ENERGY AND SUSTAINABLE DEVELOPMENTENERGY AND SUSTAINABLE DEVELOPMENTe-learning course for DSe-learning course for DS

EU Funding for RES ExploitationEU Funding for RES Exploitation

Francesco Bonifazi Francesco Bonifazi Studio di Consulenza FinanziariaStudio di Consulenza Finanziaria

fbonifazi@hotmail.comfbonifazi@hotmail.com

UNESCOUNESCORome, 2007 22 JanRome, 2007 22 Jan

The economic opportunites offered by the Renewable Energy (RE)The economic opportunites offered by the Renewable Energy (RE)

The outlook for this sector foresees an economic growth from 8,89 M€ in 2005The outlook for this sector foresees an economic growth from 8,89 M€ in 2005 to 14,5 M€ in 2010.to 14,5 M€ in 2010.

The double purpose for the Funds offered by the EU for the Energy sector:The double purpose for the Funds offered by the EU for the Energy sector:1.1. The Global warming problem;The Global warming problem;2.2. Improve the RE.Improve the RE...European documents help to better explain how the rules work European documents help to better explain how the rules work (http://europa.eu/scadplus/leg/en/s14000.htm), some examples are: (http://europa.eu/scadplus/leg/en/s14000.htm), some examples are: The Green Paper, European Energy Charter.The Green Paper, European Energy Charter.

..

FORMS OF ECONOMIC FUNDS

• RESEARCH1. FP7 – promoted by

the EU;

2. EIE in the CIP Programme.

• MATERIAL INVESTMENT

1. GEEREF Project;

2. REEEP;

3. Local grants.

..

RESEARCH WITH FP7

FP7 (http://cordis.europa.eu/fp7/home_en.html)

is made up of 4 main blocks of activities forming 4 specific programmes plus a fifth specific programme:1. Cooperation – where is located the

Energy theme;2. Ideas;3. People;4. Capacities;5. Nuclear research and training.

• The EC budget for the next seven years is € 50.5 billion and the Euratom budget for the next five years is € 2.7 billion

Cooperation

Ideas

People

Capacities

Euratom

The CooperationThis plot represents the distribution of sources inside the Cooperation programme.The total budget is €32 billion.The sector Energy offers benefits for the citizens (in terms of more affordable energy Costs and reduction of causes of climate change), researchers (opportunities) and SMEs(cost cut).

Activities in the energy area include:• Hydrogen and fuel cells• Renewable electricity generation• Renewable fuel production• Renewables for heating and cooling• CO2 capture and storage technologies for zero emission power generation• Clean coal technologies• Smart energy networks• Energy efficiency and savings• Knowledge for energy policy making

The minimum conditions for indirect actions shall be the following:(a) at least three legal entities must participate (where appropriate, the Commission shall specify in the call for proposals that theparticipants need not establish a consortium agreement), each of which must be established in a Member State or associated country, and no two of which may be established in the same Member State or associated country;(b) all three legal entities must be independent of each other(in terms of holding).

The Commission shall issue calls for proposals for indirect actions in accordance with the requirements laid down in the relevant specific programmes and work programmes, which may include calls targeted at special groups such as SMEs.

All the beneficiaries together form the consortium, whether or not they enter into a separate written consortium agreement. Beneficiaries are represented to the Commission by the coordinator, who shall be the intermediary for any communication between the Commission and any beneficiary, with it exceptions foreseen in this grant agreement.

The Community financial contribution to the project shall be paid to the coordinator who receives it on behalf of the beneficiaries. The payment of the Community financial contribution to the coordinator discharges the Commission from its obligation to make payments.Power of Coordinator (administer the Community contribution, keep the records and financial accounts, inform the Commission of the distribution of the Community financial contribution, etc..)Obligations of Beneficiaries (provide data, make appropriate internal arrangements to ensure the efficient implementation of the project, allow the Commission to take part in meetings concerning the project, etc..)

The Commission shall evaluate all the proposals submitted in response to a call for proposals on the basis of the principles for evaluation, and the selection and award criteria set out in the specific programme and the work programme.The following criteria shall apply for the "Cooperation" and "Capacities“ Programmes:– scientific and/or technological excellence,– relevance to the objectives of these specific programmes,– the potential impact through the development, dissemination and use of project results,– the quality and efficiency of the implementation and management.

