Innovation in transport in Spain Innovation in transport in Spain. The chance of renewable and alternative energies Eloy Álvarez Pelegry Director Energy Chair, Orkestra Brussels, 22 June 2017

INDEX SPANISH POLICIES IN DIFFERENT AREAS SOME CASES FOR REFLECTION Innovation in transport in Spain. The chance of renewable and alternative energies INDEX SPANISH POLICIES IN DIFFERENT AREAS SOME CASES FOR REFLECTION ROAD PASSENGERS´ TRANSPORT

SPANISH POLICIES IN DIFFERENT AREAS Innovation in transport in Spain. The chance of renewable and alternative energies SPANISH POLICIES IN DIFFERENT AREAS

Energy efficiency and renewables Innovation in transport in Spain. The chance of renewable and alternative energies SPANISH POLICIES IN DIFFERENT AREAS Different policies in energy, innovation and technology, industry and transport Energy policy There is no a global energy plan. Only in some topics such as infrastructures or renewables Innovation and technology policies Science, Technology and Innovation Act  Spanish Strategy on Science, Technology and Innovation, 2013-2020 National Scientific, Technical and Innovation Research Plan, 2013-2016 Energy efficiency and renewables Horizontal activity

SPANISH POLICIES IN DIFFERENT AREAS Industrial policy Innovation in transport in Spain. The chance of renewable and alternative energies SPANISH POLICIES IN DIFFERENT AREAS Industrial policy Before 2013: strategic sectors After 2013: horizontal policies (finance, R&D, energy costs, etc.) Transport policy Royal Decree 639/2016, of 9 December, that sets a framework of measures for the implementation of an infrastructure for alternative fuels National Action Plan (2016)

SPANISH POLICIES IN DIFFERENT AREAS Innovation in transport in Spain. The chance of renewable and alternative energies SPANISH POLICIES IN DIFFERENT AREAS Need for inclusive approach and strategies with the objective of competitiveness Industrial and Transport Policies Energy Policies Technology and Innovation Policies

SPANISH POLICIES IN DIFFERENT AREAS Competitiveness Innovation in transport in Spain. The chance of renewable and alternative energies SPANISH POLICIES IN DIFFERENT AREAS Competitiveness Innovation and Productivity: basis of competition Size is also a pillar of competitiveness Process strategy and Strategic management are also key Fuente: Díaz Mendoza, et. al. (2016)

SPANISH POLICIES IN DIFFERENT AREAS Innovation models Innovation in transport in Spain. The chance of renewable and alternative energies SPANISH POLICIES IN DIFFERENT AREAS Innovation models FIGURE 2. Timeline of the apparition of the main innovation models, with founding authors Fuente: Pellerin-Carlin, et. al. (2016). An integrated model is needed

FIGURE 3. Key elements in the development of a start-up in energy Innovation in transport in Spain. The chance of renewable and alternative energies FIGURE 3. Key elements in the development of a start-up in energy SPANISH POLICIES IN DIFFERENT AREAS Success/Failure Management and Organization -Specialized roles -Management and Organization -Mentoring -Patents management Technical issues -Technical skills and expertise -Tests and access to infrastructures -Patents Market -Market understanding -Competitors The failure or success of a new entrepreneurship depends on: Technical issues, Market knowledge, Management skills. In order to be sucessful there is a need to: Pass from R&D to technology, Move from technology to industry, Again, an integrated and holistic approach is needed. Funding   Fuente: Calvo, et. al. (2016).

SOME CASES FOR REFLECTION Innovation in transport in Spain. The chance of renewable and alternative energies SOME CASES FOR REFLECTION

SOME CASES FOR REFLECTION PV utility scale Innovation in transport in Spain. The chance of renewable and alternative energies SOME CASES FOR REFLECTION PV utility scale Driven by regulation and Project finance. high costs for electricity consumers. Innovation didn´t fostered a sustainable industry PV domestic scale Driven by prosumers, regulation and economics. May be an example of integrated innovation in energy (consumers, different stakeholders, business models, etc.)

SOME CASES FOR REFLECTION Onshore wind Innovation in transport in Spain. The chance of renewable and alternative energies SOME CASES FOR REFLECTION Onshore wind Rather succesful. Wind equipments manufacturers, power electronics, lower generation costs, integration in the grid Biofuels Driven by regulation. Failure to mantain a domestic industry. High innovation but not sucessful in the deployment of a competitive sustainable industry

ROAD PASSENGERS´ transport Innovation in transport in Spain. The chance of renewable and alternative energies ROAD PASSENGERS´ transport

GRAPH 1. GHG emissions TTW, STW and WTW by type of vehicle Innovation in transport in Spain. The chance of renewable and alternative energies ROAD PASSENGERS´ transport Alternative energy vehicles are here but in the context of sustainable mobility Technical aspects Electric vehicles, LPGs vehicles, Compressed Natural Gas vehicles, Biofuels, Hydrogen Environmental aspects Greenhouse gases: TTW, WTW, STW Polluting emissions: NOx and particles GRAPH 1. GHG emissions TTW, STW and WTW by type of vehicle Source: Álvarez Pelegry, et. al. (2017)

GRAPH 2. TCO comparative (€/km) Innovation in transport in Spain. The chance of renewable and alternative energies ROAD PASSENGERS´ transport Economic aspects Infrastructures Cost of vehicles and energy consumption: TCO Industrial development GRAPH 2. TCO comparative (€/km) Source: Álvarez Pelegry, et. al. (2017)

ROAD PASSENGERS´ transport Scenarios A combination of technical, Innovation in transport in Spain. The chance of renewable and alternative energies ROAD PASSENGERS´ transport Scenarios A combination of technical, environmental, economic and societal changes will determine the penetration of different technologies. Around 2035, alternative energies, including hybrids may be as important as conventional energies in the Basque Country. GRAPH 1. Progressive penetration of alternative fuels´vehicles until 2035 in the Basque Country Source: Álvarez Pelegry, et. al. (2017).

ROAD PASSENGERS´ transport Challenges Innovation in transport in Spain. The chance of renewable and alternative energies ROAD PASSENGERS´ transport Challenges Need to continuously address the penetration of alternative energy vehicles, The National Action Framework and some strategies are an opportunity for change, There is a double "top-down" and "bottom-up" pressure, Administrations have a clear role in the development of alternative energy vehicles through incentives to purchase alternative vehicles and through the promotion and facilitation of recharging and supply infrastructures.

Component manufacturers Innovation in transport in Spain. The chance of renewable and alternative energies ROAD PASSENGERS´ transport Challenges Transformation of the transport sector, It requires the will to change and put in place policies and economic resources, It also needs the cooperation among numerous agents (consumers, Administration, utilities, OEMs and others). Consumers have the final Word. Citizens Consumers Administration Regulatory body OEM´s Component manufacturers R&D centers Start Ups Societal changes

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