Written evidence submitted by National
Renewable Energy Centre Ltd (trading as Narec) (TIC 14)
BACKGROUND
TO NAREC
1.1 The National Renewable Energy Centre (Narec)
is the UK's national centre for accelerating grid integration
of renewable energy systems and catalysing the development and
deployment of offshore wind, marine and photovoltaic energy generation
technologies.
1.2 Narec is a not-for-profit organisation. Our
primary purpose is to secure economic, social and environmental
returns for our public and private sector clients by undertaking
research, development and deployment projects in the field of
renewable energy technology.
1.3 Narec's highly experienced, multidisciplinary
team of 120 scientists and engineers operate some of Europe's
largest translational research and testing facilities for electrical
networks, offshore wind, marine and tidal power generation technologies.
Our clients range from large multi-national companies, to technology
start-ups, local authorities and major investors in renewable
energy projects.
In addition to our technical role, we play an important
role in supporting delivery of the government's policy objectives
and attracting and anchoring internationally mobile investment
to the UK. Clipper Windpower, for example, is building the prototype
of the world's largest wind turbine at Narec.
1.4 Narec undertakes mission-oriented research,
development and demonstration projects between Technology Readiness
Levels 3 and 8, the range between proof-of-concept and system
test and demonstration. We are organised and managed as a business,
with strong industrial processes and norms and are highly flexible
in terms of the nature, length and complexity of the projects
we undertake.
1.5 Our technical assets are sized to address
the problems and issues faced by companies seeking to develop
and demonstrate technologies at full scale. We operate one of
the world's largest ultra high voltage testing laboratories and
are currently constructing the world's largest wind turbine blade
testing facility which will be capable of testing 100m long blades.
Other key facilities include: the UK's only independent
Photovoltaic R&D, prototyping and short run manufacturing
Centre (PVTC); a new 3MW marine drive train development and testing
facility; a 100MW offshore wind turbine demonstration facility
off the Blyth coast. We are working with the Energy Technologies
Institute on the development of Project Fujin, the world's largest
wind turbine drive train testing facility rated at 15MW.
1.6 Narec adopts an open access model and collaborates
very closely with a global network of universities, businesses
and governments to secure breakthroughs in the design, deployment
and commercialisation of renewable energy technologies. We have
been successful in securing a wide range of European (e.g. FP7)
and national research and development projects and have worked
with over 60 UK and international universities.
CONSULTATION QUESTIONS
2.1 What is the Fraunhofer model and would
it be applicable to the UK?
2.1.1 The Fraunhofer-Gesellschaft is a not for
profit organisation that undertakes applied research in a broad
range of scientific and technical disciplines. It has a core mission
of pursuing research of practical utility and occupies a position
in the innovation system between the types of research traditionally
undertaken by university and industry.
2.1.2 The Fraunhofer model has evolved over time.
The current model, which has been relatively stable since the
mid to late 1970s, has seen the Fraunhofer Society generate about
30% of its income from industrial contracts, with a further 30%
from specific government projects and the balance made up in a
9:1 proportion from federal and state government grants.
This funding model encourages a focus on applied
research but also provides freedom to develop key organisational
competencies and autonomous priorities. The model applies to both
the Society itself and its individual institutes.
2.1.3 The Fraunhofer model has developed over
60 years, with a number of significant iterations, to address
Germany's particular needs, priorities and policy approach. It
is likely to be very difficult to successfully import the model
without adapting it to the very different UK social, economic
and business environment. That said, some of the core elements
of the Fraunhofer model have attractions for policymakers seeking
to address key gaps in the UK innovation system.
2.2 Are there existing Fraunhofer-type research
centres within the UK, and if so, are they effective?
2.2.1 The Fraunhofer Society is a very large,
successful and mature organisation. From humble beginnings in
1949, it currently has some 80 research units employing in excess
of 17,000 staff and an income of over €1.6 billion per annum
in 2009. There are no analogous organisations with such scope,
scale and history in the UK.
2.2.2 The UK has a very rich and diverse innovation
ecosystem which is both a strength and weakness. Whilst there
are no direct analogues to the Fraunhofer, a wide range of organisations
operate very successfully in the continuum between industrial
application and academic research.