Where a call for proposals specifies a two-step evaluation procedure, only those proposals that pass the first step, based on the evaluation against a limited set of criteria, shall go forward for further evaluation.

The Commission shall appoint independent experts to assist with evaluations of proposals.

HOW PROTECT THE IDEA IN THE PROJECTThe contents and structure of a database may be protected by the general copyright regime, if it represents a particular expression and can be considered an original work.

For further information look at the website: www.ipr-helpdesk.org

Cost models and financing

• The definition of eligible costs has been simplified and the three cost reporting models used in previous Framework Programmes have been abandoned. This means that participants can charge all their direct and indirect costs and have the option of a flat rate for indirect costs

• For research and technological development activities, the Community financial contribution may reach a maximum of 50% of the total eligible costs. However, in the case of public bodies, secondary and higher education establishments, research organizations and SMEs, it may reach a maximum of 75% of the total eligible costs.

TWO TYPE OF INSTRUMENTS USED FOR ENERGY PROJECT

• COLLABORATIVE PROJECT (CP)

This type foresees at least three members in the partnership, each ofwhich from different countries and need to conclude a consortium agreement (in a specific form showedin the document “Guide for proposals”).The EC contribution can’t be over4M€ if the project is classified as small or medium-sized, meanwhile ifit is greater than 4M€ it is a large scale integrating project.

• COORDINATION AND SUPPORT ACTION (CSA)Participants in Coordination and Support Actions are encouraged, but not required, to conclude a Consortium agreement. The number of members required is at least 3, but may decrease to 1in case of “CSA support type”.

Forms of Grant and Maximum Reimbursement Rates

The FP7 'Rules for Participation' propose three potential forms of grant for the Community financial

contribution: reimbursement of eligible costs, flat rate financing including scale of unit costs, and lump sum financing. All the information are specified in the Article 32 of the Rules for Participation.

Non-profit public bodies,

secondary and higher education

establishments, research

organisations and SMEs

All other organisations

Research and technological

development activities75% 50%

Demonstrations activities 50% 50%

Coordination and support actions

100% 100%

Management audit certificates and other activities

100% 100%

HOW TO PREPARE A PROJECT

• Having an idea linked to the relative call ; • Reading all of the documents related that Call you have chosen

(Work Programme, Guide for applicants, Regulation and Council decision. Documents You can find on: http://cordis.europa.eu/fp7/home_en.html);

• Knowing and following the time frame;• Identification of the personal objective in relation to the aim of the

call – the European impact;• Knowing the partners and making a division of potentiale tasks

related to skills of each one;• Splitting the project into specific actions for each partner;• Knowing the resources required and the expertise of the human

resources available.

RESEARCH WITH CIP - EIE

The first “Competitiveness and Innovation framework Programme (CIP)” isa coherent and integrated response to the objectives of the renewed Lisbon strategy. Running from 2007 to 2013, it has a budget of approximately EUR 3.6billion €The CIP Programme is divided into three sections:1. EIP, which aims to remove the barriers blocking environmental technologies. It is

aimed towards SMEs with an high level of hi-tech;2. ICT, finalized to promote the market of information: to allow a net of digital services

and communication to be gathered, undertake the problem of multilanguages and monitor the diffusion of information;

3. EIE divided into: SAVE, ALTENER and STEER.

The allotment of economic rosources is:1. EIP – 2.166 M€;2. ICT - 728 M€;3. EIE – 727 M€.

About EIE

AIMS:1. Encourage energy efficiency

and a rational use of energy – SAVE;

2. Promote standard and renewable sources – ALTENER;

3. Renew the energy for transport –STEER.

• Each project requires a different set of partners with specific knowledge, capacities, roles and geographical locations to be able to deliver its objectives. In most cases, successful proposals involve more than the required minimum number of 3 partners. The average is between 8 and 9 partners;

• A part of the Budget may be used to support projects which promote innovative techniques, processes or products, which have already been technically demonstrated with success but have not yet penetrated the market.

