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Maud SKÄRINGER European Commission Directorate-General for Regional and Urban Policy

Cohesion Policy support for Sustainable Energy – Perspectives for 2014-2020 Linking Renewable Energy to Rural Development Östersund, 19 February 2013. Maud SKÄRINGER European Commission Directorate-General for Regional and Urban Policy.

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Maud SKÄRINGER European Commission Directorate-General for Regional and Urban Policy

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  1. Cohesion Policy support for Sustainable Energy – Perspectives for 2014-2020Linking Renewable Energy to Rural DevelopmentÖstersund, 19 February 2013 Maud SKÄRINGER European Commission Directorate-General for Regional and Urban Policy

  2. 1. Cohesion Policy support for Sustainable Energy 2007-2013

  3. Cohesion Policy 2007-2013 Investment policy supporting Europe 2020: growth, jobs, quality of life and sustainable development Convergence objective. Regions with GDP per capita below 75% of EU average. 82% of funds spent on this objective. Regional competitiveness and employment objective. Total: € 347 billion of EU funds

  4. Cohesion Policy allocations to Sustainable Energy 2007-2013: EUR 10.1 billion • Energy efficiency: EUR 5.5 billion • 69 %allocated to specificprojects (including revolving funds) by end 2011 • Renewableenergy: EUR 4.6 billion • Biomass: EUR 1.7 billion • Solar: EUR 1.3 billion • Hydroelectric, geothermal, other: EUR 0.9 billion • Wind: EUR 0.7 billion • 42 %allocated to specificprojects by end 2011

  5. Allocations to Energy Sector as % of total allocations per MS 2007-2013(2009 figures)

  6. Types of projects RES 2007-2013 – Examples Research and Technological Development e.g. DK, DE, AT Pilot projects and innovation e.g. LU, NL, PT Cluster development e.g. DE, FR, AT, PL, FI Use of renewables by SMEs e.g. DE, IT, AT, PL, SK Heating, cooling and cogeneration e.g. BE, EE, ES, CY, LV, LT, HU, MT, SI Awareness raising e.g. BE, CY Electricity generation e.g. BE, IT, LU, PL, RO, SK, FI, SE Source: Expert Evaluation Network reports on RES and EE in housing: http://ec.europa.eu/regional_policy/information/evaluations/index_en.cfm#1

  7. Example: Samsø Energy Academy, DK • The ‘renewable island’ of Samsø in Denmark is now being showcased at the Samsø Energy Academy, built with support from EU funding. • The Academy has become the focal point for all information on sustainable energy, providing research facilities, a conference centre and the Samsø Energy Office with advisory services for commercial and private customers. • The Academy’s solar cells produce approximately 8 000 kWh/year. • ERDF contribution 2000-2006 period: € 400 000 Source: Inforegio 7

  8. 2. Commission proposal for Cohesion Policy 2014-2020 – Aspects related to Sustainable Energy

  9. Cohesion Policy 2014-2020 Adoption of Commission proposal in October 2011 Mission: Reduce disparities between Europe's regions strengthening economic, social and terrritorial cohesion Contribute to the Europe 2020 Strategy for smart, sustainable and inclusive growth Need to increase the performance and impact of the funds: Ex-ante conditionalities Thematic concentration of funds: 11 thematic objectives linked to the Europe 2020 Strategy

  10. Thematic Objectives Research and innovation Information and Communication Technologies Competitiveness of Small and Medium-Sized Enterprises (SME) Shift to a low-carbon economy Climate change adaptation and risk management and prevention Environmental protection and resource efficiency Sustainable transport Employment and support for labour mobility Social inclusion and poverty reduction Education, skills and lifelong learning Increased institutional capacity and effectiveness of public administration smart Europe 2020 sustainable inclusive

  11. Energy efficiency and renewable energy SMEs competitiveness Concentration of ERDF Research and Innovation Less developed regions Developed regions & transition regions No more ceiling for investing in EE in housing (currently maximum 4% of ERDF)  Potential minimum € 17 bn for EE & RES in 2014-2020

  12. Investments in Sustainable Energy in 2014-2020 Cohesion Policy Supporting the shift towards a low-carbon economy in all sectors – 5 investment priorities proposed: • Promoting the production and distribution of RES • Promoting EE and RES use in SMEs • Supporting EE and RES use in public infrastructures and in the housing sector (only ERDF) • Developing smart distribution systems at low voltage levels • Promoting low-carbon strategies for urban areas