Organisations like MRC Technology, Warwick Manufacturing
Group, the Advanced Manufacturing Research Centre, National Renewable
Energy Centre (Narec), Centre for Process Innovation (CPI) and
the European Marine Energy Centre (EMEC) operate with very different
business models but are nevertheless successful because they are
tailored to the needs of the very different industries, technologies
and markets which they are targeted at.
2.2.3 In the North East of England, Narec and
CPI have similarities to the Fraunhofer model. They are both translational
research centres that operate at TRL levels 3-8. They occupy a
space between industry and academia, are building a critical mass
of UK-based expertise and globally competitive testing and development
assets, are focussed on growth sectors and technologies of significant
economic importance and are required to undertake industrial and
state funded (e.g. TSB, FP7) research to supplement their income.
They have a mix of industrial and public funding.
Narec, for example, generates nearly half of its operating revenue
from commercial contracts. Importantly, both Centres have explicit
economic development objectives and their contribution to the
rebalancing of the regional and national economy towards new high
growth sectors is a critical measure of success.
2.2.4 To date, both CPI and Narec have been very
effective in relation to the delivery of contractual obligations
to their public and private funders. In particular, they have
been, and continue to be, key players in the economic rebalancing
of the North East of England.
They have successfully performed their intended purpose
as disequilibrating investments targeted at securing a strong
and highly visible global presence for their region and the UK
in emerging sectors of the economy that have the potential for
rapid growth.
2.2.5 Herman Hauser has pointed out that ...."Britain
is second only to the US when it comes to quality research; in
fact, if you look at the best papers per pound invested, we are
number one in the world. But when it comes to commercialisation
of products or services, we are not so good." The North East
Centres were established with the firm intention to shake up the
status quo and implement new approaches to address this problem.
2.2.6 Key challenges for the future will include:
ensuring momentum towards the development of a viable, globally
competitive UK specialisation in the commercial exploitation of
technologies in key competence areas; further enhancing linkages
with UK and international universities; retaining the financial
flexibility required to invest ahead of market needs (3-7 years)
in order to retain market leading competencies.
2.3. What other models are there for research
centres oriented toward applications and results?
2.3.1 There is a wealth of models for research
centres oriented toward applications and results. These include
push models such as university based technology transfer centres;
membership based research associations such as PERA; commercial
consultancies such as Cambridge Consultants; not for profit research
organisations with charitable status; service based institutes
such as VTT in Finland. There is a rapidly growing body of literature
that analyses the work of such organisations, albeit utilising
somewhat eclectic naming conventions—they are variously
called Research Technology Organisations, Intermediary Technology
Organisations, Centres of Excellence, Translational Research Centres
etc.
Examples of key organisations of interest would include
NREL (USA), IMEC (Belgium), ITRI (Taiwan), ETRI (Korea), VTT (Finland),
SINTEF (Norway). They all operate in very different policy environments
and differ significantly in age, size, mission, funding etc. but
share a common interest in the diffusion and exploitation of knowledge.
In addition, the Centres established to deal with market failures
in the dissemination and utilisation of knowledge rely on a significant
financial contribution from the public sector.
2.4. Whose role should it be to coordinate
research in a UK-wide network of innovation centres?
2.4.1 It would be appropriate for the TSB to
co-ordinate a UK network of innovation Centres. They have the
appropriate credibility, expertise in programme management and
excellent links with the key stakeholders in central government,
UKTI, the Research Councils, business, research centres etc that
will be essential for successful implementation and the alignment
of the innovation centre programme with other policy areas.
2.4.2 As it is unlikely that a "one size
fits all" model would be successful across the range of technologies
and industries targeted by the TSB, we would encourage sufficient
flexibility in the model to enable individual Centres to align
their operations appropriately to their target markets. We feel
that the requirement for Centres to generate at least a third
of their income from industry will help ensure that they are appropriately
sensitive to business needs.
2.5 What effect would the introduction of
Fraunhofer-type institutes have on the work of Public Sector Research
Establishments and other existing research centres that undertake
Government sponsored research?
2.5.1 The government's proposals are for a limited
number of Fraunhofer type institutes, with clear commercial and
public good objectives, operating in clearly defined areas of
science and technology. There should be no undue effect on organisations
that focus on delivering services and policy-relevant information
to government.
Andrew Mill
Chief Executive
30 November 2010
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