Report Containing All National Concept Notes

Ref. Ares(2018)5435172 - 23/10/2018

Integrating National Research Agendas on Solar Heat for Industrial Processes

Project Deliverable 7.2: Report Containing all National Concept Notes

D 7:2 – REPORT CONTAINING ALL NATIONAL CONCEPT NOTES

WP7

Due date: M18

Submitted: M20

Partner responsible: The Cyprus Institute (CyI)

Person responsible: Nestor Fylaktos

Reviewed/supervised by: Pedro Horta

GA Number: 731287

Start of the project: January 2017

Duration of the project: 48 months

DISSEMINATION LEVEL

PU Public

NATURE OF THE DELIVERABLE

HISTORY

Author Date Comments

Nestor Fylaktos 31/08/18 Version 1

Nestor Fylaktos 13/09/2018 Version 2

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 1 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Contents

Content of deliverable ...... 7 Results and discussion ...... 8 Degree of progress ...... 8 Dissemination ...... 8 1 Introduction ...... 9 2 Background and context ...... 9 2.1 Status of the SHIP domain in the countries involved ...... 10 2.1.1 Market size ...... 10 2.1.2 End-user deployment ...... 15 2.1.3 Local technology suppliers ...... 18 2.1.4 Research activities and Infrastructures ...... 19 2.2 Incentives for market deployment...... 23 2.2.1 Austria ...... 27 2.2.2 Cyprus ...... 29 2.2.3 France ...... 29 2.2.4 Germany ...... 32 2.2.5 Greece ...... 32 2.2.6 Italy ...... 33 2.2.7 Portugal ...... 36 2.2.8 Spain ...... 36 2.2.9 Switzerland...... 39 2.2.10 Turkey ...... 39 2.3 Regulatory framework ...... 40 2.3.1 Austria ...... 40 2.3.2 Cyprus ...... 40 2.3.3 France ...... 41 2.3.4 Germany ...... 42 2.3.5 Greece ...... 43 2.3.6 Italy ...... 43 2.3.7 Portugal ...... 43 2.3.8 Spain ...... 45 2.3.9 Switzerland...... 45 2.3.10 Turkey ...... 45

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 2 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

2.4 Funding opportunities for SHIP research at National, EU and International level ...... 45 2.4.1 Austria ...... 46 2.4.2 Cyprus ...... 46 2.4.3 France ...... 47 2.4.4 Germany ...... 47 2.4.5 Greece ...... 48 2.4.6 Italy ...... 49 2.4.7 Portugal ...... 50 2.4.8 Spain ...... 50 2.4.9 Switzerland...... 51 2.4.10 Turkey ...... 51 3 Future trends at national level ...... 53 3.1 Austria ...... 53 3.2 Cyprus ...... 54 3.3 France ...... 55 3.4 Germany ...... 56 3.5 Greece ...... 57 3.6 Italy ...... 57 3.6.1 Food & Beverage ...... 57 3.6.2 Chemical and Pharmaceutical ...... 58 3.6.3 Metallic and non-metallic materials ...... 58 3.6.4 STE for civil application ...... 58 3.6.5 Desalination and water treatment ...... 58 3.6.6 Hybridization of other heat sources ...... 59 3.7 Portugal ...... 59 3.8 Spain ...... 59 3.9 Switzerland ...... 61 3.9.1 Research & Development ...... 61 3.9.2 Commercial ...... 61 3.10 Turkey ...... 61 4 Stakeholders ...... 62 5 Needs assessment ...... 64 5.1 Austria ...... 64 5.2 Cyprus ...... 65 5.3 France ...... 65

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 3 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

