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The European Strategic Energy Technology Plan (SET-Plan)

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The European Strategic Energy Technology Plan (SET-Plan) aims to accelerate the development and deployment of low-carbon technologies. It seeks to improve new technologies and bring down costs by coordinating research and helping to finance projects. The SET-Plan promotes research and innovation efforts across Europe by supporting technologies with the greatest impact on the EU's transformation to a low-carbon energy system. It promotes cooperation amongst EU countries, companies, research institutions, and the EU itself.

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The European Strategic Energy Technology Plan (SET-Plan)

  1. 1. The Strategic Energy Technology Plan (SET-Plan) – Europe’s answer to Climate and Energy Challenges Paolo Michele Sonvilla, Senior Manager 5 October 2015 Financial AdvisoryStrategy Consulting Market IntelligencePolicy Consulting
  2. 2. Measurement & Verification (ESCOs) Climate Change (GHG inventory, carbon footprint, adaptation) Training & Outreach Engineering Energy management Consulting Training Manuals & Guides Communication & Outreach Energy Procurement Energy Certification (CALENER, LEED...) Energy Audits Policy Consulting Strategy Consulting Financial Advisory (M&A, ESCO, origination) Market Intelligence Structuring of ESCOs Energy Efficiency Planning (corporate, local, national) Harmonization Committees (IEC, AENOR) 1 2 3 4 Multilateral Projects (H2020, IBD, EIB, etc.) Monitoring &Telemetry Energy Management Energy Management Systems (ISO 50001) Software Design & Development PPA identification & negotiation A one stop-shop for sustainable energy services CREARA
  3. 3. • History and context of the SET-PLAN • Main content of the SET-PLAN and its evolution • Main impacts on European markets and open issues • Business opportunities Agenda 3
  4. 4. 4 SET-PLAN CONTEXT • In order to ensure the achievement of the ambitious 2020 objectives, the EC recognised the central role of technology in the energy policy • Europe was falling short on energy policy objectives due to easy availability of energy resources and the lack of proper incentives for innovation and decarbonisation • Immediate action was needed to address the intrinsic weakness in the energy innovation process • EC also recognised that Europe should achieve world leadership in low-carbon energy technologies Source: European Commission Communication COM(2007) 723 Final In 2007, the EC recognised the necessity for a new European strategy for low-carbon energy technologies to address the climate and energy challenges
  5. 5. 5 • The European Strategic Energy Technology Plan (SET- Plan) aims to establish an energy technology policy for Europe: - Accelerating knowledge development, technology transfer and uptake - Establishing an maintaining a EU leadership on low- carbon technologies • The SET-Plan features two main timelines: - Towards 2020, the SET-Plan aims to accelerate the development of cost-effective low carbon technologies and the achievement the 2020 Energy and Climate Change goals - Towards 2050, the SET-plan is targeted at contributing to the worldwide transition to a low carbon economy thanks to a prioritized and focused technological research and innovation effort in the industrial systemhttp://eur-lex.europa.eu/legal- content/EN/TXT/?qid=1411399552757&uri=CELEX:52007DC 0723 A EUROPEAN STRATEGIC ENERGY TECHNOLOGY PLAN (SET-Plan) The European Strategic Energy Technology Plan (SET-Plan) was the outcome of such vision Source: European Commission; SETIS website SET-PLAN CONTEXT
  6. 6. • History and context of the SET-Plan • Main content of the SET-Plan and its evolution • Main impacts on European markets and open issues • Business opportunities Agenda 6
  7. 7. 7 • A new joint strategic planning - Establishment of the SET-Plan Steering Group to direct and coordinate the implementation of the SET-Plan at national and international levels - Establishment of the SET-Plan Information System to ease monitoring and reporting of SET-Plan implementation progress • A more effective implementation - Establishment of European Industrial Initiatives to strengthen industrial energy research and innovation - Each initiative has set itself an ambitious target and has established a Technology Roadmap and Implementation Plan with concrete milestones. - Creation of a European Energy Research Alliance to coordinate national research efforts The original SET-PLAN objectives provided for planning, implementation, resources and international cooperation (1/2) Source: European Commission Communication COM(2007) 723 Final SET-PLAN CONTENT 1 Steering Group Steer the implementation of the SET-PLAN SETIS Information system European Industrial Initiatives and Technology Platforms monitor report monitor report EERA EU Energy Research Alliance advise Support the work of
  8. 8. 8 • Increasing resources - Mobilizing additional financial resources through Research and Innovation programmes, the European Industrial Initiatives, the European Energy Research Alliance and the European Investment Bank - Expanding the Human resource base through Education and Training • A new and reinforced approach to international cooperation - Towards developed countries, focus on cooperation in research for the common good, such as safety and public acceptance, as well as longer term frontier research - Towards developing and emerging economies, support their sustainable growth, while building new market opportunities for the EU Industry: large demonstration projects, innovative financing mechanisms, etc. The original SET-Plan objectives provided for planning, implementation, resources and international cooperation (2/2) Source: European Commission Communication COM(2007) 723 Final SET-PLAN CONTENT
