On 30 May 2022, the European Union (“EU”) adopted the revised Regulation on guidelines for trans-European energy infrastructure (No. 2022/869) (the “TEN-E Regulation 2022”), which replaces the previous rules laid down in Regulation No. 347/2013 (the “TEN-E Regulation 2013”) that aimed to improve security of supply, market integration, competition and sustainability in the energy sector. The TEN-E Regulation 2022 seeks to better support the modernisation of Europe’s cross-border energy infrastructures and the EU Green Deal objectives.

The three most important things you need to know about the TEN-E Regulation 2022:

  • Projects may qualify as Projects of Common Interest (“PCI”) and be selected on an EU list if (i) they fall within the identified priority corridors and (ii) help achieve EU’s overall energy and climate policy objectives in terms of security of supply and decarbonisation. The TEN-E Regulation 2022 updates its priority corridors to address the EU Green Deal objectives, while extending their scope to include projects connecting the EU with third countries, namely Projects of Mutual Interest (“PMI”).
  • PCIs and PMIs on the EU list must be given priority status to ensure rapid administrative and judicial treatment.
  • PCIs and PMIs will be eligible for EU financial assistance. Member States will also be able to grant financial support subject to State aid rules.

Background

The Trans-European Networks for Energy (“TEN-E”) is an EU policy that aims to achieve a more integrated internal energy market by linking the energy infrastructures between Member States and with third countries.

In order to pursue this objective, the TEN-E Regulation 2013 identified priority corridors across different geographic regions in the field of electricity, gas and oil infrastructure to strengthen cross-border interconnection and help integrate renewable energy. Member States then selected and implemented PCIs that fell within the designated “priority corridors”. The PCIs could then benefit from specific funding from the EU budget and from a fast track permitting procedure. This process helped most EU Member States to reach their 2020 interconnection targets and contributed to energy market integration and security of supply.

The revised TEN-E Regulation 2022 continues to work towards developing better connected energy networks while updating the TEN-E framework to focus on the latest environmental targets and ensuring consistency with the climate neutrality objectives set out in the EU Green Deal.

Towards a better integrated and greener EU energy market

The TEN-E Regulation 2022 reallocates and identifies 11 priority corridors with the purpose of meeting objectives to (i) reduce carbon emissions by 55% by 2030 and (ii) achieve carbon neutrality by 2050. The priority corridors focus on updated infrastructure categories such as offshore electricity grid corridors and renewable and low-carbon gases, e.g., hydrogen and electrolysers. Natural gas infrastructure and oil pipelines will no longer be eligible for PCI status. The TEN-E Regulation 2022 also identifies new priority thematic areas: (i) to adopt energy networks equipped with IT technology (“smart grids”) for electricity and gas, respectively, and (ii) to develop cross-border carbon dioxide networks.

Promotors of energy infrastructure projects may apply for PCI status to the regional priority corridors groups. PCI status may be obtained for projects focused on promoting greener and cleaner sources of energy such as offshore wind capacities and renewable / low carbon hydrogen (note that hydrogen may either be blended with other gas (e.g., natural gas or biomethane) or as a stand-alone source of energy). Under the TEN-E Regulation 2022, PCIs regarding smart (gas or electricity) grids and the transport and storage of carbon dioxide are also encouraged.

Additionally, the TEN-E Regulation 2022 extends the EU energy market boundaries to third countries by introducing a new cooperation mechanism for so-called Projects of Mutual Interest (“PMIs”). Similar to PCIs, they can be selected if they contribute to the EU’s overall energy and climate policy objectives in terms of security of supply and decarbonisation.

The European Commission will adopt a list of PCIs and PMIs every two years (the “EU list”), with the first EU list to be adopted by 30 November 2023.

The TEN-E Regulation 2022 also imposes a new obligation for all projects in the EU list. PCIs and PMIs must meet mandatory sustainability criteria and, in compliance with the “no significant harm” principle as per the EU Taxonomy Regulation, they must be implemented in a way that does not hinder the achievement of the environmental objectives.

“Fast track” administrative and judicial procedures for projects on the EU list

Member States must grant PCIs and PMIs the status of the highest national significance, which benefits from simplified administrative processes e.g., accelerated project implementation, shorter permitting procedures, and greater transparency and participation in consultations. To this end, Member States must designate a national competent authority responsible for facilitating and coordinating the permit granting process.

Litigation procedures involving any dispute on a project on the EU list must be treated as urgent.

Public funding

In order to meet the targets set out in the EU Green Deal, large amounts of investments and public funding will be required to develop the necessary energy infrastructure. For example, it is estimated to cost EUR 800 billion to increase the uptake of offshore renewable energy according to the EU Green Deal objectives, of which two thirds will be used for the associated grid infrastructure. A further estimated annual average investment of EUR 50.5 billion will be needed for electricity transmission and distribution grids to achieve the 2030 targets alone.