5.3.1 Implement a regulatory framework to grand-aid R&D ...... 66 5.3.2 Extend the ADEME Heat Fund program to solar concentrated technologies ...... 66 5.3.3 Finance R&D dedicated to solar concentrated technologies within an Institute for the Energetic Transition (ITE) ...... 66 5.3.4 Adapt Grants for development to support industry at the export ...... 66 5.4 Germany ...... 67 5.5 Greece ...... 68 5.6 Italy ...... 69 5.6.1 National Stakeholder Group (NSG) consolidation ...... 69 5.6.2 Increase awareness on SHIP technologies ...... 69 5.7 Portugal ...... 70 5.8 Spain ...... 70 5.9 Turkey ...... 71 6 Possible funding alignment models ...... 73 6.1 Austria ...... 73 6.1.1 Road map to define an effective funding alignment model ...... 73 6.2 Cyprus ...... 73 6.2.1 Road map to define an effective funding alignment model ...... 74 6.3 Germany ...... 74 6.3.1 Road map to define an effective funding alignment model ...... 74 6.4 Greece ...... 75 6.4.1 Road map to define an effective funding alignment model ...... 75 6.5 Italy ...... 76 6.5.1 Road map to define an effective funding alignment model ...... 76 6.6 Portugal ...... 76 6.6.1 Road map to define an effective funding alignment model ...... 77 6.7 Spain ...... 77 6.7.1 Road map to define an effective funding alignment model ...... 78 6.8 Switzerland ...... 79 6.8.1 Road map to define an effective funding alignment model ...... 79 List of acronyms ...... 80 7 Appendix: Country concept notes ...... 81 7.1 Concept Note Germany ...... 82 7.2 Concept Note Spain ...... 95 7.3 Concept Note Austria ...... 113

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 4 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.4 Concept Note Italy ...... 126 7.5 Concept Note Portugal ...... 151 7.6 Concept Note Cyprus ...... 161 7.7 Concept Note Greece ...... 170 7.8 Concept Note Switzerland ...... 185 7.9 Concept Note France ...... 191 7.10 Concept Note Turkey ...... 222

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 5 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Table of figures

Figure 1: Total and share of SHIP collector area installed compared to total solar collector area per country ...... 11 Figure 2: Industrial sectors and processes with the greatest potential for solar thermal use, according to the French concept note. Source: AIE task 33 ...... 16 Figure 3: Public aide scheme ...... 30 Figure 4: Incentive levels for different collector types based on the new rules of Conto Termico 2.0 compared to the ones of Conto Termico 1.0 (continuous black line). Source: SDH Energy ...... 34 Figure 5: PPE Objectives for solar thermal heat final consumption in France ...... 56 Figure 6: Stakeholders’ composition per country ...... 63

List of tables

Table 1: Research Infrastructures reported in the national concept notes...... 20 Table 2: Summary of SHIP incentives ...... 24 Table 3: Overview of Subsidies in Austria ...... 27 Table 4: Overview of loans and financing instruments in Austria ...... 28 Table 5: List of SHIP incentives for Cyprus ...... 29 Table 6: Incentives allowed by the “Conto Termico” accordingly with the size of the solar field and the application ...... 35 Table 7: solar thermal objectives fixed by the multi-annual investment plan (PPI) in 2016 (French ministry) ...... 41 Table 8: The carbon tax (TICGN Taxe Intérieure sur la Consommation de Gaz Naturel) (French ministry) ...... 42 Table 9: Future trends mentions for SHIP in the concept notes ...... 53

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 6 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Content of deliverable

The text in the GA for the whole of task 7.1 is the following:

Within this Task, the definition and structure of a European SHIP Research Programme will be addressed. In addition, and closely linked, based on ongoing activities within EERA JP-CSP, formal and structural relations with national funding agencies and other public bodies relevant will be built at fully European level with the objective of financing such European SHIP Research Programme. Both parallel initiatives are considered key to lay the Foundations for Longlasting Research Cooperation on the topic in Europe. This Task will involve the following activities:

 Scoping/Gap analysis: This will start with a scoping exercise examining the current state of play in the 10 participating countries: existing research programmes and funding availability for RTD in the field of SHIP, status of SHIP in the national and regional Smart Specialisation Strategies, as well as a value-chain analysis from innovation to industrial applications and a stakeholder analysis of the key government, industrial and research actors.

