Brussels, 18/12/2012 (Agence Europe) - Over €1.2 billion is available to kick-start 23 innovative renewable energy demonstration projects, the European Commission announced on Tuesday 18 December, within the first call for proposals for the so-called NER300 funding programme. Projects selected will be co-financed up to half of their total cost by the proceeds from the sale of 200 million emission quotas from the new entrants' reserve (NER) of the EU Emissions Trading System (ETS). The call for proposals covers a vast range of renewable technologies, such as bio-energy (advanced biofuels), concentrated solar power, geothermal power, wind, ocean energy and distributed renewable management (smart grids).
“The NER300 programme is in effect a 'Robin Hood' mechanism that makes polluters pay for large-scale demonstration of new low-carbon technologies. The €1.2 billion of grants - paid by the polluters - will leverage a further €2 billion of private investment in the 23 selected low-carbon demonstration projects”, explains Connie Hedegaard, European Commissioner for Climate Action.
Once the projects are up and running, they will collectively increase annual renewable energy production in Europe by some 10 TWh, an energy amount corresponding to the annual fuel consumption of more than a million passenger cars. Not content with simply demonstrating technologies likely to increase production through renewable sources in the EU, the projects will also provide employment for several thousand full-time workers in the first three to four years of the construction phase. Once operational, the projects will guarantee about a thousand full time jobs for 15-20 years, the Commission trusts.
NER300 funding will cover up to 50% of the relevant costs of the project, i.e. additional costs compared to existing, proven technologies. The rest will be covered by private investment and/or from additional national funding. Funding will be made available on an annual basis, depending on proven performance (the amount of green energy produced) and the meeting of knowledge-sharing requirements. No carbon capture and storage (CCS) project will be awarded funding under this decision. The €275 million envisaged for CCS projects in the first call remains available to fund projects under the second phase of the NER300 programme. The Commission will implement the financing in cooperation with the European Investment Bank (EIB), not only for selecting the projects, but also for the sale of 300 million carbon allowances from the EU ETS, and the management of revenues. (AN/transl.jl)