Guidance on collaborative investment frameworks for offshore energy projects

Summary:

Communication published by the European Commission on 27 June 2024, setting out guidance on collaborative investment frameworks for offshore energy projects.

Further information:

The European Commission's REPowerEU Plan is based on the need to accelerate the energy transition and achieve a more resilient energy system. In this context, the European Union (EU) revised its Renewable Energy Directive to increase the overall renewable energy target by 2030. Offshore renewables play a key role in supporting such objectives. A first deliverable of Regulation (EU) 2022/869 was reached in 2023, when Member States agreed regionally on cumulative offshore goals for 2030 and 2050, representing a significant increase to the installed capacity in that year.

New cross-border projects, particularly hybrid interconnectors will therefore be needed. This was one of the conclusions of the first edition of the offshore network development plans (ONDPs). Specific infrastructure projects consistent with the needs identified in the ONDPs may then be considered within Ten-Year Network Development Plans (TYNDP) and reflected in national energy and climate plans (NECPs). The Commission must develop guidance on cost-benefit analyses and cross-border cost sharing for the development of the ONDPs for each sea basin.

This Communication presents such guidance, comprising a framework for the new sea basin cost-benefit analysis (SB-CBA) and cross-border cost sharing (SB-CBCS) exercises that assess the implications of developing an ONDP. The guidance also looks at the particularities of project-specific cost-benefit analyses and cost sharing approaches. It provides recommendations, supplementing other guidance and recommendations.