Project Development Assistance for sustainable energy investments

Opened

Programme Category

EU Competitive Programmes

Programme Name

LIFE: Environment & Climate Action

Programme Description

The LIFE Programme is the EU’s funding instrument for the environment and climate action. The general objective of LIFE is to contribute to the implementation, updating and development of EU environmental and climate policy and legislation by co-financing projects with European added value. After 22 years, €3.4 billion and 4.170 projects, the LIFE Programme continues to finance actions for the environment and climate action.

Programme Details

Identifier Code

LIFE-2026-CET-PDA

Call

Project Development Assistance for sustainable energy investments

Summary

Project Development Assistance (PDA) offers technical assistance to convert sustainable energy project ideas into actual investments. It supports public and private project developers in every step of the way to deliver sustainable energy investments of ambition and scale.

Significant investments in sustainable energy need to be mobilised to achieve the EU’s energy and climate targets, and to support EU competitiveness and energy independence. In order to meet the required level of investments, it is necessary to progressively maximise the mobilisation of private capital, using public funds as a catalyst. PDA projects contribute significantly to the implementation of the Energy Efficiency Directive, Energy Performance of Buildings Directive, Renewable Energy Directive, and the Clean Industrial Deal and Affordable Energy Action Plan, and will help pave the way for a decarbonised and clean energy system. PDA actions significantly contribute to accelerating the clean energy transition, including energy independence, by supporting the phase out of EU fossil fuel imports from Russia in line with the REPowerEU roadmap and the Green Deal Investment Plan, and to EU competitiveness by stimulating market demand for Net-Zero technologies and assisting in their uptake.

Detailed Call Description

Project Development Assistance (PDA) will support project promoters in preparing and launching investment pipelines of sustainable energy projects, i.e. energy efficiency and/or renewable energy projects. This topic aims to provide and build technical, economic and legal skills and expertise for project developers needed for the successful project development and implementation. Activities can include project bundling, technical studies, energy audits, assessing financing options, legal advice, tendering procedure preparation, outreach and engagement etc.

Proposals for this topic can be submitted by public or private project promoters such as public authorities or their groupings, public/private infrastructure operators and bodies, energy agencies, energy service companies, retail chains, large property owners, services or industry.

PDA projects must lead to the actual launch of sustainable energy investments within the project duration, demonstrating a leverage factor of at least 15 compared to the technical assistance grant (or at least 10 for projects targeting exclusively investments in residential buildings). In this context, proposals need to identify the initially envisaged investment pipeline.

Proposals should target one or more of the following sectors:

Buildings:

  • Existing residential buildings, including the rental sector, social housing, or district-level renovation approaches
  • Existing non-residential buildings, such as public buildings, hospitals, academies, defence facilities or commercial buildings

Proposals including support for construction of new buildings are not within the scope.

Local energy and other infrastructures:

  • Decarbonisation and modernisation of existing district heating/cooling networks, including the extension of existing networks provided that the extended networks are fully based on low-temperature renewable energy or waste heat
  • Digitalisation and modernisation of existing local electricity grids focussing on energy efficiency improvements, renewable energy deployment, electrification of energy demand, including in industry, and deployment of energy flexibility solutions
  • Decarbonisation and energy efficiency improvements in existing public infrastructure such as water/wastewater services

Proposals addressing local energy infrastructures are in the scope of the topic only if they clearly demonstrate the necessity of intervention to foster energy efficiency improvements and renewable energy deployment in line with the objectives of the LIFE Clean Energy Transition sub-programme.

Industry:

  • Industry, businesses and services, including SMEs or industrial clusters, clearly advancing beyond business-as-usual approaches in terms of organisational and financial innovation.

Renewables:

  • Decentralised renewable electricity production and other renewable energy production directly replacing solid and/or fossil fuel use in targeted end-use sectors, clearly advancing beyond business-as-usual approaches in terms of organisational and financial innovation. Proposals aiming to implement innovative technological solutions, i.e. solutions not already fully commercially available on the market, are not within the scope.

Proposals should demonstrate a clear showcase dimension in delivering innovative solutions for accelerating sustainable energy investments across Europe, as regards

  • Organisational innovation regarding the mobilisation and/or structuring of the investment programme, such as setting up facilitation structures, project development units, one-stop-shops, aggregation and bundling/pooling approaches, or efficient procurement procedures for large-scale portfolios of (mixed) assets; and/or
  • Financial engineering tailored to the specific project context, with a particular focus on leveraging private investment including blending public with private financing or improved combination of existing funds, whenever appropriate. This could include Energy Performance Contracting (EPC), dedicated financial instruments, on-bill and on-tax payment schemes, community-based financing schemes etc.

Proposals should aim for high ambition levels, including e.g., as relevant and appropriate in the project context, with regard to the investments and/or leverage envisaged, innovation, the sector(s) and location(s) addressed, and/or the level of energy savings and decarbonisation targeted (inter alia by focusing on energy efficiency interventions such as deep renovation, nearly zero-energy buildings (nZEB) or zero-emission buildings (ZEB), including building-integrated renewables, positive energy buildings or districts and/or highly energy efficient infrastructure).

Proposals should convince regarding the potential to actually launch the investments during the project duration. In this context, proposals should clearly identify the starting point of their activities and investments and, if applicable, clarify how they are building on and are additional to related past or ongoing activities. Moreover, proposals should provide an adequate overview of the initially envisaged investment pipeline, and specify the needs to be addressed, including e.g. a related market/barrier analysis, the financial and organisational approaches/options to be further investigated and operationalised during the project duration and the engagement of key stakeholders, ex-ante and/or during the project duration (including financial stakeholders).

Proposals may be submitted by a single applicant or by applicants from a single eligible country.

Call Total Budget

€8.000.000

Financing percentage by EU or other bodies / Level of Subsidy or Loan

95%

Thematic Categories

  • Energy
  • Environment and Climate Change
  • Industry
  • Small-Medium Enterprises and Competitiveness
  • Urban Development

Eligibility for Participation

Eligibility For Participation Notes

In order to be eligible, the applicants (beneficiaries and affiliated entities) must:

  • be legal entities (public or private bodies)
  • be established in one of the eligible countries, i.e.:
    • EU Member States (including overseas countries and territories (OCTs)
    • non-EU countries:
      • listed EEA countries and countries associated to the LIFE Programme (list of participating countries)
      • the coordinator must be established in an eligible country

Beneficiaries and affiliated entities must register in the Participant Register — before submitting the proposal — and will have to be validated by the Central Validation Service (REA Validation). For the validation, they will be requested to upload documents showing legal status and origin.

Other entities may participate in other consortium roles, such as associated partners, subcontractors, third parties giving in-kind contributions, etc.

Call Opening Date

21/04/2026

Call Closing Date

16/09/2026

National Contact Point(s)

Department of Environment

Ministry of Agriculture, Rural Development and Environment
www.lifecyclamen.com.cy

Persons to Contact 
Marilena Papastavrou
Environment Officer, National Contact Point for Environment
Telephone: +357 22 408 926
Email: mpapastavrou@environment.moa.gov.cy

Chrystalla Papastavrou
Environment Officer, National Contact Point for Climate
Telephone: +357 22 408 962
Email: cpapastavrou@environment.moa.gov.cy

EU Contact Point