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Assessment of Potential and Promotion of New Generation of Renewable Technologies ____________________________________________________________________________________________ From R&D to deployment of new technologies The EU budget and the European Investment Bank (EIB) have the potential to assist in the deployment of new technologies. In fact, a lot could be gained from a better coordination between the numerous initiatives, funds and the R&D efforts under the SET-Plan. There is, however, a very strong case to reform considerably the EU budget operations, in particular those for the structural funds, which are still not integrating appropriately the climate considerations in the programmes, and are not strategically structured. It would be very important to incorporate the necessary tools into the European Union Cohesion Policy to devise integrated strategies, allowing for example the deployment of new technologies at regional level with the structural funds providing assistance for the necessary infrastructure. This would allow regions under the EU’s convergence programme to develop into low carbon economies and be a showcase for new technologies. Another central need is the completion of the single market for energy, i.e. create the interconnectivity necessary to ensure that Europe has an integrated grid. As the share of renewable energies increases, the only way to manage efficiently the fluctuation in energy supply is by having a large grid in Europe. In addition to the funding by the EU budget, the EIB has facilities that are being offered to deploy renewable energy systems. As a banking institution, it does not fund grants for research, but is able to provide loans at competitive interest rates for projects which have a considerable risk factor and would not be funded by private financial institutions. These are for example the loans or guarantee mechanisms provided through the Risk Sharing Financing Facility (RSFF) or the Marguerite fund. The EU also lends to SMEs which undertake R&D operations through its European Investment Fund (EIF) facility. The EIF supports the EU’s competitiveness and innovation programme for investments in technological development, innovation (including eco- innovation), technology transfer, and the cross border expansion of business activities. It is venture capital to promote research and development. The EIF’s financial instruments represent nearly one third of the total budget of the Competitiveness and Innovation Framework Programme of the European Commission, with a total budget of over € 1.1 billion for the period 2007-2013. According to the Commission, this should leverage about € 30 billion of new finance for up to 400 000 SMEs in Europe. The EIF can be used to incentivise the development and adoption of low carbon technologies. There is a need over the next two years, before the next financial perspectives are negotiated to develop clear policy lines for EU funding, how to “climate proof” interventions so they are in line with EU objectives, and how to ensure that there is a continuous feedback between the technological development in the SET-Plan and the deployment through the different EU support mechanisms. IP/A/ITRE/ST/2009-11 & 12 PE 440.278 xxiPDF Image | Policy Department Renewable Technologies
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