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Policy Department A: Economic and Scientific Policy ____________________________________________________________________________________________ Renewable energy technologies (and especially the new generation) are penalized by high risk, high uncertainty, long lead-time and by the fact that they are inherently capital-intensive. In this context, the role of public authorities is to support part of the risk by providing adequate levels of R&D funding and to ensure a stable political and regulatory environment (avoid stop-and-go). 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). In particular: • For wind: EU budget will be short of €1 billion between 2006 and 2020, i.e. €450 million during the FP7 period. It needs to go from €11million to €72 million on a yearly basis. Member States and corporate budgets are in line with the SRA. • For solar: public and private funding should be multiplied by around 3. €6.6 billion will be needed for the period 2009-2013, 55% coming from the industry and 45% from the public sector. For biofuels (not exactly bioenergy): between €300 and 600 million per year are needed. • For bioenergy in general: no detailed information found on investment needs but it is clear that high levels of public spending are expected by the sector. A Strategic Research Agenda is coming this year for heating applications. • For geothermal: A minimum of €31.5 million of R&D expenditure per year is needed for the period 2008-2030. An additional €750 million to €1 billion coming from public and private sources (through innovative mechanisms like PPP and grants) is needed for 15 and 20 EGS demonstration plants. • For marine energy: no detailed information found on investment needs but it is clear that high levels of public spending are expected by the sector. A technology roadmap is coming soon. 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. 4.1.3. Barriers There are several dimensions to the discussion of barriers inhibiting innovation in research, development, demonstration and deployment of renewable energy technologies. While there are technology specific ones, many can be regarded cross-cutting topics affecting all energy technologies to varying extend. Cross-cutting barriers include but are not limited to • R&D and project financing issues; • Acceptance and approval; • Infrastructure and planning; • Support instruments; and • General mind set. A rising barrier on the road to energy technology innovation is early-stage financing, especially (but not limited to) the photovoltaics sector. IP/A/ITRE/ST/2009-11 & 12 110 PE 440.278PDF Image | Policy Department Renewable Technologies
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