Enigin Update - Unspent EU Money to Fund Efficient Energy Projects
THE EUROPEAN Parliament voted today in favour of plans to release €146 million of unused EU funds to finance energy saving, energy efficiency and renewable energy projects.
We reported on these pages previously that this money was being earmarked for this action, the amended legislation on the European Energy Recovery Plan (EERP) will channel the unspent money into a new fund, to finance projects including renovations of public and private buildings to improve energy efficiency or switching to renewable energy and local infrastructure, including efficient street lighting, electricity storage, smart metering and smart grids.
The fund will focus chiefly on helping local and regional authorities to pay for such projects, which must be economically and financially viable, so as to refund the investment in due course. A total of €146.34 million will be available from 1 January 2011 and must be allocated by 31 March 2014.
Contributions from the fund could take the form of loans, guarantees, equity or other financial products. Geographical balance is to be an important criterion in the selection of projects.
Enigin Distributors across Europe can highlight the technology from Enigin to their local authorities, enabling them to see the cost-effectiveness of what they have to offer while also reducing greenhouse gas emissions and lowering energy costs.
The EERP, which was launched in 2009, aims to boost economic recovery by funding energy projects. In 2010 a total of €3.98 billion was earmarked for such plans.
The Parliament also sought to include energy efficiency and renewable energy in the EERP when it was first proposed. The European Commission has promised to consider this at a later stage, using funds unspent by the end of 2010. The amended regulation provides a legal base to do this, otherwise the money would go back to national budgets.
Legislation still has to be formally approved by the Council before the end of the year. Due to the urgent need to address the economic crisis, it should enter into force immediately on publication.
