The European Commission announced on Wednesday that it will allocate almost 650 million euros in grants from the Connecting Europe Facility (CEF) to help finance 14 cross-border energy infrastructure projects, a press release from the European Commission said.
One of the 14 projects to benefit from the funding is the CARMEN (Carpathian Modernized Energy Network) project, which aims to improve electricity market integration, support the large-scale integration of renewable energy sources and ensure energy security and flexibility in Romania and Bulgaria.
A construction grant worth 103.69 million euros will be awarded to this project. According to the Commission, the transmission and distribution networks will be modernized and digitalized to improve efficiency and enable secure flows of electricity from renewable energy production.
“A strong and independent Energy Union, delivering clean and affordable energy to consumers, must be based on an integrated and secure energy infrastructure. The projects we are financially supporting will increase Europe’s competitiveness and energy security, putting us on a steady path towards independence,” said Energy and Housing Commissioner Dan Jorgensen, according to Agerpres.
Overall, the funding is allocated to 6 electricity infrastructure projects, including smart grids, and 8 hydrogen infrastructure projects.
Almost €470 million of the funding is allocated to the 6 electricity projects, including smart grids. The largest grant, worth €180 million, will support the AGUAYO II project for the construction of a reversible pumped storage hydroelectric power plant in Spain. The facility combines the increased efficiency of renewable energy production with an underground installation, without the need to expand the existing water reservoirs used by the facility, thus having no impact on the environment.
Almost €113 million will contribute to increasing the resilience and protection of critical energy infrastructure against physical, cyber and other threats in Poland, Estonia, Latvia and Lithuania within the Baltic Synchronisation. This is the first time that the CEF has funded resilience and protection of critical energy infrastructure measures on such a scale, strengthening the capacity of the EU energy system to respond to new challenges.
This is the second call for proposals under the first PIC/PMI list. The funding awarded exceeds the initial indicative budget of the call for proposals of €600 million, reflecting the success and interest seen in the first call for proposals in 2024. In addition, for the first time, CEF funding will be used to support the protection of critical energy infrastructure and to finance hydrogen work projects, demonstrating the growing maturity of the sector.
Following the Commission’s assessment of the applications, Member States examined the Commission’s proposal in the CEF Steering Committee on 15 January 2026 and voted in favour of it. The formal adoption of the award decision will take place in the coming weeks. The European Executive Agency for Climate, Infrastructure and Environment (CINEA) will then prepare grant agreements with the beneficiaries. The next CEF call for proposals for energy infrastructure is planned for the second quarter of 2026.