The European Commission has approved grants totaling €125.81 million to finance works on three cross-border renewable energy projects, according to a statement from the European Commission issued in Baku, Azerbaijan, on September 17. The funding, delivered through the Connecting Europe Facility (CEF) Energy under the EU budget, aims to support energy infrastructure investment, advance the bloc’s decarbonization goals, and strengthen integration among member states.
UNITED HEAT Project Secures €70 Million for German-Polish Pipeline
The largest allocation from the package is a €70 million grant awarded to the UNITED HEAT project, according to the European Commission statement. This initiative is designed to develop climate-neutral district heating systems across the twin cities of Görlitz, Germany, and Zgorzelec, Poland. The funding covers the final works phase, which features the construction of a cross-border pipeline. This pipeline will enable physical heat exchange and system balancing between the two distinct heating networks while integrating heat sources established in earlier project phases. The European Commission previously granted the project Cross-Border Renewable Energy (CB RES) status in 2022.
TWIN HEAT Project Allocates €11.41 Million to Replace Coal Units
A further €11.41 million has been awarded to the TWIN HEAT project, which seeks to decarbonize district heating in Słubice, Poland, while supporting a transition toward lower-carbon heating in Frankfurt (Oder), Germany. According to the European Commission, the project will replace existing coal-fired heating units in Słubice with two biomass boilers. Each boiler will feature a thermal capacity of 6 megawatts and operate using sustainably sourced wood chips.
UELJO Wind Farm Project Receives €44.40 Million for First Stage
The third initiative, the UELJO project, is set to receive €44.40 million for its initial development phase. Envisioned as a cross-border onshore wind farm near the Latvia-Lithuania border, the project will comprise approximately 30 wind turbines and generate up to 680 gigawatt-hours of renewable electricity annually. The grant will specifically support works in Latvia, including the construction of balance-of-plant infrastructure, grid connection works, and the installation of wind turbines. The European Commission granted the UELJO project CB RES status in 2025.
Evolution of EU Renewable Energy Targets and Next Funding Steps
The latest funding awards align with the EU’s progressively strengthened renewable energy policies. Building on a 20% target set for 2020, a revised Renewable Energy Directive in 2018 established a binding EU-wide target of at least 32% by 2030. Following the 2019 European Green Deal, the European Commission proposed raising that target to 40% in July 2021. The target was subsequently increased under the REPowerEU plan presented in May 2022, which was formulated in response to the energy crisis following Russia’s invasion of Ukraine to accelerate the clean energy transition, reduce dependence on Russian fossil fuels, and diversify supplies. A binding minimum target of 42.5% for renewables by 2030—with an aim for 45%—was ultimately set by revised Renewable Energy Directive (EU) 2023/2413, entering into force in November 2023.
According to supplementary details from the European Climate, Infrastructure and Environment Executive Agency (CINEA), only projects holding CB RES status are eligible to apply for funding under the CEF Energy CB RES window. CINEA noted that a newly adopted CB RES list enters into force on October 1, 2026, with the next call for proposals expected to open in November 2026.