13 Energy technologies and innovation~
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9187/1/3
COM(13) 253
| Commission Communication: Energy Technologies and Innovation
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| Legal base | —
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| Document originated | 2 May 2013
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| Deposited in Parliament | 7 May 2013
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| Department | Energy and Climate Change
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| Basis of consideration | EM of 20 May 2013
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| Previous Committee Report | None
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| To be discussed in Council | June 2013
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
13.1 According to the Commission, the EU needs to do more to bring
new, high performance, low-cost, low-carbon sustainable energy
technologies to the market if it is to achieve its all of its
2020 objectives in energy, climate change, economic and social
policy, as well as those for 2030 and 2050; it must further reinforce
the role of technology and innovation within energy policy; and
it must also use technology to adapt to a constantly changing
global energy situation (for example the rapid expansion of unconventional
gas production) in order to support European industrial competitiveness.
It has therefore sought in this Communication to assess what the
EU has achieved to date, and to set out what can be achieved to
2020 and beyond.
The current document
The EU's achievements so far
13.2 The Commission highlights the following areas:
The role of legislation
The scale of the EU internal energy market has helped to create
conditions in which industry invests in new and innovative technologies;
the Renewable Energy Directive has led to a growth in the production
of renewables and to a reduction in their cost; the Energy Efficiency
and Eco-Design Directives have encouraged new energy efficient
technologies onto the market, with EU legislation having also
promoted energy efficiency in buildings; and the EU Emissions
Trading System and the Effort Sharing Decision have made the price
of emissions part of operational and investment decisions for
business.
Framework conditions for research
The Innovation Union sets out an integrated research
and innovation strategy, improving public funding and tackling
the barriers which hold back private investment, whilst the European
Research Area is improving the impact of Member States research
funding and framework conditions for researchers.
The Strategic Energy Technology Plan
The Strategic Energy Technology (SET) Plan provides
the technology push for the EU's energy and climate policies,
based on a three pillar structure involving a Steering Group,
European Industrial Initiatives (EIIs) and the European Energy
Research Alliance (EERA). It has prioritised the technologies
most relevant to those policy objectives for 2020; defined priority
research and innovation areas, with a focus on large projects
of European value; and helped to pool national research capacities.
This has been facilitated by the availability of European funds,
notably under the Seventh Research Framework Programme, including
support for public and private partnerships and investments in
technological development for SET Plan sectors. As a result, there
have been important achievements in areas such photovoltaic systems,
wind power, and the use of renewables in the transport sector,
particularly alternative fuels.
Intelligent Energy Europe Programme
This Programme has promoted the market uptake of
technologies and tackled financial, regulatory and administrative
barriers, focussing on energy efficiency and renewable energy.
In addition, it has established cooperation with financial institutions
to mobilise investments into sustainable energy.
Public-Private Partnerships and Joint Undertaking
The Fuel Cells and Hydrogen Joint Undertaking has
resulted in an industry-led programme of research and demonstration
activities covering both transport and power applications, whilst
research oriented Public-Private Partnerships on energy efficiency
in buildings and cars have brought together stakeholders to channel
EU funding towards these objectives.
Risk Sharing Finance Facility
Under the Seventh Research Framework Programme, this
supports the European Investment Bank in providing loan commitments
to attract investment in research and innovation, mainly by large
firms.
Regional support
Significant support for sustainable energy has been
available from the Cohesion Fund in the period 2007-13.
13.3 Against this background, the Commission concludes
that Europe is on the right track, but that much remains to be
done in order to respond to new and evolving developments. In
particular, it suggests that the SET Plan needs to focus more
on the integration of the energy system and of innovation activities,
with this being supported by increased coordination of the EIIs
and EERA; that the commitment of Member States to the Plan needs
to be improved; and that a clear commitment is needed from industrial
partners. It also believes that the IEE programme has a crucial
role, and says that overall this analysis highlights the need
for an integrated research and innovation chain at EU level, running
from basic research to market roll-out.
STRATEGY TO 2020 AND BEYOND
Key principles
13.4 The Commission says that these include:
- focusing action at EU level
where it can really add value, concentrating on large-scale efforts
which go beyond what Member States can achieve;
- looking at the whole energy system when setting
priorities, with the development of energy technologies being
linked to the delivery of cost-effective services to final consumers,
and individual developments being assessed for their impact on
the whole energy system, going beyond existing divisions between
energy sources and end uses, and so exploiting synergies between
sectors, and drawing upon life-cycle based solutions, including
re-use and re-cycling, to reduce energy needs;
- pooling financial resources, recognising that,
as the energy challenge requires investment beyond the reach of
a single Member State, there is a need to leverage individual
investment to support industry with programmes allowing ambitious
industrial developments, with proper funding mechanisms for the
different stages of innovation and deployment, better exploitation
of synergies with EU Structural and Investments Funds, and the
use of other programmes for funding innovation, such as the Connecting
Europe Facility, the Access to Risk Finance component of Horizon
2020, and Emission Trading System financing mechanisms;
- concentrating on the most promising technologies
for post 2020, having regard to the long lead times for most energy
technologies.
