Brussels green lights billions in energy investment

The European clean tech sector was celebrating this week after the European parliament voted through plans to invest €5bn (£3.32bn) in new energy infrastructure and broadband development projects as part of the EU's economic recovery plan.

Under the proposals, each of which was passed on Wednesday with a substantial majority, €5bn will be distributed before the end of next year with €3.98bn earmarked for investment in gas and electricity infrastructure, offshore wind parks and carbon capture and storage (CCS) projects.

Parliament also approved plans to invest €1.02bn in rural development, primarily through increased roll out of broadband infrastructure and reform of the Common Agricultural Policy.

More than €2.3bn of the funding has been earmarked for the development of a new European super-grid and improved gas infrastructure designed to better support renewable energy technologies and limit Europe's exposure to fluctuating gas prices.

Meanwhile, €565m will be made available to offshore wind energy projects in the North and Baltic seas and a further €1.05bn will be used to fund carbon capture and storage projects.

Under the rules agreed by MEPs, the recovery package will bear up to half the cost of offshore wind and energy infrastructure projects and up to 80 per cent of CCS projects.

MEPs also agreed with the European Council that the distribution of the funds will be monitored by the European Commission and if by March next year there are "serious risks in implementing the priority projects" then unspent investment will be diverted for additional energy efficiency and renewable energy projects.

The recovery package was welcomed by Christian Kjaer, chief executive of the European Wind Energy Association (EWEA), who hailed it as "a real boost to the burgeoning offshore wind sector".

“By including offshore wind and electricity grids in the plan, EU decision-makers have chosen the right areas to make a real difference long term”, he said. He added that the plans for a cross-border super-grid would not only help accelerate wind energy projects, but also improve the resilience of European power supplies and help drive down energy prices in the long term.