Europe allocates €650m for energy infrastructure projects

  • February 8, 2026
  • Steve Rogerson

The European Commission is allocating nearly €650m in grants to help finance 14 cross-border energy infrastructure projects.

These projects should strengthen the EU’s energy security, increasing the integration of renewable energy.

As emphasised in the recently adopted European Grids Package, improved interconnectivity is crucial for the EU to reduce energy prices for consumers and industry and to ensure independence.

The funding will be used to support the protection of critical energy infrastructure and to fund work projects on hydrogen, demonstrating the increasing maturity of the sector.

Overall, the funding is being allocated for six electricity infrastructure projects including smart electricity grids and for eight hydrogen infrastructure projects.

Nearly €470m of the funding is earmarked for the six electricity projects including smart electricity grids. The largest grant, of €180m, will support the Aguayo II (ec.europa.eu/assets/cinea/PCI/files/PCIFiche_1.18_1st_PCI_PMI_list.pdf) project for the construction of a reversible pumped-storage hydroelectric powerplant in Spain. The plant combines improved efficiency in energy generation from renewables with an underground installation, without the need to expand existing water reservoirs used by the plant, therefore having no impact on the environment.

Almost €113m will help increase the resilience and protection of critical energy infrastructure from physical, cyber and other threats in Poland, Estonia, Latvia and Lithuania in the framework of the Baltic Synchronisation (ec.europa.eu/assets/cinea/PCI/files/PCIFiche_3.3.5_1st_PCI_PMI_list.pdf).

The modernisation of the Čierný Váh facility (ec.europa.eu/assets/cinea/PCI/files/PCIFiche_2.11_1st_PCI_PMI_list.pdf) in Slovakia, among the first in Europe to combine traditional pumped hydro storage with battery storage on such a scale, is also supported with a €63m contribution.

Another grant for construction works of almost €104m will go to a smart grids project between Bulgaria and Romania. The transmission and distribution networks will be modernised and digitalised to improve efficiency and enable secure electricity flows from renewable generation.

The other two electricity projects – one on an internal link in Austria, the other for a connection from Greece and Egypt – will receive grants for support studies.

To help the uptake of the growing hydrogen market and to decarbonise the EU industry, more than €176mn will be dedicated to boost hydrogen infrastructure.