European policy on research and innovation in renewable energy technologies opportunities for the public and the private sector

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1 European policy on research and innovation in renewable energy technologies opportunities for the public and the private sector Dimitrios Sofianopoulos European Commission DG Energy 6 th Conference on the Energy Future of Croatia: June 14 th 2017, Zagreb 1 Energy

2 A comprehensive clean energy research strategy 2 Based on Paris Agreement COP 21 Energy Union Strategy Integrated SET-Plan

3 COP 21 Paris: Governments (incl. EU) agreed to: 3 Main messages: Keeping the increase in global average temperature well below 2 C Aiming at limiting the increase to 1.5 C Strengthening societies' ability to deal with the impacts of climate change; Providing continued and enhanced international support for adaptation to developing countries Mission Innovation (doubling R&I budget for clean technologies in 5 years' period)

4 2030 European framework for climate and energy policies 4

5 5 The way towards the Energy Union Where we want to go: A secure, sustainable, competitive, affordable energy for every European What this means: Energy security, solidarity and trust A fully integrated internal energy market "Energy efficiency first" (including the transport sector) Transition to a long-lasting low-carbon society An Energy Union for Research, Innovation and Competiveness How we want to reach it:

6 Goals of the Clean Energy for All European Package 6 LEADING THE ENERGY TRANSITION - CREATING VALUE FOR CITIZENS AND BUSINESSES Putting energy efficiency first Demonstrating global leadership in renewables Delivering a fair deal for consumers

7 Elements of the Package 7 " In essence the new package is about tapping our green growth potential across the board" Commissioner Miguel Arias Cañete (2016) Energy Union Governance New Electricity Market Design (including Risk Preparedness)

8 The Revised RES Directive Key Objectives 8 Tapping heating and cooling potential Investment certainty Cost-effective deployment Contributing to the EU political priority of becoming world number 1 in renewables & Promoting innovation in transport Collective target achievement Strengthening bioenergy sustainability Achieving the at least 27 % EU-level binding renewables target costeffectively

9 Moving to a new more European Approach for Renewables % RES share overall 2030 At least 27 % RES share National binding targets for RES Binding at EU level Specific target for RES- Transport No national or sector specific targets

10 Ensuring Cost-Effective Action Across All Sectors 10 7% 44% 49% Electricity Heating and cooling Transport (biofuels only) Renewables need to be mainstreamed also in heating & cooling and transport

11 Promoting a Stable Framework for Renewable Electricity 11 Support to be marketresponsive Visibility for investors (3-year cycle for tenders) Gradual and partial open-up to crossborder participation Stability of financial support

12 12 Removing Administrative Barriers One-stop-shop Maximum timeline for permitting procedures 3 years Current Directive + OECD Best practices Available information for all (Manual of Procedures) Simple notification for small electricity installations and repowering

13 13 Empowering Citizens and Communities A EU-LEVEL FRAMEWORK FOR RENEWABLE SELF-CONSUMPTION IN WHICH CITIZENS ARE AT THE CORE Renewable self-consumers to be allowed to generate, store, sell and consume their own electricity Renewable self-consumers in multifamily houses to be allowed to generate, store, sell and consume their electricity jointly No disproportionate procedures and charges that are not reflective Specific provisions for energy communities

14 Adressing the Untapped potential for Heating and Cooling 14 WHAT WHY Member States endeavour to increase their share of renewable energy in heating and cooling supply, by 1 percentage point per year until Access rights to local district heating and cooling systems for producers of renewables heating and cooling and waste from industry and third parties acting on their behalf. High untapped potential: a major contribution of the sector is crucial for a costoptimal target achievement (currently only 17.7 % RES share in H&C) Strategic sector for energy security: 75 % European homes are heated (or cooled) with fossil fuels & 68% of the EU's gas import Risk of missing the target in the absence of action Need to provide visibility and certainty to investors HOW Proportionality and flexibility for Member States when implementing the options Limited administrative burden (particularly when combined with Energy Efficiency measures)

15 15 Promoting Innovation in Transport Increasing the share of low carbon and renewable fuels in transport through an EU blending mandate for transport fuel suppliers

16 Strengthened EU Bioenergy Sustainable Criteria 16 Biomass production Improved sustainability criteria for agriculture biomass New sustainability criteria for forest biomass (2-step approach) Biomass end-use performance Sustainability and GHG saving criteria applied to all biofuels/bioliquid Sustainability and GHG saving criteria applied biomass and biogas for heat and power (only large scale facilities) Support to new biomass electricity only if with combined heat and power technology (exception for security of supply)

17 Innovation in the Clean Energy for all Europeans package 17 Innovation is at the core of the ''Clean Energy for all Europeans'' package and is a key element in all legislative and non-legislative acts, from renewable energy, to energy efficiency and the new market design proposals.

