Connecting Europe Facility (CEF) is an important financing instrument of the European Union in the implementation of European infrastructure and the green course, which contributes the achievement of EU decarbonization goals for 2030 and 2050. The CEF program supports the sustainable and interconnected European network in the energy, transportation and digital field.
The CEF programme supports and provides benefits for people in all European Member States by making travel easier and more sustainable, improving energy security and independence in Europe, with bigger use of renewable energy, and facilitating cross-border interactions between competent authorities, businesses and society.
Interconnected, modern, secure and smart energy infrastructure is essential for the implementation of the European green course, and development of European energy networks (TEN-E – Trans European Energy Network) is a key factor that will help to achieve the European Union's decarbonization goals in 2030 and 2050, with simultaneous promoting of industry and market integration, security of supply and competition.
The European energy networks policy, which is aimed of the energy infrastructure development in the EU countries to achieve the set goals, has played a significant role since 2013 with improving of cross-border energy infrastructure in Europe, addressing the needs of the energy infrastructure at the regional and European level, in accordance with the policy of the TEN-E Regulation, identified in the Regulation (EU) No 347/2013 of the European Parliament and of the Council of 17 April 2013 on guidelines for trans-European energy infrastructure. The mentioned Regulation was in force until June 22, 2022, and from May 30, 2022, it was replaced by a new TEN-E Regulation (EU) 2022/869 of the European Parliament and of the Council of 30 May 2022 on guidelines for trans-European energy infrastructure, where the new Regulation takes into account the goals and tendencies of the today's energy sector.
According to the requirements of the TEN-E Regulation, AST, as the transmission system operator (TSO) of electricity, with development of Latvian and European importance strategic projects, performs all necessary steps to receive CEF co-financing, i.e. projects inclusion in the European Ten Year Network Development Plan (https://tyndp.entsoe.eu/), then projects inclusion into the list of Project of Common Interest (PCI), according to the priority regional corridors and key sectors defined in Europe and approved by EU with special Regulation (https://energy.ec.europa .eu/topics/infrastructure/projects-common-interest_en). PCI project help EU to achieve identified short-term and long-term energy and climate goals.
AST develops own projects under the Baltic Electricity Market Interconnection Plan (BEMIP) electricity corridor. Only projects, included in the PCI list can be applied for CEF co-financing. Possible CEF co-financing for energy sector projects is from 50 till 75% and should be implemented in accordance with the European Parliament and Council Regulation, establishing the instrument for connecting Europe facility.
The CEF1 program was implemented from 2013 to 2021 in accordance with the Regulation (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010.
Whereas CEF2 program, which is a continuation of the CEF1 program, is implementing according to Regulation (EU) 2021/1153 of the European Parliament and of the Council of 7 July 2021 establishing the Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) No 283/2014 (https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32021R1153&qid=1734434626119).
The CEF2 program is valid for 2021-2027 period, where with energy budget of EUR 5.84 billion support the transition to clean energy system and complete the Energy Union by making the EU energy systems more interconnected, smarter, and more digitalised. The focus of the program is cross-border renewable energy projects, inter-network cooperation and better integration of the internal energy market.
Since 2013 AST implemented energy infrastructure projects with CEF support, when the first CEF program was approved and the first CEF call was announced in 2013. As a company responsible for the security and stability of electricity system, as well as for the development of the electricity transmission network and interconnections with neighbouring electricity systems, AST participates in the CEF-Energy program, with implementation of series of infrastructure projects of European and Latvian importance and several research studies.
Since 2013, with CEF co-financing, AST implemented such European importance projects as Kurzeme Ring, which was completed in 2019, the third Latvian-Estonian electricity interconnection – completed in 2020, Riga CHP-2 – Riga HPP 330kV line project – completed in 2020, as well as the Baltic synchronization projects with continental Europe, which are planned to be completed by 2025. Several studies also were prepared with CEF support, including Baltic TSOs technical and economical common studies, related to the synchronization project - more information is available here.