EU lawmakers back plans for priority energy projects, funding

London (Platts)--18Dec2012/626 am EST/1126 GMT


Members of the European Parliament's energy and transport committees have officially backed plans to grant swifter permitting and access to funding for priority pan-European energy infrastructure projects, the European Parliament's press office said Tuesday.

MEPs were voting on a compromise agreed in November with the European Commission and representatives of national governments on a draft regulation that would fast-track approvals for key projects and the associated Connecting Europe Facility, which proposes to earmark Eur9 billion ($11.86 billion) out of a total of Eur50 billion for energy projects between 2013 and 2020.

"This regulation sets forth a radically new approach to trans-European energy infrastructure projects. It is crucial to building a single energy market in Europe and achieving the '20-20-20 by 2020' goals, which will foster environmental sustainability, benefit European consumers, and create jobs and growth for companies and citizens," said Portuguese center left MEP Antonio Correia de Campos, who was the parliament's lead negotiator on the deal.

Faster permitting is only available for priority projects of common interest, described by the regulation as projects that are cross-border or benefit more than one EU member state. They would include oil and gas pipelines and power grids. A limited number would eligible for funding on the CEF.

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12 KEY CORRIDORS

The regulation defines 12 priority corridors for development of projects of common interest, which would benefit from getting permitting in place within a limit of 3.5-4.25 years instead of the current average of 10 years.

"Any selected project must be needed for at least one priority corridor or area listed in the regulation and must meet market integration, sustainability and security of supply criteria," the EP press service said.

Applications for special status are to be assessed by 12 regional regional expert groups, made up of member states, the European Commission, transmission system operators, and project promoters, with each regional group drawing up a regional list. A final decision on PCI status would be made by the EC and national governments.

The draft legislation still needs approval from a full sitting of parliament and EU national governments before entering into force, which is expected early next year.

--Paul Whitehead, paul_whitehead@platts.com
--Edited by Jonathan Fox, jonathan_fox@platts.com