18 18 The Energy Union 5 th pillar (R, I & C) Research, Innovation and Competitiveness - How to maintain global leadership? Investment in clean energy Source: Bloomberg Energy Union R&I focus areas: Number 1 in RES Consumer smart grids, smart home appliances, smart cities Efficient energy systems More sustainable transport systems And two additional priorities: A forward-looking approach to CCS and CCU for the power and industrial sectors Nuclear energy the use of the highest standards of safety, security, waste management and non-proliferation;

19 The SET Plan adopted in 2008 to align R&I EU strategy 19 Focused on technologies with market impact up to EIIs: Wind Solar Electricity grids CCS Bioenergy Nuclear Smart Cities and Communities Fuel cells and hydrogen Focus on longer-term research actions beyond 2020 (set up of EERA) Financing R&I Investments accross EU EUR 2.8bn EUR 7.1bn (2007) (2011) Horizon 2020

20 20 An Integrated SET Plan (Com. 2015) The new elements: Identify European Strenths and Weaknesses in the global competition New governance: From the EIIs and ETPs to ''European Innovation and Technology Platforms (ETIPs) More joint actions Transparency, participatoty process, Knowledge sharing Monitoring and reporting 10 actions

21 Bringing the pieces together: From Integrated Roadmap to the Energy Union and SET Plan 21

22 1. World leader in developing the next generation of renewable energy technologies SET Plan Actions 1) Technology leadership by developing highly performant renewables technologies and their integration in the system 2) Cost efficient key technologies Targets for 5 key RES technologies: Offshore Wind, CSP, Solar, Ocean, Geothermal

23 23 Energy Union's 5 th dimension: From the 4+2 R&I priorities to the 10 SET Plan Actions SET Plan Actions 2. Participation of consumers in the energy transition through a smart system 3) Energy consumers, Smart cities & communities 4) Resilience, security and smartness of the energy system

24 3. Efficient energy systems, making the building stock energy neutral 5) New materials and technologies for energy efficiency solutions for buildings 24 6) Continue efforts to make EU industry less energy intensive and more competitive

25 25 4. Sustainable transport Systems SET Plan Actions 7) Become competitive in the global battery sector 8) Renewable fuels needed for sustainable transport solutions

26 26 Energy Union's 5 th dimension: From the 4+2 R&I priorities to the 10 SET Plan Actions The 2 additional Energy Union priorities for interested MSs SET Plan Action 9 A forward-looking approach to carbon capture and storage (CCS) and carbon capture and use (CCU) SET Plan Action 10 Ensure the highest standards of safety, security, and waste management and maintain technological leadership in nuclear

27 Setting concrete targets for research and innovation within the Integrated SET Plan 27

28 Setting targers and implementing the SET Plan 1 28 The SET Plan has built strong collaboration and commitment among EC, the MS and research and industrial actors through a highly participatory process. We commonly set R&I targets priorities with the aim to maintain or regain in some cases the EU's global leadership in lowcarbon technologies and solutions, and support climate change policies.

29 Setting targers and implementing the SET Plan 2 29 We have introduced a new focus on integrating cost efficient low-carbon technologies into the energy system whilst involving and boosting the role of the consumers; Our aim is to align efforts and promote synergies in identified, impactful R&I actions;

30 Next steps for the SET Plan From setting targets to Implementation: We have formed Temporary Working Groups for the implementation of the targets in all SET Plan actions We identified the actors to participate (interested countries, research & industry) By the end of the 2017 we aim at presenting Implementation Plans for all SET Plan actions. '10 years' SET plan Conference by the end of the year to present the highlights of the SET Plan 30

31 A new European strategy to ''Accelarate Clean Energy Innovation'' 31 Accelerating Clean Energy Innovation Strategy (ACEI) Focus on 4 thematic areas in line with Energy Union R&I priorities and the SET Plan Policy signals & regulatory framework: promote innovation in legislation, public procurement Financial Instruments: Streamlining support, create adequate tools, increasing involvement of ESIF (structural funds) Leverage Europe's global role: Mission Innovation, Development cooperation programmes etc.

