Annex I / Energy

Objective

Adapting the current energy system into a more sustainable one, less dependent of imported fuels based on a diverse mix of energy sources, in particular renewables, energy carriers and non-polluting sources; enhancing energy efficiency, including by rationalising use and storage of energy; addressing the pressing challenges of security of supply and climate change, whilst increasing the competitiveness of Europe's industries.

Rationale

Energy systems are confronted with major challenges. The urgency to identify and develop adequate and timely solutions is justified by the alarming trends in global energy demand, the finite nature of conventional oil and natural gas reserves and the need to curb dramatically emissions of greenhouse gases to mitigate the devastating consequences of climate change, the damaging volatility of oil prices (in particular for the transport sector which is heavily oil dependent) and geopolitical instability in supplier regions. Energy research is an important contribution towards ensuring affordable energy costs for our citizens and industries. Research and demonstration are needed to provide the most environmentally and cost-effective technologies and measures enabling the EU to meet its targets under the Kyoto Protocol and beyond and to implement its energy policy commitments, as described in the 2000 Green Paper on the security of energy supply ²⁰, the 2005 Green Paper on Energy Efficiency ²¹ and the 2006 Green Paper on a European strategy for sustainable competitive and secure energy ²².

Europe has developed world leadership in a number of energy generation and energy efficiency technologies. It is the pioneer in modern renewable energy technologies, such as solar energy, bio- and wind energy. The EU is also a global competitor in power generation and distribution technologies and has a strong research capability in the area of carbon capture and sequestration. These positions, however, are now facing severe competition (in particular from the US and Japan). Therefore Europe must maintain and develop its leading position which requires large efforts and international collaboration.

Radically transforming the energy system into a less- or non-CO₂-emitting, reliable, competitive and sustainable energy system requires new technologies with risks that are too high and the profits too uncertain for private firms to provide all the investment needed for research, development, demonstration and deployment. Public support should therefore play a key role in mobilising private investment and European efforts and resources should be combined in a coherent and more effective manner, to compete with economies that are investing heavily and consistently in similar technologies. European technology platforms play an important role in this regard, by mobilising the necessary research effort in a coordinated manner. The activities to meet the objective are set out below. A specific activity on knowledge for energy policy making is included which may also provide support to new policy needs that emerge, for example relating to the role of European energy policy in the developments of international climate change actions, and instabilities or disruptions in energy supply and price.

Activities

• Hydrogen and fuel cells

Integrated action to provide a strong technological foundation for competitive EU fuel cell and hydrogen industries, for stationary, portable and transport applications. The Hydrogen and Fuel Cells European Technology Platform helps this activity by proposing an integrated research and deployment strategy.

• Renewable electricity generation

Technologies to increase overall conversion efficiency, cost efficiency and reliability, driving down the cost of electricity production from indigenous renewable energy sources, including wastes, and the development and the demonstration of technologies suited to different regional conditions.

• Renewable fuel production

Integrated fuel production systems and conversion technologies: to develop and drive down the unit cost of solid, liquid and gaseous (including hydrogen) fuels produced from renewable energy sources including biomass and wastes, aiming at the cost-effective production, storage, distribution and use of carbon-neutral fuels, in particular biofuels for transport and electricity generation.

• Renewables for heating and cooling

Research, development and demonstration of technologies and devices including storage technologies to increase efficiencies and drive down the costs of active and passive heating and cooling from renewable energy sources, ensuring their use in different regional conditions where sufficient potential can be identified.

• CO₂ capture and storage technologies for zero emission power generation

Research, development and demonstration of technologies to drastically reduce the environmental impact of fossil fuel use aiming at highly efficient and cost effective power and/or heat generation plants with near zero emissions, based on CO₂ capture and storage technologies in particular underground storage.

• Clean coal technologies

Research, development and demonstration of technologies to substantially improve plant efficiency, reliability and cost through development and demonstration of clean coal and other solid fuel conversion technologies producing also secondary energy carriers (including hydrogen) and liquid or gaseous fuels. Activities will be linked as appropriate to CO₂ capture and storage technologies or co-utilisation of biomass.

• Smart energy networks

Research, develop and demonstrate how to increase the efficiency, safety, reliability and quality of the European electricity and gas systems and networks notably within the context of a more integrated European energy market e.g. by transforming the current electricity grids into an interactive (customers/operators) service network, developing energy storage options and removing obstacles to the large-scale deployment and effective integration of distributed and renewable energy sources.

• Energy efficiency and savings

Research, development and demonstration of new concepts, optimisation of proved concepts and technologies to improve energy efficiency and to enable further final and primary energy consumption savings, over their life cycle, for buildings (including in lighting), transport, services and industry. This includes the integration of strategies and technologies for energy efficiency (including co- and polygeneration), the use of new and renewable energy technologies and energy demand management measures and devices, and the demonstration of minimum climate impact buildings.

• Knowledge for energy policy making

Development of tools, methods and models to assess the main economic and social issues related to energy technologies and to provide quantifiable targets and scenarios for medium- and long-term horizons (including providing scientific support for policy development).

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²⁰ COM(2000) 769.

²¹ COM (2005) 265.

²² COM(2006) 105.