REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN PARLIAMENT on the implementation of the European Energy Programme for Recovery
Date: 2011-04-20
Institutions: European Commission
Subjects: economic support, electrical energy, energy resources, gas, project of common interest

EN 

EN 

   EN 

 
EUROPEAN COMMISSION 

Brussels, 20.4.2011 
COM(2011) 217 final 

REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 

on the implementation of the European Energy Programme for Recovery 

EN 

   EN 

 
 
  
REPORT FROM THE COMMISSION TO THE COUNCIL AND THE EUROPEAN 
PARLIAMENT 

on the implementation of the European Energy Programme for Recovery 

1. 

The European Energy Programme for Recovery: from launch to implementation 

Established  by  Regulation  (EC)  No  663/20091,  the  European  Energy  Programme  for 
Recovery  (EEPR)  is  one  of  the  major  initiatives  taken  by  the  EU  to  address  the  global 
economic  and  financial  crisis  which  erupted  in  2008.  It  co-finances  a  selected  portfolio  of 
energy projects with a view to sustaining capital expenditure in the European economy while 
helping to achieve key EU energy and climate policy objectives. 

Since  the  first  report  on  implementation  of  the  EEPR  was  published  in  April  20102, 
considerable  progress  has  been  made.  In  all  three  sectors  —  energy  infrastructure,  offshore 
wind energy and carbon capture and storage — construction work has started and investment 
costs  are  being  incurred.  Three  infrastructure  projects  have  already  been  completed  and  are 
now operational; others are at the construction or development stage. The EEPR has proved a 
valuable  tool  at  EU  level  that  has  accelerated  implementation  of  major  energy  projects  and 
played its role as a stimulus to economic recovery. Moreover, the scope of the EEPR has been 
expanded by allocating unspent funds to the energy efficiency and renewable energy sources 
sectors. This was achieved by means of an amendment to the EEPR Regulation3, which was 
adopted swiftly thanks to the good cooperation between the European institutions.  

The EEPR is a key instrument for achieving the energy policy objectives set in Article 194 of 
the Treaty on the Functioning of the European Union and recently reaffirmed by the European 
Council of 4 February 2011. Its role as driver and facilitator for project implementation has 
been  acknowledged  on  several  occasions.  In  particular,  the  ‘energy  infrastructure  package’4 
recognises the contribution made by the programme to mobilising infrastructure projects and 
mitigating disruptions of supply with negative effects on citizens and the European economy.  

As  indicated  in  the  conclusions  of  the  European  Council  of  4  February  2011,  ‘safe,  secure, 
sustainable  and  affordable  energy  contributing  to  European  competitiveness  remains  a 
priority for Europe. Action at the EU level can and must bring added value to that objective’. 
The  EEPR  has  made  a  significant  contribution  towards  this  objective.  Future  energy 
programmes may draw on the experience gained from the EEPR model.  

In  terms  of  budget  implementation,  thanks  to  the  efforts  of  all  involved,  it  was  possible  to 
make  the  legal  commitments  for  all  the  EEPR  projects within the  deadline of 31 December 
2010 set by the Regulation. This was an unusually short and challenging deadline, dictated by 
the  ‘recovery’  nature  of  the  programme.  For  the  same  reason,  the  programme  targets  only 

1 

2 
3 

4 

Regulation  (EC)  No  663/2009  establishing  a  programme  to  aid  economic  recovery  by  granting 
Community financial assistance to projects in the field of energy. 
COM(2010) 191 of 27.4.2010. 
Regulation (EU) No 1233/2010 of the European Parliament and of the Council of 15 December 2010 
amending  Regulation  (EC)  No  663/2009  establishing  a  programme  to  aid  economic  recovery  by 
granting Community financial assistance to projects in the field of energy. 
COM(2010) 677 of 17.11.2010. 

EN 

2 

   EN 

                                                 
mature projects ready to start to incur capital expenditure, and therefore stimulate economic 
recovery, by the end of 2010. 

