Funding programme

LIFE is the EU’s funding programme dedicated to the environment and climate action.

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Call overview

This call offers technical assistance to public and private project developers to deliver energy efficiency and renewable energy investments.

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Call detail

While LIFE-CET topics such as LIFE-2023-CET-LOCAL or the European City Facility focus on the elaboration of transition plans such as Sustainable Energy and Climate Action Plans (SECAPs) or the elaboration of investment concepts and building investment pipelines, respectively, the PDA topic aims to support project developers across Europe to deliver a highly ambitious sustainable energy project pipeline. Projects are expected to develop replicable solutions that are mobilising private capital, blending public with private financing, setting up long-term and scalable financial instruments and at the same time overcoming legal and structural barriers. Projects shall demonstrate an innovative approach, for example in advancing existing procurement procedures, in aggregating and structuring investment projects, in advancing market boundaries or changing organisational and regulatory structures.

PDA projects contribute significantly to the European Green Deal goals and will help pave the way for a decarbonised and clean energy system. In the next years, PDA projects are expected to significantly contribute to accelerating the clean energy transition, as pointed out in the REPowerEU Plan to phase out EU dependence on fossil fuel imports, and to contribute to the Green Deal Investment Plan, by stimulating market demand for Net-Zero technologies and assisting in their uptake. A range of very innovative solutions with regard to the financing and mobilisation of investments were demonstrated in past Horizon 2020 PDA projects, which helped to shift market boundaries and demonstrate practical application of inspiring solutions. Examples include the development of a revolving loan fund combining European Regional Development Fund (ERDF) funding, low interest-loans and third-party financing through Energy Service Companies (ESCOs) to deeply refurbish hospitals in a region, the development of a forfaiting fund using private investments, or the development of sustainable public real estate management and subsequent energy efficiency investments in municipal assets.

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Activities funded

Project Development Assistance (PDA) will support project promoters in preparing and launching investment pipelines of sustainable energy projects. The call topic aims to build technical, economic and legal expertise of project promoters needed for the successful project development and implementation. Projects shall demonstrate their added value and lead to the launch of tangible sustainable energy investments within the project duration.

Proposals for PDA projects can be submitted by public or private project promoters such as public authorities or their groupings, public/private infrastructure operators and bodies, energy agencies, energy service companies, retail chains, large property owners, services or industry.

Proposals should demonstrate a clear showcase dimension in delivering replicable solutions for accelerating sustainable energy investments across Europe, as regards:

• the organisational innovation for the mobilisation of the investment programme such as setting up project development units or establishing efficient procurement procedures for large-scale bundling and pooling of (mixed) assets. The geographical focus can be at district, city or a wider level; and/or
• financial engineering with a particular focus on leveraging enhanced levels of private investment and improved combination of existing funds. This could include Energy Performance Contracting, financial instruments, blended funds, innovative on-bill and on-tax payment schemes, community-based financing schemes, etc.

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Eligibility

In order to be eligible, the applicants (beneficiaries and affiliated entities) must be legal entities (public or private bodies) and be established in one of the eligible countries, i.e.:

• EU Member States (including overseas countries and territories (OCTs))
• non-EU countries:− listed EEA countries and countries associated to the LIFE Programme (associated countries) or countries which are in ongoing negotiations for an association agreement and where the agreement enters into force before grant signature.

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Consortium composition

Proposals may be submitted by a single applicant or by applicants from a single eligible country.

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Budget

The Commission considers that proposals requesting a contribution from the EU of a range of EUR 0.5 million to EUR 1.5 million would allow the specific objectives to be addressed appropriately. Nonetheless, this does not preclude submission and selection of proposals requesting other amounts.

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