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Policy Department A: Economic and Scientific Policy ____________________________________________________________________________________________ Offshore wind farms have investment volumes beyond the capabilities of SMEs; all other (new) renewables can be deployed by SMEs and large corporations alike. Supporting innovation of renewable energies should address especially those energy technologies and associated infrastructures that are most promising in the long-term. Where lead-times are long and engagement is risky, commercial interests are typically lowest. The changes required by limited resource availabilities and increasing environmental burdens in the energy landscape in the course of the next 10+ years will be great. Price signals will not fully anticipate these changes early enough to allow for a smooth transition as the comparison of the history of oil prices versus mid- to long-term price projections shows. To compensate for this market failure is the very role for politics to play. R&D financing and investment needs Data on public R&D budgets are very difficult to find. There is a lack of information reporting and coordination between Member States. Low R&D investment in Europe is structural and not specific to the energy sector. Public and private R&D investment in renewables are almost exclusively concentrated on a very limited number of Member States, mainly Germany, France, Italy, UK, Denmark, Spain, the Netherlands, Belgium, Sweden, Finland and Austria. In Europe, public and private R&D spending is largely insufficient. R&D budget should be increased in line with the respective Strategic Research Agenda (SRA) of each technological segment (when available). The role of public money should be to support mid-to long-term research projects that are not going to be immediately exploitable by the private sector in terms of commercialization. Barriers There are technology-specific barriers and cross-cutting barriers applying to one or more renewable energy technologies. Cross-cutting barriers include: R&D and project financing issues such as insufficient start- up and early-stage financing, acceptance and approval, a diversity of support instruments with varying effectiveness and general mind set issues such as an overestimation of bioenergies and underestimation of electricity-based renewables. Infrastructure and planning are another major area of barriers. A major barrier notably to the large-scale development of offshore wind and concentrating solar power are capacity limitations of the electricity grid. A European approach to such large-scale renewable energy sources requires a pan-European smart grid (‘super grid’), which can bring electricity from renewables to where it is needed over long distances and which can balance the natural variability of renewables on a European scale. This needs to be a priority for Europe, and the European Economic Recovery Plan shows that EU spending on infrastructure projects is possible. Moreover, with increasing shares of renewable electricity, grid quality requires longer-term (and thus large-scale) electricity storage. EU Policy Energy regulatory policy The core elements of the energy and climate change package are the revised EU Emissions Trading System, in combination with the effort-sharing decision, and the directive for the promotion of renewable energy sources. IP/A/ITRE/ST/2009-11 & 12 PE 440.278 xviiiPDF Image | Policy Department Renewable Technologies
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