By 31 December 2010, the individual legal commitments had been made for all 59 projects to 
which  the  EEPR  had  awarded  a  grant.  More  specifically,  the  Commission  adopted  44 
decisions awarding grants for gas and electricity infrastructure projects and signed six grant 
agreements  with  beneficiaries  concerning  carbon  capture  and  storage  (CCS)  and  nine 
concerning offshore wind energy (OWE). This adds up to a combined total of € 3 833 million 
in terms of commitments, equivalent to 96.3 % of the total EEPR budget. This is a very good 
result, considering the large size of the programme and the tight deadline.  

EEPR commitments by sector 
(million €) 

Carbon Capture and Storage

1000

Offshore Wind Energy

565

Electricity Infrastructure

904

Gas Infrastructure

1363

Progress  on  implementation  is  also  reflected  in  the  level  of  payments,  which  is  gaining 
momentum. By the end of 2010, € 700 million had been paid to beneficiaries, in the form of 
€ 361 million to gas and electricity infrastructure projects, € 146 million to OWE projects and 
€ 193  million  to  CCS  projects.  In  the  first  few  months  of  2011,  most  of  the  projects  are 
expected  to  submit  cost  statements,  triggering  substantial  reimbursements  of  expenditure 
incurred in 2010. A detailed sector-by-sector overview of implementation of the programme 
is presented in the next few sections.  

2. 

Gas and electricity infrastructure 

Implementation  of  the  electricity  and  gas  infrastructure  part  of  the  programme  in  2010  was 
very satisfactory.  

In  the  course  of  the  year,  three  of  the  infrastructure  projects  were  completed  already.  The 
pipeline  linking  Hungary  to  Romania,  inaugurated  on  14  October,  is  the  first  high-pressure 
gas interconnection between the two countries. The first of the four reverse flow projects in 
Austria  at  the  Baumgarten  import  facility,  which  will  allow  gas  to  be  transported  from 
Germany  to  countries  adjacent  to  Austria,  was  inaugurated  on  24  October.  The  Hungary-
Croatia  link,  the  first  direct  interconnection  between  Croatia  and  the  European  gas  network 
with a capacity of 6 billion cubic metres a year (bcm/y), was inaugurated on 23 December. 

EN 

3 

   EN 

 
Six more projects are near completion and will be finished in the course of 2011:  

– 

– 

– 

– 

– 

– 

the doubling of the capacity of the gas pipeline in Belgium connecting to Germany 
and to the United Kingdom by 10 bcm/y;  

the  improvement  of  the  interoperability  between  the  Austrian  and  Hungarian 
electricity  grids  via  the  Wien-Györ  interconnection  with  a  state-of-the-art  400 kV 
optical connection; 

the completion of the site of the Czech gas storage hub, at the Czech-Polish border, 
which will increase storage capacity by 15 %; 

the reverse flow project in Poland that will upgrade the cross-border connection point 
between Poland and Germany and the modernisation and upgrade of several sections 
of the Polish gas transmission system; 

the development of the Portugal-Spain cross-border electricity interconnections; and 

one of the two reverse flow projects in Slovakia, which will ensure bidirectional gas 
flow  between  Slovakia  and  the  Czech  Republic  and  also  between  Slovakia  and 
Austria. 

Out of the 44 projects, construction work is currently in progress on 17 gas and 5 electricity 
projects, for example: 

– 

– 

– 

– 

the Świnoujście LNG terminal in Poland;  

the Halle/Saale-Schweinfurt electricity interconnector in Germany; 

the  action  by  Spain  to  support  the  gas  interconnection  project  between  Spain  and 
France across the western Pyrenees;  

the reverse flow projects in Portugal and between Latvia and Lithuania are also both 
at the advanced construction stage. 

