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Law" >European Climate Law</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/climate-strategies-targets_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Climate strategies & targets" >Climate strategies & targets</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/adaptation-climate-change_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Adaptation to climate change" >Adaptation to climate change</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/eu-emissions-trading-system-eu-ets_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="EU Emissions Trading System (EU ETS)" >EU Emissions Trading System (EU ETS)</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/fluorinated-greenhouse-gases_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Fluorinated greenhouse gases " >Fluorinated greenhouse gases </a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/industrial-carbon-management_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Industrial Carbon Management" >Industrial Carbon Management</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/carbon-removals-and-carbon-farming_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Carbon Removals and Carbon Farming" >Carbon Removals and Carbon Farming</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/effort-sharing-member-states-emission-targets_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Effort sharing: Member States' emission targets" >Effort sharing: Member States' emission targets</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/land-use-sector_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Land use sector" >Land use sector</a></li><li class="ecl-menu__subitem ecl-menu__subitem--current" data-ecl-menu-subitem ><a href="/eu-action/eu-funding-climate-action_en" class="ecl-link ecl-link--standalone ecl-menu__sublink ecl-menu__sublink--current" data-untranslated-label="EU funding for climate action" aria-current="page" >EU funding for climate action</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/transport_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Transport" >Transport</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/international-action-climate-change_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="International action on climate change" >International action on climate change</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/ozone-layer_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Ozone layer" >Ozone layer</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/local-and-regional-climate-action_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Local and regional climate action" >Local and regional climate action</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/climate-and-nature_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Climate and nature" >Climate and nature</a></li><li class="ecl-menu__subitem" data-ecl-menu-subitem ><a href="/eu-action/climate-disinformation_en" class="ecl-link ecl-link--standalone ecl-menu__sublink" data-untranslated-label="Climate disinformation" >Climate disinformation</a></li><li class="ecl-menu__subitem ecl-menu__see-all"><a href="/eu-action_en" class="ecl-link 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ecl-breadcrumb__icon" focusable="false" aria-hidden="true" role="presentation"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></li><li class="ecl-breadcrumb__segment" data-ecl-breadcrumb-item="expandable"><a href="/eu-action/eu-funding-climate-action_en" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-breadcrumb__link" >EU funding for climate action</a><svg class="ecl-icon ecl-icon--fluid ecl-breadcrumb__icon" focusable="false" aria-hidden="true" role="presentation"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></li><li class="ecl-breadcrumb__segment" data-ecl-breadcrumb-item="static"><a href="/eu-action/eu-funding-climate-action/innovation-fund_en" class="ecl-link ecl-link--standalone ecl-link--no-visited ecl-breadcrumb__link" >Innovation Fund</a><svg class="ecl-icon ecl-icon--fluid ecl-breadcrumb__icon" focusable="false" aria-hidden="true" role="presentation"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></li><li class="ecl-breadcrumb__segment ecl-breadcrumb__current-page" data-ecl-breadcrumb-item="static" aria-current="page"><span>Competitive bidding </span></li></ol></nav><div class="ecl-page-header__info"><h1 class="ecl-page-header__title"><span>Competitive bidding </span></h1></div><div class="ecl-page-header__description-container"><p class="ecl-page-header__description">A new tool for funding innovative low-carbon technologies under the Innovation Fund </p></div></div></div> </div> <main class="ecl-u-pb-xl" id="main-content" data-inpage-navigation-source-area="h2.ecl-u-type-heading-2, div.ecl-featured-item__heading"> <div class="ecl-container"> <div class="ecl-row"> <div class="ecl-col-s-12 ewcms-top-sidebar"> <div> <div data-drupal-messages-fallback class="hidden"></div> </div> </div> </div> <div class="ecl-row"> <div class="ecl-col-s-12"> <div id="block-ewcms-theme-main-page-content" data-inpage-navigation-source-area="h2, div.ecl-featured-item__heading" class="ecl-u-mb-l"> <article dir="ltr"> <div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1937"></a> <div class="ecl-row inpage-navigation-container"> <div class="ecl-col-l-3"> <nav class="ecl-inpage-navigation oe-theme-ecl-inpage-navigation ecl-u-z-dropdown" data-ecl-auto-init="InpageNavigation" data-ecl-auto-initialized="true" data-ecl-inpage-navigation="true" aria-labelledby="ecl-inpage-navigation-945970725" ><div class="ecl-inpage-navigation__title" id="ecl-inpage-navigation-945970725">Page contents</div><div class="ecl-inpage-navigation__body"><div class="ecl-inpage-navigation__trigger-wrapper"><button type="button" class="ecl-inpage-navigation__trigger" id="ecl-inpage-navigation-945970725-trigger" data-ecl-inpage-navigation-trigger="true" aria-controls="ecl-inpage-navigation-list" aria-expanded="false"><span class="ecl-inpage-navigation__trigger-current" data-ecl-inpage-navigation-trigger-current="true">Page contents</span><svg class="ecl-icon ecl-icon--xs ecl-icon--rotate-180 ecl-inpage-navigation__trigger-icon" focusable="false" aria-hidden="false" ><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></button></div><ul class="ecl-inpage-navigation__list" data-ecl-inpage-navigation-list="true" id="ecl-inpage-navigation-945970725-list"></ul></div></nav> </div> <div class="ecl-col-l-9" data-inpage-navigation-source-area="h2, div.ecl-featured-item__heading"> <div class="ecl-u-mb-2xl"> <a id="paragraph_2784"></a> <div> <div class="ecl"> <h2 class="ecl-u-type-heading-2">IF24 Auction</h2> </div> <div class="ecl"><p>The <strong>IF24 Auction</strong> opened on <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_24_6184">3 December 2024</a> with a budget of EUR 1.2 billion.