COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 22.04.1998 
COM(1998) 244 final 
COMMUNICATION FROM THE COMMISSION 
TO THE COUNCIL AND THE EUROPEAN PARLIAMENT 
FINANCIAL ASSISTANCE BY THE 
EUROPEAN COMMUNITIES TO THE 
ENERGY SECTOR FROM 1995 TO 1997 

FINANCIAL ASSISTANCE BY THE 
EUROPEAN COMMUNITIES TO THE ENERGY SECTOR FROM 1995 TO 1997 
CONTENTS 
1. INTRODUCTION 
2. SUMMARY 
- Recapitulative table 
- Grants 
- Loans 
- Guarantees 
- Financial assistance to non-EU countries p. 3 
p. 4 
CHAPTER A : 
CHAPTERS: 
CHAPTER C : 
CHAPTER D : 
CHAPTER E: 
CHAPTER F: 
CHAPTER G: 
CHAPTER H; 
CHAPTER I; Financing of energy policy p. 7 
Trans-European energy networks p. 9 
Energy research and development p. 10 
Structural funds p. 14 
Financial instruments for international p. 16 
cooperation 
ECSC grants to the coal industry p. 18 
Effi loans p. 20 
ECSC and Euratom loans p. 22 
EEF guarantees p. 24 
2/24 
INTRODUCTION 
The European Communities have substantial financial instruments to support measures to 
implement their common policies. 
By virtue of the strategic role played by energy in attainment of several of its fundamental 
objectives, particularly on economic growth, greater cohesion, quality of life and relations 
with non-EU countries, the European Communities have been and still are drawing on 
their financial instruments to promote action and projects in the energy sector. 
Hitherto the energy policy issues emphasised by the European Union and shaping its 
financial support for the energy sector have been: 
- management of external dependence and security of energy supplies; 
- completion of the internal energy markets in order to increase competitiveness; 
- development of energy networks across frontiers and in under-equipped regions; 
- the compatibility of energy and environmental objectives for sustainable development; 
- the development of energy technology and research. 
This Communication on financial assistance for the period 1995 to 1997 is a contribution 
to the efforts to foster openness initiated by the Communication entitled "An overall view 
of energy policy and actions"/0 It also contributes to the discussions in progress on the 
proposal for a Council Decision adopting a "multiannual framework programme for 
actions in the energy sector (1998-2002) and connected measures.(I) In addition, it 
highlights the importance of energy in the assistance provided through the horizontal 
financial instruments and funds. 
(,) COM(97) 167 final of 23.4.1997. 
^ COM(97) 550 final of 18.11.1997. 
3/24 
SUMMARY 
1. This Communication sets out for information purposes all the figures for financial 
assistance from the European Communities to the energy sector from 1995 to 
1997. This assistance can take the form either of aid (non-reimbursable grants), 
Community contributions to projects of Community interest, loans, or guarantees, 
and can come from the following sources, depending on the case in point: 
- financial instruments specifically for the energy sector, for example the SAVE,(3) 
ALTENER,(4) SYNERGY,(5) and trans-European energy networks 
programmes/*0 and the ECSC grants to the coal industry; 
- financial instruments specifically for other internal policies but including energy 
measures, such as the JOULE-THERMIE programme^ under the framework 
research and development programme; 
- general financial instruments such as the Structural Funds or the European 
Investment Bank with a range of activities including support foi development 
work and investment in the energy sector; 
- financial instruments specifically for international cooperation and including 
energy measures, such as the PHARE(8) and TACIS(9) programmes or the EDF. 
2. The table below shows the amounts of financial assistance provided by the various 
instruments. 
(ECU million) 
FINANCIAL INSTRUMENTS 
I. GRANTS 
A. Financing of energy policy 
B Trans-European energy networks 
C. Energy research and development 
D. Structural Funds 
E. Financial instruments for international 
cooperation 
F. ECSC grants to the coal industry 
n. LOANS 
G. EEB loans 
H. ECSC and Euratom loans 
HL GUARANTEES 
I. EIF guarantees 1995 
1848.6 
41.7 
12.2 
775.6 
500.0 
393.2 
125.9 
3100.8 
3083.0 
17.8 
11.9 
11.9 1996 
1393.3 
37.8 
8.9 
524.1 
500.0 
245.0 
77.5 
4957.2 
4945.0 
12.2 
270.2 
270.2 1997 
1414.7 
36.8 
24.2 
580.1 
500.0 
184.8 
88.4 
2171.0 
2090.4 
80.6 
3.7 
3.7 TOTAL 
4656.6 
116.3 
45.3 
1879.8 
1500.0 
823.0 
291.8 
10229.0 
10118.4 
110.6 
285.8 
285.8 
(3) 
(4) 
(5) 
(6) 
o 
<•> 96/737/EC: Council Decision of 16 December 1996 (OJ No L 335 of 24.12.1996). 
