European Energy Grants Explained
In this blog post, we'll go over a few various funding options that businesses in the EU have as well as two grants that are unique to Ireland that could help businesses get started on the path to decarbonisation and energy savings.
What exactly is the European Commission's Innovation Fund?
The Innovation Fund is a funding option for carrying out the EU's obligations across the economy under the Paris Agreement and enabling the European Commission's strategic vision of a climate-neutral Europe by 2050. The EU Emissions Trading Scheme (ETS) and the Innovation Fund will offer long-term benefits for the implementation of cutting-edge technology necessary to achieve the EU's low-carbon transition.
The following projects will receive funding from the Innovation Fund:
Innovative low-carbon processes and technologies in energy-intensive industries, including goods that replace those with a high carbon footprint
Carbon sequestration and use (CCU)
Building and running a carbon capture and storage facility (CCS)
Innovative generation of renewable energy
Who can Apply
Both small-scale and large-scale projects are welcome to submit funding applications from the Initiative, which will also promote initiatives on low-carbon solutions that reduce emissions across several sectors.
Large scale projects are considered projects with capital costs of more than €7.5 million. Small-scale projects with capital costs of less than €7.5 million will be eligible for shortened application and selection processes. For projects to be supported, they will need to have developed enough in terms of planning, business model, and financial and legal structure.
The following criteria will be used to select projects
Effectiveness of reducing emissions of greenhouse gases
Maturity and viability of the project
Price effectiveness (cost per unit of performance)
The Modernisation Fund is a special funding initiative by the EU which is designed to assist 10 lower-income EU Member States in their move to climate neutrality by assisting in the upgrading and improvement of their energy efficiency.
Bulgaria, Croatia, Czechia, Estonia, Hungary, Latvia, Lithuania, Poland, Romania, and Slovakia are the recipient member states.
The Modernisation Fund will aid investments in the following areas: production and use of energy from renewable sources, energy efficiency, energy storage, modernisation of energy networks, including district heating, pipelines, and grids; just transition in regions with a high carbon footprint; redeployment, reskilling, and upskilling of workers; education; job-seeking initiatives; and start-ups.
The Modernization Fund is acknowledged as one of the most significant funding tools supporting the aims of the European Green Deal Investment Plan. As of June 2022, the Fund would have made EUR 2.4 billion accessible to support the 2030 climate and energy targets of 7 recipient nations with each receiving the following :
- Romania will receive EUR 1 391.6 million
- Czechia EUR 520 million
- Poland EUR 244.2 million
- Lithuania EUR 85 million
- Hungary EUR 74.3 million
- Slovakia EUR 49.5 million
- Croatia EUR 40 million
One of the most exciting things is 45 investment proposals are being funded by the Modernisation Fund in the following sectors:
Supply of power from renewable energy sources
Energy efficiency improvements in the energy sector, industry, buildings, and transportation, as well as the substitution of coal with fuels with reduced carbon intensity.
Modernisation of energy networks.
LIFE Clean Energy Transition sub-programme
The goal of the LIFE Clean Energy Transition sub-programme, which has an approximately EUR 1 billion budget for the years 2021–2027, is to speed up the transition to an economy that is energy-efficient, dependent on renewable energy, climate-neutral, and resilient.
These high EU added-value measures involve a variety of small and medium-sized partners, as well as local and regional public authorities, non-profit organisations, and consumers. They are intended to remove market barriers that impede the economic transition to sustainable energy. The LIFE Clean Energy Transition sub-programme co-finances projects in the following five intervention areas:
Establishing a framework of national, regional, and local policies to assist the switch to clean energy;
Accelerating the adoption of technology, digitalization, new services and business models, and improvement of the market's available professional capabilities;
Securing private funding for renewable energy;
Encouraging the creation of regional and local investment projects;
Empowering and including citizens in the transition to clean energy.
The Support Scheme for Renewable Heat
The Support Scheme of Renewable Heat is a Irish government-funded program aimed to boost the amount of energy produced from renewable sources in the heating industry. The scheme can be availed of for commercial, industrial, agricultural, district heating, public sector, and other non-domestic heat consumers.
The scheme provides successful applicants with an installation grant of up to 30% of eligible expenditures as well as investment in renewable heating systems that make use of the following technologies:
Air-source heat pumps
Geothermal heat pumps
Water source heat pumps.
Objective of the Scheme
The support program for renewable heat's main goal is to raise the percentage of sustainable energy used for heating. This will lower greenhouse gas emissions while also helping Ireland reach its 2030 renewable energy targets.
Goals of the Scheme
Close the cost gap between conventional fossil fuel alternatives and renewable heating systems for both installation and operation.
Encourage the development and distribution of renewable heat sources.
- The proposed heat use meets confirmed energy efficiency standards and is acceptable.
- In terms of emissions, heat generating technologies and project installations abide by planning laws, construction product regulations, EN standards, efficiency benchmarks, and technology standards.
- Both developers and contractors are capable of performing the work.
Energy Audit Grants
What is an Energy Audit?
An energy audit is a crucial step for companies looking to cut costs, conserve energy, and improve their business. An energy audit can be performed on structures, operations, or systems, and it entails three steps: preparation, site inspection, and reporting. You can comprehend the following from the audit report that compiles the findings:
What energy-intensive machinery and procedures are used by your company?
What energy-saving measures you should take, together with an estimate of their cost and impact?
What is the SEAI’s Support Scheme for Energy Audits ?
SMEs can get a €2,000 voucher from SEAI's Support Scheme for Energy Audits (SSEA) to help cover the cost of an excellent energy audit. This will typically pay for the audit's entire cost. Application to the program is simple, and qualified firms receive immediate acceptance.
Companies that apply to the initiative must be:
Republic of Ireland-registered businesses who spend at least €10,000 annually on energy at the audited location.
We at CoolPlanet can assist you in beginning the process of reducing your emssions and energy consumption. We can find, design, and implement the best solutions for your business, from increasing energy efficiency and optimizing processes to incorporating renewable energy and electrification. Additionally, we can assist you with funding possibilities that may benefit your business and make you feel supported during the entire process.