 Activation of the National Stakeholder Groups for SHIP: in the countries which have CSP National Working Groups as a result of the STAGE-STE project, the NSGs will be embedded within those. In Austria, Greece and Turkey, the NSGs will be created separately (Milestone 7.1). National Funding Agencies will be represented in the NSGs.

 Preparation of a National Concept Note on SHIP RTD and technology transfer strategies by each Stakeholder Group.

 Convening of a European Workshop for SHIP RTD alignment, including representatives from research, government and industry from each participating country (members of the NSG). Here the different national concept notes will be presented and synergies identified (Milestone 7.2).

 Production of a common SHIP RTD strategy, based on the national concept notes and the outcome of the European workshop. A cross-referencing with Task 8.1 of this proposal (Analysis of needed national and regional innovation strategies on SHIP) will be used here.

 Presentation of the common SHIP RTD strategy to the European Commission (Milestone 7.3), and dissemination in appropriate fora

 Engage with national agencies at a bilateral level to raise financial support for future joint projects in the field, within the boundaries of the national smart specialisation strategies. In particular, project partners will work with National Funding Agencies to identify and exploit synergies between Structural Funds and the Horizon 2020 programme, the former covering the infrastructure needs and the latter covering the research needs of the sector

The Deliverable 7.2 in the DoW is described as a “Report containing all national concept notes”. It follows the collection of concept notes from 10 national stakeholder’s groups, and is a comprehensive account of the status of SHIP support and future directions in each of these countries. Its outcomes are crucial for the European workshop (planned for 2019) and Deliverable 8.1.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 7 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Results and discussion

This deliverable highlights the fact that SHIP is still very much a niche activity, but with a strongly positive outlook. It also shows that the methodology for supporting such technologies is far from streamlined across the nations sending in a concept note. Support comes in different types of financial incentives, from different administrative sources, for varying periods – in general showing a very fragmented landscape.

Degree of progress

The Deliverable has been delayed for a few weeks, mainly because the concept notes themselves were slightly delayed. This small deviation is not expected to affect the implementation of the rest of the project.

Dissemination

N/A

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 8 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1 Introduction

This document is developed as part of the INSHIP project (Integrating National Research Agendas on Solar Heat for Industrial Processes), led by the Fraunhofer Institute for Solar Energy Systems (ISE) in Germany, and which focuses on engaging major European research institutes with recognized activities on Solar Heat for Industrial Processes (SHIP), into an integrated structure. In this context, the INSHIP project aims at engaging major European research institutes with recognized activities on SHIP, to integrate their activities, and work with national authorities to align SHIP research with national research objectives, and with industry to bring SHIP to a higher Technology Readiness Level (TRL), for example by exploring synergies with district heating and the electricity grid.

Central to the above goals is the activation of the National Stakeholder Groups (NSGs), composed of representatives from organisations who have an interest in SHIP technology, mainly comprising policy (including funding agencies) and industrial entrants. Research institutions are also represented in the NSGs, but have a supportive and coordinating role. The NSGs have been formed and activated in the following countries:

 Austria  Cyprus  France  Germany  Greece  Italy  Portugal  Spain  Switzerland  Turkey

One of the core mandates of the NSGs is to draft a National Concept Note on SHIP RTD and technology transfer strategies for their respective countries. This document is deliverable 7.2 (D7.2), a report containing all the concept notes for the aforementioned countries. All concept notes will then be presented, along with the National Concept Notes of 9 other countries (Germany, Spain, Austria, Italy, Portugal, Greece, Switzerland, France, Turkey), at a European Workshop in spring 2019, aimed at creating an integrated strategy at the European Level. NSG members will be invited – and encouraged – to attend.

