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Europe Daily Bulletin No. 9549
Contents Publication in full By article 10 / 33
GENERAL NEWS / (eu) eu/energy

Commission unveils strategy to develop energy technology

Brussels, 22/11/2007 (Agence Europe) - Responding to a request from the European Council in March 2007 (see EUROPE 9383), the European Commission adopted a strategic plan on Thursday 22 November for the development of new energy technology (for an initial outline of the 'SET Plan' see EUROPE 9539).

Energy technologies have a vital role to play in meeting the treble challenge of fighting climate change, ensuring the security of energy supply and remaining competitive. In addition to implementing energy efficiency measures, laws, support mechanisms and charging for carbon, the EU should boost the deployment of measures through greater R&D to reach the targets it has set itself in terms of reducing greenhouse gas emissions by 2020 (by 20-30%), renewables and energy efficiency.

The Commission says Europe has enormous potential when it comes to developing a new generation of low carbon energy technology. Its long-term vision is that by 2020, new low carbon energy technology should make it possible to generate 20% of energy consumption from renewable sources through a huge increase in the share provided by less costly sources (marine wind farms and second generation biofuels); by 2030, heating and electricity should be produced mainly from low carbon sources and low CO2 emitting fossil fuel power plants that make use of CO2 carbon capture and storage technology (CCS), and transport should gradually change to run on second generation biofuel and hydrogen combustion batteries; for 2050 and beyond, the process of converting the EU's energy system to use low carbon technologies should be complete and the EU's energy supply should be provided by renewables, sustainable carbon using technology, gas and hydrogen and, for the member states that so desire, by nuclear power (fourth generation fission and fusion).

To take advantage of the opportunities available to it, the EU27 should therefore organise and introduce measures to support the development of existing energy technology and develop new energy technologies, bringing costs down and helping market them. These measures will mainly involve: 1) improving the energy efficiency of buildings, equipment, machines, devices, industrial processes and transport systems; 2) developing biofuels, particularly second generation biofuels to be used as competitive substitutes for hydrocarbons; 3) developing huge marine wind parks and an offshore EU windfarm network; 4) using combustible cell technology and hydrogen to take more advantage of them tin transport and the decentralised generation of energy; and 5) ensuring the EU's technological superiority when it comes to fourth generation nuclear fission and nuclear fusion.

The EU faces an enormous problem, however, in that there is insufficient funding for energy R&D, which is widely dispersed and badly coordinated. Innovation in energy is suffering from structural weaknesses right from the initial backroom design phase to introduction on the market. The market is not displaying any natural desire to develop energy technology because of the lack of short-term profits for the companies involved at first sight. Moreover, public funding for energy R&D is insufficient and has been slashed since the 1980s. The Commission says it is clear that to a large extent, the technology challenges to be met by EU energy policy are beyond the scope of the currently used cooperation instruments and that a change of mindsets is required. It is therefore suggesting a new approach, focussing to a greater extent on the drawing up of common programmes and better use of the European R&D area and innovation. The plan foresees the launch of a raft of new priority EU industrial initiatives focussing on developing technology for which EU-wide cooperation would provide value-added. It suggests making R&D and innovation more dynamic in the private sector by harmonising EU activity, both national and private. It suggests setting up an EU energy research alliance to foster cooperation among R&D bodies, and stepping up programming at EU level for infrastructure and energy systems. The Commission also stresses the need to boost the financial resources available in this domain and will be unveiling throughout the course of 2008 suggestions about how to fund low carbon technology. It will be introducing an international system to draw up a detailed picture of energy technology across the EU and will be working with member states to prepare a process to allow common planning of R&D on energy technology. A summit will be organised on the issue in 2009 to assess progress. (E.H.)

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