</p><p>Interested bidders will find all relevant documents in the <a href="https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/home">EU Funding and Tenders Portal</a>, including a description of the final application requirements. You can also consult the <a href="/document/download/7fc59da6-15a1-46a1-a015-fa9645789601_en?filename=policy_funding_innovation_fund_if24_auction_qna_on_tnc_en.pdf">dedicated Q&As</a> for more information and follow the dedicated <a href="https://cinea.ec.europa.eu/innovation-fund/innovation-fund-2024-auction-info-day-2024-12-10_en">Info Day</a> on 10 December 2024.</p><p>European Economic Area (EEA) countries (EU27, Iceland, Liechtenstein, and Norway) will again have the option to allocate additional national funds to support projects using <a href="/eu-action/eu-funding-climate-action/innovation-fund/competitive-bidding_en#auctions-as-a-service-aaas">Auctions-as-a-Service (AaaS)</a>.</p><p>For the IF24 Auction, Spain, Lithuania, and Austria have already <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_24_5862">announced</a> their participation in the AaaS scheme.</p><div class="ecl-table-responsive"><table class="ecl-table ecl-table--zebra"><tbody class="ecl-table__body"><tr class="ecl-table__row"><td><strong>Key events</strong> </td><td><strong>Expected timeline</strong> </td></tr><tr class="ecl-table__row"><td>Call opening </td><td>3 December 2024 </td></tr><tr class="ecl-table__row"><td>Deadline to submit applications </td><td>20 February 2025 </td></tr><tr class="ecl-table__row"><td>Evaluation results </td><td>May-June 2025 </td></tr><tr class="ecl-table__row"><td>Grants award </td><td>September-November 2025 </td></tr></tbody></table></div></div> </div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_1935"></a> <div> <div class="ecl"> <h2 class="ecl-u-type-heading-2">Overview</h2> </div> <div class="ecl"><p>The <a href="/eu-action/eu-funding-climate-action/innovation-fund_en">Innovation Fund</a> is one of the world’s largest funding programmes for the deployment and commercialisation of innovative low-carbon technologies.</p><p>Currently, the Fund awards project support through regular grants, auctions, <a href="/eu-action/eu-funding-climate-action/innovation-fund/project-development-assistance_en">project development assistance</a>, and financial instruments such as <a href="https://investeu.europa.eu/index_en">Invest EU</a>.</p><p>In 2023, the Commission developed a new competitive bidding support mechanism (‘auctions’) to complement its grants programme. Auctions expanded the portfolio of support mechanisms available under the Fund, fostering faster and more cost-efficient support for the roll-out of low-carbon technologies needed for the green transition.</p></div> </div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_2702"></a> <div class="ecl-accordion" data-ecl-auto-init="Accordion" data-ecl-accordion ><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-2702-0-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-2702-0-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">What are auctions?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-2702-0-content" role="region" aria-labelledby="paragraph-2702-0-title" ><div class="ecl"><p>Auctions are market-based instruments through which the Commission can allocate Innovation Fund support to accelerate innovative, low-carbon projects in Europe.</p><p>An auction is a process in which goods or services are offered for bidding. In the case of a subsidy scheme, what is auctioned is a subsidy for a specific activity or product. Typically, bidders requiring the lowest public subsidy for a decarbonisation activity or product will win the subsidy.</p><p>The Innovation Fund has begun allocating funds through a fixed-premium pilot auction directed at producing Renewable Fuels of Non-Biological Origin (RFNBO) hydrogen. During the auction, project developers could participate and submit a fixed-premium bid (€/kg of produced renewable hydrogen) to receive support on their production.</p><p>After some basic eligibility and quality checks, bids are ranked from lowest to highest and awarded support, in that order, until the auction budget is exhausted. Fixed-premium support is paid for up to 10 years.</p><p>The Innovation Fund only allocates a limited budget per auction to incentivise competition (€800 million for the first auction).</p></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-2702-1-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-2702-1-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">What is the legal basis to conduct auctions?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-2702-1-content" role="region" aria-labelledby="paragraph-2702-1-title" ><div class="ecl"><p>Following the <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A32023L0959">revised European Union Emissions Trading System (EU ETS) Directive</a>, the Innovation Fund can support projects through different types of competitive bidding mechanisms, specifically:</p><ul><li>fixed-premium contracts</li><li>Contracts for Difference (CfDs) or</li><li>Carbon Contracts for Difference (CCfDs).</li></ul><p>This support must enable decarbonisation technologies, for which the European carbon price and regulatory framework might not be sufficient incentives.</p><p>The Innovation Fund offers a fixed premium to support renewable hydrogen production in the pilot auction.</p></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-2702-2-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-2702-2-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">Why are we using auctions?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-2702-2-content" role="region" aria-labelledby="paragraph-2702-2-title" ><div class="ecl"><p>Many EEA countries have introduced auctions to fund renewable power projects. These auctions have helped lower the price of renewable energy and favoured the uptake of more efficient and climate-friendly technologies like wind and solar.