Call: Disruptive PDA – Technical Assistance to advance market boundaries for sustainable energy investments

The specific objectives of the sub-programme "Clean Energy Transition" are the following:

• to develop, demonstrate and promote innovative techniques, methods and approaches for reaching the objectives of Union legislation and policy on the transition to sustainable renewable energy and increased energy efficiency, and to contribute to the knowledge base and to the application of best practice;
• to support the development, implementation, monitoring and enforcement of relevant Union legislation and policy on the transition to sustainable renewable energy or increased energy efficiency, including by improving governance at all levels, in particular through enhancing capacities of public and private actors and the involvement of civil society;
• to catalyse the large-scale deployment of successful technical and policy-related solutions for implementing relevant Union legislation on the transition to renewable energy or increased energy efficiency by replicating results, integrating related objectives into other policies and into public and private sector practices, mobilising investment and improving access to finance.

This sub-programme will fund the activities responding to the specific topics defined in the annual calls for proposals which are based on the list of priority topics. Other activities related to energy efficiency and renewable energy, which do not address the specific requirements of the calls defined under this sub-programme can be submitted to the calls under the Climate Change Mitigation and Adaptation sub-programme.

The sub-programme will aim at facilitating the transition toward an energy-efficient, renewable energy-based, climate-neutral and -resilient economy by funding coordination and support actions across Europe. These actions aim at breaking market barriers that hamper the socio-economic transition to sustainable energy, typically engaging multiple small and medium-size stakeholders, multiple actors including local and regional public authorities and non-profit organisations, and involving consumers.

The sub-programme will contribute to the implementation of the energy-related actions of the European Green Deal, including the ‘Renovation wave’ initiative for the building sector and will give due consideration to territories not connected to the European grids such as the EU outermost regions. It will contribute to the Just Transition objectives by accompanying the territories and the groups of citizens negatively affected by the transition from fossil fuels to clean energy, by building capacity of actors and fostering clean energy investments, mainly in energy efficiency and locally available, sustainable, renewable energy sources. Activities related to technology development will not be included.

A significant part of this budget will be used to finance Coordination and Support Actions (CSA) under OAs grants for the four year period, whereas the possibility to finance SAPs is only foreseen as from 2023.

It will cover the following areas of intervention:

• Building a national, regional and local policy framework supporting the clean energy transition:

Increasing coherence of energy transition governance at different levels by enhancing multi-stakeholder dialogue and building the capacity of public authorities to deliver under the national energy and climate plans and/or other plans and strategies (e.g. just transition plans, long-term renovation strategies, strategies for the electrification of the transport system). Supporting the development and effective implementation of clean energy policies, including the relevant Union legislation on products and energy consumers, in the EU and third countries. Supporting actions that put into practice the enabling provisions included in the European legislation on clean energy.

• Accelerating technology roll-out, digitalisation, new services and business models and enhancement of the related professional skills on the market for the clean energy transition:

Providing support for the decarbonisation of the buildings, industry and tertiary sectors, by fostering market uptake of innovative solutions, including digitalization and circular design in line with the climate neutrality target. Accelerating the clean energy transition by enabling the development of new added-value services and innovative business models. The roll-out of technologies and innovative solutions needs to be accompanied by measures addressing market barriers including support to the development and deployment of new skills and frameworks (labels, certificates, technological and non-technological standards, e.g. for interoperability, etc.).

• Attracting private finance for sustainable energy:

To upscale investments in sustainable energy, different capital flows need to be made available by addressing both supply and demand of finance, and by using public funds effectively. Supply side activities include: data collection, methodology and evidence-based risk management; harmonisation of definition and measuring of sustainable investments; development of innovative financing mechanisms, products, services and practices; standardisation and aggregation of projects and investments; simplification of the process for investors; capacity building and dialogue. Activities should contribute to EU policy and legislation in the field of sustainable finance.

• Supporting the development of local and regional investment projects:

Build capacity of local public authorities and private investors, notably community collective investors. Facilitate dialogue with the financial sector to deliver sustainable energy investments, including tailored actions contributing to a fair society and to a just energy transition in EU regions most dependent on fossil fuels or carbon intensive processes. Promote public procurement of energy and resource efficient works, supplies and services. Support tailored approaches for local actors to develop investment concepts, implement organisational innovations and aggregate projects. Improve market conditions and develop new integrated services offers for sustainable energy in buildings, transport, ports, and SMEs.

• Involving and empowering citizens in the clean energy transition:

Support citizens in taking an active role in the clean energy transition, including targeted support for collective actions, community and citizen-led initiatives and development of new energy services and social innovations. Strengthen collaboration between local authorities and citizen-led initiatives. Support actions that contribute to alleviate energy poverty. Foster energy literacy and sustainable energy behaviour of citizens, in particular younger generations.

Objective:

Project Development Assistance (PDA) offers technical assistance to project developers to undertake energy efficiency and renewable energy investments of ambition and scale.

The topic aims to support innovators across Europe to develop innovative solutions that are mobilising private capital, blending public with private financing, setting up long-term and scalable financial instruments and at the same time overcoming legal and structural barriers whilst delivering a highly ambitious sustainable energy project pipeline. Projects are expected to demonstrate innovative approaches in mobilising investments, advancing market boundaries or changing organisational and regulatory structures. In doing so they disrupt existing markets and existing processes.

These solutions should contribute significantly to paving the way towards the 2050 decarbonisation targets for Europe. The European Green Deal’s Renovation Wave is a key driver for a refurbished and improved building stock in the EU that will help pave the way for a decarbonised and clean energy system.

