European Commission: Political agreement reached on revised TEN-E rules for cross-border energy infrastructure

New EU rules for cross-border energy infrastructure and future Projects of Common Interest (PCIs) have been agreed in principle, following the political agreement reached by Council, European Parliament and Commission negotiators at their trilogue meeting last night. Based on the Commission proposal for renewing the Trans-European network for Energy (TEN-E) Regulation, tabled in December 2020, the agreement backs the main thrust of the Commission approach, namely to modernise the existing regulation (which dates back to 2013) and to fully align it with the Green Deal objectives.

Key elements of the political agreement include a strengthened framework for the cross-border cooperation to accelerate the implementation of offshore grids as key element of the energy transition, a strengthened focus on infrastructure categories such as smart electricity grids, a widened scope to include hydrogen networks as well as a mandatory sustainability assessment for all eligible projects. Another change is new provisions on support for projects connecting the EU with third countries, called Projects of Mutual Interest (PMIs), that contribute to the EU’s energy and climate objectives in terms of security of supply and decarbonisation acknowledging their increasing role in the energy transition.

While the political agreement accepts the general principle that the regulation should no longer provide support for fossil fuel infrastructure, as proposed by the Commission, the co-legislators agreed to allow for blending projects during a transitional period that will end in 2029.

The new rules also foresee a revised governance framework to enhance the infrastructure planning process and ensure it is aligned with our climate goals and energy system integration principles, through increased stakeholder involvement throughout the process, a reinforced role of the EU Agency for the Cooperation of Energy Regulators (ACER) and improved oversight by the Commission. Furthermore, measures aim to simplify administrative procedures, accelerating project implementation, shortening permitting procedures for PCIs to avoid delays in projects that facilitate the energy transition, and strengthening transparency and participation in consultations.

Following last night’s political agreement, the text must now be approved by the Council and the European Parliament before it is formally adopted. It will be the first piece of new energy legislation agreed under the Von der Leyen Commission. These will therefore be the rules that apply when it comes to the Commission drawing up the 6th PCI list, due for publication in autumn 2023.