Connecting Europe Facility (CEF): EU funding for energy, transport and digital infrastructure

The European Union is promoting the expansion and modernisation of trans-European networks in the areas of energy, transport and digital infrastructure through the Connecting Europe Facility (CEF).

Whether it is Deutsche Bahn expanding the cross-border rail network with the European train control system ERTMS, or the German KfW Bank working with TenneT to build the NordLink power line between Germany and Norway, many major infrastructure projects in Europe are backed by the CEF, the EU's central funding instrument for transport, energy and digitalisation. This shows that this funding programme offers companies, local authorities and other organisations financial support for projects that strengthen and connect Europe's infrastructure. And those who are well prepared today will also be in the running for the next round.

What is the Connecting Europe Facility (CEF)?

• Energy: €5.84 billion
• Transport: €25.81 billion
• Digital: €2.07 billion

Looking ahead: What comes after 2027?

The current funding period for CEF 2 (2021–2027) is coming to an end – but the programme is not about to be discontinued. In February 2025, the European Commission announced that it would present a proposal for the next multiannual financial framework in July 2025, which will also determine the future of CEF from 2028 onwards.

Numerous successful infrastructure projects were already implemented in the first programme phase, CEF 1 (2014–2020), demonstrating the long-term importance of this instrument. Potential applicants would therefore be well advised to keep an eye on CEF and start preparing for future calls for proposals at an early stage.

CEF Energy: support for cross-border energy infrastructure

In the energy sector, the CEF supports investments in the expansion of new or the modernisation of existing cross-border energy infrastructure in Europe. The aim is to increase energy security, boost the share of renewable energies and strengthen the internal energy market. Funding is also available for cross-border projects in the field of renewable energies and measures to decarbonise and improve the interoperability of energy networks. For projects in the energy sector, Project of Common Interest (PCI) status is a prerequisite for receiving CEF funding. Projects can only be funded if they are included in the European Union's official PCI list.

Examples of funded projects:

ACON (PCI 10.4) – cross-border electricity grid

The aim is to promote the integration of the electricity markets in the Czech Republic and Slovakia. The focus is on modernising and increasing the efficiency of the electricity distribution network at various locations in both countries. This includes: construction and renewal of overhead lines and underground cables, construction and modernisation of substations, improvement of cross-border connections, installation of smart grid components (smart grid, development of a new communication system including infrastructure, implementation of an integrated IT solution (hardware and software).

Implementation period: October 2018 to December 2024

• Maximum EU funding: €91,237,868
• Total eligible costs: €182,475,736
• Funding rate: 50%

CEF Transport: modernisation of European transport infrastructure

The CEF's transport strand promotes the expansion and modernisation of transport infrastructure in Europe, with a particular focus on cross-border projects, the removal of bottlenecks and multimodal connectivity between rail, road, waterways and ports.

The focus is on further developing the trans-European transport network (TEN-T) with clear EU added value, for example by closing gaps in important corridors.

• €1.56 billion for major railway projects in cohesion countries
• €1.69 billion for infrastructure that can be used for both civil and military purposes (dual use)

Examples of funded projects:

EXPAND-E – pan-European charging infrastructure network for electric vehicles

• Expand-E Cohesion: charging points in the Czech Republic, Greece, Croatia, Lithuania, Latvia, Poland, Romania, Slovakia and Slovenia
• Expand-E General: charging points in Austria, Belgium, Germany, Denmark, Estonia, Spain, Finland, France, Ireland, Italy, the Netherlands, Portugal and Sweden
• Expand-E Hungary: charging points in Hungary

EU funding: maximum EU subsidy: €70,580,000

CEF Digital: expanding digital connectivity in Europe

• 5G for smart communities: development of 5G networks in locations with high socio-economic benefits, e.g. hospitals, industrial parks or universities
• Digital backbones: expansion or modernisation of high-performance backbone networks, including submarine cables, within the EU and with third countries
• 5G along transport corridors: seamless 5G coverage on Europe's main transport routes – the basis for autonomous mobility and intelligent logistics

Examples of funded projects:

5G4UH – 5G for University Hospital

The aim of the project is to establish a hybrid 5G mobile network on the campus of Frankfurt University Hospital. This network will form the technological basis for innovative medical applications and modern e-health services. The project serves as a pilot for the use of high-performance digital infrastructures in public healthcare and supports the digital transformation of hospitals in Europe.

Partners: Johann Wolfgang Goethe University Hospital, Vodafone GmbH

• Total cost: €4.5 million
• EU funding (CEF Digital): €3.3 million

Who can apply for CEF funding?

• Public bodies (e.g. ministries, authorities, local authorities)
• Private companies
• International organisations
• Infrastructure operators (e.g. rail or electricity network operators)
• Research institutions (provided they develop relevant technical solutions)

Important: Projects must be cross-border, relevant to Europe and in line with EU objectives. This means that funding will primarily be awarded to projects with strategic added value for the European single market – not purely local projects.

• Feasibility and environmental impact studies
• Construction and expansion of infrastructure
• Digitalisation, automation and security technologies
• Interoperability (e.g. in railway projects: ERTMS)

Funding amount and application

The amount of funding that companies and other organisations can apply for under the CEF varies depending on the project and sector. As a rule, the CEF covers up to 50% of eligible costs, although this percentage may be higher for certain projects, such as those in the outermost regions of the EU.

To benefit from CEF Energy, projects must be recognised as Projects of Common Interest (PCI). CEF Transport and CEF Digital: In the transport and digital sectors, PCI status is not a mandatory requirement for funding. However, projects in these sectors must be considered to be of general or common European interest in order to be eligible. These projects should contribute to the completion of the trans-European transport network (TEN-T) or promote the expansion of digital infrastructure.

PCI selection process in Germany

The selection process for Projects of Common Interest (PCI) in Germany is carried out within the framework of the EU Regulation on Trans-European Energy Networks (TEN-E Regulation). Projects that close gaps in the European energy infrastructure and offer economic, social and environmental benefits for at least two Member States can be recognised as PCI. These projects are included in a Union list, which is adopted every two years by the European Commission as a delegated act.

The CEF offers a wide range of opportunities to fund infrastructure projects in the fields of energy, transport and digitalisation. With financial support from the EU, companies and other organisations can realise their projects and thus contribute to strengthening European infrastructure.

Your partner for CEF funding

Are you planning an infrastructure project and would like to benefit from CEF funding? EurA AG is your expert partner for innovation and funding advice. We support you in identifying suitable EU funding programmes, submitting your application and successfully implementing your project. Contact us for a non-binding consultation and find out how we can work together to realise your vision.

 Text: Monika Dimitrova