</p><p>By definition, a well-designed auction mechanism allows an efficient allocation of support at a competitively determined level. This minimises the costs to the public and, if designed well, sufficiently de-risks projects so that they attract more private capital.</p><p>Compared to regular grants, auctions will provide payments based only on certified and verified production (i.e. no pre-financing or payments before <em>entry into operation</em>) and tackle projects with a different risk profile than those addressed by the existing regular grant programmes.</p><p>They are well suited for projects that have moved closer to commercial deployment, with lower technology and construction risks, but still face profitability issues. Auctions also ensure that no public money is spent on covering project development risks that are best handled by the private sector.</p><p>Another advantage is that auctions create competition between producers, which may lead to lower consumer prices.</p><p>In addition, competitive bidding can reduce the risk of providing more public support than necessary, thereby ensuring taxpayers’ best value for money. Competitive bidding is considered proportionate support under the <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv%3AOJ.C_.2022.080.01.0001.01.ENG&toc=OJ%3AC%3A2022%3A080%3ATOC">Guidelines on State Aid for Climate, Environmental Protection, and Energy (CEEAG)</a>. It has been a significant success story in the renewable power sector in many EEA countries, considerably reducing the funding needs for renewable power.</p><p>Competitive bidding can also be used to discover the prices of goods with unknown market prices. Currently, there is no liquid market for renewable hydrogen and its derivatives. The Fund will publish key price points to help foster the renewable hydrogen market.</p></div></div></div></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_2308"></a> <div> <div class="ecl"><p>As part of the ‘<a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_21_3541">Fit for 55’ package</a>, the Commission proposed setting up a competitive bidding instrument in the proposal to revise the EU Emissions Trading System (EU ETS) Directive. This proposal and several others aim to make the EU’s climate, energy, land use, transport, and taxation policies suitable for reducing net greenhouse gas (GHG) emissions by at least 55% by 2030 compared to 1990 levels.</p><p>The <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM%3A2022%3A230%3AFIN&qid=1653033742483">REPowerEU Plan</a> also highlighted competitive bidding as a support mechanism for hydrogen production and uptake, specifically as a central measure to reduce fossil-fuel consumption in hard-to-decarbonise industrial sectors and diversify energy imports away from Russian fossil fuels.</p><p>Further, the revised EU ETS Directive introduced competitive bidding as a new possible mechanism for allocating support under the Innovation Fund.</p><p>Auctions for renewable hydrogen are a key element of the <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52023DC0156&qid=1682349760946">European Hydrogen Bank (EHB)</a>, which establishes EU financing instruments and a coordination platform to cost-effectively secure domestic and international renewable hydrogen volumes in the EU. By helping Europe decarbonise its industry and transition away from fossil fuels, hydrogen will play a crucial role in achieving the EU’s climate neutrality goals.</p><p>To learn more about the <a href="https://www.youtube.com/embed/az6GoEkuoNs" class="ecl-link ecl-link--icon ecl-link--icon-after"><span class="ecl-link__label">European Hydrogen Bank</span><svg xmlns:xlink="http://www.w3.org/1999/xlink" class="ecl-icon ecl-icon--xs ecl-link__icon" focusable="false" aria-hidden="true"><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#external"></use></svg></a>, watch the recording of our most recent public webinar on the topic.</p><p>Auctions operationalise the domestic pillar of the European Hydrogen Bank, as detailed in the figure below.</p> <div xmlns:xlink="http://www.w3.org/1999/xlink" class="ecl-media-container ecl-media-container--custom-ratio ecl-u-mb-s " data-ecl-media-container="true" data-ecl-auto-init="MediaContainer" aria-describedby="long-description-image-1956133457-content"><figure class="ecl-media-container__figure"><div class="ecl-media-container__media"><img loading="eager" class="ecl-u-width-100 ecl-u-height-auto ecl-media-container__media--ratio-custom" srcset="/sites/default/files/styles/embed_100_width/public/2023-08/Picure%201.png?itok=rVpFLlAp 1x, /sites/default/files/styles/embed_100_width_2x/public/2023-08/Picure%201.png?itok=c2CosWHH 2x" width="1108" height="785" src="/sites/default/files/2023-08/Picure%201.png" alt="European Hydrogen Bank"></div></figure><div class="ecl-expandable ecl-media-container__expandable" data-ecl-expandable="true" data-ecl-auto-init="Expandable"><button class="ecl-button ecl-button--ghost ecl-expandable__toggle" type="button" aria-controls="long-description-image-1956133457-content" data-ecl-expandable-toggle="" data-ecl-label-expanded="Text version" data-ecl-label-collapsed="Text version" aria-expanded="false"><span class="ecl-button__container"><span class="ecl-button__label" data-ecl-label="true">Text version</span><svg class="ecl-icon ecl-icon--fluid ecl-icon--rotate-180 ecl-button__icon" focusable="false" aria-hidden="true" data-ecl-icon=""><use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></span></button><div id="long-description-image-1956133457-content" class="ecl-expandable__content" hidden=""><div class="ecl"><p>The figure represents the European Hydrogen Bank as a house with two main pillars: domestic and imports. The domestic pillar’s goal is to support the domestic hydrogen production market scale-up within the EU. The option currently discussed to achieve this goal is supply-side auctions allocating fixed premium payments to hydrogen producers in the EU. The funding source for this pillar is the Innovation Fund. The imports pillar of the European Hydrogen Bank aims to secure diversified imports of hydrogen (derivatives) from outside the EU. To achieve this goal, the Commission is considering auctions allocating fixed premium payments to international producers. The funding source for this pillar would be multiple funding options currently being explored.