  9. 9. 9 • The implementation of the SET plan started with the establishment of 6 European Industrial initiatives: - European Wind Initiative - Solar Europe Initiative - European Electricity Grid Initiative - European CO2 Capture, Transport and Storage Initiative - Sustainable Nuclear Initiative - European Industrial Bioenergy Initiative • Over the years several other platforms have been created - Fuel Cells and Hydrogen (FCH) Joint Technology Initiative - The Smart Cities and Communities Initiative - Ocean Energy Europe • Such initiatives and platforms promote market uptake of technologies, making coordinated and targeted use of private and public funding. European Industrial Initiatives and Technology Platforms bring together industry, research community, Member States and the European Commission Source: European Commission; SETIS website SET-PLAN EVOLUTION
  10. 10. 10 • Funding of SET-Plan RD&I objectives has been mainly enacted with: - The 7th Framework Programme for R&D - The Intelligent Energy Europe Programme (IEE) for innovation and market uptake - From 2014 both streams have merged in the Horizon 2020 programme • Other programmes contributing to the objectives are: - European Energy Programme for Recovery (EEPR) - New Entrance Reserve (NER) 300 - Cohesion Funds 2007-2013 and 2014-2020 Source: European Commission; SETIS website; SET-PLAN EVOLUTION Resources for the implementation of the SET-plan are made available from Industry, Member States and the European Commission
  11. 11. 11 The goal of Horizon 2020 is to concretely bring R&D development efforts to the market, beyond the “Valley of Death” Source: R.Basosi & M.Capra - SET Plan 2014 Conference SET-PLAN EVOLUTION 1 FP7 H2020 Technology Transfer Success as A new product Product Launch Commercialisation Success as a business Research & Development Loss/Profit Time Valley of “Death”
  12. 12. 12 • The Communication of the European Commission COM (2013) 253 on Energy Technologies and Innovation confirmed the strategic role of the SET Plan and the development of an integrated roadmap: - covering the whole research and innovation chain, from basic research to demonstration and support for the deployment - clearly stating the roles and duties of the R&D organizations, businesses and universities and investors by promoting synergies and interactions • On the basis of the roadmap, the MS and the Commission will draw up an Action Plan dedicated to mobilize public ( EU and national/regional) and private investment in R&D on the basis of a principle of "joint cooperation“. The Integrated Roadmap encompasses research, development, demonstration and market deployment Source: European Commission Communication COM (2013) 253 1 SET-PLAN EVOLUTION
  13. 13. 13 Four key Energy System challenges have been identified towards the Integrated Roadmap (1/2) • In December 2014, the results of a public consultation involving over 150 stakeholders under the Supervision of the SET plan steering Group were presented at the SET Plan conference in Rome - The Integrated Roadmap was outlined under four key challenges: • 1 - Empowering consumers and bringing them at the center of the Energy System - Engaging consumers through better understanding, information and market transformation - Activating consumers through innovative technologies, products and services • 2 - Demand Focus: Increasing Energy Efficiency - Increasing energy efficiency in buildings - Increasing energy efficiency in heating and cooling sector - Increasing energy efficiency in industry and services Source: JRC - SET-Plan, Towards an Integrated Roadmap (2014) SET-PLAN EVOLUTION
  14. 14. 14 Source: JRC - SET-Plan, Towards an Integrated Roadmap (2014) • 3 - Optimizing the Energy System - Modernising the European electricity grid and establishing synergies between the various energy networks - Unlocking the potential of energy storage and electricity conversion - Providing the energy system with flexibility, demand response, security and cost- effectiveness - Development and demonstration of holistic system optimisation at local/urban level (corresponding to the Smart Cities and Communities initiatives) • 4 - A secure, cost-effective, clean and competitive supply - Accelerating the development of renewable electricity and heating/cooling technologies - Enabling carbon capture, CO2 utilisation and storage technologies and increased efficiency of the fossil fuel-based power sector and energy intensive industry - Supporting safe and efficient operation of nuclear systems, development of innovative reactor concepts and sustainable solutions for the management of fissile materials and radioactive waste - Developing sustainable biofuels, fuel cells and hydrogen and alternative fuels for the European transport fuel mix Four key Energy System challenges have been identified towards the Integrated Roadmap (1/2) SET-PLAN EVOLUTION
  15. 15. • History and context of the SET-Plan • Main content of the SET-Plan and its evolution • Main impacts on European markets and open issues • Business opportunities Agenda 15
