documentation and customised IT tools which support beneficiaries from e-submission of their application to progress monitoring. This tool also gives shared data access for the CEF for INEA and the Commission.

Streamlined and harmonised procedures as well as applying best practice across the three CEF sectors have resulted in short payment times and fast response rates. 100% of the annual CEF budget is used, 100% of project proposers are informed of call results well within the agreed deadlines, 98% of grant agreements are signed within the legal timeframe, the time taken to pay the agreed funding to beneficiaries is almost half the maximum time specified, and 99.7% of the payments occur on time.

INEA also has harmonised services for Geographical Information Services (GIS). The production of maps and tools supports the evaluation of proposals, project implementation and decision making processes, as well as being used to enhance visibility of the geographical allocation of EU funds and implementation of the networks.

The Agency works in close partnership with all beneficiaries across the programme, providing guidance and technical support in project management and financial engineering, ensuring close monitoring of progress and sound financial management of projects, and disseminating best practice and innovative solutions to the relevant stakeholder communities.

A permanent dialogue is also maintained via workshops and working groups as well as a variety of communication channels.

PSAs have received €236 million

on a multi-annual basis. They

have contributed to enhancing

administrative capacity in

Member State administrations,

to coordinating stakeholders

implementing EU flagship

transport initiatives, to carrying

out TEN-T policy studies, to CEF

communication activities, and to

CEF IT support - i.e. TENtec.

PSAs are financed both in the area

� DSIs and broadband. In the DSI

area, they target mainly studies,

like �r instance the one exploring

long term sustainability � the

supported DSI. For broadband, the

PSAs have supported evaluation

and project reviews, studies

(including coverage, statistics,

benchmarking, retail and mobile

prices) as well as contributing to

the establishment � the Support

Facility � Broadband Technical

Assistance.

PSAs represent a limited

allocated portion � the total

budget, and have been used to

support studies commissioned

via public procurement �r

developing TEN-E corridors,

with the aim to achieve the

Programme's objectives.

CEF Transport CEF telecomCEF energy

Combining the CEF sectors in the Agency has created an enabling environment that allows a common understanding of the political priorities of the CEF programme and its implementation through projects, and the transfer of know-how back to the Commission. With statistical and reporting tools, INEA supports policy analysis and policy-making, as well as the dissemination of information on the programmes. INEA’s expertise and experience also allows an effective support to

the Commission in discussions with stakeholders. In addition, INEA contributes to the monitoring of energy PCIs by collecting information about their progress and develops and maintains, together with DG Energy and ACER, suitable tools to do so. The Agency contributes to the optimal use of EU funds by giving input to the mid-term review of the programme as well as to other project reviews.

Support to the European Commission

are policy support measures aiming to assist Member State administrations in implementing the CEF, and to facilitate specific policy measures through better stakeholder coordination and communication including exchanges of best practices and sharing of information and data.

Programme Support Actions (PSAs)

7372

Outlook 2017-2020

Up to 2020, the Commission will

continue to address policy challenges

such as energy security, decarbonisation

and market integration in energy and

transport, as well as interoperability

and cross-border availability of

online service infrastructures with the

assistance of the CEF. The remaining

CEF funds will be allocated via calls for

proposals, calls for tenders, financial

instruments and Programme Support

Actions, and an efficient management

of all CEF grants will be ensured in

cooperation with Member States and

other beneficiaries. Findings of the mid-

term evaluation will be integrated into

the work ahead during the remaining

years of the programme.

Outlook 2017-2020

In the Transport sector, the 2017 Blending Call is a precursor for combining CEF grants with private finance. After the first cut-off date (14 July 2017), 68 proposals were submitted with requested funding of €2.2 billion, more than double the budget available. The proposals submitted cover a broad geographical area and include the implementation of all Core Network Corridors. Among the proposals received, 25% would be implemented or partly implemented in the territory of at least one Cohesion Member State. A further CEF Transport call in the area of SESAR is scheduled for the autumn of 2017. Additional CEF Transport calls will be launched in 2018-2020.

In the Telecoms sector, all 2017 calls for proposal have already been launched – and a total budget of €77 million has been made available to support all building blocks and eight sector specific Digital Service Infrastructures. New initiatives are planned, with the CEF Equity instrument establishing the Connecting Europe Broadband Fund. Its target size is €500–600 million and it is estimated to unlock investments of up to €1.7 billion. The WiFi4EU initiative is also expected to be launched towards the end of 2017, to support installing free public Wi-Fi hotspots in around 6,000 to 8,000 local communities by 2020. European citizens will benefit from the WiFi4EU initiative which supports installing free public Wi-Fi hotspots in public squares, town halls, parks, libraries, and other public spaces. The WiFi4EU funding will be granted in a geographically balanced manner, so that high-speed connections can benefit both residents and visitors of local communities across the EU.

In the Energy sector, the 2017 Call for proposal has been launched with a budget of €800 million made available to support CEF Energy projects in the areas of electricity, smart grids and gas infrastructures. A new list of Projects of Common Interest (PCIs) will be adopted at the end of 2017, which will constitute the basis for eligibility of funding proposals under CEF Energy in the years 2018 and 2019. As the CEF Energy budget is back-loaded, the years up to 2020 will see substantial amounts dedicated to grants for projects in favour of both current and future PCIs. These will be increasingly in support of the electricity sector, allowing a better integration of the growing share of renewable energies as well as enabling the EU to reach the interconnection targets for 2020 and 2030.

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ContactInnovation and Networks Executive AgencyEuropean CommissionW910B-1049 Brussels, Belgium

http://ec.europa.eu/inea

[email protected]

@inea_eu

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