93/500/EC: Council Decision of 13 September 1993 (OJ No L 235 of 18.9.1993). 
Council Regulation (EC) No 701/97 of 14 April 1997 (OJ No L 104 of 22.4.1997). 
Council Regulation (EC) No 2236/95 of 18 September 1995 (OJ No L 228 of 23.9.1995). 
94/806/EC: Council Decision of 23 November 1994 (OJ No L 334 of 22.12.1994). 
Council Regulation (EEC) No 3906/89 of 18 December 1989 (OJ No L 375 of 23.12.1989). 
Council Regulation (EURATOM,EC) No 1279/96 of 25 June 1996 (OJ No L 165 of 4.7.1996). 
4/24 
3. Community grants to the energy sector come from the general budget and from 
the ECSC budget. 
hi the general budget, the energy section of the R&D framework programme, 
including the JOULE-THERMIE programme and the Structural Funds, are the 
biggest headings of relevance to energy. 
The ECSC budget finances measures in the coal industry, in particular for the 
redeployment of workers, interest-rate subsidies for industrial restructuring and 
research programmes in the sector. 
Community grants and contributions to the energy sector totalled ECU 4 656.6 
million in the report period (1995-1997). Of this total, 93.7 %, or ECU 4 364.8 
million, came from the general budget. 
4. Almost all the loans from the financial instruments of the European Communities 
to energy projects come from the European Investment Bank (EBB). Total lending 
over the report period stood at ECU 10 229 million, of which 
ECU 10 118.4 million was from the EIB and ECU 110.6 million from the ECSC. 
5. The financial instrument which can guarantee energy loans is the European 
Investment Fund (EIF). 
Over the report period, the EIF guaranteed a total of ECU 285.8 million. 
6. The European Union also grants financial assistance to non-EU countries as part 
of its international cooperation policy. 
The table below summarises assistance given outside the European Union, as a 
proportion of all energy assistance. 
(ECU million) 
FINANCIAL INSTRUMENTS 1 TOTAL 
L Grants 4656.6 
amount to non-EU countries 823.0 
proportion 17.7 % 
II. Loans 10229.0 
amount to non-EU countries 1986.0 
proportion 19.4 % 
III. Guarantees 285.8 
amount to non-EU countries 182.0 
proportion 63.7 % 
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7. Details of the breakdown of Community grants, loans and guarantees for energy 
from 1995 to 1997 from the different sources are given in the following nine 
chapters: 
A. Financing of energy policy 
B. Trans-European energy networks 
C. Energy research and development 
D. Structural Funds 
E. Financial instruments for international cooperation 
F. ECSC grants to the coal industry 
G. E1B loans 
H. ECSC and Euratom loans 
I. ELF guarantees 
6/24 
A. FINANCING OF ENERGY POLICY 
The following table shows the amounts committed from 1995 to 1997 for the 
various energy policy measures. 
(in ECU million) 
PROGRAMMES / ACTIONS 
SAVE 
ALTENER 
SYNERGY 
Observatory 
Regional energy planningl ; 
Other measures 
TOTAL 1995 
7.20 
13.17 
13.77 
2.06 
5.50 
-
41.70 1996 
15.00 
10.00 
9.00 
1.77 
* 
2.00 
37.77 1997 
17.91 
8.92 
6.86 
2.15 
-
0.99 
36.83 
The SAVE II programme, designed primarily to improve energy efficiency, was 
given an indicative budget of ECU 45 million for 1996-2000. In 1996 regional 
energy planning was made an integral part of the SAVE II programme, which was 
given the title "Regional and urban energy management". A total of 
ECU 5.2 million was committed under this heading in 1996, and ECU 5.7 million 
in 1997. 
The ALTENER programme to promote renewable energy sources has a budget of 
ECU 46.4 million for 1993-1997. 
(l0) Programming was made an integral part of the SAVE II programme in 1996. 
7/24 
SYNERGY is an international cooperation programme concerned exclusively with 
the energy sector and, more specifically, with helping non-EU countries to 
formulate and implement their energy policies. 