The Concept notes themselves are a summary of the future directions of SHIP related activities (both R&D and commercial) in each country, the present and future regulatory and funding framework, as well as future trends in SHIP that may have a direct or indirect impact on SHIP development for each country. The following sections present the findings for the state of SHIP drawn from the concept notes sent to the WP7 leader, the Cyprus Institute.

2 Background and context

As already mentioned, the contents of this report are the outcome of work done through the NSGs in the 10 countries involved. These are – for the most part – extensions of pre-existing structures created for purposes usually aligned to Concentrated Solar Power (CSP), such as the Solar

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 9 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Concentra in Spain, or the National Groups formed under the aegis of a different research programme, such as STAGE-STE1.

Often the motivation behind such installation is driven by the obligation to comply with several internal or external emission targets, which are rather ambitious in their 2030 rendition. A number of countries have articulated their 2030 vision in detailed strategies, which sometimes include national heating strategies for solar, as in the case of Austria2 and Portugal3. In France, the “French Energy transition for green growth act (LTECV)” sets medium-and long-term ambitious qualitative and quantitative targets to be implemented by 2030 and provides a framework for individuals, businesses, regions and the State to take collective action. Among others, the law stipulates that Heat production from renewable energy sources is due to increase by 50% by 2030, while the share of heat production from solar thermal sources should reach 80%.In addition, France should triple the amount of renewable and recoverable heating and cooling supplied by the district heating or cooling systems, in order to reach 38% of final heat consumption with renewables in 2030.

Other strategy documents promote solar industrial heat through actions tied to economic development, such as the regional Smart Specialisation Strategies applicable across Europe. In Cyprus for example, the Smart Specialisation Strategy (s3Cy) was finalised in 2015, with no explicit direct references to SHIP, even though there are a number of references to solar heating and cooling, solar thermal hybrid systems and solar thermal in buildings, without a clear distinction between residential and industrial uses. The relevant competent authorities in terms of channelling funds in Cyprus are the Directorate General for European Programmes, Coordination and Development (DGEPCD), the Research Promotion Foundation (RPF), with policy and programmatic support for all forms of RES from the Ministry of Energy, Commerce, Industry and Tourism (MECIT). All of these entities are represented in the Cyprus National Stakeholders Group on SHIP. In Italy the SMART Specialisation Strategy (S3) was finalized in 2015, and there are specific programs at National or Regional level. The funding bodies of these programs are “Ministero dell'Istruzione, dell'Università e della Ricerca” (MIUR) for the research domain, “Ministero dello Sviluppo Economico” (MISE) for the industrial development and the Region itself. It is worth to mention that the domain of “renewable energy sources” has been indicated only in 9 regional S3 (43% of the Italian region). In Portugal, renewable energies are mentioned and supported as a priority in the National and Regional Research Innovation Strategies for Smart Specialisation (RIS3) document, but SHIP is not explicitly mentioned in the RIS3 or the ensuing OPs, which can be used to fund SHIP related actions.

A similar picture can be found in Spain: Analysing the RIS3 published data contained in 17 reports for the Spanish regions; it appears that none of the 17 documents available mentions SHIP as a strategy or target. Three of them mention explicitly CSP, one more mentions ‘Solar Energy’ in general, eleven refer to ‘Renewable Energies’, ‘Energy Efficiency’ or similar, and two refer to ‘Energy’, without further specification.

2.1 Status of the SHIP domain in the countries involved

2.1.1 Market size

1 http://stage-ste.eu/ 2 Draft of Climate and Energy Strategy 2030: https://mission2030.info/wp-content/uploads/2018/04/mission2030_Klima-und- Energiestrategie.pdf 3 The Portuguese Medium term energy policy, up to 2020, is set in two main documents: the National Action Plan on Renewable Energy (PNAER) and the National Action Plan on Energy Efficiency (PNAEE).

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 10 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The general trend amongst all concept notes is that SHIP installations represent, at best, a small niche in the overall market of renewables, solar and solar thermal applications. For all countries involved, the penetration is ranging below 1% of collector area compared to the total solar collectors within a country (see Figure 1). Unfortunately, there is not enough data in the concept notes for further analyses into other categories, such as the percentage of solar heat used in industrial heat processes overall, or any projections for the future.