32 32 2 nd State of the Energy Union and 2017 priorities ASSESSING THE PROGRESS MADE SINCE THE FIRST STATE OF THE ENERGY UNION Important progress have been made in the areas of GHG, Renewables and Energy Efficiency In 2015, EU GHG emissions were 22% below 1990 level (While combined GDP grew by 50 %) 2014 share of renewables reached 16% of gross final energy consumption (indicative trajectory for 2015/2016 is 13.8%) 2014 EU primary energy consumption only 1.6% above 2020 target (final energy consumption already lower 2020 target) Priorities for 2017 Work with Member States to accelerate preparation of Integrated National Energy and Climate Plans Efforts on infrastructure should be stepped up, notably in South Western, Northern and Eastern Europe The investment challenge remains very prominent. Global leadership of the EU in the clean energy transition

33 Funding Opportunities at European level through H2020: Overall Objectives 33 Responding to the economic crisis by investing in future jobs and growth Strengthening the EU s global position in research, innovation and technology Addressing people s concerns about their livelihoods, safety and environment Contributing to sustainable development (at least 35% of the overall budget) Supporting EU policies (e.g. Europe 2020 / Energy Union)

34 34 H2020 overall budget Total budget H2020: EUR 80,1 billion Budget of the Energy Challenge: EUR 5,93 billion

35 Proposed funding related to clean energy and transport 35 Proposed funding (extract, million, ) Societal challenges Health, demographic change and wellbeing Food security, sustainable agriculture, marine and maritime research & the bioeconomy Secure, clean and efficient energy Smart, green and integrated transport Climate action, resource efficiency and raw materials Inclusive and reflective societies Secure societies Science with and for society 462 Spreading excellence and widening participation 816

36 The calls of the Energy Challenge 36 Energy Efficiency (EE) Heating and Cooling Engaging consumers Buildings Industry, services and Products Innovative financing Competitive lowcarbon energy Technologies (LCE) Energy system (grids, storage) Renewable energies Decarbonising fossil fuels Socio-economic research European Research Area in energy Smart Cities and Communities (SCC) Light-house demonstration projects Call budgets (in Mio ) SME instrument (SIE) Call EE LCE 352,66 367,62 SCC 60 71,50 SME 46 50

37 Indicative budget distribution per area for Energy calls Total budget : EUR million * Other Actions = actions not implemented through calls for proposals (e.g. Risk Finance, procurements, subscriptions, contributions, grant to identified beneficiaries)

38 38 H2020 Info-days for calls Energy Information Days from 23 to 25 October 2017 in Brussels, presenting the new funding opportunities and innovative schemes offered by Horizon 2020 s WP The Information days will provide attendees with: An update on the European Energy policies Presentation of the priorities of the H2020 Energy calls for proposals Guidance on how to apply for funding Dedicated workshops for each funding area An opportunity to network and find project partners through the National Contact Points Brokerage event

39 Opporunities out of the EU regional policy Budget distribution Billion Cohesion fund 63,4 Less developed regions 182,17 Transition regions 35,38 More developed regions 54,35 Outermost and northern sparsely populated regions 1,56 European Territorial Cooperation Out of which for cross-border cooperation 7,55 transnational cooperation 2,08 10,2 interregional cooperation 0,57 Youth Employment Initiative 3,21 Rural development 95,34 European Maritime and Fisheries Fund (EMFF) 5,75 Urban innovative actions 0,37 Technical assistance 1,46 Source: 39

40 40 Cohesion Policy Support may come from the European Structural and Investment Funds (ESIF), in particular: 38 billion for the shift towards a lowcarbon economy, 40 billion for research and innovation, 33 billion for enhancing the competitiveness of SME's.

41 41 Exploring synergies Synergies through sequential or parallel projects ESIF Horizon 2020 ESIF "Stairway to Excellence" "Excellent Research" "Excellent Innovation" Market Capacity Building Research & Development Innovation

42 42 Smart specialisation strategy Smart specialisation The tool provides a mapping of regions' and Member States' intentions in terms of smart specialisation fields allowing to detect possible partners: The emerging fields of specialisation are related to: Energy (= top priority: 2/3 of all regions) Life science ICT Environment Agro-food Tourism New materials Scope on cooperation and fine-tuning!

43 Funding overview European Structural and Investment Funds European Funding Programmes Project Development Assistance Alternative Financing Schemes ERDF LIFE ELENA EIB On Bill Financing Cohesion Fund CLLD ELENA CEB TPI-EPC ESF URBACT III ELENA EBRD Soft Loans/Guarantees EAFRD CIVITAS Activity Fund ELENA KfW Revolving Loan Funds EMFF Territorial Cooperation Horizon 2020 Call EE20 Crowd-Funding ESIF Horizon 2020 Green Municipal Bonds Source: Covenant of Mayors 43

44 Thank You for Your Attention! Energy