Preliminary results and recommendations of the Valencian peer review www.regions4greengrowth.eu Preliminary results and recommendations of the Valencian peer review 1-th June – Energy Cluster Facilities Closing meeting

Partners Regions for Green Growth

Partners Valencian peer review

The Peer Review Team Flevoland Rogier Wilms Gert-Jan Winkelhagen Geert-Jan ten Napel Lazio Federica Magnifico Leonilde Tocchi Västernorrland Niklas Guss Thure Mårtensson AER Cristina Baizan Edge Eszak- Älfold Melinda Matrai Gábor Vámosi Krisztián Szabados

Goal of Regions 4 Green Growth Initiative of EU regions who have defined high sustainable energy ambitions and have difficulties to attract investments. Overall objective of the project: To equip regions with regional policy instruments, mechanisms and approaches to improve access to finance for and speed up investments in sustainable energy projects (e.g. renewable energy generation capacity, energy efficiency measures).

Focus of Valencian Peer Review Goal Attract private foreign money to invest in local companies (mainly SME’s) Help companies in Valencia to get access and to use available funds (mainly public funds, EU or other) Learn new methodologies used in other regions to finance sustainable energy projects , that can be implemented in our region Questions How to increase financial confidence, in order to facilitate access to credits for sustainable projects? How to make the projects more attractive to foreign private investments? How to facilitate the access to European funds for the regional companies (mainly SMEs with small projects)

Key findings SWOT analyses

Strengths Energy strategy with clear goals Already 70% of 20-20-20 goal realised Good action plans implemented – e.g. wind plan Good organisational background – energy cluster, associations, etc. Knowledge of renewable energy and good technical knowledge Aware of potential in renewable energy due to past investments Awareness of funding: know how to find European funding (knowledge and R&D) People are open-minded to R&D Good examples of innovation at SMEs Spain is a large market

Weaknesses (1) Financial crisis Lack of trust and confidence (government, organisations, projects) Bank financing is unavailable Lot of projects depend (entirely) on grants Public sector created high expectations but there are no funds now Region’s status will change in the next period – lower intensity of EU support – less investments Profitability is not ‘sure’ for several projects Energy price fluctuation Other uncertain variables

Weaknesses (2) There is overcapacity of the energy sector RES have to compete on the grid with (too cheap) fossil fuels No continuity in the RES and EE regulations (political uncertainty) Several agencies lack good communication Different (policy) plans are not well aligned Mentality: no long-term thinking and planning Renewable energy is not a priority in the public opinion SME’s lack knowledge of and have difficulties getting EU-(investment) funding ELENA, JESSICA, European Investment Bank

Opportunities Use knowledge in projects outside the region Combining system knowledge in clusters Focus on initiatives with clear results – e.g. smaller projects Establishment of international energy cluster Using the funds of Eastern-European countries – e.g. ENPI Setting up/promoting ESCOs for energy efficiency Increase communication between public and private sector Valorisation of biomass Awareness campaigns for inhabitants i.e. domestic laboratories

Threats No projects, no work Brain-drain Highly educated people and companies go abroad Lose good international position in RES and EE Worsening of the economic crisis

Conclusions and recommendations (1) Ambitions, goals and policy Make an integrated regional ‘Energy Master Plan’ National -> regional -> local level Do this in ‘co-creation’ with stakeholders (regional, local government, environmental groups, energy industry, R&D) Introduce green public procurement for government and public bodies Creates a local market Stimulates innovation Organisational Facilitate the creation of cross-sectoral clusters Projects will emerge Create international energy clusters Share knowledge Apply together for (European) funds (investment, knowledge sharing, R&D) ‘Rent a professor’ Couple a professor to companies to help them with a problem, give advice

Conclusions and recommendations (2) Realisation of projects Focus on projects and initiatives with short-term results (build confidence in own projects again) Energy efficiency projects through ESCO’s seem attractive (i.e. EE-projects in SME textile industry) Include / start with government, municipalities, etc. (give the good example) Proof that projects are feasible and profitable Create a new ‘sustainable demand’ for the energy surplus (i.e. electric cars) Look with different perspective to project development Start focussing on adding value. Don’t start with energy production or energy saving. Financial value Economical value I.e. valorisation of biomass waste

Conclusions and recommendations (3) Financing Don’t build the project around grants. Use more private money Use the high quality knowledge on RES and EE to export and earn money abroad. Invest the money earned in R&D and projects in Valencia Sell green energy certificates to other countries (to fulfil their 20-20-20 goals) Access (European) funds from other countries by teaming up with them (i.e. ENPI) Establish an investment community and regional energy fund Communication Increase the awareness that RES and EE projects are profitable for Economy Environment Increase the communication between public and private sector Know and connect to the needs of the companies Explain, communicate and promote the ESCO business model to companies and investors Increase the ‘green image’ of companies (ISO 14.001)

Questions www.regions4greengrowth.eu

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