The breakdown of the support granted from 1995 to 1997 in the main world 
regions was as follows: 
Breakdown of SYNERGY funding bv region 
General 
CEEC 
CIS 
Mediterranean 
Asia 
Latin America 
Africa 
Several regions 
TOTAL 1995 
242 
4820 
2666 
2520 
1131 
1040 
-
573 
12992 % 
1.9 
37.1 
20.5 
19.4 
8.7 
8.0 
-
4.4 
100.0 1996 
634 
2146 
742 
1437 
1730 
1168 
224 
889 
8970 % 
7.1 
23.9 
8.3 
16.0 
19.3 
13.0 
2.5 
9.9 
100.0 (in 
1997 
950 
622 
1266 
1079 
1047 
948 
209 
739 
6860 '000 ECU) 
% 
13.6 
8.5 
18.2 
15.5 
15.0 
13.3 
3.0 
10.6 
100.0 
Note : The heading "Several regions" concerns operations in the Black Sea area bringing together 
countries belonging mainly to the CEEC, CIS and Mediterranean regions. 
5. The European Energy Observatory was set up in 1995 and is designed to: 
- monitor energy markets, trends, developments and outlooks in terms of the 
supply, demand and prices of the various energy sources; 
- evaluate and disseminate any information on these areas; 
- develop a Community method of analysis; 
- establish special networks on the interaction of the energy sector with all the 
other scientific, economic and social activities. 
Its allocation from 1995 to 1997 was ECU 5.98 million. 
6. Euratom funds activities relating to the transport of radioactive materials. A total 
of ECU 2 million were committed in 1996 and ECU 0.7 million in 1997 (see 
"Other measures" in the Table in point A. 1.). 
7. On 18 November 1997 the European Commission adopted a proposal for a 
Council Decision which proposes to bring together in a single, multiannual 
framework programme all Community actions and programmes to do with energy 
policy in the years 1998 to 2002, which will make it possible to improve the 
transparency, effectiveness and coordination of EU energy policy activities. 
8/24 
B. TRANS-EUROPEAN ENERGY NETWORKS 
1. The TEN programme has been given an indicative budget of ECU 112 million for 
1995-99. It is designed to help establish and develop trans-European energy 
networks, helping to interconnect national networks and make them interoperable, 
and to provide access to these networks and to extend them outside the 
Community. 
The programme is intended to cover some of the costs of conducting economic 
and technical feasibility studies, and preparatory studies and appraisals. It can also 
provide interest subsidies, reduce the cost of guaranteeing a loan, or grant direct 
subsidies, where such cases are properly justified. 
The measures covered by the report period relate exclusively to the joint funding 
of studies on projects of common interest. 
2. The table below shows the amounts committed from 1995 to 1997 by sector : 
(in ECU million) 
SECTOR 
Electricity 
Natural gas 
TOTAL 1995 
6.5 
5.7 
12.2 1996 
3.7 
5.2 
8.9 1997 
9.2 
15.0 
24.2 
3. This next table gives a breakdown of financial support according to the priorities 
for Community action on trans-European energy networks: 
(in ECU million) 
PRIORITY 
Developing electricity interconnections between Member States 
including the internal connections required to establish 
interconnections between Member States 
Developing electricity interconnections between Member States 
and non-EU countries in Europe and the Mediterranean 
Bringing natural gas to new parts of Member States and linking 
up isolated gas networks to the interconnected European networks 
Increasing LNG handling, transmission and storage capacity to 
meet demand and diversifying natural gas sources and 
transmission routes 1995 
2.39 
4.09 
1.92 
3.76 1996 
0.72 
3.00 
0.97 
4.21 1997 
4.53 
4.65 
0.58 
14.44 
9/24 
C. ENERGY RESEARCH AND DEVELOPEMNT 
The 4th Framework Research and Technological Development Programme for 
1994-98 funds or part-funds specific energy projects from an available budget of 
ECU 2 403 million in the following areas: 
- Non-nuclear energy 
The "Non-nuclear energy" programme has a section for research (JOULE) and a 
section for demonstration projects (THERMIE). The budget is ECU 1 039 million. 
- Nuclear fission 
The programme on nuclear fission safety and safeguards has a budget of 
ECU 170.5 million and covers the following areas: 
• exploring new approaches 
• reactor safety 
• management and storage of radioactive waste and decommissioning 
• effects of radiation on man and the environment 
• dealing with the consequences of past events. 
- Controlled thermonuclear fusion 
This programme, which incorporates all the research into mastering fusion energy 
carried out in the Member States, has a budget of ECU 846 million and covers the 
following areas: 
• "Next Steps", particularly as regards the International Thermonuclear 
Experimental Reactor (ITER) 
• Joint European Torus (JET) 
• conceptual improvements 
• long-term technology. 
