Electricity, Gas, Smart Grids, Hydrogen and CO₂ networks - Works

The CEF-E-2025-PCI-PMI-WORKS call, part of the Connecting Europe Facility (CEF), offers €600 million in grants aimed at financing energy infrastructure projects that contribute to the European Green Deal, the Paris Agreement, and the EU's 2030 climate and energy targets. This call is focused on Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) in the energy sector, including areas like electricity, gas, smart grids, hydrogen, and carbon dioxide networks.

Eligible applicants include entities involved in these projects, such as project promoters, transmission system operators, and public-private partnerships, with a requirement that projects must be listed in the Union's PCI/PMI list. The program emphasizes cross-border collaboration, suggesting that a consortium is often implied, although not strictly mandatory.

The funding is structured as a non-repayable grant, covering up to 50% of costs for studies and 75% for construction works. Applications can come from EU member states, EEA countries, candidate countries, and potentially neighboring non-EU countries if they comply with EU law. This is an open call with a single-stage submission process, and the deadline for applications is September 16, 2025.

While specific countries are not listed, the projects must fit within the PCI/PMI framework, and proposed initiatives must demonstrate significant socio-economic benefits and address issues like supply security and system flexibility. The application process involves demonstrating positive externalities and includes specific criteria for projects that might be eligible under derogations outlined in EU regulations.

The call emphasizes the importance of addressing climate and energy challenges, aiming to enhance energy integration and promote cooperation among member states, especially those lacking adequate market financing. This represents a substantial opportunity for stakeholders in the energy sector to obtain support for critical infrastructure projects that align with European sustainability goals.

The CEF-E-2025-PCI-PMI-WORKS call, part of the CEF 2027 program, aims to finance projects contributing to the European Green Deal, the Paris Agreement, and the EU's 2030 climate and energy targets by supporting energy infrastructure Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs). The call is open for submission with a deadline of September 16, 2025. The total budget allocated for this call is 600,000,000 EUR.

The call seeks to further integrate an efficient and competitive internal energy market, enhance interoperability of networks across borders and sectors, facilitate decarbonisation, promote energy efficiency, and ensure security of supply. It targets energy infrastructure PCIs and PMIs that offer significant socio-economic benefits and promote solidarity among Member States but lack adequate market financing.

Eligible projects are those contributing to the implementation of a PCI or PMI, encompassing the purchase, supply, deployment of components, systems, services including software, development, construction, installation activities, acceptance of installations, and launching of projects. Specific provisions apply concerning positive externalities, cross-border cost allocation decisions, and the project's financial viability.

Only projects listed in the First Union list of PCIs and PMIs are eligible for grants. Projects falling under Article 24 of the TEN-E Regulation (Cyprus and Malta derogation) and Annex II, point (1)(a), (b), (c), (d) and (f) (electricity projects, except smart electricity grids and electricity storage projects that are not regulated) and point (3) (hydrogen projects), are eligible if they demonstrate significant positive externalities, have a cross-border cost allocation decision, and cannot be financed by the market. Projects falling under Annex II, point (1)(e) (smart electricity grids) and points (2) (smart gas grids) and (5) (carbon dioxide projects), must demonstrate significant positive externalities and lack of commercial viability.

For projects under Article 24 of the TEN-E Regulation, interconnections must ensure access to future energy markets, including hydrogen, avoid prolonging the lifetime of natural gas assets, and ensure interoperability of neighboring networks. Any request for Union financial assistance for works shall clearly demonstrate the aim to convert the asset into a dedicated hydrogen asset by 2036 if market conditions allow, by means of a roadmap with a precise timeline.

Applicants must provide legally valid supporting documents demonstrating the existence of significant positive externalities, cross-border services, technological innovation, safety of cross-border grid operation, or lack of commercial viability.

The call document, application form, detailed budget table, timetable/Gantt chart, environmental compliance file, letter of support, TEN-E compliance form, CEF MGA, GIS User Guide, Work Programme 2021-2027 (CEF-E), CEF Regulation 2021/1153, EU Financial Regulation 2024/2509 and TEN-E Regulation (EU) 2022/869 are essential documents for applicants.

The call also provides contact information for help and IT support, as well as links to the Funding & Tenders Portal FAQ and Online Manual.

The call templates for both topics CEF-E-2025-PCI-PMI-WORKS and CEF-E-2025-PCI-PMI-STUDIES were updated in the submission portal on 15 May 2025, with revisions to the Application Form Part B, TEN-E Compliance Form, and Business Plan Financial Spreadsheet.