  13. RES policy commitments • Key EU documents: • RenewableEnergy Directive (MS bindingtargets, RES use in buildings and public infrastructure). • Strategic Energy Technology Plan: wind, solar, bioenergy, 2nd and 3rdgenerationbiofuels, geothermal, hydropower, marine energies, … Key Member State documents: • National RenewableEnergy Action Plans for meeting the 2020 RES targets (MS technologychoices; support measures) • National RenewableEnergy Progress reports (2011)

  14. Key Actions for Investments • Innovative renewable energy technologies, in particular technologies mentioned in the SET-Plan and in the Energy Roadmap 2050, along with 2nd and 3rd generation biofuels • Supporting marine-based renewable energy production • Investment in the wider use of Energy Performance Contracting in the public buildings and housing sectors • Energy efficiency and renewable heating and cooling in public buildings, in particular demonstration of zero-emission and positive-energy buildings, and deep renovation of existing buildings to beyond cost-optimal levels • EE and RES in SMEs, including information campaigns • Integratedlow-carbonstrategies and sustaianbleenergy action plans for urban areas, including public lightingsystems and smart grids

  15. Implementation Principles – Energy • Mainly private sector investment. Ensure that public funding complements private investment, leveraging it and not crowding it out • EE: Consider creating value for energy savings through market mechanisms before public funding (ESCOs…) • Financial instruments to be used where potential for private revenue or cost savings is large • For physical investment, grants to be used primarily: • to address market failures • to support innovative technologies • to support investments beyond cost-optimal EE performance: ensure energy savings and GHG emission reductions above "business as usual"!

  16. Policy landscape – RES • Many institutional actors investing/supporting RES: • Public authorities: EU, national, regional, provinces, cities… • Banks and Financial Institutions (EIB, EBRD, Venture Capital…) • Many private actors: • Major energy companies • New RES companies/stakeholders • Local communities/cooperatives • Different national energy situations / cultures / objectives • Challenge of coordination and development of synergies for efficiency and effectiveness

  17. Context – Financing of RESCSF: "Support from CSF funds … should complement support schemes for renewable energy."

  18. Innovation for Sustainable Growth • Smart & Sustainable = 2 sides of same coin • Future Cohesion Policy: Ex-ante conditionality on 'National or regional research and innovation strategies for smart specalisation' • Research & Innovation (R&I) needed in the area of sustainable energy • A number of MS and regions expected to include energy R&I in forthcoming strategies

  19. Guide issued in November 2012 • How to integrate eco-innovation, RES, EE… in the Research & Innovation Strategies for Smart Specialisation (RIS3) • Why it makes sense • What authorities and stakeholders can do • Collection of good practices • http://s3platform.jrc.ec.europa.eu/guides

  20. Biomass, solar and wind – Burgenland, AT • Regional development and innovation strategy in RES over more than 15 years • Initial situation: economic downturn, depopulation, unemployment • Objective to re-develop the region based on local characteristics and assets • Reach energy self-sufficiency • Generate regional growth, employment and tax revenues 20

  21. Biomass, solar and wind – Burgenland, AT • Strategic use of Cohesion Policy funding in biomass, solar and wind energy as well as into related research and training • Great success in terms of jobs, regional development and energy security Extensive case study available at: http://ec.europa.eu/regional_policy/newsroom/pdf/200912_burgenland.pdf 21

  22. Smart Specialisation in RES/EE – Alsace, FR 1998: Design of a regional strategy for RES and EE 2000: Integration into regional development contract with State 2003-05: Launch of ‘Energivie’ and use of the ERDF ‘Regional Programme of Innovative Actions 2000-06’ to boost the strategy (€ 1.9 million). Initial focus only on RES. 2005: Re-focus towards EE in buildings 2007-13: 2nd phase of the strategy 2008: Winner of RegioStars Awards 2009: Application to be selected as a 'Pôle de Competitivité' in FR 2010: Label 'Pôle de compétitivité' 22

  23. Community-Led Local Development (CLLD) • Focuses on specific sub-regional territories • Community-led, by local action groups composed of representatives of local public and private socio-economic interests • Carried out through integrated and multi-sectoral area-based local development strategies, designed taking into consideration local needs and potential • Includes innovative features in the local context, networking and, where appropriate, co-operation • Allows for connected and integrated use of the funds (multi-fund approach) to deliver local development strategies

  24. Research & InnovationRegional / National R&I Strategies for Smart Specialisation Integrated Sustainable Urban Development Specific CP funding on sustainable energy Investments insustainable energyfor socio-economic development through Cohesion Policy (CP)