10/24 
2. The purpose of the THERMIE programme is to support demonstration projects, 
and also strategy, dissemination and measures to encourage small businesses. 
2.1. The objectives of THERMIE are: 
- to improve energy efficiency in terms of supply and demand; 
- to promote more extensive use of renewable energy sources; 
- to encourage cleaner and more efficient use of coal and other solid fuels; 
- to optimise the use of oil and gas in the EU. 
2.2. THERMIE is in two sections: 
THERMIE - A: financial support for shared-cost demonstration projects to use 
new energy technologies in the following areas: 
• rational use of energy; 
• renewable energy sources; 
• fossil fuels. 
THERMIE- B: financial support for other activities in the following areas: 
• development and implementation of an energy RTD strategy; 
• dissemination of energy technologies; 
• concerted action and cooperation networks; 
• preparatory, flanking and support measures; 
• measures providing incentives to encourage and facilitate the participation 
of small and medium-sized enterprises in RTD activities. 
2.3. The THERMIE programme also provides support in non-EU countries. 
Accordingly, from 1995 to 1997 it provided 106 B-type schemes (associated 
measures) with support totalling ECU 10.2 million. 
2.4. The table below shows the breakdown of THERMIE appropriations committed 
between 1995 and 1997. 
(in ECU million) 
THERMIE 
• Demonstration (A) 
* Associated measures (B) 
• Miscellaneous 
TOTAL 1995 
110.5 
29.0 
1.3 
140.8 1996 
113.3 
17.7 
-
131.0 1997 
148.1 
10.1 
1.5 
159.7 
11/24 
The purpose of JOULE is to encourage research and technological development in 
the area of clean and efficient energy technologies in order to contribute to energy 
safety and sustainable development. 
JOULE comprises technical fields relating to: 
- RTD energy strategy and the analysis of the relationships between energy, the 
environment and the economy; 
- the rational use of energy; 
- renewable energies; 
- solid fuels. 
The amounts committed under the JOULE programme were ECU 183.7 rnillion in 
1995, ECU 42.8 million in 1996 and ECU 132.7 million in 1997. 
4. Community RTD activities concerning FUSION energy are focused on the 
long-term objective of the joint construction of reactors and electrical power plant 
prototypes which meet society's needs, such as safety of operation, respect for the 
environment and economic viability. These activities are mainly pursued as part of 
the shared-cost actions with organisations in the Member States (Associations), 
under the auspices of the JET (Joint European Torus) Joint Enterprise and as part 
of multilateral agreements. Specific activities concerning fusion technology are 
also carried out at the Joint Research Centre (JRC). The following table shows the 
breakdown of the Community contribution to financing provided between 1995 
and 1997. 
(in ECU million) 
Associations 
JET 
JRC 
Others 
TOTAL 1995 
88.0 
65.3 
10.8 
28.3 
192.4 1996 
89.7 
58.6 
10.1 
37.4 
195.8 1997 
(estimate) 
107.4 
65.2 
40.9 
223.1 
12/24 
The following table gives details of research and development expenditure in the 
energy sector from 1995 to 1997. 
(in ECU million) 
COMMITMENTS 
A. Direct action (JRC) 
1. Nuclear fission 
(reactor safety, radioactive waste management, fissile 
materials, nuclear fuels) 
2. Thermonuclear fusion 
3. Non-nuclear energies (solar energy, RUE) 
/IK 
4. Energy policy support (DG XVllf ' 
5. Supplementary programme (operation of the HFR reactor) 
B. Shared-cost projects 
1. Nuclear fission 
(management and storage of radioactive waste, 
decommissioning of nuclear power stations, Teleman, 
nuclear fission safety) 
2. Thermonuclear fusion1 ' 
(general programme and participation in JET) 
3. Non-nuclear energy sources 
(renewable energy sources, RUE): - JOULE 
- THERMIE 
TOTAL A + B 1995 
108.1 
63.8 
11.4 
. 14.4 
18.5 
667.5 
71.9 
270.8 
184.0 
140.8 
775.6 1996 
83.6 
63.2 
10.3 
3.8 
6.3 
440.5 
68.6 
198.3 
42.8 
130.8 
524.1 1997 
88.1 
62.8 
12.3 
4.8 
8.2 
492.0 
12.7 
186.9 
132.7 
159.7 
580.1 
Apart from the energy programmes, other programmes in the 4th Framework 
Programme include measures with an energy component, like the ESPRIT 
programme and INCO (RTD cooperation programmes with non-member countries 
and international organisations which finance activities in the energy sector, 
particularly with the countries of central and eastern Europe and with developing 
countries). 
