The European Commission has approved the inaugural cross-border tender to promote renewable energy-related collaboration among member states to expedite the achievement of clean energy targets.

The tender is being carried out as part of the renewable energy financing mechanism and is a result of Luxembourg and Finland’s pledge to collaborate under this initiative.

Beginning April 18, 2023, interested parties can submit their proposals via the funding and tender portal. Grants will be awarded to project developers who establish new renewable energy projects utilizing solar photovoltaic technology.

This call for proposals is the first-ever cross-border tender between EU member states.

The Commission said the move signified a new era of collaboration in the field of renewable energy and accomplishing the goals of the European Green Deal and REPowerEU.

Luxembourg has decided to contribute €40 million (~$44 million) voluntarily, while Finland will host the competing projects that will vie for support.

A call for proposals will be the tender format. It will be executed by the European Climate Infrastructure and Environment Executive Agency (CINEA).

The call for proposals will be open for six months, following which CINEA will assess the competing proposals and grant the successful projects based on the lowest bid price until the budget is exhausted.

The chosen projects will be required to construct the installation within 24 months and generate a specified minimum amount of renewable electricity in the following years.

To participate in the tender, eligible companies should build a new solar PV installation with a capacity between 5 and 100 MW while conforming to the regulations of the tender.

The tender is expected to aid in the swift growth of large-scale solar photovoltaic projects in Finland while also enabling Luxembourg to harness renewable energy potential beyond its borders.

Over the next 15 years, the two countries will share the statistical advantages of the renewable energy produced by the supported projects.

The Commission is optimistic that the release of this first tender will stimulate interest among other EU countries and highlight the advantages of such collaborations.

Recently, the European Parliament and the Council provisionally agreed to raise the European Union’s binding renewable target to a minimum of 42.5% by 2030, up from 32%. It would mean doubling the existing share of renewables in the EU.

Earlier in the month, the EU Parliament adopted the revised Energy Performance of Buildings Directive, mandating solar rooftop systems for all new buildings by 2028 and renovating residential buildings by 2032.