  25. Common Strategic Framework Partnership Agreement Regulations Thematic objectives contribute to EU 2020 Translates objectives and targets of EU 2020 into indicative actions of high EU added value Alignment with EU 2020: evaluation, results expected, indicative allocation by thematic objective Strategy consistent with ESF, thematic objectives, investment priorities, etc. Proposed by Commission Annex I to CPR Commission delegated act Prepared by MS in dialogue with Commission, approval if Commission observations taken into account Drawn up by MS in cooperation with partners MS, except major projects, where documentation submitted to Commission, approval needed Increasing MS competence Operational Programmes Projects

  26. 3. Further Examples

  27. Smart specialisation – Wind – Bremerhaven, DE • Economy based on shipbuilding and commercial fishing in strong downturn end of 1990’s • Selection of ‘offshore wind energy’ as new development: clear and integrated industrial strategy and clustering of competencies • Strong existing synergies between ‘shipyard’ & ‘offshore wind’ sectors • Now Bremerhaven is a major hub of offshore wind in DE: 4 major manufactures, already 1,000 jobs created 27 27

  28. Smart Specialisation – Wind – Bremerhaven, DE • Expansion of the "Fraunhofer Institute for Wind Energy and Energy System Technology", IWES • Develop new fields of excellence and make the Fraunhofer IWES even more attractive for existing and future companies in the wind energy sector • Development of innovative measurement technology and of systems which embrace the technical reliability and availability of wind energy facilities and offshore wind farms • A future new test bed for the power trains of wind energy facilities • ERDF contribution 2007-2013 period: € 4.5 M 28 28

  29. Floating platform using RES to produce water, EL • The University of the Aegean in cooperation with the Region of South Aegean developed a floating platform that uses energy provided from renewable sources and produces potable water for the islands. • The drinking water is produced from seawater, while the energy to desalinate this water is provided by a wind generator and photovoltaic system. • EU contribution 2000-2006 period: € 1.3 million Source: Inforegio 29

  30. Bioenergy for the Region Cluster, Lodz, PL • Cluster Bioenergy for the Region is an open collaborative initiative, gathering: • 40 enterprises, • 16 universities and scientific research institutes, • 6 units of local government, • 7 business supportinstitutions, active in the field of RES. • Bioenergy for the Region Cluster aims to achieve its purposes through: • complex solution of issues concerning the regulation of the biomass market in Central Poland, in particular the methods of collection, processing and use of biomassas a RES; • integration of members of the Cluster - businesses, researchers and local authorities in order to increase the share of solar and wind energy in the energy balance of the Region; • educational and information activities, promoting the use of renewable energy and energy efficiency.

  31. Solar – Castilla la Mancha, ES • The Institute for Concentration Photovoltaic Systems, ISFOC, is helping to bring this technology to market, encouraging businesses and universities to get on board. • ISFOC has been financed through regional, national and European grants, as well as through contracts with private businesses. • Also generating funds by connecting CPV plants to the grid for electricity and selling it to public utilities. • ERDF contribution 2007-2013 period: € 5.6 million Source: Inforegio 31

  32. Alterenergy for sustainability in the Adriatic • IPA Adriatic Operational Programme 2007-2013: regions in Greece, Italy, Slovenia, Albania (co-promoter), Croatia, Bosnia Herzegovina, Serbia and Montenegro. • The Alterenergy project promotes energy sustainability in the small communities of the Adriatic area by advocating energy efficiency and the production of energy from renewable sources. • ERDF contribution 2007-2013 period: € 12.5 million Source: Inforegio 32

  33. More information Cohesion Policy Project Examples: http://ec.europa.eu/regional_policy/projects/stories/index_en.cfm Policy Learning Database: http://ec.europa.eu/regional_policy/cooperation/interregional/ecochange/studies_en.cfm?nmenu=5 Expert Evaluation Network reports on RES and EE in housing: http://ec.europa.eu/regional_policy/information/evaluations/index_en.cfm#1 COCOF technical meeting on sustainable energy March 2011: http://ec.europa.eu/regional_policy/conferences/energy2011/index_en.cfm Regions for Economic Change Conference May 2010 Energy efficiency workshop (2A): http://ec.europa.eu/regional_policy/conferences/sustainable-growth/programme_en.cfm?nmenu=4 Commission proposals for Cohesion Policy 2014-2020: http://ec.europa.eu/regional_policy/what/future/proposals_2014_2020_en.cfm List of Cohesion Policy funds Managing Authorities: http://ec.europa.eu/regional_policy/manage/authority/authority_en.cfm Practical Guide to EU funding opportunities for Research and Innovation: http://cordis.europa.eu/eu-funding-guide/home_en.html Smart specialisation platform: http://s3platform.jrc.ec.europa.eu/home ICT-specific guide on energy efficiency: http://ec.europa.eu/information_society/activities/sustainable_growth/ict4ee_wiki/index_en.htm

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