(11) From 1996 JRC support for energy policy is part of nuclear fission. 
(12) Including the undertaking of pluriannual contracts. 
13/24 
D. STRUCTURAL FUNDS 
The Structural Funds (ERDF, ESF, EAGGF, etc.) are actively involved in 
financing several programmes intended to solve the energy problems of the 
less-favoured regions via the Community support frameworks (CSFs) and 
Community initiatives. 
Most of the assistance from the Structural Funds in the energy sector is directed 
towards Objective 1 regions. 
In all the CSFs for the regions whose development is lagging behind (Objective 1), 
the Community is cofinancing energy projects with a view to improving the basic 
infrastructure. The Community's contribution is made primarily through the 
ERDF. The table below gives the breakdown by country of the grants to 
Objective 1 regions in the period covered by the Structural Funds (1995-1999). 
Since the way that the Structural Funds are organised makes it difficult to single 
out and indicate the annual grants to the energy sector, the grants have been 
broken down into equal annual instalments. 
Community grants from the Structural Funds 
to the energy sector in Objective 1 regions 
(in ECU million) 
MEMBER STATE Period 1994-1999 | Annual average 
.,__,_,__„_____.__ (1994 prices) [ 
Austria 4 0.7 
France 8 1.3 
Greece 1065 177.5 
Ireland 70 11.7 
Italy 392 65.4 
Portugal 566 94.3 
Spain 704 117.3 
United Kingdom 190 31.7 
TOTAL 2999 500.0 
The figures shown in the table above include the amounts granted under the CSFs 
for 1994-1999 and by the Community initiatives (chiefly INTERREGII). 
14/24 
The REGEN section of the Community's INTERREG II initiative has been granted 
a budget of ECU 500 million for 1994-1999 for completion of energy networks, 
particularly: 
- transmission of Russian gas from the Bulgarian frontier to Athens and 
reception, treatment and transmission of liquefied gas from Algeria; 
- continuation of the work on the introduction of natural gas to Portugal; 
- completion of the systems for interconnection, reception and transmission of 
natural gas between Spain and Portugal; 
- continuation of the scheme for interconnection of the electricity grids between 
Greece and Italy. 
The table below shows the breakdown by country of the financial support from the 
REGEN section of the Community's INTERREG II initiative in 1994-99 (amounts 
included in the breakdown by Member State in the previous table). 
(in million ECU) 
COUNTRY I INTERREG U (REGEN) 
1994 - 1999 
Greece 200 
Italy 80 
Portugal 140 
Spain 80 
TOTAL I 500 
4. Overall, Community assistance provided for by the support frameworks for regions 
whose development is lagging behind and by Community-initiated programmes 
amounts to ECU 2 999 million for 1994-99, or 2.7% of the total contribution by the 
Structural Funds to Objective 1 regions and 4.3% of the ERDF. 
15/24 
E. FINANCIAL INSTRUMENTS FOR INTERNATIONAL COOPERATION 
PHARE 
The PHARE programme is intended to help to bring Central and Eastern European 
countries up to European development standards and to establish closer political 
and economic relations between these countries and the European Union in the 
framework of European agreements and pre-accession strategy. 
The PHARE programme also covers energy infrastructure and nuclear safeguards. 
The following table gives an idea of the amounts spent on energy between 1995 and 
1997: 
(in ECU million) 
SECTOR 
Nuclear 
Non-nuclear 
TOTAL - All energy 1995 
27 
75 
102 1996 
6 
42 
48 1997 
13.2 
12.6 
25.8 
TACIS 
TACIS is the programme to assist the New Independent States and Mongolia with 
economic improvement and recovery. 
TACIS includes action in the energy sector and on nuclear safeguards. 
The following table shows the breakdown of amounts spent on energy between 
1995 and 1997: 
(in ECU million) 
SECTOR 
Nuclear 
Non-nuclear 
TOTAL - All energy 1995 
96(,5) 
42 
138 1996 
117.5 
46 
163.5 1997 
68.0 
45.6 
113.6 
MEDITERRANEAN COUNTRIES - MEDA 
The MEDA programme (1995-1999)( } covers measures to accompany economic 
and social structural reform in the non-EU Mediterranean countries. One of the 
aims of MEDA is cooperation on energy and networks. 
