EU to invest billions in energy research

EU Energy Commissioner Andris Piebalgs noted that previous industrial revolutions have demonstrated that the right technologies can transform people's lives for the better. "Today we have a unique opportunity to change an energy model based on polluting, scarce and risky fossil fuels, into a clean, sustainable and less dependent one. All depends on choosing the right technologies," he said.

Science and Research Commissioner Janez Potočnik called for increased investment into researching clean technologies in order to make the road to Copenhagen and beyond cheaper. "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. 

"Increasing smart investment 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," he said.

Economic and Monetary Affairs Commissioner Joaquin Almunia argued that a wide range of financial instruments is needed to meet the investment needs of renewable and clean energy development. "The Commission and the European Investment Bank have already significantly increased funding for this purpose. But we need to mobilise more public and private sector funds. We propose to reinforce the Risk Sharing Finance Facility, further support venture capital and develop the Marguerite and other funds," he said.

Green MEP Claude Turmes (Luxembourg) called the Commission's plan a "mere public relations exercise". 

"Today's announcement is just window dressing to cover up the disastrous so-called recovery plan that was conceived by the Commission and member states. The €4 billion plan represented a real opportunity, but much of it was frittered away on ineffective grid, pipeline and carbon capture and storage (CCS) projects," he said. 

"It is ludicrous to put high-risk strategies such as CCS and nuclear on the same footing as these. The EU will continue to waste funds as long as it listens to the loudest lobbies instead of focusing on the cleanest and most effective energy strategies," he added.

The European Renewable Energy Council (EREC) said that it was high time for the Commission to outline funding needs for research, but regretted the absence of concrete proposals for allocating EU funds. Moreover, it was concerned about the exclusion of certain renewable electricity technologies.

"Leaving technologies like Geothermal and Solar Thermal or Small Hydropower and Ocean Energy out of the current portfolio is a missed opportunity - both in terms of security of energy supply and diversification of the energy mix," said Arthouros Zervos, EREC president.

The European Wind Energy Association (EWEA) argued that the proposed funds were essential. "The sum invested in wind is small compared to the amount given to coal carbon capture and storage," said EWEA CEO Christian Kjaer. "But the wind energy industry acknowledges the very significant and important increase in wind energy research funds, especially compared to the 1% of EU energy research funds historically allocated to wind until 2002," he added.

The European Photovoltaic Industry Association (EPIA) argued that the budget proposed for solar energy does not sufficiantly address the challenges facing the photovoltaic sector. "A lot of uncertainty remains on their respective contribution and the level of funds which will be made available from the public sector. In the current context of economical crisis and risk aversion, it is essential to stimulate private investment and the sharing risk with large public funding and ensuring an appropriate European industrial policy framework," EPIA said in a statement.

Greenpeace criticised the Commission for presenting an inconsistent strategy that promotes energy efficiency and renewables while suggesting subsidies for nuclear and coal-based technologies "designed to operate in centralised and inflexible power grids". 

"The Commission has once again fallen between two stools on where to invest in the energy system. It recognises the need for renewables and efficiency, but it is also bowing to pressure to fund outdated technologies like coal and nuclear. It's time for the EU to choose the type of energy system it wants in the future and stop playing the field," said Frauke Thies, Greenpeace EU's energy policy campaigner.

WWF said the paper brought little new to the table. "Without clear commitments of financial aid to accelerate actions in key sectors, we will not see the rapid progress so urgently needed on low-carbon energy sources," siad Jason Anderson, WWF's head of EU climate and energy policy.

The European Renewable Energy Centres Agency  (EUREC) regretted that in the final text, the Commission had decided not to ask member states to agree to dedicate additional funding to support the SET Plan in the mid-term review of the EU budget. "The EC should have challenged the member states on this point. The urgency with which we need to bring new technology to the market requires greater interaction between Europe's R&D centres and between R&D centres and industry, which EU-level funding can help to stimulate," it said.