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Assessment of Potential and Promotion of New Generation of Renewable Technologies ____________________________________________________________________________________________ 2.4. R&D supporting tools and national best practices 2.4.1. General In order to boost R&D investments, governments can use both direct and indirect instruments. Since they can offer different degrees of control and target different stages of R&D research, governments usually make use of both instruments. Depending on the goals, more emphasis can be put on one or the other set of instruments. For complementary reading on this subject, the reports made in the course of the EU project [OPTRES 2007] are recommended. 2.4.2. Direct instruments Direct instruments often take the form of subsidies or grants by governments to institutes or projects. Their main benefit is the large degree of control governments retain through specific conditions required for receiving the subsidies. This makes it a good instrument if the development of particular technologies is deemed necessary. However, this can work against nascent technologies that may be very promising but are not yet on the government radar and as such may be overlooked when awarding funding. Because direct instruments are goal-oriented, there has been a shift towards the use of contracts to evaluate the performance of the funding that has been awarded. More and more, the idea is to use clear goals that should be attained and make the subsidies conditional on concrete proposals to attain those goals. This makes it possible to evaluate ex-post how successful the project has been and give indications of where the next round of funding is required. Direct instrument – Research Demonstration Fund (France) The Research Demonstration Fund of the ADEME (the French Agency for energy and the environment) in France provides an excellent example of direct R&D support by public authorities. The objective is to finance demonstration projects for emerging new energy technologies. The technology portfolio covered by the program includes the following: renewable energy sources (including second and third generation biofuels and marine energy), innovative energy-efficient transportation modes, carbon capture and storage, smart grids, etc. Those technologies are characterised by a high level of risk for developers as they all are at the demonstration phase in the innovation cycle. The time horizon for deployment is typically 2020-2030. This fund was created in 2008 with an initial allocation of €400 million for the period 2009-2012 managed by the Ministers of Sustainable Development (Ministère de l'Ecologie, de l'Energie, du Développement durable et de la Mer), Research and Higher education (Ministère de l'enseignement supérieur et de la recherché) and the Industry (Ministère de l’Industrie). It takes the form of calls for projects and retained applicants get a subsidy representing 40% of the project total cost. Cooperation between the industry and public research institutes is highly encouraged. Before publishing specific calls for projects, the ADEME is in charge of establishing roadmaps for each of the technologies identified by the program. The idea is to clearly define a common vision and identify the main barriers for development in order to, in a second phase, define tender specifications that specifically address those issues. While it is too early to draw conclusions on the long-term efficiency of the mechanism, it is at the moment clearly very successful at attracting a large number of high quality projects and foster cooperation between large groups, SME’s and public research institutes. As part of a national loan of €35 billion raised recently, €2.8 billion have been allocated additional to the fund for a period of 5 years. IP/A/ITRE/ST/2009-11 & 12 69 PE 440.278PDF Image | Policy Department Renewable Technologies
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