The Energy Challenge
Making the European energy system more sustainable is one of the greatest challenges facing Europe. The EU responded in 2007 by adopting a package of proposals, paving the way towards a future Energy Policy for Europe. It contains a set of ambitious targets for 2020: reduction in greenhouse gas emissions by 20% compared to 1990 levels; reducing primary energy use by 20% (through energy efficiency); increasing the level of renewable energy in the EU's overall mix to 20%; minimum target for biofuels of 10% of vehicle fuel. These targets are achievable if appropriate technological strides are taken. Therefore one of the key elements of the Energy policy for Europe is the preparation of a European Strategic Energy Plan, which will accelerate the availability of energy technologies and at the same time engage European industry in the process so that it can gain world leadership in this sector.
Europe is suffering from accumulated under-investment due to cheap oil. The energy technology and innovation process has structural weaknesses, such as long lead times for new technologies to mass market, locked-in infrastructure investments, diverse market incentives and network connection challenges. Furthermore, the market take-up of new energy technologies is additionally hampered by the nature of the technologies themselves, because they are generally more expensive than the technologies they replace.
Mapping Europe's Energy Technology Potential
The goal of the technology map is to provide a brief but comprehensive description of the current status and prospects of key energy technologies within the EU - where we are now and what we can expect in the future. Based on this information, the SET-Plan will propose follow-up actions to accelerate low carbon energy technology development and deployment.
* The report indicates the potential of some 14 energy technologies from wind and solar to decarbonised fossil fuel power generation and nuclear fission and fusion. The evaluation is based on a number of key indicators, namely, CO2 avoided, carbon mitigation cost, fossil fuels saved, and changes in the overall production cost of the energy carrier that the technology produces (electricity, heat, or transport fuel). The time horizon considered for the assessment is 2030.
* A key finding is the crucial role of innovation to help lower the costs of new technologies and make them available on the market. Supply-side technologies such as wind, solar, hydropower, biofuels, cogeneration of heat and power and zero emission fossil fuel power plants have the potential to contribute towards meeting European goals in the short and medium term. Ocean, fusion energy, new generation nuclear fission reactors and hydrogen & fuel cells are examples of advanced technologies that should be pursued now so they can contribute to the long-term vision of a European sustainable energy system.
Mapping Europe's Energy Research Capacity
The objective of the Capacity Map of Energy Research accompanying the SET Plan is to provide an overview of the energy research capacities both in the public and in the private sector in the EU Member States, and in Japan and the USA for comparison.
* Public funding for energy R&D in the EU Member States declined between 1991 and 2005 in real terms, reaching around 2.2 bn EUR by 2005. Of this, almost three quarters are concentrated in only three Member States. Private sector investment in energy R&D shows a somewhat similar pattern.
* Energy R&D priorities vary among Member States, but shared priorities do exist in some technologies (renewable energies, energy efficiency and nuclear-related research) and groups of countries. Synergies in these areas are of utmost importance, because energy requires capital-intensive technologies.
* Pan-European cooperation in public energy-related research remains low even in areas of shared priorities. National priority setting often does not take into account the research policies of other countries. In conclusion, a priority setting at EU level hardly takes place, making it difficult to exploit synergies.
Better EU coordination is thus required in order to benefit from the economies of scale of the national energy R&D efforts, helping to tackle the climate change and energy security challenges ahead. Recent European Commission’s initiatives such as the ERA-NETs and the Technology Platforms are an important step towards mobilising pan-European cooperation. Also in some Member States, energy R&D has gained new momentum. However, more action is needed. This paves the way for enhanced synchronisation of energy R&D among EU Member States.
