Works in the meaning of CEF Energy include the purchase, supply and deployment of components, systems and services including software, the development, construction and installation activities relating to the eligible infrastructure items of a given PCI or PMI, the acceptance of installations and the launching of a project.

In particular, specific provisions apply in relation to, inter alia, the existence of significant positive externalities, a cross-border cost allocation decision, and the project’s inability to be financed by the market or through the regulatory framework.

Only projects contributing to PCIs and PMIs as identified in the PCI and PMI list shall be eligible for support through EU financial aid in the form of grants.

Pursuant to Article 18(2) and (3) of the TEN-E Regulation, PCIs/PMIs falling under the categories set out in Article 24 (derogation for gas interconnections in Cyprus and Malta) and in Annex II, point (1)(a), (b), (c), (d) and (f) (electricity projects, except for smart electricity grids and for electricity storage projects that are not regulated) and point (3) (hydrogen projects), are also eligible for Union financial assistance in the form of grants for works if they fulfil all of the following criteria:

• the project specific cost-benefit analysis drawn up pursuant to Article 16(4), point (a), of the TEN-E Regulation provides evidence concerning the existence of significant positive externalities, such as security of supply, system flexibility, solidarity or innovation;
• the project has received a cross-border cost allocation decision5 pursuant to Article 16 of the TEN-E Regulation or, as regards projects of common interest falling under the energy infrastructure category set out in point (3) of Annex II (hydrogen projects), where they do not fall under the competence of national regulatory authorities and therefore they do not receive a cross-border cost allocation decision, the project aims to provide services across borders, brings technological innovation and ensures the safety of cross-border grid operation;
• the project cannot be financed by the market or through the regulatory framework in accordance with the business plan and other assessments, in particular those carried out by possible investors, creditors or the national regulatory authority, taking into account any decision on incentives and reasons referred to in Article 17(2) of the TEN-E Regulation when assessing the project’s need for Union financial assistance.

The proposals requesting grants for works which fail to provide the relevant supporting documents or that provide  supporting documents that are not legally valid at the time of their submission, or which fail to comply with any of the eligibility criteria indicated above may not be eligible.

Only projects in conformity with EU law and which are in line with the relevant EU policies shall be financed, in particular those relating to competition, protection of the environment, state aid and public procurement.