</p></div></div></div></div> </div> </div> </div> <div class="ewcms-page-section ecl-u-mb-2xl ecl-u-bg-neutral-40"> <div class="ecl-u-pa-m"> <a id="paragraph_2696"></a> <div> <div class="ecl"><p><strong>Why hydrogen?</strong></p><p>The Innovation Fund aims to support the demonstration and commercialisation of innovative low-carbon technologies and processes.</p><p>While many decarbonisation technologies are already mature, climate-neutral options are not yet available or scalable for hard-to-decarbonise sectors of the EU economy, such as heavy-duty transport and energy-intensive industrial processes.</p><p>Hydrogen produced using renewable electricity, known as 'RFNBO hydrogen', is a climate-neutral option for these sectors and fully aligned with the REPowerEU Plan's political priorities. The Commission has defined RFNBO hydrogen by adopting two Delegated Acts, as required under <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=uriserv:OJ.L_.2018.328.01.0082.01.ENG&toc=OJ:L:2018:328:TOC">the Renewable Energy Directive</a>.</p><ul><li>The <a href="https://energy.ec.europa.eu/delegated-regulation-union-methodology-rnfbos_en">first Delegated Act</a> defines under which conditions hydrogen, hydrogen-based fuels or other energy carriers can be considered RFNBOs.</li><li>The <a href="https://energy.ec.europa.eu/delegated-regulation-minimum-threshold-ghg-savings-recycled-carbon-fuels-and-annex_en">second Delegated Act</a> provides a methodology for calculating life-cycle GHG emissions for RFNBOs.</li></ul><p>Compliance with the two Acts is also necessary for hydrogen production to be counted towards Member States’ renewable energy targets.</p></div> </div> </div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_2693"></a> <div> <div class="ecl"> <h2 class="ecl-u-type-heading-2">IF23 Auction for renewable hydrogen production</h2> </div> <div class="ecl"><p>The <strong>IF23 Auction</strong> was the first EU-wide auction for the production of renewable or RFNBO hydrogen (renewable fuel of non-biological origin) and the first competitive bidding mechanism to be implemented under the Innovation Fund. It was launched on 23 November 2023. Please visit our dedicated page to discover its <a href="/eu-action/eu-funding-climate-action/innovation-fund/calls-proposals/if23-auction-renewable-hydrogen-production_en">results</a>.</p><p>These were the objectives of the 2023 pilot auction:<br> </p> <div xmlns:xlink="http://www.w3.org/1999/xlink" class="ecl-media-container ecl-media-container--custom-ratio ecl-u-mb-s ewcms-embed-large" data-ecl-media-container="true" data-ecl-auto-init="MediaContainer" aria-describedby="long-description-image-101124222-content"><figure class="ecl-media-container__figure"><div class="ecl-media-container__media"><img loading="eager" class="ecl-u-width-100 ecl-u-height-auto ecl-media-container__media--ratio-custom" srcset="/sites/default/files/styles/embed_large/public/2023-08/Picture2.png?itok=h7STS-mq 1x, /sites/default/files/styles/embed_large_2x/public/2023-08/Picture2.png?itok=1y0lG7nd 2x" width="712" height="179" src="/sites/default/files/styles/embed_large/public/2023-08/Picture2.png?itok=h7STS-mq" alt="Objectives of the Innovation Fund pilot auction"></div></figure><div class="ecl-expandable ecl-media-container__expandable" data-ecl-expandable="true" data-ecl-auto-init="Expandable"><button class="ecl-button ecl-button--ghost ecl-expandable__toggle" type="button" aria-controls="long-description-image-101124222-content" data-ecl-expandable-toggle="" data-ecl-label-expanded="Text version" data-ecl-label-collapsed="Text version" aria-expanded="false"><span class="ecl-button__container"><span class="ecl-button__label" data-ecl-label="true">Text version</span><svg class="ecl-icon ecl-icon--fluid ecl-icon--rotate-180 ecl-button__icon" focusable="false" aria-hidden="true" data-ecl-icon=""><use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></span></button><div id="long-description-image-101124222-content" class="ecl-expandable__content" hidden=""><div class="ecl"><p>The figure describes the four objectives of the 2023 pilot auction: a cost-efficient way of distributing financial support, price discovery and market formation, de-risking renewable hydrogen projects and leveraging private capital, and reducing administrative burden.</p></div></div></div></div> <p> </p><p>Bidders (project developers) had access to a budget of €800 million from the Innovation Fund. The funding was awarded as a fixed premium in €/kg of verified and certified RFNBO hydrogen produced, on top of the market revenues developers could expect to achieve. Funding will be guaranteed for up to 10 years of operation.</p><p>To learn more about the IF23 Auction, please consult its <a href="/document/download/cedaacd0-6be5-49e6-81a9-adcafdb25e4c_en?filename=innovationfund_pilotauction_termsandconditions_en.pdf">Terms and Conditions</a> and have a look at the FAQs below.</p></div> </div> </div> <div class="ewcms-page-section ecl-u-mb-2xl ecl-u-bg-neutral-40"> <div class="ecl-u-pa-m"> <a id="paragraph_3217"></a> <div class="ecl-accordion" data-ecl-auto-init="Accordion" data-ecl-accordion ><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-3217-0-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-3217-0-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">What is an auction in the context of a subsidy?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-3217-0-content" role="region" aria-labelledby="paragraph-3217-0-title" ><div class="ecl"><p>An auction is a process in which goods or services are offered for bidding. In the case of a subsidy scheme, the product is not auctioned but rather a subsidy for a specific activity or product. Typically, bidders who require the lowest public subsidy for an auctioned activity or product will win the subsidy.</p><p>Under its first auction, the Innovation Fund allocated funds for the production of renewable hydrogen (“RFNBO Hydrogen” or “Renewable Fuel of Non-Biological Origin Hydrogen”). During the auction, project developers could participate and submit a fixed-premium bid (payment in €/kg of produced RFNBO hydrogen) to receive support for their production.</p></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-3217-1-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-3217-1-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">Which projects are eligible for support in this auction?