During 2010, 35 projects proceeded to tendering for and ordering long-lead items (29 in the 
gas sector and 6 in the electricity sector), for instance:  

– 

– 

– 

– 

– 

the Nordbalt 1 and 2 and Estlink electricity interconnection projects;  

the electricity interconnections linking Ireland to the United Kingdom, Sicily to the 
Italian mainland and Sicily to Malta and the development of the Maltese electricity 
network;  

the Romania-Bulgaria gas interconnection;  

the France-Spain electricity interconnection project;  

several  reverse  flow  gas  projects  in  Slovakia,  the  Czech  Republic,  Austria  and 
Hungary  and  the  similar  reverse  flow  projects  between  Poland  and  Germany  and 
between Poland and the Czech Republic.  

EN 

4 

   EN 

A few projects are suffering some delays caused by lack of firm contracts with gas suppliers 
or complex and time-consuming permit procedures, namely: 

– 

– 

– 

– 

the  three  projects  to  contribute  to  the  objectives  of  the  southern  gas  corridor, 
i.e. ‘Nabucco’, ‘ITGI-Poseidon’ and its Greece-Bulgaria branch ‘IGB’;  

the  Galsi  project, which will  supply  Algerian gas to  the Italian  system  via  Sardinia 
and, possibly, to Corsica;  

the French-Belgian gas interconnection project on which progress has been made on 
the Belgian side (but which is still suspended on the French side);  

the work on the LNG terminal in Cyprus.  

Upgrade of the gas transmission system in Slovenia between the Slovenian-Austrian border and Ljubljana 

The  programme  provided  a  unique  opportunity  to  boost  strategic  EU  investment  projects, 
particularly  during  a  period  when  pure  commercial  considerations,  combined  with  the 
economic and financial crisis, were limiting new investment. 

EN 

5 

   EN 

 
The  EEPR  has  given  the  gas  infrastructure  a  truly  European  dimension,  allowing  quicker, 
more efficient implementation of the third internal market package and of the new Regulation 
on  security  of  gas  supply  that  entered  into  force  on  2  December  2010.  The  programme  has 
contributed to improving the way the internal gas market works by providing interconnections 
between western and eastern parts of the EU, in peripheral Member States and in Central and 
Eastern  Europe,  by  progressively  completing  a  bidirectional  gas  pipeline  network  and  by 
bringing ‘energy islands’ closer. Once the projects have been completed, the impact of a gas 
crisis like the one in January 2009 should be much more limited. Furthermore, it has sent an 
unequivocal message to external suppliers such as Turkmenistan, Azerbaijan and Iraq for the 
Southern corridor and Algeria for the Mediterranean corridor on the interest of the European 
Union  in  diversification  of  energy  supply  routes.  The  electricity  projects  supported  are 
lending strong impetus to completion of the internal market with the full participation of all 
parts of the European Union and bringing major improvements to the security of supply of the 
countries and regions concerned. The programme will clear bottlenecks and integrate ‘energy 
islands’ such as the Baltic States, the Iberian peninsula, Ireland, Sicily and Malta. Several new 
interconnections  are  also  very  important  for  integrating  renewable  energy  sources  into  the 
electricity system. 

In  conclusion,  the  EEPR  has  speeded  up  implementation  of  projects  by  financing  specific 
action,  such  as  technical,  engineering  and  environmental  studies,  procurement  of  long-lead 
items (pipes, cables, converter stations, transformers, etc.) and construction work. Thanks to 
the  programme,  project  promoters  were  able  to  secure  additional  funding  from  financial 
institutions more easily: loan negotiations are ongoing, or have already been finalised, for 15 
projects.  Moreover,  EEPR  support  has  helped  a  great  number  of  projects  that  were  facing 
serious environmental permit problems to receive priority from the national administrations.  

3. 

