European Agricultural Fund for Rural Development: opportunities in the Energy Sector Victoria Jane Primhak

EAFRD: 6 Union Priorities Priority 1: Fostering knowledge transfer and innovation in agriculture, forestry, and rural areas Priority 2: Enhancing farm viability and competitiveness of all types of agriculture in all regions and promoting innovative farm technologies and the sustainable management of forest Priority 3: Promoting food chain organisation, including processing and marketing of agricultural products, animal welfare and risk management in agriculture Priority 4: Restoring, preserving and enhancing ecosystems related to agriculture and forestry Priority 5: Promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in agriculture, food and forestry sectors Priority 6: Promoting social inclusion, poverty reduction and economic development in rural areas

EAFRD Priority 5: Promoting resource efficiency and supporting the shift towards a low carbon and climate resilient economy in agriculture, food and forestry sectors Thematic Objective 4 Supporting the shift towards a low-carbon economy in all sectors Focus Areas 5 b Increasing efficiency in energy use in agriculture and food processing 5 c Facilitating the supply and use of renewable sources of energy, of by- products, wastes and residues and of other non-food raw material, for the purposes of the bio-economy 5 d Reducing green house gas and ammonia emissions from agriculture 5 e Fostering carbon conservation and sequestration in agriculture and forestry

Measure 4: Investments in physical assets (Art.17) Renewable energy production Investments in renewable energy plants: - Energy produced for self-consumption - Energy sold outside the farm holding (general state aid rules apply) Input for energy must be an Annex 1 product

Measure 6: Farm and business development (Art.19) Business start-up aid for non-agricultural activities in rural areas Construction, re-construction or establishment of facilities for various activities such as electricity, energy, gas, steam and hot water supply businesses; renewable energy producers and inter-linked activities, etc.;

Energy Efficiency requirements: MS shall establish the minimum criteria for energy efficiency : Compliance with minimum energy efficiency standards for investments in renewable energy infrastructure where such standards exist at national level Investments in installations for the primary purpose of electricity production from biomass must utilize a minimum percentage of heat energy Thresholds for the maximum proportions of food and feed crops (excluding waste, residues and by-products) used for bioenergy production and in particular biofuels, for different types of installations must be established at MS level Support to bioenergy projects shall be limited to bioenergy meeting the applicable sustainability criteria at Union level Limitation on the use of food and feed crops for bioenergy production apply to individual installations(e.g. max % of silage maize for biogas installations) considering the limits to the overall contribution of bioenergy derived from food and feed crops in MS national renewable energy targets

Measure 7: Basic services and village renewal in rural areas (Art.20) Investments in the creation, improvement or expansion of all types of small scale infrastructure, including investments in renewable energy and energy saving, e.g. - construction of additional facilities to produce and use regenerative energy in rural municipalities (e.g. creating district heating networks to use the process heat of bio-energy plants) - setting up of distribution networks for heat/electric/gas power from biomass or other renewable sources In the case of investments in renewable energy, MA may derogate from limits in scale.

Measure 7: requirements Compliance with the minimum standards for energy efficiency for supported investments in renewable energy infrastructure Investments in installations, the primary purpose of which is electricity production from biomass, are not be eligible for support unless a minimum percentage of heat energy is utilised Support to bioenergy projects shall be limited to bioenergy meeting the applicable sustainability criteria laid down in Union legislation State Aid rules are applicable (not under Bock Exemption) The installations of small hydropower plants should not lead to worsening of ecological status of the water course as understood by WFD and to lowering the connectivity of the water course For renewable energy installations based on biomass, MSs should ensure that related projects do not lead to unsustainable or excessive exploitation of forest resources and soil organic matter depletion. They should ensure maintaining enough amount of dead wood in the forest

Measure 8.6: Investments in forest technologies, processing, mobilising and marketing of forest products (Art.26) Development and rationalization of the marketing and processing of wood, including investments in machinery and/or equipment related to felling, dismembering, stripping, cutting up, chipping, storing as well as protective treatments, drying of wood and other working operations prior to industrial sawing of wood at a sawing mill, including production of material for energy generation (wood biomass). RDP shall define size of forest holding above which there must be a Forest Management Plan or equivalent.

LEADER – Measure 19 LEADER can serve any of the 6 Union priorities for Rural Development. The RDP will specify the relating focus areas to which LEADER could potentially contribute to. The Local Development Strategies selected will have to contribute to the focus areas identified for the implementation of LEADER. An example: Contribute to FA 5C through support to renewable/low energy local initiatives

LEADER – Measure 19 Sub – measure "Preparatory support" Sub – measure "Implementation of operations under the CLLD strategy“ – operations must contribute to the objectives of the LDS Sub-measure "Preparation and implementation of cooperation activities of the local action group" Sub – measure "Running costs and animation"

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