A range of very innovative solutions with regard to the financing and mobilisation of investments were demonstrated in past H2020 PDA projects, which helped to shift market boundaries and demonstrate practical application of ingenious, disruptive solutions. For example, a forfaiting fund using private investments, which is scalable across Europe has been set up to foster deep retrofitting of hard-to-treat multi-family buildings. Another example is the development of a revolving loan fund combining ERDF funding, low interest-loans and Third Party Financing through ESCOs to deeply refurbish hospitals in the region.

Scope:

Project Development Assistance (PDA) will be provided to public and private project promoters such as public authorities or their groupings, public/private infrastructure operators and bodies, energy service companies, retail chains, large property owners and services/industry. The action will support building technical, economic and legal expertise needed for project development. The launch of concrete investments is the final aim and deliverable of the project.

Proposals should demonstrate a clear showcase dimension in delivering innovative solutions accelerating sustainable energy investments across Europe:

• in the development of scalable schemes with a particular focus on leveraging enhanced levels of private investment such as EPC, blended funds, financial instruments or innovative on-bill and on-tax payment schemes; and/or
• in the organisational innovation for the mobilisation of the investment programmes such as setting up project development units, large-scale bundling and pooling of (mixed) assets, for example, at district, city or wider geographical level; and
• in the ambition levels for energy savings and decarbonisation, such as deep renovation, NZEB standards, positive energy buildings or districts and/or highly energy efficient infrastructure.

Proposals could target sectors including:

• existing residential buildings including large social housing operators
• existing non-residential buildings of public or commercial owners
• existing public infrastructure such as district heating/cooling networks, water/wastewater services
• clean and energy efficient urban transport infrastructure and low emission mobility solutions including conversion of urban areas for soft mobility or non-motorised transport
• industry and services, including SMEs
• RES energy communities and other citizen led initiatives.

The Commission considers that proposals requesting a contribution from the EU of a range of EUR 0.5 million to EUR 2 million would allow the specific objectives to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

Expected Impact:

• Delivery of a scalable financing solution for sustainable energy investment projects
• Investments in sustainable energy triggered by the project (cumulative, in million Euro of investments). Every million Euro of EU support should trigger at least 15 million Euro of investments in sustainable energy, with a particular emphasis on private sector funds, and, hence, ensure a significant leverage effect. In case projects address exclusively investments in residential buildings, the triggered investments should be at least 10 million Euro for every million Euro of EU support
• Primary energy savings/renewable energy generation triggered by the project (in GWh/year)
• Reduction of GHG emissions triggered by the project (in tCO2eq/year)
• Increased skills and capacity in project aggregators to deliver further sustainable energy investment
• Jobs created through the sustainable energy investments
• Where relevant, improved health-related indicators such as improved indoor air quality or physical activity

In order to be eligible, the applicants (beneficiaries and affiliated entities) must:

• be legal entities (public or private bodies)
• be established in one of the eligible countries, i.e.:
  • EU Member States (including overseas countries and territories (OCTs))
  • non-EU countries:
    • listed EEA countries and countries associated to the LIFE Programme (participating countries) or countries which are in ongoing negotiations for an association agreement and where the agreement enters into force before grant signature
• the coordinator must be established in an eligible country

A single applicant is allowed from an eligible country.

Entities from other countries are exceptionally eligible, if the granting authority considers their participation essential for the implementation of the action (see work programme).

Natural persons are NOT eligible (with the exception of self-employed persons, i.e. sole traders, where the company does not have legal personality separate from that of the natural person).

International organisations are eligible. The rules on eligible countries do not apply to them.

Entities which do not have legal personality under their national law may exceptionally participate, provided that their representatives have the capacity to undertake legal obligations on their behalf, and offer guarantees for the protection of the EU financial interests equivalent to that offered by legal persons34.

EU bodies (with the exception of the European Commission Joint Research Centre) can NOT be part of the consortium.

Entities composed of members may participate as ‘sole beneficiaries’ or ‘beneficiaries without legal personality’. Please note that if the action will be implemented by the members, they should also participate (either as beneficiaries or as affiliated entities, otherwise their costs will NOT be eligible).

Beneficiaries from countries with ongoing negotiations may participate in the call and can sign grants if the negotiations are concluded before grant signature (with retroactive effect, if provided in the agreement).

Special rules apply for certain entities (e.g. entities subject to EU restrictive measures under Article 29 of the Treaty on the European Union (TEU) and Article 215 of the Treaty on the Functioning of the EU (TFEU) and entities covered by Commission Guidelines No 2013/C 205/0537). Such entities are not eligible to participate in any capacity, including as beneficiaries, affiliated entities, associated partners, subcontractors or recipients of financial support to third parties (if any).

Proposal page limits and layout:

Proposals must be complete and contain all the requested information and all required annexes and supporting documents:

• Application Form Part A — contains administrative information about the participants (future coordinator, beneficiaries and affiliated entities) and the summarised budget for the project (to be filled in directly online)
• Application Form Part B — contains the technical description of the project (to be downloaded from the Portal Submission System, completed and then assembled and re-uploaded)
• Part C (to be filled in directly online) containing additional project data
• mandatory annexes and supporting documents (to be uploaded):
  • detailed budget table (mandatory excel template available in the Submission System)
  • participant information (mandatory template available in the Submission System)
  • table of investments (mandatory template available in the Submission System)
• optional annexes: letters of support

Page limit - Part B: 70 pages

Topic budget: EUR 6,000,000.00