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Assessment of Potential and Promotion of New Generation of Renewable Technologies ____________________________________________________________________________________________ Main R&D investment needs In the European Biofuels Technology Platform Strategic Research Agenda & Strategy Deployment Document it has been estimated that the financial effort necessary to implement R&D priorities for biofuels will range between €300 million and €600 million per year (from demonstration to semi-industrial plants). No specific break-down by priority or sources is provided but the focus should be put on the scaling up of demonstration installation to industrial-size plants. In this regard, public budgets should help the private sector to support the high risk associated with this kind of technology. In this regard, the deployment of large-scale demonstration projects may require innovative financial instruments that would reward the first-movers and higher risk-takers: “One possible instrument could be a special fund created to assist in financing the costs of the higher risk first-of-a-kind industrial projects. Such a fund would provide a low interest rate loan as well as a guarantee covering at least part of the financial risk. During a first deployment phase, a fiscal incentive would be simultaneously provided in order to compensate the difference between the actual production cost and a reference production cost. This fiscal incentive has to be provided for a sufficient transitional period to ensure that technology can compete on level terms in the market place. At present the size of the fund and level of fiscal support has still to be evaluated” [EBTP 2008]. 2.2.6. Geothermal Public R&D spending No aggregate data of Member States budgets or corporate spending were available at the time of writing. By adding the EU budgets of all geothermal projects financed under FP6 it has been calculated that the total FP6 funding for geothermal energy was €17.3 million. The IEA online database also provides detailed information for Member States that are also OECD countries. This information is summarized on the following chart. Figure 30: Public R&D funding for geothermal energy by country Source: Data on this chart are based on the IEA online RD&D Statistics database. They reflect the most up-to- date information available for each country in those two sources. 2008 data: Germany, UK, Portugal, US, Korea. 2007 data: France, Austria and Belgium. IP/A/ITRE/ST/2009-11 & 12 61 PE 440.278PDF Image | Policy Department Renewable Technologies
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