Description
The Recovery and Resilience Facility (RRF) channels EU funding for the implementation of the REPowerEU plan to accelerate the clean energy transition and boost EU competitiveness. Through the RRF, the Commission raises funds by borrowing on the capital markets, issuing bonds on behalf of the EU, which are then available to EU countries for their implementation of ambitious reforms and investments that make their economies and societies more sustainable, resilient and prepared for the green transition and digital transition. The Commission's Guidance on the Recovery and Resilience Plans explicitly calls for 37% of funds to be allocated to climate action (including renewable energy). This creates ample opportunities for public financing to support energy communities. In the recent guidelines of the Commission regarding the REPowerEU chapter of the Recovery and Resilience Plans, energy communities are highlighted as vehicles to tackle energy poverty.
level of support
EU-wide
type of funding
Grants, Loans
Funding amount
Total RRF available funding is €723.8 billion (including €338 billion in grants and €385.8 billion in loans) combined with REPowerEU’s approximate €300 billion. Project funding varies depending on the specific program and type of project being supported.
Eligibility criteria
Open to EU member states, regional governments, public-private partnerships, and energy cooperatives focused on projects related to green transition and climate action goals.
Application Process and Timeline
Proposals are submitted through national recovery and resilience plans. Applications should focus on projects that contribute to the green transition and climate action goals.
Evidence Of Success
All EU countries must dedicate at least 37% to measures supporting the green transition in their Recovery and Resilience Plans (RRPs), and all countries exceeded this target, reaching 42%, on average by May 2024. In total, climate expenditure amounts to around €275 billion, with more than €184 billion supporting energy-related measures. The Italian RRF plan, one of the first to be submitted, provides a sum of €2.2 billion for the establishment of RECs in small municipalities with a population below 5,000 inhabitants. This results in an estimated cash flow worth up to €1 million for each eligible city and will support expenses ranging from technical assistance, to material purchases for development and construction. Some Italian regions – like Piedmont, Apulia, and Lombardy - are also making additional contributions to support municipalities in the establishment of local RECs.
Expert Opinion
The Recovery and Resiliency Facility, is a crucial instrument for implementing the REPowerEU plan and has already supported several projects linked with energy communities (e.g. renewable energy production, retrofitting) across the Europe.
