EC launches renewable energy financing mechanism survey

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A survey aimed at encouraging private entities to participate in the renewable energy financing mechanism has been launched by the European Commission. Open until 15 February, the seven-point questionnaire aims at providing the Commission with indicative feedback on potential participants to the mechanism, in preparation for the first call for proposals. Adopted in September 2020, the EU renewable energy financing mechanism is now in its implementation phase.

The private sector plays an important role in the successful rollout of renewable energy sources across the EU. With this in mind, the private investors equally have an opportunity to contribute to the mechanism. Such financial contributions will count to the EU binding target of at least 32% of renewable energy. In order to increase the transparency, the renewable energy generated by projects receiving support from private sector contributions may be linked to the EU-wide green label, referred to in the recast Renewable Energy Directive ((EU) 2018/2001), consistent with the EU sustainable finance taxonomy.

An additional incentive to private contributors is the possibility to request guarantees of origins for the energy production that corresponds to their contribution. Such guarantees of origin could be issued for the renewable energy production in accordance with Article 19 of the directive and subject to the national legislation in the country hosting the project. Beyond these benefits, the private investors can use the financing mechanism to broaden their sustainability and decarbonisation portfolio and to diversify their investment agenda.

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