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Assessment of Potential and Promotion of New Generation of Renewable Technologies ____________________________________________________________________________________________ TRL 1-3 “In the lab” TRL 3-6 “System-level validation in a relevant environment” TRL 6-7 Commercial prototype TRL 8-9 In service TRLs are handy labels that make it easier to discuss how R&D&I policy is serving a particular part of the innovation chain (up to the point where a technology has made its market début). They were pioneered by NASA and have been taken up by organisations like the UK’s Energy Technologies Institute. The Commission should adopt them, too. 3.3. Appropriate R&D&I funding schemes for technologies with a particular TRL Recently a European instrument was created that could provide significant support to innovative renewable energy technologies, “NER300”. NER300 is created from the 300 million carbon allowances set aside in the revised Emissions Trading Directive [EC 2008]. The EIB will sell them on the carbon market and the money raised can be put towards CCS installations and installations of innovative renewable energy at near-commercial scale. NER300 will only provide money to these installations once they are operating, and even then, only as they produce clean energy according to a particular schedule within a five- year period. The necessity for the project to work inhibits the very risk-taking that NER300 demands, requiring relatively expensive financing solutions where a third party agrees to cover the risk of the installation under-performing (or not performing) in return for a hefty margin if it performs to plan. CCS and renewables have different needs, and NER300 was designed with CCS mainly in mind. CCS relies on technologies that are proven but will remain expensive until (in theory) an initial deployment delivers economies of scale in manufacturing and in CCS project management. It therefore needs a support mechanism that incentivises the successful integration of these components. Renewable energy technologies already have access to support mechanisms that reward developers for each MWh that their projects produce. What is specifically needed by “innovative” renewable energy technologies, i.e. those with TRLs lower than 8 or 9 is support that is less closely linked to the project’s output. The Commission and Member States debated NER300 over 2009. In the first half of that year, a parallel debate was taking place on the European Energy Programme for Recovery, but opportunities to make these instruments complementary were missed. Crucially, the EEPR was able to provide lump sums to projects without requiring a specific output of electricity, in principle making it accessible for technologies with a TRL in the range 3-7, like “innovative renewables”. It seems, therefore, that a deal could have been done that would have seen the EEPR reserved exclusively for renewables while, within the limits of the 2009 revision to the Emissions Trading Directive, NER300 was reserved exclusively for CCS. The EEPR was decided once NER300’s basic rules had been laid down. Its mission could have been re- interpreted so that it rested slightly less on the need to give Europe an immediate fiscal stimulus and slightly more on the need to provide funding to the SET Plan’s renewable energy technologies. This would also have permitted a longer debate on what technologies and projects to fund, and might have led to the (highly desirable) outcome that EEPR money should be handed out in a genuinely competitive manner (if necessary subject to explicit Member State juste retour demands) rather than to specific pre-selected projects. IP/A/ITRE/ST/2009-11 & 12 145 PE 440.278PDF Image | Policy Department Renewable Technologies
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