Thematic workshop 2 – Smart Energy Systems Brussels, 8 November 2013 Introduction: Energy technologies – SET-Plan and its follow-up and regional energy needs Thematic workshop 2 – Smart Energy Systems Brussels, 8 November 2013 Maud Skäringer European Commission DG Regional and Urban Policy

Overall context: EU Funding for Sustainable Energy – Proposals for 2014-2020 Cohesion Policy to allocate some 23 billion € (estimate!) to investments in energy efficiency, renewable energy, smart distribution grids and urban mobility, including research and innovation in those areas in complementarity with Horizon 2020 Horizon 2020: Some 5.6 billion € to be allocated to research and innovation in "Secure, clean and efficient energy" Connecting Europe Facility: Some 5.8 billion € to be allocated to investments in TEN-E infrastructure of highest European added value Other European Structural and Investment (ESI) Funds: European Agricultural Fund for Rural Development and European Maritime and Fisheries Fund LIFE+ and COSME also relevant for certain aspects

Concentration of ERDF for 2014-2020* Low-carbon economy (energy efficiency, renewable energy, smart grids, urban mobility, related R&I) Research and Innovation SMEs competitiveness ICT Developed regions Transition regions Less developed regions 12% 20% 15% 60% 45 % 38% * Current state of the trilogue negotiations 3

Implementation principles for Cohesion Policy Energy investments Ensure that public funding complements private investments, leveraging it and not crowding it out Energy Efficiency: consider creating value for energy savings through market mechanisms before public funding (energy saving obligations, energy service companies (ESCO)…) 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"!

Smart Specialisation in the field of Sustainable Energy (I) Research and innovation (R&I) in sustainable energy is key to achieving the EU climate and energy targets for 2020 and also the target for 2050 of a 85-90% reduction in CO2 emissions. R&I in these areas also entails important opportunities for regional development. The objective of Cohesion Policy is to improve the regional economy in terms of competitiveness, growth and jobs. Therefore, it can only support research projects contributing to this objective. It cannot support projects for "purely" scientific purposes.

Smart Specialisation in the field of Sustainable Energy (II) In assessing their position and assets in the context of the development and implementation of their smart specialisation strategies, MS and regions are invited to make full use of the knowledge developed in the framework of the SET-Plan In concrete terms, include SET-Plan and Horizon 2020 actors in the strategy development: SET-Plan Steering Group members, members of Horizon 2020 programme committee, researchers, EIT KIC InnoEnergy, European Energy Research Alliance, PPP on Energy-efficient Buildings, SPIRE PPP, other PPTs, JTIs, JUs, ETPs, EIPs, Marie Curie centres, research institutions with success in FP7, EUREKA …), … , and consult international networks (research AND business networks)

Smart Specialisation in the field of Sustainable Energy (III) A significant number of regions can be expected to decide that they will focus Cohesion Policy resources for R&I in the area of renewable energy or energy efficiency. However, all regions will invest significant Cohesion Policy resources in renewable energy and energy efficiency over 2014-2020. Even if not themselves active in R&I in these areas, they are encouraged to follow the outcome of R&I efforts in other MS and regions (co-financed by Cohesion Policy, Horizon 2020, national public or private resources…) to make sure that their investments benefit from the latest state-of-the art knowledge.

What authorities and stakeholders can do Guide issued in Nov. 2012 How to integrate eco- innovation, RES, EE… in the Smart Specialisation Strategies Why it makes sense What authorities and stakeholders can do Complementarities with other EU initiatives and programmes, including FP7 / Horizon 2020 Collection of good practices http://s3platform.jrc.ec.europa.eu/guides

More information on Cohesion Policy support for Sustainable Energy Cohesion Policy Project Examples: http://ec.europa.eu/regional_policy/projects/stories/index_en.cfm Expert Evaluation Network reports on RES and EE in housing: http://ec.europa.eu/regional_policy/information/evaluations/index_en.cfm#1 JESSICA horizontal (thematic) studies: http://ec.europa.eu/regional_policy/thefunds/instruments/jessica_horizontal_en.cfm REGIO case study “Wave Hub” project, UK: http://ec.europa.eu/regional_policy/projects/practices/details.cfm?pay=UK&the=68&sto=2458&region=ALL&lan=7 &obj=ALL&per=ALL&defL=EN REGIO case study “ERDF – Promotion of renewable energy sources in Burgenland”, AT: http://ec.europa.eu/regional_policy/atlas2007/austria/at11_en.htm 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 Smart specialisation platform: http://s3platform.jrc.ec.europa.eu/home For end beneficiaries in 2007-13 period: Practical guide to EU funding opportunities for research and innovation: http://ec.europa.eu/research/regions/documents/publications/new_practical_guide.pdf Intelligent Energy Europe Projects: http://eaci-projects.eu/iee/page/Page.jsp ICT-specific guide on energy efficiency: http://ec.europa.eu/information_society/activities/sustainable_growth/ict4ee_wiki/index_en.htm

More information on financial instruments Commission Staff Working Document - Financial Instruments in Cohesion Policy http://ec.europa.eu/regional_policy/sources/docoffic/official/communic/financial/finan cial_instruments_2012_en.pdf Factsheet: Financial Instruments in Cohesion Policy 2014-2020 http://ec.europa.eu/regional_policy/sources/docgener/informat/2014/financial_instru ments_en.pdf Panorama Autumn 2012: Using financial instruments to leverage support for regional policy http://ec.europa.eu/regional_policy/sources/docgener/panorama/pdf/mag43/mag 43_en.pdf Financial Instruments: A Stock-taking Exercise in Preparation for the 2014-2020 Programming Period http://ec.europa.eu/regional_policy/thefunds/instruments/doc/fls_stocktaking_fin al.pdf