Area of SHIP (m2) % of SHIP area

18,000 0.18%

16,000 0.16%

)

2 14,000 0.14%

12,000 0.12%

10,000 0.10%

8,000 0.08%

6,000 0.06%

4,000 0.04% AREA OF COLLECTORS INSTALLED (M COLLECTORS INSTALLEDOF AREA

2,000 0.02%

0 0.00% AREA THERMALCOLLECTORSOLAR TOTAL COUNTRYOF SHARE

Figure 1: Total and share of SHIP collector area installed compared to total solar collector area per country

The dataset however is clear in the fact that SHIP still represents a very small share of overall installations. Most of the systems in the datasets used in the concept notes are taken from the ship- plants4 database, created under the framework of the IEA task 49/IV and currently updated by AEE INTEC. This online database contains a worldwide overview on existing solar thermal plants, which provide thermal energy for production processes for different industry sectors. The data available is also enriched by additional information sourced from the NSGs of each participating country, and in some cases differ to what is found in the aforementioned repository.

The following paragraphs offer a snapshot view of the situation in each participating country, as provided by the corresponding partners in INSHIP, consulted by their respective NSGs.

Austria Applications in single-family houses (water heating and space heating) continue to determine the solar heating market. Whereas in the past it was only applications in single-family houses, efforts

4 http://ship-plants.info/

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 11 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes were made to open up new areas of application for solar heat from the year 2000 onwards, which is also visible in statistical evaluations.

In particular, applications in residential buildings, but also in the services sector, especially in tourism, were added to the classic application in the private sector. A few years later, the implementation of systems in the areas of heat network integration, integration into industrial low- temperature processes, water heating and space heating in production and agricultural businesses, and air conditioning also began.

As already mentioned above, the single-family house sector represents the largest market, where 70 % of the solar systems were installed in single-family homes, and 18 % in apartment buildings. Accommodation, trade and industry account for 5 % and 7 % respectively. Local and district heating are very low (less than 1% and therefore not included in the diagram).5

Based on the listed entries of http://ship-plants.info/ there are currently 26 plants with a total size of over 7500 m² installed in the Austrian industry.

Cyprus Despite the extremely widespread proliferation of solar thermal systems for domestic hot water uses, the SHIP end-user industrial base in Cyprus is small, and the potential applications for SHIP are limited in the short term. The only known SHIP application in Cyprus is in the facilities of Hellenic

Copper Mines Ltd. that employs 760 m2 of flat plate collectors for an installed capacity of 532 kWth. However, there has not been a systematic survey of the SHIP sector in Cyprus, so the information contained in the concept note is what is known to the NSG members, to the best of their knowledge.

France According to the ADEME (Enea Consulting and KERDOS Energy Study 2018) only 8% of the energy consumed by the French industrial sector comes from renewable energy sources, most of it from biomass combustion or methanisation. Although it is based on mature technologies, the SHIP sector remains a niche market, poorly developed in France, with very little data available for analysis. The estimation is that less than 4,000 m2 are installed based on the information that are made public by industrial companies and the ADEME.

There are many obstacles to overcome: significant investment and design costs, current competition with fossil fuels (gas and oil), lack of awareness of the process industries, lack of business models, and lack of guides and tools for designers and engineers. Thermal solar remains, on average, the least competitive heat generation technology today for industrial companies in France, but significant cost reductions are expected.

