The European Commission (EC) on Friday announced the EU’s first cross-border renewables tender in which Luxembourg will take part as a contributing country, while Finland will be the hosting country.
Coming under the framework of the renewable energy financing mechanism (RENEWFM), the tender will support photovoltaic (PV) projects in Finland with a size of 5 MW to 100 MW. A total of 400 MW of new solar capacity is expected to be delivered as a result of the auction. The two countries will share the statistical benefits of the generated green power.
In line with previously announced commitments, Luxembourg is voluntarily contributing EUR 40 million to the mechanism.
Aiming to boost the uptake of renewables in accordance with EU objectives, the RENEWFM links countries that pay into the mechanism with countries that agree to deploy projects on their territory.
The first tender under the mechanism is in the form of a call for proposals conducted by the European Climate Infrastructure and Environment Executive Agency (CINEA). It will be open for six months, starting on April 18. The selected projects will need to be constructed in 24 months.
The EC hopes that the initial tender will make other EU countries interested in this collective approach.
