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Home Home - Projects
Hydrogen

EU Allocates €600 Million to Cross-Border Energy Projects Under Revised TEN-E Framework

Anela DoksoBy Anela Dokso03/04/20252 Mins Read
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The European Union’s Climate, Infrastructure, and Environment Executive Agency (CINEA) has launched a €600 million funding call for cross-border energy infrastructure projects, targeting initiatives listed under the revised Trans-European Networks for Energy (TEN-E) Regulation.

Open until September 16, 2025, the call supports electricity, smart grids, hydrogen, CO₂ transport, and offshore projects under the PCI/PMI framework. While the funding aligns with the EU’s €5.84 billion Connecting Europe Facility (CEF) Energy budget (2021–2027), the allocation represents just 10% of the total envelope, prompting concerns about diluted impact. Hydrogen and CO₂ networks—critical for the REPowerEU plan’s 20 million-ton green hydrogen target—receive explicit focus, but industry analysts note persistent hurdles: only 15% of EU hydrogen projects have reached Final Investment Decision (FID), per Hydrogen Europe’s 2024 report.

PCIs and PMIs benefit from accelerated permitting under TEN-E, theoretically shortening approval timelines to 3.5 years. However, a 2023 European Court of Auditors review found that 60% of PCI energy projects since 2013 missed completion deadlines, citing complex stakeholder negotiations and supply chain delays. The new call’s inclusion of “works” and “studies” funding—split into two streams (CEF-E-2025-PCI-PMI-WORKS and STUDIES)—aims to address pre-construction barriers. Yet, with average CEF grant covers just 20–30% of project costs, developers face significant co-financing gaps.

Hydrogen infrastructure, prioritized in 35% of 2023 PCI projects, remains nascent. Electrolyser deployment lags at 1.2 GW operational EU-wide, far below the 40 GW by 2030 target. CO₂ networks, meanwhile, grapple with regulatory fragmentation: only Denmark and the Netherlands have finalized cross-border transport agreements.

While smart grid projects qualify for funding, Europe’s distribution networks require €584 billion in investments by 2030 to integrate renewables, per ENTSO-E. Offshore wind, though prioritized, faces cable shortages and turbine supply delays—issues unaddressed by the call’s broad eligibility criteria.

A virtual info day on May 22, 2025, will clarify application processes, but sector experts stress the need for tighter alignment with national recovery plans. Spain’s recent €2.2 billion hydrogen pipeline pledge and Germany’s carbon capture strategy illustrate fragmented progress, underscoring risks of overlapping priorities.


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