C3) 
(.4) Includes ECU 37.5 million for the G7 action. 
Council Regulation (EC) No 1488/96 of 23 July 1996 (OJ No L 189 of 30.7.1996). 
16/24 
Action is taken either under bilateral protocols between the Community and 
individual Mediterranean countries or as part of the wider financial cooperation for 
schemes involving more than one country in the region. In 1995 and 1996, the 
amounts allocated for the energy sector were ECU 1 and 0.2 million respectively. 
4. EUROPEAN DEVELOPMENT FUND (ACP COUNTRIES) 
Under the EDF, ECU 127.7 million were allocated to the energy sector in 1995, 
ECU 21.5 million in 1996 and ECU 32.7 million in 1997. These amounts were used 
mainly to finance hydroelectric projects or to rehabilitate infrastructures. 
5 DEVELOPING COUNTRIES IN ASIA AND LATIN AMERICA 
Council Regulation No 443/92( } of 25 February 1992 provides for financial and 
technical assistance to, and economic cooperation with, the developing countries in 
Asia and Latin America. The energy sector is one of the priorities of the 
programme. 
The following amounts were allocated for energy in 1995 and 1996. The amounts 
shown for developing countries in Asia(,r,) are indicative (currently between ECU 8 
and 10 million a year). The Commission published a communication in 1996 on a 
Europe-Asia cooperation strategy for energy and a specific programme for energy 
cooperation with Latin America has been set up. 
(in ECU million) 
Developing countries in Asia 
Developing countries in Latin America 
TOTAL 1995 
7.5 
17.0 
24.5 1996 
7.5 
4.3 
11.8 1997 
5.0 
7.7 
12.7 
6. SUMMARY FOR INTERNATIONAL COOPERATION INSTRUMENTS 
The following table summarises the amounts granted for the energy sector from the 
instruments of international cooperation. 
(in ECU million) 
FINANCIAL INSTRUMENT 
PHARE 
TACIS 
MEDITERRANEAN COUNTRIES 
Developing countries (Asia and Latin America) 
EDF (ACP countries) 
TOTAL 1995 
102.0 
138.0 
1.0 
24.5 
127.7 
393.2 1996 
48.0 
163.5 
0.2 
11.8 
21.5 
245.0 1997 
25.8 
113.6 
-
12.7 
32.7 
184.8 
{!5) OJ No L 52 of 27.2.1992. 
°6) COM(96) 308 final, 18 July 1996. 
17/24 
F. ECSC GRANTS TO THE COAL INDUSTRY 
1. The ECSC finances measures from its operational budget concerning, in particular, 
the redeployment of workers, interest-rate subsidies for industrial restructuring, the 
financing of research programmes in the coal and steel industries, and social 
measures. 
2. EU grants to the coal industry fall into two broad categories: 
- redeployment aid 
- support for research. 
The following tables show the development of the various types of ECSC grants 
to the coal industry during the period 1993-97 and the distribution between 
Member States from 1995 to 1997(,7). 
Breakdown of ECSC grants to the coal industry 
Redeployment aid 
- traditional aid 
- social measures 
Support for research 
- projects 
- dissemination 
TOTAL 1993 
120.3 
70.3 
50.0 
51.8 
51.2 
0.6 
Î72.1 1994 
117.2 
77.2 
40.0 
17.0 
16.9 
0.1 
134.2 1995 
104.3 
64.3 
40.0 
21.6 
21.4 
0.2 
125.9 (in ECU million) 
1996 
46.5 
23.3 
23.2 
31.0 
30.7 
0.3 
77.5 1997 
59.8 
30.8 
29.0 
29.0 
28.7 
88.8 
Distribution of redeployment aid fey Member State 
Belgium 
France 
Germany 
Portugal 
Spain 
United Kingdom 
EU TOTAL Traditional ai 
1995 ) 1996 
1.0 
1.8 
31.2 
0.4 
7.2 
22.7 
64.3 1.4 
-
18.6 
0.1 
2.6 
0.6 
23.3 d 
1997 
-
3.6 
20.6 
-
5.8 
0.8 
30.8 (inE 
Social measur 
1995 
1.6 
1.8 
19.0 
0.2 
9.6 
7.8 
40.0 1996 
1.4 
4.6 
13.4 
-
3.2 
0.6 
23.2 CU million) 
es 
1997 
-
7.0 
13.7 
-
7.5 
0.8 
29.0 
C7) Source: ECSC Financial Reports. 
