New Entrants Reserve (NER300)

NER300 is the world's largest funding programme to support demonstration projects for Carbon Capture and Storage (CCS) and innovative renewable energy technologies.

 

NER300 is so named because it will be funded from the sale of 300 million emission allowances held in the New Entrants Reserve (NER) of the EU Emissions Trading Scheme (ETS), which at the current market price could raise around €4.5 billion.

 

NER300 aims to encourage private sector investors and EU Member States to invest in commercial demonstration projects. Subject to suitable project proposals being put forward, at least one but no more than three projects (CCS and renewables projects combined) could be funded in each Member State.

 

The intention is to co-fund at least 8 CCS and 34 innovative renewable energy technology projects, however, the actual number co-funded will depend on the amount of money raised by the sale of the emission allowances.

 

The Call for Proposals was released on Tuesday 9th November, 2010. The closing date for project sponsors to submit their application forms to their Member State (for the UK this was DECC) was Wednesday 9th February 2011.

 

The deadline for Member States to complete an eligibility assessment and forward the application with the submission forms to the European Investment Bank (EIB) was Monday 9th May 2011.

 

The UK Government submitted 12 applications from UK projects to the EIB for consideration. Seven are for CCS projects and five for innovative renewable energy projects.

 

SEGEC facilitated two of the Marine bids which were successful in being passed to the EIB for consideration: The Pentland Orkney Wave Energy Resource (POWER) Ltd and ScottishPower Renewables Sound of Islay Demonstration Tidal Array

 

The EIB will now spend nine months performing 'due diligence' on the applications submitted to it. After this the European Commission will verify the eligibility criteria assessment and re-confirm with Member States the public funding contribution for Recommended Projects, before making its Award Decisions.

 

For further information on NER300 and to access the relevant call documents, please click here.