European Commission Allocates €650 Million to Boost Cross-Border Energy Infrastructure and Hydrogen Projects

The European Commission has approved nearly €650 million in funding under the Connecting Europe Facility (CEF) to support 14 cross-border energy infrastructure projects, aimed at enhancing the EU’s energy security, boosting renewable energy integration, and strengthening regional competitiveness.

The funding, part of the second call under the first PCI/PMI list, exceeds the initial €600 million budget, reflecting strong project demand and industry interest following the success of the first call in 2024.

Of the total allocation, nearly €470 million will support six electricity infrastructure projects, including smart grids and pumped hydro storage, while over €176 million will fund eight hydrogen infrastructure projects to accelerate the development of Europe’s hydrogen ecosystem.

The largest single grant, €180 million, has been awarded to Spain’s AGUAYO II pumped-storage hydro project, which will improve renewable energy integration and storage efficiency through underground installation, minimising environmental impact.

Nearly €113 million will be invested in strengthening the resilience and protection of critical energy infrastructure across Poland, Estonia, Latvia, and Lithuania under the Baltic Synchronisation initiative, marking the first time CEF funding is used at scale for infrastructure protection.

In Slovakia, €63 million will support the modernisation of the Čierný Váh pumped hydro facility, integrating large-scale battery storage, while €104 million will fund a smart grids project between Bulgaria and Romania to modernise and digitalise electricity networks.

To advance Europe’s hydrogen economy, €120 million has been allocated to the Gronau hydrogen storage project in Germany, the first CEF-funded hydrogen construction project, alongside additional funding for hydrogen studies in several EU countries.

The funding proposal was approved by EU Member States during the CEF Coordination Committee meeting on January 15, 2026, with formal adoption expected in the coming weeks. The next CEF energy infrastructure call is scheduled for Q2 2026.