  16. 16. 18% 16% 15% 14% 11% 10% 8% 7% 1% Energy Storage Wind Bioenergy Solar CCS Fuel Cells and H2 Electricity Grids Ocean • Yearly public and private investments for development of SET Plan priority technologies more than doubled from 3.2 bn€ in 2007 to 8.8 bn€ in 2011, of which: - 66% from Industry - 28% from the Member States - 6% from the European Commission • In the 2014-2020 period, important funding levels are foreseen: - 30 bn€ from Horizon 2020 programme for low-carbon technologies and services - 38 bn€ from Cohesion Policy funds for transition to low-carbon economy 16 Funding for SET-Plan Objectives has been growing steadily since the inception of the SET-Plan Source: JRC - Capacity Mapping: R&D investment in SET-Plan technologies (2015); European Commission COM (2015) 6317 SET-PLAN IMPACT & OPEN ISSUES 28% 6%66% Member States European Commission Industry Distribution of SET-Plan R&D investment in 2011 Technology Distribution of SET-Plan R&D investment in 2011
  17. 17. 17 The impact assessment of the SET-Plan implementation has confirmed its strengths, but also identified open issues to be addressed SET-PLAN IMPACT & OPEN ISSUES • The SET-Plan has significantly contributed to low-carbon technology cost reduction and market development in Europe • However, Member States’ commitment to the SET-Plan is suboptimal, resulting in insufficient public and private investment flows • The main technology-related shortcomings identified are: - Notwithstanding the significant decrease in PV system costs, European PV cell production has fallen by more than 50% from 201o to 2013 - Investments in biomass are currently frozen - Europe is quite weak in smart consumer services - Europe is lagging behind USA, Japan and Korea in terms of energy storage manufacturing capacity - Market uptake of energy efficiency building renovation solutions is still insufficient - CCS demonstration projects are yet not signed off Source: European Commission COM(2015) 80, COM (2015) 6317
  18. 18. 18 In 2015, the EC delivered the Energy Union Package, integrating the SET- Plan as a pillar of its RD&I dimension, and demanding its upgrade SET-PLAN IMPACT & OPEN ISSUES • The Commission proposed a revised European energy RD&I approach, comprising an upgraded SET-Plan and a strategic transport agenda, with a limited number of essential priorities and clear objectives, to be delivered in 2015-2016 • The upgraded SET-Plan establishes ten focused RD&I actions to accelerate the energy system's transformation and create jobs and growth. • More specifically, it : - Adds focus on sustainable transport - Introduces a more effective governance structure - Recognizes the need for better financing - Triggers the review of national market design and regulatory frameworks Source: European Commission COM(2015) 80, COM (2015) 6317
  19. 19. • History and context of the SET-Plan • Main content of the SET-Plan and its evolution • Main impacts on European markets and open issues • Business opportunities Agenda 19
  20. 20. 20 Source: Creara analysis BUSINESS OPPORTUNITIES Consumers Industry and Service Providers Governments and authorities • Energy efficiency in buildings: construction and renovations • Renewable energy technologies • Smart energy tools and services • Sustainable transport vehicles • Increased demand for services and products • Increased demand for services, tools and products • Availability of EU funding opportunities • Increased demand for policy support • Increased demand for services, tools and products • Energy efficiency in buildings: construction and renovations • Renewable energy technologies • Smart energy / Demand response tools and services • Smart grid solutions • Audit and energy management services • Energy efficiency in buildings: construction and renovations • Smart Cities and Communities: sustainable energy and transport • Audit and energy management services • Review of regulatory frameworks • Smartening of public funding The implementation of the SET-Plan consistent business opportunities over the next years SET-Plan priorities OpportunitiesMarket participants
  21. 21. • REMOURBAN is aimed at developing a sustainable urban regeneration model to transform3 European Lighthouse Cities into Smart Cities - Valladolid (Spain) - Nottingham (UK) - Eskisehir (Turkey) • The innovation and demonstration actions are implemented across 4 interconnected dimensions: - Low Energy Districts - Sustainable Mobility - Integrated infrastructure - Society • Total project budget: 23,8 m€ (70% EC funding) • Website: http://www.remourban.eu 21 Horizon 2020 project: REMOURBAN (Smart Cities and Communities) Source : REMOURBAN (2015) BUSINESS OPPORTUNITIES
  22. 22. 22 FP7 project: BESTPATHS (Evolution of transmission networks) Source: Best Paths (2015) BUSINESS OPPORTUNITIES • The Best Paths project will help to overcome the challenges of integrating renewable energies into Europe’s energy mix. • It aims to develop novel network technologies to increase the pan-European transmission network capacity and electricity system flexibility. • The project features five large-scale demonstrations to validate the technical feasibility, costs, impacts and benefits of the tested grid technologies: - Transition to High Voltage Direct Current (HVDC) lines to HVDC grids; - Upgrade and repower existing Alternating Current (AC) parts of the network; - Integrate superconducting high power DC links within AC meshed network • Total project budget: 62.8 M€ (55% EC funding) • 39 Partners from 11 European countries • Website: http://www.bestpaths-project.eu
  23. 23. CREARA S.L. c/ Monte Esquinza, 24 28010 Madrid pms@creara.es Financial AdvisoryStrategy Consulting Market IntelligencePolicy Consulting

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