Challenges of the Energy System: Integrated Roadmap the SET PLAN Integrated Roadmap Riccardo Basosi, Ministry of Education, University & Research Marcello Capra, Ministry of Economic Development SET Plan European Conference December 10-11, Rome, Italy

Global Energy Demand 2012: ~504 EJ Solar Wind Coal Gas Oil Biomass Geothermal Hydro Global energy demand 2012 Source: Hessen-Nanotech (2008) 25/05/2016 R.Basosi et al Lo chiamavano il Paese del Sole Aracne Ed /05/2016 R.Basosi & M.Capra SET Plan CONFERENCE Roma

EJ EgyptRome Discovery of America Beginning of the Christian era  80% of this energy is obtained from FOSSIL FUELS Massive exploitation of fossil fuels started Energy from humans, animals, fire and wind TIME ? Fall of the Western Roman Empire

KNOWN RESERVOIRS (BILIONS of Tep) CURRENT CONSUMPTION (BILIONS of Tep) DEPLETION TIME (YEARS) OIL NATURAL GAS COAL URANIUM ESTIMATE OF ENERGY RESERVOIRS OF FOSSIL OR FISSILE ORIGIN 25/05/2016R.Basosi & M.Capra SET Plan CONFERENCE Roma

In the Middle East are located more than 60% of total reservoir Crude Oil: dimensions of countries based on reservoir 25/05/2016R.Basosi & M.Capra SET Plan CONFERENCE Roma

We own only 0.4, 0.8, 6.1 % of the world’s proved reserves of oil, gas and coal and we have virtually no uranium reserves* We enjoy the best quality of life on Earth BUT our enviable prosperity is based on energy resources coming FROM OTHER CONTINENTS *BP Statistical Review of World Energy, 2014

“Clean energy” doesn’t exist (the only clean energy, is the one we do not need to use, i.e : the saved energy) Energy prominently derives or was derived from the sun. 25/05/2016 R.Basosi & M.Capra SET Plan CONFERENCE Roma

From EU 2020 towards the EU 2030 goals -24% +21% -10% -40% +27% -27% EU Targets 2030 EU 20/20/20 goals 25/05/2016 R.Basosi & M.Capra SET Plan CONFERENCE Roma

| The Strategic Energy Technology Plan (SET Plan) At the European level, the SET Plan is the strategic response to the major climate and energy challenges. Its aims include:  in the medium term (2020), a greater dissemination of technologies already available today  in the long term (2050), a concentrated technological research and innovation effort in the industrial system  3 ENERGY CHALLENGES 1.Empowering consumers and increasing Efficiency 2.Optimizing the Energy System 3.Secure, cost effective, clean and competitive supply

| SET Plan implementation  Started with the 7 Framework Programme of R&D (now Horizon 2020)  European Energy Programme for Recovery (EEPR)  New Entrance Reserve (NER) 300  Intelligent Energy Europe Programme (IEE)  Cohesion Funds and  Public and private investments for the development of SET Plan priority technologies increased in the EU from 3.2 b€ in 2007 to 5.4 b€ in 2010, of which:  70% in charge of industries  20% in charge of MS  10% in charge of European Commission

| The key factor of the SET Plan The SET PLAN offers a framework for energy policy at different levels and for a variety of purposes (research, innovation, cohesion) H2020 research projects should develop a sinergy with Cohesion Funds particularly in the Energy field Regions, which have an increasing role in Energy innovation policies being the recipients of the largest share of Cohesion Funds, should focus their investments to the challenges defined in the Road Map. The key factor of success for Energy Policy is the building of an effective governance and integration among national priorities of MS and the regional committments in energy innovation (ESIF)

| An Integrated Roadmap 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 R.Basosi & M.Capra SET Plan CONFERENCE Roma 25/05/2016

FP7 H2020 Overcoming the valley of death Technology Transfer Technology Transfer Success as a New product Success as a New product Product Launch Product Launch Commercialization Success as a business Success as a business Research Development Losses/Profit Time Valley of Death 25/05/2016R.Basosi & M.Capra SET Plan CONFERENCE Roma

Technology Readiness Levels (TRLs) – a useful tool in development and deployment of KETs  in FP7: TRLs 1 – 4; up to 5-6 in (pilots and demonstrators)  KETs: TRLs 3/4 – 8; centre at TRLs 5-7 HORIZON /05/2016Riccardo Basosi contribute to Round Table EuCheMS

| Challenges of the Energy System  Empowering consumers and increasing Energy Efficiency  Optimizing the Energy System  Secure, cost effective, clean and competitive supply 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 co-operation“. R.Basosi & M.Capra SET Plan CONFERENCE Roma 25/05/2016

| The Italian National Energy Strategy (NES) The Italian NES is conceived in the frame of the SET Plan and focused on clear objectives consistent with the development of the Country, taking into account natural strengths (and weaknesses):  Energy more competitive in terms of cost, to the benefit of households and firms  Greater security and independence of supply  Sustainable economic growth through the development of the energy sector in efficiency and renewables  Maintenance of high environmental standards and quality of service

| Seven Priorities for Italy up to Foster Energy Efficiency 2. Develop sustainably renewables 3. Promote a competitive gas market 4. Develop a fully integrated electricity market with the EU market 5. Modernise the system of governance of the energy sector 6. Restructure the refining industry and the fuel distribution network 7. Sustainably raise national hydrocarbons production 25/05/2016 R.Basosi & M.Capra SET Plan CONFERENCE Roma

| The strengths  The SET Plan has a strategic role for the development of Italian energy technologies.  Italy has important areas of international excellence in : - energy efficiency materials and solutions - second generation biofuels - geothermal power with low impact - smart grids and smart cities - storage systems - integrated energy systems

| Italian Participation in Energy in FP7 (courtesy of G.Zollino) 25/05/2016

| Priority interest: SMART GRIDS  Smart grids facilitate distributed resources and smart cities management. New business models need to be considered that reflect the value of smart grids for the entire society : for example utilities could be remunerated for their capability to reduce CO2 emission, increase energy efficiency and security of supply.

| The innovation chain for Smart Grids in Italy Renewable integration Scenario analysis PlanningOperation System management Component technologies innovation ICT Power electronics Storage Electric vehicles PQEnvironment

| Conclusions  Italian areas of excellence in the field of many technologies for renewables and in smart grids systems are internationally recognized.  However the level of resources devoted to research and innovation, both private and public, is still not adequate.  A relevant increase of efficiency and energy saving is mandatory to achieve a full exploitation of the NES strategy in the frame of EU policy.

| Thanks for your attention 25/05/2016 R.Basosi & M.Capra SET Plan CONFERENCE Roma