Key developments needed
Unlocking the full potential of energy efficiency,
particularly for end use consumption
13.5 The Commission points out that investing in
energy efficiency brings savings to consumers and increases the
competitiveness of EU industries by allowing them to be less dependent
on energy prices. It also suggests that buildings (which account
for 40% of final energy consumption) and other energy intensive
industries are a high priority.
Delivering competitive solutions
13.6 The Commission observes that:
- innovations which ensure the
flexibility and security of the European energy system will lower
the costs of the whole energy infrastructure and enable it for
take up much larger amounts of renewable energy;
- innovations are needed to ensure the continuity
of electricity supply through the cost-effective balancing of
renewable energy;
- technologies which enable active consumer participation
will allow energy efficiency improvements in networks;
- whilst technologies such as onshore wind and
solar photovoltaic energy have been successfully brought to the
market, an open and flexible approach to the further development
of cost-effective and sustainable energy options is needed;
- technological development is needed to support
the safe operation of nuclear systems and the development of sustainable
solutions for the management of radioactive waste;
- the delivery of sustainable alternative fuels
for transport requires targeted development and cost reduction,
particularly as regards advanced biofuels, bio-methane and hydrogen,
and transport facilities.
Fostering environmental innovation through the
market
13.7 The Commission says that a particular focus
is needed on cities which use far more energy than they can produce,
and that further integration and optimisation of energy, information
and transport flows is required, as envisaged by the Smart Cities
and Communities European innovation partnership. It adds that
market uptake measures are needed in the roll-out of innovative
energy technologies, including the building up of the capacity
of market players and public authorities to introduce effective
measures, and supporting the development and take-up of innovative
financing solutions for renewable energy and energy efficiency.
IMPLEMENTING THE STRATEGY
13.8 The Commission believes that the SET Plan remains
the core instrument to deliver these challenges, providing a reference
point for investment in energy research and innovation, but that
it needs reinforcing to respond to new challenges, and better
consolidate research and innovation capacity and resources across
Europe. In order to achieve this, it proposes:
- that an Integrated Roadmap
should be developed by the end of 2013, incorporating the key
principles and measures in this Communication, covering the entire
research and innovation chain and identifying clear roles for
the various stakeholders;
- that, on the basis of that Roadmap, Member States
and the Commission should develop by mid-2014 an Action plan which
lays down coordinated and/or joint investments, going beyond grant
programmes and including financial engineering instruments and
procurement;
- that a robust reporting system, based on the
Strategic Energy Technologies Information System, should monitor
implementation of the Integrated Roadmap and Action Plan, and
report progress annually;
- that a coordination structure should be established
under the SET Plan Steering Group to promote investment in research
and innovation on energy efficiency.
13.9 The Commission also refers briefly to the external
dimension, noting the need to strengthen the EU's attractiveness
as a research partner, with international cooperation being focused
on key challenges which can bring it added value. It also suggests
that the United Nations Framework Convention on Climate Change
is an important partner, and that the global market for technology
transfer to emerging countries is expected to grow.
The Government's view
13.10 In his Explanatory Memorandum of 20 May 2013,
the Minister of State at the Department of Energy and Climate
Change (Gregory Barker) says that the UK generally agrees with
the Communication, and continues to be a strong and active supporter
of the SET Plan, and its evolution to remain up to date in
terms of technology development priorities and opportunities.
It sees the Communication as an important part of this process,
and it welcomes the suggestions that more investment can be delivered
in partnership with the European Investment Bank and through strategically
redirecting resources from other EU programmes towards SET Plan
activity.
13.11 The Minister notes the non-binding nature of
the Communication's recommendations on additional Member State
spending, and that it covers much of what the UK has been suggesting
for some time. This includes the need to deliver a conveyor belt
of new or improved technologies, from early stage research, through
pre-commercial demonstration to deployment, in a joined-up strategic
way; reinforcing the SET Plan's European Industrial Initiative
teams; integrating the Intelligent Energy Europe programme into
this broader approach; developing innovative financing solutions;
and being open to funding additional, promising technologies.
The UK also supports the recommendation that Member States should
be more proactive in implementing the SET Plan, in partnership
with the Commission and industry, and it is already playing a
leading role within the SET Plan Steering Group in taking this
work forward.
13.12 At the same time, the Minister points out that
a more proactive stance has policy implications, in that this
would imply an increasing alignment of national funding programmes
with those of other Member States with similar interests and priorities,
as well as aligning activities with the proposed Integrated Roadmap
and Action Plan. He adds that the opportunities for this are
already being explored in the UK, which is taking an active part
in the range of initiatives, including those related to bio-energy,
solar and wind energy, as well as being an active participant
in earlier stage research under the European Energy Research Alliance.
Conclusion
- This is the latest in a
series of Communications produced recently by the Commission on
energy-related matters, and, like the other such documents, this
one provides useful background and analysis, but is couched in
somewhat by-and-large terms when addressing future action. Consequently,
whilst we are drawing it to the attention of the House, we do
not think it requires any further consideration at this stage,
and we are therefore clearing it.
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