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-3217-1-content" role="region" aria-labelledby="paragraph-3217-1-title" ><div class="ecl"><p>On 23 November 2023, the Commission launched the first auction under the European Hydrogen Bank to support the production of RFNBO hydrogen. The auction can support RFNBO hydrogen producers located in any EEA country. The complete auction design can be found in the call text of the pilot auction <a href="https://ec.europa.eu/info/funding-tenders/opportunities/docs/2021-2027/innovfund/wp-call/2023/call-fiche_innovfund-2023-auc-rfnbo-hydrogen_en.pdf">here</a>.</p></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-3217-2-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-3217-2-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">What are the main objectives of this auction? Why was an auction chosen to complement the regular Innovation Fund grants?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-3217-2-content" role="region" aria-labelledby="paragraph-3217-2-title" ><div class="ecl"><p>Auctions allow funding to be efficiently allocated to technologies, enabling projects to move from first or second-of-a-kind demonstration projects to broader commercial rollout. </p><p>Therefore, the auction contributes to the revised ETS Directive 2003/874 objectives, supporting the scaling up of innovative technologies. The revised ETS Directive enables the use of competitive bidding to award support from the Innovation Fund and cover up to 100% of relevant costs (as opposed to 60% under the regular Innovation Fund grants).</p><p>The key advantages of using an auction as a financing instrument for technologies like renewable hydrogen production that are moving towards market roll-out are:</p><ol><li>It provides cost-efficient support allocated through a market-based instrument.</li><li>The project promoter, who is best placed to address technology and project development risks, is responsible for them. Payments are based only on delivered volumes of the supported good; therefore, no payments are made before a project enters operation.</li><li>Auctions allow for price discovery and market formation in Europe. Competitive auctions with a simple and transparent set-up reveal private costs and create valuable and comparable price points, which can help kick-start a European hydrogen market.</li><li>Auctions have a lower administrative burden for applicants than other grant processes. Less documentation is required, and the evaluation timeline is shorter.</li></ol></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-3217-3-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-3217-3-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">What are Auctions-as-a-Service (AaaS)?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-3217-3-content" role="region" aria-labelledby="paragraph-3217-3-title" ><div class="ecl"><p>Auctions-as-a-Service allow EEA countries to use the Innovation Fund hydrogen auction to allocate <em>additional national </em>funds to projects that could not be awarded under the Innovation Fund budget. They are an offer from the Commission to EEA countries to use the auction scheme designed to be compatible with the Climate, Energy, and Environmental Aid Guidelines (CEEAG) and to streamline the process of notifying State aid using Commission templates.</p><p>Auctions-as-a-Service can play a significant role in the nascent hydrogen market. For new markets, it is crucial to prevent market fragmentation with different national support schemes and the resulting divergent price signals. Project developers, too, would benefit from a single set of rules for winning a subsidy across Europe rather than applying to various funding schemes with different application procedures and timelines. The service can also save the administrative costs of developing several support schemes in other EEA countries and bring such subsidies to the market earlier when needed the most.</p><p>Germany was the <a href="https://ec.europa.eu/commission/presscorner/detail/en/ip_23_5823">first Member State to participate</a> in Auctions-as-a-Service, making €350 million available from its national budget in addition to the €800 million Innovation Fund budget.</p></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-3217-4-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-3217-4-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">When is the next auction scheduled?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-3217-4-content" role="region" aria-labelledby="paragraph-3217-4-title" ><div class="ecl"><p>Our current auction was launched on 3 December 2024. The Commission incorporated lessons learned from the pilot auction through a thorough stakeholder consultation process and data analyses from the first pilot round. As a result, we revised the Terms & Conditions for the second auction round.</p></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-3217-5-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-3217-5-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">Is there a pre-allocation of funding per EEA country under the Innovation Fund?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-3217-5-content" role="region" aria-labelledby="paragraph-3217-5-title" ><div class="ecl"><p>The Innovation Fund is allocated based on excellence through competitive calls for proposals (auctions or regular grants), following the application of award criteria described in the <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:32019R0856&from=EN">Delegated Regulation</a>, Financing Decision, and respective call texts. The projects that score the highest in the evaluation process within the available topic budget are selected, regardless of their sector or location.</p><p>The Innovation Fund’s legal basis allows for a specific award criterion to ensure geographical balance. However, since Innovation Fund projects are now located in 24 EEA countries, a specific award criterion is not yet necessary. The overall balance improves with each call, notably with the most recent 3 LSC and 3 SSC results.</p><p>Currently, there are 2 major initiatives to support EEA countries under the Innovation Fund with the development of a national pipeline of high-quality, innovative projects and thus improve the geographical balance:</p><ol><li>The latest revision of the ETS Directive introduced ‘Technical Assistance for Member States with low effective participation’ – aiming to increase the overall quality of Innovation Fund applications from countries with lower participation levels.