Offshore wind energy (OWE) 

The projects supported by the EEPR address the key challenges and priorities identified in the 
Commission’s Communication on offshore wind energy5, in the Industrial Initiative on wind 
energy under the Strategic Energy Technology Plan and in the energy infrastructure package. 
The  technologies  demonstrated  and  deployed  on  a  large-scale  –  innovative  foundation 
structures,  multi-MW  offshore  turbines,  modular  grid  integration  technology,  etc.  –  are 
indispensable to achieve the ambitious EU goals for offshore wind penetration by 2020 and 
beyond.  

Thanks  to  the  EU  support,  installation  of  the  first  large  (400  MW)  offshore  wind  farms  far 
(more than 100 km) from shore and in deep waters (more than 40 m) is secured. The EEPR 
grants  for  the  offshore  wind  sector  will  directly  increase  carbon-free  electricity  production 
capacity by about 1500 MW. They will play a crucial role in EU Member States achieving the 
binding targets for renewable electricity in 2020. The grants are also fundamental for taking 
the first steps towards building a European offshore grid, thus increasing capacity for trading 
electricity in the internal market.  

The  ‘turbines  and  offshore  structures’  part  of  the  programme  (projects  in  the  German  and 
Belgian  North  Sea)  is  the  most  advanced:  design  studies  and  soil  investigations  have  been 
carried out, contracts have been concluded with main suppliers, notices to proceed have been 
given and installation logistics have been thoroughly prepared. Several projects are already in 

5 

COM(2008) 768. 

EN 

6 

   EN 

                                                 
the manufacturing and installation phase and the first electricity generated by offshore wind 
energy infrastructure co-financed by the EEPR was fed into the German grid in autumn 2010. 
The  fast  progress  on  these  projects  has  led  to  substantial  business  and  job  creation  in 
companies manufacturing offshore wind turbines and steel foundations, notably in the region 
of Bremerhaven and Cuxhaven in northern Germany. 

Another  project  of  major  importance  to  the  European  industry  is  a  test  centre  for  offshore 
wind turbines and structures that will be located in Aberdeen. Significant progress has been 
made on issues such as consent and on putting in place the legal and commercial structure for 
managing the test facilities. 

Multi-MW turbines and offshore foundation structures, co-financed by the EEPR, installed at the Bard I site in 
the German North Sea 

Progress was also made with design, planning and contracting activities in the area of ‘multi-
connector  wind-grid  integration’  (Kriegers  Flak,  Cobra  Cable  and  a  high-voltage  direct 
current  (HVDC)  hub  in  Scotland).  These  projects  often  require  coordination  between 
authorities from several Member States and/or are subject to a strictly regulated co-financing 
system. For these projects, it was also important to ensure that innovative HVDC technologies 
would be used. In order to maximise synergies between these projects and their contribution 
to  development  of  an  offshore  grid,  the  Commission  will  organise  a  workshop  with  the 
promoters in 2011. 

In  2011,  offshore  work  will  continue  or  start  on  all  the  EEPR  projects  in  the  ‘turbines  and 
offshore structures’ part of the programme. The wind-grid integration projects will define the 
optimum  routes  and  technical  specifications  for  the  interconnection  modules,  continue  the 
permit procedures and finalise contracts with the equipment suppliers. 

EN 

7 

   EN 

 
It  has  to  be  stressed  that  timely  achievement  of  all  the  intermediate  objectives  in  the  EEPR 
projects  depends  heavily  on  swift  progress  in  permit  procedures.  Other  conditions  are  also 
crucial,  such  as  the  assurance  for  offshore  wind  farms  to  obtain  a  grid  connection  and  the 
possibility  to  make  full  use  of  the  available  time  window  (spring  and  summer)  for  offshore 
installation  works.  By  the  end  of  2011,  it  is  expected  that  about  half  of  the  EEPR – OWE 
budget of € 565 million will have been spent by the beneficiaries. 

4. 

