Europe Plans 53 Billion Euro Boost for Renewable Energy

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Researched by Industrial Info Resources (Sugar Land, Texas)--Renewable energy research projects could be in for a huge cash injection, as the European Commission (EC) has called for an additional 53 billion euro investment in low-carbon technologies.

The investment, which will be distributed over a period 10 years, will see renewable energy investment in the European Union (E.U.) jumping from the current level of 3 billion euros per year to 8 billion euros. This almost-tripling of the current investment will place Europe at the forefront in low-carbon technology development, and according to the EC, the increased investment will be a significant step forward in the implementation of the E.U.'s energy and climate plan, the European Strategic Energy Technology Plan (SET Plan).

"Upgrading investment in research in clean technologies is urgent if Europe is to make the road to Copenhagen and beyond cheaper," said E.U. Commissioner for Science and Research, Janez Potocnik. "With today's estimates, the Commission wants to make the SET Plan a springboard to leap into a low-carbon economy, which is only possible if public and private actors pool resources in a coherent way. Increasing smart investments in research today is an opportunity to develop new sources of growth, to green our economy and to ensure the E.U.'s competitiveness when we come out of the crisis."

The key technologies and activities that the EC plans to finance have been divided into six areas: wind, solar, electricity grids, bio-energy, carbon capture and storage (CCS), and sustainable nuclear fission. The additional costs would cover basic and applied research, demonstration and early market take up, excluding deployment activities. The proposed 53 billion in funds will be allocated as follows:

• Solar (photovoltaic [PV] and concentrating solar power) - 16 billion euros
• CCS - 13 billion euros
• Bio-energy - 9 billion euros
• Nuclear Fission - 7 billion euros
• Wind - 6 billion euros
• Electricity grids - 2 billion euros

The EC has also proposed a new initiative on energy efficiency for up to 30 cities. The 'Smart Cities Initiative' will road-test many of the new breakthroughs in energy efficiency, renewables, and energy-network technologies for future mass rollout.

The EC is calling for a more coordinated and risk-taking approach by governments to support projects in which there are technological uncertainties and market risk. The EC claims that this approach will act as a greater incentive for industry involvement and more investment by banks and private investors.

"The investment needed to develop clean and renewable energies can only be met through a wide range of financial instruments," said Commissioner for Economic and Monetary Affairs Joaquin Almunia. "The Commission and the European Investment Bank have already significantly increased funding for this purpose. But we need to mobilise more public- and private-sector funds. We propose to reinforce the Risk Sharing Finance Facility, further support venture capital, and develop the Marguerite and other funds."

While the industry has generally welcomed the EC's proposals to raise more funds for low-carbon technologies, some groups have voiced concerns. "We are very glad that the EC explicitly acknowledges the strong potential of solar photovoltaic technology," commented Adel El Gammal, secretary general of the European Photovoltaic Industry Association (EPIA). "By 2020, provided that the appropriate framework conditions are met, PV could contribute as much as 12% of E.U. electricity demand. However, we regret that the communication does not properly reflect the current state of development of PV technology."

The EPIA complained that the EC's goals are too focused on long-term research and not enough on funding existing commercial and pre-commercial PV technologies. With the recession and general aversion to risky investments, the EPIA is calling on the EC to stimulate private investment and offer to share the risk with large public funding.

IIR's Renewable Energy Database provides extensive coverage on the Wind Energy, Geothermal, Hydroelectric, Landfill Gas-to-Energy and Utility-Scale Solar power plants throughout North America, and is now expanding coverage across the world.

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