The European Commission has called for a near-tripling in energy research funding to support the region’s transition to a low-carbon economy and meet targets on energy security.
The EU executive has published a communication outlining how much it believes its Strategic Energy Technology Plan (SET Plan) will cost and how the investment needs will be met. Energy Commissioner Andris Piebalgs says that the plan represents a “unique opportunity” to change Europe’s energy model.
The European Commission believes that Europe will need EUR50 billion in energy research funding over the next ten years to meet targets on climate change, renewable energy and energy security. Yearly flows of funding from the private and public sector will have to rise from EUR3 billion to EUR8 billion.
In its financing plan, the Commission allocates EUR6 billion for research into wind energy, EUR16 billion for photovoltaic technologies and EUR2 billion for electricity grids. The funds will be derived from both the public and private sector, says the Commission.
Other sectors given priority status in the SET Plan include bioenergy, which will require EUR9 billion, carbon capture and storage (CCS), which has been allocated EUR13 billion, and nuclear research, requiring EUR7 billion.
The financing proposal also suggests that EUR11 billion is needed for a new smart cities programme, under which 25-30 cities are to be upgraded with low-carbon housing and transport.
The SET Plan, proposed in 2007, is the technology pillar of the EU’s energy and climate policy and outlines a number of industrial initiatives. Its aim is to develop a more coherent approach to energy technology funding in the EU.
The European Commission has not indicated how funding should be split between the public and private sector, but says that a significant rise in government funds is required to stimulate the required investment during the recession. It also believes that riskier projects and technologies will require public funds to take a greater role.
“With today's estimates, the Commission wants to make the SET Plan a springboard to leap into a low carbon economy, which is only possible if public and private actors pool resources in a coherent way,” said EU Commissioner for Science and Research, Janez Potocnik. “Increasing smart investments in research today is an opportunity to develop new sources of growth, to green our economy and to ensure the EU’s competitiveness when we come out of the crisis.”
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