Carbon capture and storage (CCS) 

The  EEPR  is  a  key  instrument  to  achieve  the  EU  objective  to  make  the  CCS  technology 
commercially viable by 2020. It directly supports six out of the twelve CCS projects that, as 
the EU Council has called for, should be operational by 2015. The programme, in line with 
the  European  Industrial  Initiative  on  CCS  developed  in  the  framework  of  the  SET  Plan, 
demonstrates  all  three  different  capture  technologies  (post  combustion,  pre  combustion,  oxyfuel 
combustion) as well as different storage concepts (depleted hydrocarbon fields and saline aquifers). 

A first review, carried out by Commission staff together with representatives of the national 
authorities,  concluded  that  all  six  CCS  projects  are  progressing  on  schedule,  including  the 
front-end engineering and design (FEED) studies for the capture installations and exploration 
of  CO2  storage  sites.  All  the  projects  are  completing  the  application  procedures  for  the 
necessary  permits  and  authorisations  for  a  CCS  demonstration  plant  in  their  Member  State. 
They have already received some of the permits necessary for construction and operation of 
the  power  plant  and  some  for  the  capture  installations.  There  has  also  been  progress  in  the 
exploration of potential storage sites for the projects 

However, some delays occurred, in part because of legal uncertainties concerning the details 
of CO2 storage regulation resulting from the transposition of the CCS Directive6 into national 
legislation, which is ongoing. Member States have until 25th June 2011 to transpose the CCS 
Directive  into  national  legislation.  By  December  2010,  none  of  the  Member  States  had 
transposed the Directive, and hence no permit applications for the permanent storage of CO2 
have been submitted to the Member States competent authorities yet.  

As required by the EEPR Regulation, knowledge gained during all the projects is shared via 
the  CCS  project  network  (http://www.ccsnetwork.eu).  The  network  was  proposed  by  the 
Commission  in  2008  to  speed  up  development  of  CCS  by  coordinating  the  early-mover 
projects, helping them to learn from each other and increasing the visibility of the concept of 
CCS.  In  2010,  three  knowledge-sharing  events  were  organised  by  the  project  network.  The 
first such event in 2011 was held in Brindisi in February, when representatives from the US 
also  attended  under  the  umbrella of  the  EU-US  Energy  Council.  This  can  be  seen  as  a  first 
step towards global knowledge-sharing.  

In Belchatow (Poland) progress  has been made on both the storage and capture sides of the 
project.  The  final  decision  on  selection  of  the  storage  site  will  be  made  by  mid-2011.  The 
detailed pipeline routing and permit work will be performed after the final site selection. On 
the capture side, FEED work for the carbon capture plant started in November 2009 and was 
almost  completed  by  February  2011.  The  contract  with  the  main  equipment  supplier  is 
expected to be signed in the spring.  

6 

Directive  2009/31/EC  of  the  European  Parliament  and  of  the  Council  on  the  geological  storage  of 
carbon dioxide, OJ L 140 of 5 June 2009. 

EN 

8 

   EN 

                                                 
In the Jaenschwalde (Germany) project, the tendering process for the nine main components 
started  and  qualified  bids  were  received.  The  negotiations  for  the  contract  for  the  air 
separation  unit,  the  biggest  component  of  the  EEPR  project,  were  conducted  in  February 
2011.  The  contract  with  one  supplier  is  expected  to  be  signed  soon.  On  the  transport  and 
storage side, the main operating plan for Birkholz was authorised in January 2011.  

In the Rotterdam (Netherlands) demonstration project (ROAD) the capture plant was put out 
to tender; six preliminary studies and two FEED studies were conducted for this process. In 
parallel, a technical plan for transport and storage was selected, routing studies on the pipeline 
were  completed  and  a  geological  field  study  was  conducted.  The  ‘starting  note’  for  the 
environmental impact assessment for the ROAD project was submitted in 2010, with permit 
applications to follow in March 2011.  