Accordingly, to assist with the significant costs, PCIs and PMIs on the EU list may be eligible for financial assistance:

  • Financial support under the Connecting Europe Facility (“CEF”). For the 2021-2027 period, the CEF programme (Regulation No. 2021/1153) has allocated EUR 5.84 billion of its budget to the energy sector (see our blog post on cross-border projects in the field of renewable energy). Promoters of projects identified in the EU list may submit to the European Climate, Infrastructure and Environment Executive Agency (“CINEA”) an application for financial support. Note that removal from the EU list does not affect any EU funding already granted, but may prevent future funding sought.
Tags: Climate Change, Energy, Environment, EU Green Deal, State Aid, TEN-E
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Photo of Johan Ysewyn Johan Ysewyn

Johan Ysewyn is widely recognised as one of Europe’s leading competition lawyers. As co-Chair of Covington’s Global Competition/Antitrust Practice, Johan brings over three decades of experience advising global corporates and financial institutions on their most complex and high-stakes competition and regulatory matters.

Clients…

Johan Ysewyn is widely recognised as one of Europe’s leading competition lawyers. As co-Chair of Covington’s Global Competition/Antitrust Practice, Johan brings over three decades of experience advising global corporates and financial institutions on their most complex and high-stakes competition and regulatory matters.

Clients turn to Johan for clear, strategic guidance on merger control, cartel and monopolisation investigations, and other antitrust enforcement actions. His approach is pragmatic and solution-driven, combining deep legal insight with a commercial understanding of his clients’ business.

Leading directories consistently highlight Johan’s exceptional skill and client service: Chambers Global describes him as “an exceptional lawyer who is solution-oriented, has a remarkable ability to rapidly understand our business and has excellent reactivity.” Who’s Who Legal praises his “energy and insight into cartel proceedings,” while Legal 500 calls him “one of the best European competition lawyers” with “a unique understanding of the EC and a very helpful network of connections across Brussels.”

Johan represents clients before competition authorities and courts around the world, leveraging his in-depth knowledge of regulatory processes and strong working relationships with key decision-makers, particularly within the European Commission’s DG COMP, who designated him as one of their Non-Governmental Advisors to the International Competition Network. His advisory practice spans the evolving intersections of competition law with ESG, digital markets, and strategic compliance.  His experience covers a wide range of sectors, including telecommunications, technology, media, financial services, healthcare, consumer goods, retail, energy, and transport.

Johan has extensive experience in global merger control, having advised on numerous complex, cross-border transactions requiring coordination across multiple jurisdictions. His recent merger work includes representing Discovery in its landmark acquisition of Warner Bros. and advising Illumina on its acquisition of Grail—both recognised as award-winning deals in the competition community. Johan’s merger practice spans a wide range of sectors, from media and technology to healthcare and energy, and he is known for navigating the most challenging regulatory reviews with strategic foresight and precision.

Renowned for his expertise in global cartel enforcement, Johan has represented immunity applicants and defendants in major cases involving industries such as financial services, consumer goods, pharmaceuticals, chemicals, and energy. He also advised the European Payments Council in the first European Commission investigation into standardisation agreements in the e-payments sector. A recognised thought leader, Johan co-authors the European Cartel Digest and lectures on cartel law and economics at the Brussels School of Competition.

In addition, Johan is one of Europe’s foremost practitioners in EU State aid law, advising both governments and beneficiaries. His experience includes landmark cases involving leading banks and airlines such as Fortis, KBC, Dexia, Arco, Citadele, airBaltic, and Riga Airport.

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Photo of Carole Maczkovics Carole Maczkovics

Carole Maczkovics is a market leader in State aid law, with a robust background in the economic regulation of network industries (energy and transport) and in public contracting (EU subsidies, public procurement, concessions).

Carole has a proven track record of advising public and…

Carole Maczkovics is a market leader in State aid law, with a robust background in the economic regulation of network industries (energy and transport) and in public contracting (EU subsidies, public procurement, concessions).

Carole has a proven track record of advising public and private entities in administrative and judicial proceedings on complex State aid and regulatory matters before the European Commission as well as before the Belgian and European courts. She also advises clients on the application of the EU Foreign Subsidy Regulation (FSR) and UK subsidy control regime.

Carole has published many articles on State aid law and on the FSR, and contributes to conferences and seminars on a regular basis. She is a professor at the Brussels School of Competition on the application of regulation and competition law (including State aid) in the railway sector. Carole further gives lectures to King’s College London LLM students and trainings on State aid law at EFE, in Paris. She also acts as Academic Director of the European State aid Law Institute (EStALI).

Recognized as a leading EU State aid practitioner by Chambers Europe, and as Thought Leader in Lexology Index: Competition – State aid, Carole is praised by clients as being “really knowledgeable, approachable and very structured,” and having “in-depth knowledge and experience in state aid matters.”

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