</li><li>All EEA countries’ National Contact Points or Innovation Fund Expert Group representatives receive training sessions on award criteria, outreach, and communication, among other topics. The training started in Q2 2024 and is complemented by support for outreach and communication at the national level.</li></ol></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-3217-6-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-3217-6-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">How is this auction call contributing to broader EU policy objectives?</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-3217-6-content" role="region" aria-labelledby="paragraph-3217-6-title" ><div class="ecl"><p>This pilot auction was launched under the umbrella of the <a href="https://energy.ec.europa.eu/topics/energy-systems-integration/hydrogen/european-hydrogen-bank_en">European Hydrogen Bank</a>. The EHB’s objective is to close the investment gap and connect the future supply of renewable hydrogen with our goal of 20 million tonnes of renewable hydrogen deployed in Europe by 2030. </p><p>It will facilitate renewable hydrogen production within the EU and imports, contributing to the <a href="https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/repowereu-affordable-secure-and-sustainable-energy-europe_en">REPowerEU</a> objectives and the transition to climate neutrality. </p><p>It further supports the goals of the <a href="https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan_en">Green Deal Industrial Plan</a> and the <a href="https://commission.europa.eu/strategy-and-policy/priorities-2019-2024/european-green-deal/green-deal-industrial-plan/net-zero-industry-act_en">Net Zero Industry Act</a>. Scaling up electrolyser manufacturing for renewable hydrogen production will contribute to the competitiveness and resilience of the European industry, including steel, fertiliser, and shipping. </p><p>Scaling up the European hydrogen market will also allow European companies to play a leading role in the emerging global hydrogen market, which offers new growth opportunities and quality job creation. The <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/PDF/?uri=CELEX:52023DC0156">Hydrogen Bank Communication</a> accompanied the legislative proposal for the Net-Zero Industrial Act.</p></div></div></div></div> </div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_3887"></a> <div> <div class="ecl"> <div xmlns:xlink="http://www.w3.org/1999/xlink" class="ecl-media-container ecl-media-container--custom-ratio ecl-u-mb-s " data-ecl-media-container="true" data-ecl-auto-init="MediaContainer" aria-describedby="long-description-image-2045005904-content"><figure class="ecl-media-container__figure"><div class="ecl-media-container__media"><img loading="eager" class="ecl-u-width-100 ecl-u-height-auto ecl-media-container__media--ratio-custom" srcset="/sites/default/files/styles/embed_100_width/public/2023-08/Overview%20of%20the%20Innovation%20Fund%20pilot%20auction.png?itok=x11cIIUV 1x, /sites/default/files/styles/embed_100_width_2x/public/2023-08/Overview%20of%20the%20Innovation%20Fund%20pilot%20auction.png?itok=khpZh0Tc 2x" width="1108" height="453" src="/sites/default/files/2023-08/Overview%20of%20the%20Innovation%20Fund%20pilot%20auction.png" alt="Innovation Fund auction process step-by-step"></div><figcaption class="ecl-media-container__caption"><div>Innovation Fund auction process step-by-step</div></figcaption></figure><div class="ecl-expandable ecl-media-container__expandable" data-ecl-expandable="true" data-ecl-auto-init="Expandable"><button class="ecl-button ecl-button--ghost ecl-expandable__toggle" type="button" aria-controls="long-description-image-2045005904-content" data-ecl-expandable-toggle="" data-ecl-label-expanded="Text version" data-ecl-label-collapsed="Text version" aria-expanded="false"><span class="ecl-button__container"><span class="ecl-button__label" data-ecl-label="true">Text version</span><svg class="ecl-icon ecl-icon--fluid ecl-icon--rotate-180 ecl-button__icon" focusable="false" aria-hidden="true" data-ecl-icon=""><use xmlns:xlink="http://www.w3.org/1999/xlink" xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#corner-arrow"></use></svg></span></button><div id="long-description-image-2045005904-content" class="ecl-expandable__content" hidden=""><div class="ecl"><p>The figure represents the Innovation Fund auction process step-by-step:</p><ol><li>The pilot auction opens on 23 November 2023</li><li>Bidders submit material and bids.</li><li>Bidders’ materials are checked, and CINEA ranks bids.</li><li>Bidders are notified if they pass prequalification.</li><li>CINEA awards bids until the budget cap is reached; the auction is cleared by Q1 2024.</li><li>Bid award decisions are shared with winners and unsuccessful bidders.</li><li>Auction outcomes are published publicly.</li><li>Winners sign a grant model agreement (contract) with CINEA.</li><li>Project realisation/construction and start of operation.</li><li>Winners get fixed premium support based on the contract.</li><li>Penalties are executed in case of delayed realisation or underproduction.</li></ol></div></div></div></div> </div> </div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_2706"></a> <div class="ecl-accordion" data-ecl-auto-init="Accordion" data-ecl-accordion ><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-2706-0-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-2706-0-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">Pilot auction Terms and Conditions</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-2706-0-content" role="region" aria-labelledby="paragraph-2706-0-title" ><div class="ecl"><p>We published the <a href="/document/download/cedaacd0-6be5-49e6-81a9-adcafdb25e4c_en?filename=innovationfund_pilotauction_termsandconditions_en.pdf">Terms and Conditions (T&C)</a> for the pilot auction on 30 August 2023. We split them into 4 chapters:</p><ol><li>Background and auction objectives</li><li>Overview of auction design elements</li><li>Qualification requirements</li><li>Rules for cumulation of support with other public support</li></ol><p>Some critical aspects of the design entail the following:</p><ul><li><strong>Admissibility, eligibility and quality criteria</strong>. To qualify for the auction’s price ranking stage, applicants must submit documents articulating the project relevance and aspects such as technical, financial and operational capacity (see section 3 of the T&C). This information will be checked and evaluated on a pass/fail basis before ranking the proposals according to their bid price. Applicants must submit the requested application forms, supporting documents, and templates before the due date, which will be announced on the <a href="https://ec.europa.eu/info/funding-tenders/opportunities/portal/">Funding & Tenders portal</a>. Some critical elements of the auction design are summarised below, but we encourage all prospective bidders to refer to the T&C: <ul><li>Bid proposals must relate to projects with a production located in the European Economic Area.