In summary, this call for proposals represents a significant opportunity for projects that contribute to the development and implementation of PCIs and PMIs in the energy sector, aligning with the EU's broader climate and energy objectives. It emphasizes the importance of projects that not only enhance energy infrastructure but also demonstrate positive externalities, cross-border collaboration, and a commitment to decarbonisation and future energy markets, particularly hydrogen. Applicants should carefully review all eligibility criteria and required documentation to ensure their proposals are complete and compliant.

Eligible Applicant Types: The eligible applicant types are not explicitly defined in the provided text. However, based on the context of energy infrastructure projects, eligible applicants could include project promoters, transmission system operators (TSOs), national regulatory authorities, and other entities involved in the development and implementation of Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs). The text mentions LEARs, Account Administrators, and self-registrants, suggesting a broad range of organizations can apply.

Funding Type: The primary financial mechanism is a grant. The call specifically mentions "EU financial aid in the form of grants" and "CEF Action Grant Budget-Based [CEF-AG]".

Consortium Requirement: The text does not explicitly state whether a consortium is required. However, it mentions "multi-applicant projects" and the need for a "Consortium set-up" section in the application, suggesting that consortia are possible and perhaps encouraged, but not necessarily mandatory. The text also mentions that a single application may be submitted in relation to two PCIs/PMIs in the same cluster, with all relevant project promoters listed as applicants.

Beneficiary Scope (Geographic Eligibility): The geographic eligibility appears to be focused on EU Member States, as the call aims to support projects contributing to the EU's energy policy objectives and the European Green Deal. The text refers to the TEN-E Regulation and mentions specific derogations for Cyprus and Malta. While the primary focus is on EU Member States, there is a mention of projects taking place physically in a Member State and in a third country, suggesting that projects involving non-EU countries might be eligible under certain conditions, provided they comply with EU law within the EU Member State.

Target Sector: The program targets the energy sector, specifically focusing on energy infrastructure, trans-European networks in energy, electricity, gas, smart grids, hydrogen, and carbon dioxide networks. The call aims to support projects contributing to the European Green Deal, decarbonization, energy efficiency, and security of supply.

Mentioned Countries: Cyprus, Malta.

Project Stage: The project stage is primarily focused on implementation and works. The call refers to "projects for works contributing to the implementation of a PCI or a PMI." This suggests that the projects should be at a development stage where construction, deployment, and installation activities are ready to commence. However, the call also mentions "CEF-E-2025-PCI-PMI-STUDIES," indicating that studies are also within the scope of the call.

Funding Amount: The total budget for the call is EUR 600,000,000. The indicative number of grants is not specified, so the funding amount per project is variable.

Application Type: The application type is an open call, as indicated by "Open For Submission." The call is a single-stage submission.

Nature of Support: The beneficiaries will receive money in the form of grants.

Application Stages: The application process is a single-stage process.

Success Rates: The success rates are not mentioned in the provided text.

Co-funding Requirement: Co-funding is required. The text mentions that "Specific co-funding rates may also apply according to the level of demonstrated positive externalities of the action." Also, the funding rate may be increased to a maximum of 75% for Actions contributing to the decarbonisation.

Summary:

This is a call for proposals under the CEF (Connecting Europe Facility) Energy program, specifically targeting Projects of Common Interest (PCIs) and Projects of Mutual Interest (PMIs) in the energy sector. The call, titled CEF-E-2025-PCI-PMI-WORKS, aims to finance projects that contribute to the European Green Deal, the Paris Agreement, and the EU's 2030 climate and energy targets. The primary objective is to support the implementation of energy infrastructure PCIs and PMIs that have significant socio-economic benefits and ensure greater solidarity among Member States, particularly those that do not receive adequate financing from the market.

The call focuses on projects involving works, including the purchase, supply, deployment, construction, and installation of components, systems, services, and software related to eligible infrastructure items of a given PCI or PMI. Eligible projects include those related to electricity, gas, smart grids, hydrogen, and carbon dioxide networks.

Applicants must demonstrate that their projects contribute to positive externalities, such as security of supply, system flexibility, solidarity, or innovation, and that they cannot be financed by the market or through the regulatory framework. Specific provisions apply to projects in Cyprus and Malta.

The total budget for the call is EUR 600 million. The application process is a single-stage submission, with a deadline of September 16, 2025. The call is open for submission, and applicants are encouraged to use the updated call templates available on the submission portal.