18/24 
As regards coal research, 29 projects were chosen for financial support in 1995, 23 
in 5996 and 31 in {997. 
Hie projects are designed primarily to ensure proper protection for the environment 
and to make the public aware of the importance of coal as an energy source, to 
improve the competitive position of coal and to use the Community's resources 
rationally. 
The breakdown of funding between the various research themes is as follows: 
(in ECU million) 
Mining technology: 
- excavation systems 
- firedamp, ventilation, climate 
- coal-winning techniques 
- mine infrastructure 
- mine management 
Use of coal: 
- preparation of coal 
- uses in metallurgy 
- coal conversion 
- coal burning and gasification 
Dissemination 
TOTAL 1995 
5.2 
2.3 
2.7 
0.2 
16.2 
1.8 
1.9 
1.4 
11.1 
0.2 
21.6 1996 
11.0 
1.6 
2.1 
0.6 
0.9 
5.8 
19.7 
3.2 
5.5 
1.6 
9.4 
0.3 
31.00 1997 1 
10.0 
4.7 
0.5 
2.7 
1.2 
0.8 
18.7 
4.2 
3.4 
11.2 
0.3 
29.0 
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G. EIB LOANS 
The task of the European Investment Bank is to help with the integration, balanced 
development and economic and social cohesion of the Member States. To this end, 
the EIB directs large volumes of funds to finance investment projects designed to 
achieve Union objectives, including energy objectives. 
The table below shows trends in EIB funding (.8) 
(ECU million) 
EIB loans 
Energy funding 
% of EIB activity 1993 
2576 
15.4% 1994 
3384 
20.4 % 1995 
3083 
17.3 % 1996 
4945 
25.0 % 1997 
2090 
10.0 % 
The loans from 1995 to 1997 were granted mainly for 
• production of oil and gas, and generation of electricity, particularly by 
hydroelectric plants or combined plants using natural gas; 
» transmission and distribution of electricity and natural gas; 
» natural gas and electricity transmission networks, including four priority 
TEN projects; 
• the construction of combined heat and power plants burning waste; 
• the construction of lignite-powered thermal plants. 
(18) Source: EEB Annual Reports. 
20/24 
The following table gives a breakdown by sector of activity. 
(in ECU million) 
Production 
• Conventional power stations 
• Hydroelectric power stations 
• Heat production 
« Oil and gas production 
© Solid fuels 
« Geothermal and alternative sources 
Transport, storage, reprocessing 
• Electricity 
• Natural gas, oil 
Distribution 
• Electricity 
• Natural gas 
• Heat 
TOTAL 1995 
1842.2 
609.8 
292.1 
363.4 
582.7 
0.2 
966.3 
154.4 
811.9 
268.6 
68.9 
190.8 
8.9 
3083.1 1996 
2722.0 
2181.0 
31.7 
302.2 
176.9 
30.2 
1693.3 
305.5 
1387.8 
529.6 
271.4 
203.9 
54.3 
4944.9 1997 
1100.5 
556.2 
189.4 
96.1 
182.4 
76.4 
370.8 
87.5 
283.3 
619.1 
282.5 
148.4 
188.2 
2090.4 
In 1995, the EIB spent ECU 522 million on trans-European electricity and gas 
transmission networks; the figures for 1996 and 1997 were ECU 695 million and 
ECU 300 million respectively. 
The three lines of Community energy policy are the eligibility criteria for the EIB in 
this field: development of indigenous resources, diversification of imports and more 
rational use of energy. Completion of the internal market also involves focusing on 
interconnection of gas and electricity networks both within the Community and 
outside. 
In 1995, 30 % of investments were for the development of indigenous resources, 
26 % for diversification of imports, and 44 % for the rational management and use 
of energy. 
The percentages for 1996 were 17 %, 49 % and 34 % and, for 1997, 21 %, 19 % 
and 60 % respectively. 
21/24 
The breakdown of EIB energy loans in the Community by Member State is as 
follows: 
(ECU million) 
EIB loans 
COUNTRY 
Austria 
Belgium 
Denmark 
Finland 
France 
Germany 
Greece 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
Spain 
Sweden 
UK 
Other( > 
TOTAL Energy sector 
1995 
-
34 
84 
-
4 
626 
36 
-
625 
-
-
134 
315 
111 
636 
479 
3083 1996 
26 
7 
15 
-
3 
924 
379 
-
1637 
-
140 
489 
539 
111 
674 
-
4945 1997 
212 
-
84 
45 
17 
489 
126 
-
351 
-
30 
30 
169 
80 
349 
109 
2090 
EIB funding outside the Community as part of the Union's cooperation and 
development policy with non-member countries accounted in 1995 for ECU 2 805 
million, of which ECU 689 million was for the energy sector and, in 1996, for 
ECU 2 294 million, of which ECU 704 million was for the energy sector. In 1997, 
these figures were ECU 3 144 million and ECU 593 million respectively. 