Events related to FP7• 31 January 2007, Brussels, Breydel Building - The 'EU Sustainable Energy Week' is a series of

organised events, taking place all across Europe, on a wide range of sustainable energy issues;• Belgium's National Contact Points (NCPs) are organising a joint launch event for the Seventh

Framework Programme, which will be held in Brussels on 30 January – (for more information visit: http://eurofed.stis.fgov.be/) ;

• FP7 energy and transport information days [2007-01-16] The European Commission's Directorates-General for Research, and Energy and Transport, will hold joint information events in Brussels on 13 and 14 February in the context of the Seventh Framework Programme (FP7). The information days are intended to offer support to those wishing to prepare a proposal in response to the first FP7 calls (for more information visit: http://ec.europa.eu/research/transport/news/article_4316_en.html) .

OPPORTUNITIES FOR MATERIAL INVESTMENTS

The Instruments shown before were researcher-oriented,

but many others exist for the investor, both public and

private.

This is a brief list:

1. GEEREF Project;

2. REEEP;

3. Local grants.

GEEREFhttp://ec.europa.eu/environment/etap/index_en.htm

On 6 October 2006, the European Commission launched a €100m risk capitalfund to boost investments in energy efficiency and renewable energy projects in developing countries: the Global Energy Efficiency and Renewable Energy Fund (GEEREF) is designed to supply developing countries with clean, safe energy while helping them to overcome their lack of venture capital. GEEREF will stimulate the creation of regional sub-funds tailored to regional needs and conditions, rather than investing in projects directly. Priority will be given to investments below €10 million and to deploying environmentally-sound technologies with a proven technical track record.The organisms involved in this programme will be: 1. TRIODOS International Fund Management;2. E+Co;3. BEI.

REEEPhttp://www.reeep.org/

The Renewable Energy and Energy Efficiency Partnership (REEEP) is an active, global public-private partnership that structures policy and Regulatory initiatives for clean energy, and facilitates financing for energy projects.The aim is to accelerate the integration of renewables into the energy mixand to advocate energy efficiency as a path to improved energy security and reduced carbon emissions, ensuring socio-economic benefits. With a network of 8 regional secretariats and more than 3,500 members, REEEP has the ability to affect change worldwide.  The partnership has funded more than 50 high quality projects in 44 countries that address market barriers to clean energy in the developing world and economies in transition.

REEEP was conceived at the Johannesburg World Summit on Sustainable Development in August 2002 in June 2004, the REEEP was formally established as a legal entity in Austria with the status of an International NGO. The partnership is funded by a number of governments including: Australia, Austria, Canada, Germany, Ireland, Italy, Spain, The Netherlands, New Zealand, The United Kingdom, The United Statesand the European Commission

WHAT THEY DO:The REEEP finances projects which identify replicable models of policy and regulatory frameworks that overcome the market barriers to REES. The REEEP also finances projects which leverage additional resources and enhance capacity building for investors, financiers and public officials.  Innovative financing projects provide tool-kits, business plans and financing mechanisms which result in a significant increase in REES investments.

LOCAL OPPORTUNITIES FOR PRIVATE INVESTORS

There are many other opportunities offered by some countries to support the private sector investments in renewable energy.The composition change of the EU (with the new States of East Europe), and the new financial programme 2007-2013 will open the doors to private investors through specific instruments launchedby each countries government.The EU has designated the new beneficiaries, in terms of countries ormore specifically poorer areas, which will benefit from grants for investments up to 70% of the total cost.

An outlook of the opportunities is visible on many websites, like:http://www.grant-guide.com, which would be better to read with the support of a EU programme specialist.

THANK YOU FOR YOUR ATTENTIONTHANK YOU FOR YOUR ATTENTION

PLEASE DO YOUR QUESTIONS NOWPLEASE DO YOUR QUESTIONS NOW

ENERGY AND SUSTAINABLE DEVELOPMENT:ENERGY AND SUSTAINABLE DEVELOPMENT:e-learning course for DSe-learning course for DS

Eu Funding For Res ExploitationEu Funding For Res Exploitation

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