Innovation & New Technologies Priority

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1 Innovation & New Technologies Priority CEF Transport Blending Info Day 27 February 2017 Hugues Van Honacker Senior Expert (DG MOVE B4 - Sustainable & Intelligent Transport) Helmut Morsi Adviser to the Director (DG MOVE Directorate B) Sofia Papantoniadou Project Manager Coordinator (INEA)

2 Deployment of alternative fuels infrastructure along the TENT-T Network Policy Context

3 Policy context Clean Power for Transport 2013 A strategy for the long term substitution of oil in all transport modes a coherent policy framework that guides investments + sustainability and competitiveness Directive 2014/94 on AF infrastructure National Deployment Strategies for AF EC Low emission mobility strategy 2016 Emphasize the role of the AF infrastructure Recent initiative on alternative fuelled buses in EU Cities Upcoming political declaration to stimulate the market

4 Directive 2014/94 on the deployment of infrastructure for alternatively fuelled vehicles and ships, with common standards and consumer information: 15 MS submitted National Policy Frameworks Minimum infrastructure coverage with common standards required e-mobility interoperability agreement of principle in Sustainable Transport Forum sub-group

5 Blending Call / Funding Objective 2 Innovation & New technologies Legal basis & Market-sided innovation

6 Funding Objective 2: Innovation and New Technologies Point in the work programme: Deployment of innovation and new technology actions in all transport modes, according to the TEN-T Guidelines, Art.33 (a to d). Main features of the 2017 blending call: Only works, i.e. roll-out deployment projects! Combination of grant and loan More flexibility on eligile costs funding Call refer to WP to avoid ambiguities Neither annual nor cohesion calls (ie only Core Network eligible and no special 85% grant funding!)

7 CEF innovation: legal framework TEN-T Guidelines Regulation 1315/2013 CEF Regulation 1316/2013

8 The 9 Core Network Corridors

9 Overall Funding Pipeline - Where does the blending call fit? - Real-life trial (pilot)->roll-out SRCR Blending>> Trials Need now follow-ons = Roll-outs

10 Scope of the proposed actions Article 33 points a) to d): In order for the Comprehensive Network (includes Core Network) to keep up with innovative technological developments and deployments, the aim shall be in particular to: (a) support and promote the decarbonisation of transport through transition to innovative and sustainable transport technologies; (b) make possible the decarbonisation of all transport modes by stimulating energy efficiency, introduce alternative propulsion systems, including electricity supply systems, and provide corresponding infrastructure. Such infrastructure may include grids and other facilities necessary for the energy supply, may take account of the infrastructure-vehicle interface and may encompass telematic applications; (c) improve the safety and sustainability of the movement of persons and of the transport of goods; (d) improve the operation, management, accessibility, interoperability, multimodality and efficiency of the network, including through multimodal ticketing and coordination of travel timetables;

11 Market-sided Innovation (1) Focus: Only new technologies ready for deployment, unit costs are brought down, and also the client's needs are well understood! Completion date at the latest 31/12/2023. Works as a follow-on of "Pilot activities" previously done: "marketsided innovation", but now "experiments are over, people know what they are doing" Principal objective to execute the market-rollout No Real-life trials (nor demos) The innovative solution, i.e. the technology and the business case, should be sufficiently developed and trialled so that the solution is already close to financial break-even Market-rollout of the solution onto at least a significant part of a core network corridor (however, the entire core network is eligible plus a small deviation from the exact trajectories)

12 Market-sided Innovation (2) In order to raise attractiveness of blending call and accelerate implementation into the mass market the following elements have been introduced: Waiving of the % capping on mobile equipment, i.e. the vehicles, for all modes of transport this means for alternative fuels, that a pure mobile equipment proposal would be eligible, however the access to sufficient re-fuelling/re-charging infrastructure must be proven (please describe in detail!) The eligible part of the mobile equipment is restricted to the financial difference between the innovative and the standard solution for the grant component only; - for the component covered by the loan this restriction is waived(!) Multi-modal refuelling/recharging infrastructure is encouraged Common tendering of any equiment is encouraged

13 Blending Call / Funding Objective 2 Innovation & New technologies Call main features

14 FO2: Innovation Call type MAP General(*) Budget 140 million (*) No dedicated Call for cohesion countries

15 Actions supported Type of Actions Works Support rate Maximum 20% Must be supported by a CBA "innovative solutions deployed on: a significant part of the Core Network emphasis on Core Network Corridors". "Should include cost estimation to perform an ex-post Climate Impact Assessment of the Action"

16 Actions supported Only Works No research, No demo No pilot/real-life trial roll-out of the innovative solution Market-orientated solution has been developped Real-life trial is done

17 Actions supported Contributing to decarbonistion of transport by the roll-out of Alternative Fuel Distribution infrastructure Electrcity (electro-mobility) Hydrogen Compressed or Liquefied Natural Gas (L/CNG) Priority to Bio-methane Other: incl. IT systems, storage, transportation units,

18 Actions supported Grant schemes (support to 3 rd parties) Public operators, or consortia led by public operators Implementation Methodology (incl. selection criteria, eligible entities, award procedure, ) Transparency & equal treatment principles Joint procurement Economies of scale

19 Specific points regarding eligibility: Mobile equipment(i.e. vehicles) Mobile infrastructure (i.e. concerning moving parts of infrastructure) Interface between infra & vehicle 5 years in the EU Scrubbers are not eligible

20 Innovation: which priority? Innovation is the main focus Innovation is a Secondary element Urban Nodes MoS Telematic applications

21 Already financed in TEN-T and CEF LPG 0% <1% Shore Side Electricity <1% 0% Shore Side Electricity Data/ICT 1% H2 11% LNG Multi 4% Other Innov 8% L/CNG ROADS 30% EV 18% LNG IWW 17% LNG Maritime 11%

22 Blending Call & The Cleaner Transport Facility (CTF)

23 Deploying AF with CTF 650 alternative fuels supply points along the TEN-T road network by CEF funding: 107 million A study made by Steer Davis& Gleave for the European Commission estimates at 1530 million the needed investment to complete an alternative fuels infrastructure on the Core TEN-T Network This cannot be done with grants only!

24 Launched at TTE Council December 1st One-stop shop: support accelerated deployment of cleaner transport vehicles & associated charging and refuelling infrastructure (alternative fuels under Directive 2014/94). Focus on life-cycle cost models involving risksharing financial instruments leveraging private sector funds. Financing through the EIB, European Fund for Strategic Investment (EFSI) and CEF. The European Investment Advisory Hub (EIAH) free for public entities + New ELENA 2016/2017 (+ 15 million from the transport H2020 budget) with grant funding for technical assistance. Contact: RRI&SRCR

25 Project Example : upgrade tram system and green buses ( Riga-Latvia) EIB loan of 75 million combined with CEF grant of 8 million and commercial finance Upgrade tram system: new rolling stock & infrastructure Purchase of 10 new hydrogen fuel cell buses Purchase of 10 new trolleybuses with hydrogen fuel cell range extenders Purchase of associated refuelling infrastructure

26 Look for INEA!