Energy sector loans were primarily for the construction and modernisation of power 
plants, the extension of electricity transmission and distribution capacity and the 
development of oil resources. 
Funding outside the European Union 
Energy sector 
(ECU million) 
COUNTRY 
ACP countries 
South Africa 
Mediterranean 
Central and Eastern Europe 
Latin America 
Asia 
Overseas departments and territories 
TOTAL 1995 
108 
-
149 
290 
18 
125 
-
689 1996 
109 
56 
174 
363 
-
-
2 
704 1997 
35 
45 
346 
70 
-
93 
4 
593 
(19) Other projects of European interest outside EU territory. 
22/24 
H. ECSC AND EURATOM LOANS 
1. ECSC LOANS 
1.1. In 1995, the total amount of loans paid out by the ECSC (ECU 402.8 million) was 
40.2 % down on 1994. The total paid out in 1996 (ECU 279.7 million) was also 
markedly lower than the 1995 total. In 1997, on the other hand, the total amount of 
loans paid out by the ECSC (ECU 541.2 million) was much higher than that of 
1996. 
This increase can be accounted for by the fact that 1997, and specifically the first 
half of that year, was the last period for initiating the payment of ECSC loans, 
except for certain exceptional cases. 
Indeed, it is possible that the guidelines adopted by the Commission on changes to 
ECSC borrowing and lending activities by the year 2002, when the initial ECSC 
Treaty expires, may have had a (last) persuasive effect on potential borrowers, since 
they can no longer expect to receive long-term loans, i.e. loans which mature after 
2002, except for some major infrastructure projects of European interest, for which 
it is possible to obtain a government guarantee. 
1.2. In 1995 and 1996 two loans for ECU 17.8rnillion and ECU 12.2 million were 
issued to Spain for the coal industry. In 1997 a loan of ECU 80.6 million was 
granted to finance the Portuguese natural gas network. 
The table below summarises ECSC loans for 1995-1997 (20) 
(ECU million) 
Total ECSC loans 
Total energy 
Energy's share (%) 
Repartition 
- Coal industry (Art. 54 § 1) 
- Power stations 
- Other 1995 
402.8 
17.8 
4.42 % 
17.8 1996 
279.7 
12.2 
4.36 % 
12.2 1997 
541.2 
80.6 
14.89 % 
80.6 
2. EURATOM LOANS 
There has been no lending operation since 1988 owing to the poor cyclical situation 
of the sector. 
,2U Council Decision 94/179/EURATOM( } of 21 March 1994 authorises the Commission to 
grant loans the purpose of which is to improve the efficiency and safety of nuclear 
installations in Central and Eastern Europe and in the former Soviet Union. No loans have 
so far been granted, but certain projects have been identified and preparatory work for those 
operations is under way. 
(20) Source: ECSC Financial Reports. 
OJ No L 84 of 29.3.1994. 
23/24 
I. EIF GUARANTEES 
The European Investment Fund (EIF), which is a public/private partnership set up in 
June 1994, grants long-term financial guarantees to support large infrastructure 
projects, including the trans-European energy networks, involving small firms. The 
main aim of the EIF in the energy sector is to help involve private capital in TEN 
projects. 
Since it was set up and by the end of 1997, the EIF had signed guarantees for a total 
of ECU 2 165 million, of which 23.8% is in the energy sector (TEN). 
The table below gives a breakdown of guarantees granted in 1995, 1996 and 1997 
by sector.(22) 
(ECU million) 
SECTOR 
Trans-European infrastructure networks: 
of which energy: 
- intheEU 
- outside the EU 
SMEs 
TOTAL 1995 
116.5 
11.9 
11.9 
-
116.5 1996 
582.1 
270.2 
88.2 
182.0 
251.3 
833.4 1997 
335.2 
3.7 
3.7 
364.8 
700.0 
* * * 
(22) Source: EIF Annual Reports. 
24/24 
ISSN 0254-1475 
COM(98) 244 final 
DOCUMENTS 
EN 09 12 15 
Catalogue number : CB-CO-98-265-EN-C 
ISBN 92-78-35275-6 
Office for Official Publications of the European Communities 
L-2985 Luxembourg