In Italy, the pilot plant was commissioned and the experimental phase started in June 2010. 
For  the  Porto  Tolle  demonstration  plant,  four  contractors  have  been  selected  to  conduct  the 
FEED studies for the carbon capture unit; the contracts were awarded in August 2010 and the 
studies will be completed in April 2011. The study to identify suitable CO2 storage structures 
in  the  northern  Adriatic  Sea  was  performed  on  the  basis  of  detailed  datasets  (2D  and  3D 
seismic  data)  and  borehole  information.  One  saline  aquifer  located  offshore  in  the  northern 
Adriatic Sea has been selected and detailed reservoir studies are being carried out to build up 
a fuller picture of it. 

CCS pilot installation in Jaenschwalde, Germany 

The  main  technical  achievements  on  CO2  capture  in  Compostilla  (Spain)  were  related  to 
construction  of  the  30 MW  oxyfuel  technology  development  plant  that  will  come  into 
operation  later  this  year.  The  major  milestones  reached  in  CO2  storage  were  the  structural 
analysis  and  strategic  studies  for  site  assessment  and  characterisation  of  reservoirs.  A  3D 
seismic survey and acquisition of 3D magnetotelluric data have been undertaken to determine 
the characteristics of the underground CO2 storage site. 

EN 

9 

   EN 

 
In Hatfield (UK) the FEED study for the capture part of the project was completed; significant 
progress was also made on characterisation of the storage site. However, in December 2010 
the mother company (Powerfuel plc) of the coordinator of the project (Powerfuel Power Ltd) 
went into administration. This affected the financing plan and stopped the work on the capture 
side. Consequently, the beneficiaries asked for suspension of the project until a new investor 
could be found. In March 2011 a preferred bidder has been identified. In principle, the project 
could resume once the process has been finalised, provided the new investor has the financial 
and technical capacity necessary.  

5. 

Monitoring and risk management 

Large-scale  infrastructure  projects  like  those  funded  by  the  EEPR  involve  considerable 
technological, financial and administrative risks. To manage the risks and closely monitor the 
progress made on the projects, the Commission has put in place a set of procedures.  

The  European  Commission  regularly  monitors  implementation  of  the  projects  from  a  very 
early  stage,  by  making  visits  to  the  sites,  accompanied  by  representatives  of  the  national 
authorities.  Furthermore,  the  Commission  hosts  regular  review  meetings  individually  with 
each  project  promoter.  The  beneficiaries  also  regularly  submit  technical  reports  to  the 
Commission and the national authorities. Each EEPR project has to deliver, at least annually, 
an  interim  technical  report  with  a  cost  statement  (including  an  audit  certificate).  The 
Commission also draws on the support of independent experts contracted to perform review 
tasks (visits, meetings, reviews of interim reports, etc.). 

An internal audit on the selection and contracting phase of the EEPR took place in the second 
half  of  2010.  The  auditors  were  satisfied,  but  pointed  to  room  for  improvement  in  the 
visibility  of  Community  financial  support  and  in  risk  management.  The  departments 
concerned  have  addressed  the  issues  raised  and  an  action  plan  has  been  established  to  this 
end. 

6. 

A new financial facility for energy efficiency and renewable energy sources 

In a declaration annexed to the EEPR Regulation, the Commission gave a commitment that 
EEPR  funds  that  could  not  be  committed  by  31  December  2010  would  be  reallocated  to 
financing projects in the area of energy efficiency and renewable energy sources. In the end, it 
turned  out  that  a  total  of  about  € 146  million,  i.e.  3.7 %  of  the  EEPR  budget,  could  not  be 
committed  by  the  end  of  2010.  In  order  to  fulfil  its  commitment,  on  31  May  2010  the 
Commission  had  already  proposed  an  amendment  to  the  EEPR  Regulation.  Following  this 
proposal,  on  15 December  2010  Regulation  (EU)  No  1233/20103  was  adopted,  which 
provides  for  the  creation  of  a  financial  facility  to  support  energy  efficiency  and  renewable 
energy initiatives.  

