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Assessment of Potential and Promotion of New Generation of Renewable Technologies ____________________________________________________________________________________________ 4. Conclusions and Recommendations 4.1. Energy markets and barriers 4.1.1. Status, markets and industry structures Among all renewable energies, bioenergies are most advanced in terms of technology ripeness and market deployment. In Europe, biomass for bioenergy is exploited to some 40-75% already for it has been traditionally used. Different biomass uses are on the brink of competing against each other (e.g. scrap wood for plywood, residential wood heaters, or wood pellets, etc.). However, at the end of the day, talking about biomass is talking about resource use (like land, water, nutrients) and ultimately resource competition as the potential of wastes and residues is limited. Algae as feedstock for bioenergetic uses have not been part of this analysis, there are indications that they add to the resource competition of bioenergy. Technology performance of algae remains to be validated at larger scales. Photovoltaic applications are the most diversified, ranging from portable power (consumer electronics, etc.) to residential roof-top, building-integrated and even freeland PV systems. While spin-offs and SMEs have been the technological innovation driver in the field, established companies are entering the market, which is a clear sign for a stage of technology and market maturity reached. Offshore wind is like the “2nd generation” of wind energy technology. In order to address this market, large-scale financing is needed, which is a natural fit with established larger companies that have started offshore ventures. Concentrating solar power consists of “hands-on” hardware elements with a conventional steam power generation part. CSP has a long track record of R&D and demonstration. Now the time is ripe for the CSP market to lift-off in the southern parts of Europe as well as any region in the earth’s “sunbelt”. Electricity-based renewable energies exploiting the largest natural resources available in Europe, namely solar and wind, these technologies nevertheless tend to be underestimated vis-à-vis the limited feedstock bioenergy and geological availability of geothermal energy. Especially with solar power (PV and CSP), these long-term backbones of the future European and global energy landscape have been given insufficient support to pass the “death-valley of poor economics”, despite pioneering countries like Germany and Japan. 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. To compensate for this market failure is the very role for politics to play. 4.1.2. 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, which should be resolved. Low R&D investment in Europe is structural and not specific to the energy sector. IP/A/ITRE/ST/2009-11 & 12 109 PE 440.278PDF Image | Policy Department Renewable Technologies
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