</li><li>The auctioned good is RFNBO hydrogen, which meets the definitions and requirements of the Renewable Energy Directive and its Delegated Acts.</li><li>The ceiling price for the bids is €4.5/kg of hydrogen produced.</li><li>The maximum budget restriction for each bid is 1/3 of the total budget for the auctioned topic (e.g., 1/3 of €800 million or €266.7 million).</li><li>Maximum time to <em>entry into operation</em>: 5 years after grant agreement signature.</li><li>A completion guarantee is required to enter the auction and avoid speculative bidding.</li></ul></li><li><strong>Price ranking. </strong>Qualifying proposals will be ranked from lowest to highest bid price and awarded in that order until the available budget (€800 million) is exhausted.</li><li><strong>Payments</strong> are made only upon verified and certified RFNBO hydrogen production and are scheduled semi-annually upon <em>entry into operation</em>. Production flexibility rules are in place to accommodate the intermittent nature of renewable power supply.</li></ul><p>The Commission offers AaaS as a platform for EEA countries to allocate additional national funds. For more information, please refer to the section below on Auctions as a Service. Germany contributed to the pilot auction with a €350 million Auctions-as-a-Service window.</p><ul><li><a href="/document/download/19f8a164-0d64-436d-81f7-1117559f0822_en?filename=policy_innovation_fund_binding_qna_auction_en.pdf" class="ecl-link">Read our Frequently asked questions (FAQ)</a></li><li><a href="/news-your-voice/events/get-familiar-tcs-first-renewable-hydrogen-auction-europe-2023-10-05_en" class="ecl-link">Watch our webinar</a></li><li><a href="/document/download/bb7ca5c3-0c88-43a6-834a-6ec2f0266496_en?filename=policy_funding_innovation_call_completion_intent_en.docx" class="ecl-link">Completion guarantee letter of intent</a></li><li><a href="/document/download/35522bb1-37fe-4a34-8bd2-dd8f0813733c_en?filename=policy_funding_innovation_call_completion_en.docx" class="ecl-link">Completion guarantee</a></li></ul><p>For questions on the Innovation Fund pilot auction, please get in touch with <span class="spamspan"><span class="u">CLIMA-AUCTIONS</span><img class="spamspan-image" alt="at" src="/modules/contrib/spamspan/image.gif"><span class="d">ec<span class="o"> [dot] </span>europa<span class="o"> [dot] </span>eu</span><span class="t"> (clima-auctions[at]ec[dot]europa[dot]eu)</span></span></p></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-2706-1-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-2706-1-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">Consultation process</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-2706-1-content" role="region" aria-labelledby="paragraph-2706-1-title" ><div class="ecl"><p>We regularly consult stakeholders to gather comprehensive lessons learned from our auctions.</p><p>Documentation from previous stakeholder consultations and support contracts is available:</p><ul><li>16/05/2023 - Follow-up stakeholder workshop on the draft economic T&C for the 2023 Innovation Fund pilot auction <ul><li><a href="/document/download/2a36f9b8-d51a-40d8-9dd4-45fcdfb265b5_en?filename=20230516_presentation_en.pdf" class="ecl-link">Slides</a>, including a summary of the survey preceding the stakeholder workshop</li></ul></li><li>21/11/2022 - Stakeholder workshop on designing a competitive bidding tool to fund hydrogen innovation<ul><li><a href="/document/download/5169d4ec-2b1e-40dd-9a1c-f526e81e3a93_en?filename=innovationfund_inputpaperforworkshop_en.pdf" class="ecl-link">Input paper</a></li><li><a href="/document/download/1e4856a6-7da3-4f97-a053-5399a65d823b_en?filename=221121_innovationfund_workshop_industry_0.pdf" class="ecl-link">Slides</a></li></ul></li><li>28/10/2022 - <a href="/news-your-voice/events/workshop-think-tanks-academia-and-member-states-competitive-bidding-mechanisms-2022-10-28_en">Workshop with academia, think tanks and Member States</a></li><li>Support Contract - <a href="https://etendering.ted.europa.eu/cft/cft-display.html?cftId=10383">Assistance in the Analysis and Set-up of a Competitive Bidding Mechanism for Contracts for Difference, Carbon Contracts for Difference or Other Comparable Schemes under the Innovation Fund</a></li></ul></div></div></div></div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_2516"></a> <div> <div class="ecl"> <h2 class="ecl-u-type-heading-2">Auctions as a Service (AaaS)</h2> </div> <div class="ecl"><p>To avoid fragmentation at the early stage of the European hydrogen market’s formation and to save administrative costs associated with developing different hydrogen support schemes by the EEA, the Commission extends the Innovation Fund auctions as a platform to interested EEA countries. This mechanism, called Auctions-as-a-Service (AaaS), enables countries of the EEA to use their national budget resources to award support to projects located on their territory while relying on the EU-wide auction mechanism to identify the most competitive projects.</p><p>To participate in AAAS, interested countries must have a national budget allocated and follow the <a href="https://competition-policy.ec.europa.eu/state-aid/procedures_en">State aid notification process</a> before the Innovation Fund auction opens. The Commission will assist countries with pre-filled notification templates reflecting the auction T&C.