This initiative fits into the Europe 2020 strategy for sustainable growth and jobs as well as the 
recently adopted Energy Efficiency Plan 20117 and complements other EU programmes and 
instruments  such  as  the  Structural  and  Cohesion  Funds,  the  Intelligent  Energy  Europe 
Programme  and  the  Framework  Programme  for  research,  technological  development  and 
demonstration. Promoting energy efficiency and renewable energy sources would contribute 
to  green  growth,  building  a  competitive  and  sustainable  economy  and  tackling  climate 
change. 

7 

COM(2011) 109 of 8.3.2011 

EN 

10 

   EN 

                                                 
The  new  facility  will  take  the  form  of  an  investment  fund,  in  which  the  initial  shareholders 
will be the EU and the EIB, backed up by technical assistance as well as awareness-raising 
measures for local, regional and national authorities to promote optimum use of Structural and 
Cohesion  Funds  for  sustainable  energy,  in  particular  in  the  areas  of  energy  efficiency  and 
renewable  energy  improvements  in  housing  and  other  types  of  buildings..  The  EU  will 
contribute  € 146 million  to  the  facility  and  the  EIB  up  to  € 75 million.  Other  financial 
institutions could join the fund later.  

The  beneficiaries  of  the  facility  will  be  local,  regional  and  (where  justified)  national  public 
authorities  plus  public  or  private  entities  acting  on  behalf  of  public  authorities.  The  facility 
will  provide  loans,  guarantees  and  equity  along  with  technical  assistance  (following  the 
European  Local  Energy  Assistance  (ELENA)  model).  The  facility  will  invest  in  energy-
saving, energy-efficiency and renewable-energy projects, particularly in urban settings, which 
will  have  a  measurable  and  substantial  impact  on  economic  recovery  within  the  European 
Union, on increasing energy security and on reducing greenhouse gas emissions. These could 
include:  energy-saving/efficiency  measures  in  public  and  private  buildings;  investment  in 
efficient combined heat and power, including micro-cogeneration, and district heating/cooling 
networks;  decentralised  renewable  energy  sources,  including  micro-generation;  clean  urban 
transport; modernisation of infrastructure, such as street lighting and smart grids; and energy 
efficiency and renewable energy technologies with innovation and economic potential.  

The  Commission  is  currently  negotiating  an  agreement  to  delegate  to  the  EIB  the  tasks  of 
setting  up  and  managing  this  new  facility.  The  Delegation  Agreement  has  to  be  signed  by 
31 March  2011  at  the  latest.  The  facility  is  expected  to  come  into  operation  in  the  second 
quarter of 2011. 

7. 

Conclusions 

Following the launch stage, which was thoroughly described in the first implementation report 
of  April  2010,  the  EEPR  has  entered  the  implementation  stage.  As  the  previous  paragraphs 
show,  progress  is  being  achieved  in  all  three  sectors  supported  by  the  programme.  Most 
projects are in a construction or development phase and three have already been completed. 
The  EEPR  is  speeding  up  implementation  of  projects  by  financing  specific  actions,  such  as 
technical,  engineering  and  environmental  studies,  procurement  of  long-lead  items  and 
construction work. Also, as a result of the programme, project promoters were able to secure 
additional funding from financial institutions more easily.  

As  mentioned  in  the  first  implementation  report,  the  complex  and  lengthy  procedures  for 
delivering  construction  permits  could  pose  a  risk  for  timely  implementation  of  projects. 
However, even in this respect, the EEPR is proving beneficial, since it helped a great number 
of projects that were facing delays to receive priority from their national administrations. 

At the time of adoption of the first report, the precise amount of possible uncommitted funds 
was  not  known.  The  Commission  departments  then  assessed  different  options  for  the 
reallocation  of  unspent  funds,  in  line  with  the  EEPR  Regulation.  This  led  eventually  to  an 
amendment of the EEPR Regulation in December 2010 providing for the allocation of unused 
funds to a financial facility supporting sustainable energy projects. 

EN 

11 

   EN