The European Commission is allocating nearly EUR 650m to help finance 14 cross-border energy infrastructure projects intended to strengthen the EU’s energy security and increase the integration of renewable energy.
This is the second call for proposals under the first PCI/PMI list. For the first time, CEF funding will be used to support the protection of critical energy infrastructure and to fund work projects on hydrogen, demonstrating the increasing maturity of the sector.
The grants are from the EU’s Connecting Europe Facility (CEF). As emphasised in the recently adopted European Grids Package, improved interconnectivity is seen as crucial for the EU to reduce energy prices for consumers and industry and to ensure energy independence.
“A strong and independent Energy Union which delivers clean and cheap energy to consumers must be built on integrated and safe energy infrastructure,” said energy Commissioner Dan Jørgensen: “The projects we are supporting financially will enhance Europe’s competitiveness and energy security, bringing us on a steady pathway towards independence.”
Selected projects
Overall, the funding is allocated for 6 electricity infrastructure projects including smart electricity grids and for 8 hydrogen infrastructure projects.
Nearly €470 million of the funding is earmarked for the 6 electricity projects including smart electricity grids. The largest grant, of €180 million, will support the AGUAYO II project for the construction of a reversible pumped-storage hydroelectric powerplant in Spain. The plant combines improved efficiency in energy generation from renewables with an underground installation, without the need to expand existing water reservoirs used by the plant, therefore having no impact on the environment.
Almost €113 million will help increase the resilience and protection of critical energy infrastructure from physical, cyber and other threats in Poland, Estonia, Latvia and Lithuania in the framework of the Baltic Synchronisation. This is the first time that the CEF finances resilience and protection measures of critical energy infrastructure on such scale, enhancing the capacity of the EU energy system to respond to new challenges.
The modernisation of the Čierný Váh facility in Slovakia, among the first in Europe to combine traditional pumped hydro storage with battery storage on such a scale, is also supported with a €63 million contribution.
Another grant for construction works of almost €104 million will go to a smart grids project between Bulgaria and Romania. The transmission and distribution networks will be modernised and digitalised to improve efficiency and enable secure electricity flows from renewable generation.
The other 2 electricity projects – one on an internal link in Austria, the other for a connection from Greece and Egypt – will receive grants for support studies.
To help the uptake of the growing hydrogen market and to decarbonise the EU industry, more than €176 million will be dedicated to boost hydrogen infrastructure. The grant of €120 million for the hydrogen storage in Gronau project in Germany marks the first time CEF funding will be used for a works project for hydrogen. By helping to develop the first large-scale, cross-border underground hydrogen storage facility in northwestern Europe, the project will strengthen the security of energy supply, enable market integration, and facilitate the large-scale integration of renewable hydrogen. Other projects in Austria, Bulgaria, France, Germany, the Netherlands and Slovakia will receive grants to support studies.
List of proposals selected for grants in the field of the trans-European energy infrastructure under the Connecting Europe Facility following the call for proposals launched on 3 April 2025.
| Reference | Title of proposal | Max EU funding (in € million) |
| Electricity / Smart Grids | ||
| Spain (works) | Construction of the Reversable Pumped-Storage Hydroelectric Power Plant AGUAYO II | 180.03 |
| Poland, Estonia, Latvia, Lithuania (works) | Baltic Cooperation in Critical Synchronisation Infrastructure Protection | 112.58 |
| Romania-Bulgaria (works) | CARMEN: Smart Grids Increasing RES and Interconnectivity in the SEE Region | 103.69 |
| Slovakia (works) | Modernization of hydro pumped storage of Čierný Váh | 62.63 |
| Greece-Egypt (study) | GREGY Green Energy Interconnector | 9.56 |
| Austria (study) | Internal line between Westtirol – Zell/Ziller | 1.02 |
| Hydrogen | ||
| Germany (works) | Hydrogen Storage Gronau-Epe RWE | 120.11 |
| Netherlands (study) | ACE Terminal | 25.62 |
| Germany (study) | Uniper Green Wilhelmshaven Terminal | 10.63 |
| France (study) | ||
The formal adoption of the award decision will follow in the coming weeks. The European Climate, Infrastructure and Environment Executive Agency (CINEA) will then prepare grant agreements with the beneficiaries. The next CEF call for proposals for energy infrastructure is planned for the second quarter of 2026.