</p><p><strong>In practice, here are the services included in AaaS:</strong></p><ul><li>EEA countries can use the State Aid compliant, EU-wide Innovation Fund auction as a funding mechanism</li><li>the Commission facilitating and speeding up the notification of national schemes</li><li>CINEA informs countries about the auction results with a ranking of potential vetted and cost-competitive projects to be implemented in participating countries (upon agreement of the projects)</li><li>the Commission provides guidance on minimum requirements for contracts to be signed at the national level between project developers and national authorities</li></ul><p><strong>The AaaS will work accordingly:</strong></p><ul><li>EEA countries commit a portion of their national budget to the AaaS and communicate their intention to participate to the Commission</li><li>CINEA opens the auction</li><li>Projects across EEA submit bids, which will be assessed, ranked, and cleared in line with the conditions established in the auction documents published in the <a href="https://ec.europa.eu/info/funding-tenders/opportunities/portal/screen/home">EU Funding and Tenders Portal</a></li><li>the lowest bids are cleared under the auction budget until it is exhausted, following the ranking of projects</li><li>the ranking of the remaining unawarded projects is cleared under the national budget(s) and information about the successful bids is passed to the respective country</li><li>additional features may apply for each participating country to ensure required levels of competition. CINEA is responsible for evaluating, awarding, contracting, and monitoring support for projects under the Innovation Fund budget</li><li>participating countries are responsible for awarding, contracting, and monitoring project support under national budgets</li></ul><p>The <a href="https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52023DC0156&qid=1689756932873">European Hydrogen Bank Communication</a>, published in March 2023, first detailed the AaaS concept. For more information, you can review our <a href="/document/download/b0316108-0e2b-402d-8e16-bb46ac813332_en?filename=policy_funding_innovation_concept_paper_aaas_en.pdf">AaaS Concept Note</a>.</p></div> </div> </div> <div class="ecl-u-mb-2xl"> <a id="paragraph_2093"></a> <div class="ecl-accordion" data-ecl-auto-init="Accordion" data-ecl-accordion ><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-2093-0-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-2093-0-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">How to participate as an EEA country</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-2093-0-content" role="region" aria-labelledby="paragraph-2093-0-title" ><div class="ecl"><p>If a country wants to allocate support to hydrogen production using the AaaS system, it should consider the following steps:</p><ul><li>The participating country must have an existing support scheme or adopt a new one for AaaS.</li><li>National support must be cleared through the State Aid procedure with the Commission and shall comply with CEEAG rules. The IF Auction rules are by design CEEAG compatible, so if no changes to the auction design are made, State aid clearance can be quasi-automatic.</li><li>The participating country must ensure certain elements are present in its support scheme (e.g., provisions on monitoring, transparency, reporting, and payment arrangements, as well as an indication of the budget it intends to allocate for the national compartment of the auction). Once this is ensured, they send the complete notification (pre-filled by Commission services) for using the AaaS<strong>. Countries seriously interested in participating in the auction and an available budget must inform the Commission within 2 or more months before the launch of the auction round to which they want to contribute. </strong>Upon reviewing the notification, the Commission’s Directorate-General for Competition will issue a decision on the national schemes before closing the auction round.</li></ul></div></div></div><div class="ecl-accordion__item"><h3 class="ecl-accordion__title" id="paragraph-2093-1-title"><button type="button" class="ecl-accordion__toggle" data-ecl-accordion-toggle aria-controls="paragraph-2093-1-content" ><span class="ecl-accordion__toggle-flex"><span class="ecl-accordion__toggle-title">How to participate as a bidder</span><span class="ecl-accordion__toggle-indicator"><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#plus"></use></svg><svg class="ecl-icon ecl-icon--s ecl-accordion__toggle-icon" focusable="false" aria-hidden="true" data-ecl-accordion-icon><use xlink:href="/themes/contrib/oe_theme/dist/ec/images/icons/sprites/icons.svg#minus"></use></svg></span></span></button></h3><div class="ecl-accordion__content" hidden id="paragraph-2093-1-content" role="region" aria-labelledby="paragraph-2093-1-title" ><div class="ecl"><p>When bidders apply to the auction, they can indicate their interest in being considered for AaaS. Projects can only be considered for AaaS if they are in a country that has decided to offer a national scheme through AaaS. </p><p>Projects will first be considered under the Innovation Fund budget. If not awarded within this budget, they will be considered for AaaS. Applicants will be given the following choice: the project can remain on the Innovation Fund reserve list or be passed on to national funding.</p><p>Countries that sign up for the AaaS will receive the ranked list of projects in their territory. Countries must follow the Innovation Fund’s ranking of projects and cannot add additional award criteria.</p><p>Projects awarded through AaaS will sign corresponding national grant agreements and documentation with the respective awarding country.</p></div></div></div></div> </div> <div> <a id="paragraph_3888"></a> <div> <div class="ecl"><p><strong>For any questions, please email </strong><span class="spamspan"><span class="u">CLIMA-AUCTIONS</span><img class="spamspan-image" alt="at" src="/modules/contrib/spamspan/image.gif"><span class="d">ec<span class="o"> [dot] </span>europa<span class="o"> [dot] </span>eu</span><span class="t"> (<strong>clima-auctions[at]ec[dot]europa[dot]eu</strong>)</span></span></p></div> </div> </div> </div> </div> </div> </div> </article> </div> </div> </div> <div class="ecl-row"> <div class="ecl-col-s-12"> <div> <div id="block-ewcms-theme-socialshare"> <div class="ecl-social-media-share"> <p class="ecl-social-media-share__description"> Share this page </p> 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