Germany Germany ranks third worldwide in terms of installed solar thermal capacity with over 29 million m2 installed by the end of 2016 (Weiss and Spork-Dur, 2018), but available statistics on SHIP show only a marginal penetration of solar thermal applications among industrial end-users. This is 23 plants

5 Biermayr et al. (2017): innovative Energietechnologien in Österreich Marktentwicklung 2016, Berichte aus Energie- undUmweltforschung 13/2017, Nachhaltigwirtschaften, bmvit https://www.google.at/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwiy4- vX2PjZAhUEkiwKHSWEDi4QFggzMAE&url=https%3A%2F%2Fnachhaltigwirtschaften.at%2Fresources%2Fnw_pdf%2F201713- marktentwicklung-2016.pdf&usg=AOvVaw1f9y9bwwc3apEmF5S2i_mI

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 12 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes overall, standing for an installed capacity of 4.878 m2 reported in the (non-comprehensive) SHIP database already mentioned. Additionally to those results, around 12.000 m2 were installed by the end of 2016, according to the German Marktanzeigeprogramm (MAP) statistics,6 thus standing for a penetration way below 1% of the total installed solar thermal capacity.

Greece The total solar thermal installed capacity in operation by the end of 2016 for small and medium temperature application in Greece was 3,1 Wth, corresponding to 4,497,600 m2 of solar collective area7. These figures place Greece in the third position in EU28 in terms of both total installed capacity and total installed capacity per 1,000 inhabitants in operation by the end of 2015. The most widespread application in Greece is Domestic Hot Water (DHW) production, covering the 76% of total application distribution. The main solar thermal product is the thermosiphon water heater and the main technology is the flat plate collectors.

There are 6,297 m2 of collectors installed in 10 different systems across the country, the majority of which were installed using products, components and services by members of EBHE. EBHE is the Greek Solar Industry Association (EBHE), that has 22 permanent (solar thermal systems industries) and 25 cooperative members (including the Solar Thermal Systems laboratory of the National Research Centre “Dimokritos” and the Centre of Renewable Energy Sources).

The objectives of EBHE include monitoring; promotion and research of the technological and scientific evolve of solar power issues; the dissemination of solar power applications; and the cooperation among its members and the international representation of the industry. Under the conditions listed above, EBHE may be considered as a kind of quality label. Its members offer a wide range of solar thermal products and the customer has an assurance that both the product and the provider are reliable. Moreover, EBHE actively participates to the development of European Standards concerning quality, reliability and safety of solar thermal systems.

Italy The market of industrial heat in Italy is very large and diversified. The total demand of thermal energy in 2014 was 680 TWh, with a 41% arising from the industrial sector. The average annual consumption of thermal energy by an Italian industry is 700 MWh, corresponding to a bill of about 50.000 Euro. Investments in energy efficiency are growing, mainly with the adoption of cogenerative and heat recovery systems8.

According to the SHIP systems database9, which lists 213 projects with 129 MWth installed capacity (0.18 million m2), only a SHIP plant has been installed in Italy, namely the Linear Fresnel collectors delivered by CSP.F Solar in Sardinia to supply heat to the cheese production factory Nuova Sarda Industria Casearia.

A more recent survey performed by Solrico for the Solar Payback initiative10 11 maps 71 companies in 22 countries as specialist of SHIP, where two of those are Italian (Soltigua and Trivelli Energia). As

6 Schmitt, B. Uni. Kassel. Der Beitrag solarer Prozesswärme zur Wärmewende in der Industrie, Berliner Energietage Solare Wärmewende, Mai 2017 7 https://www.aee-intec.at/0uploads/dateien1290.pdf 8 http://www.energystrategy.it/ 9 AEE-INTEC, 2013. Database for applications of solar heat integration in industrial processes. http://ship-plants.info/ (2013- 2016). Accessed February 2017 10 SOLRICO, Bärbel Epp, 2017. Solar Process Heat: Surprisingly popular. Sun&Wind Energy. http://www.sunwindenergy.com/topic-of-the-month/solar-process-heat-surprisingly-popular (online 14.02.2017)

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 13 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes for available information, we should consider among the active manufacturers also Reflex (PTCs), Idea (LFR), Sun Gen (Dish), CSP-F (LFR). In addition to this, it is worth mentioning that Trivelli Energia has completed some installations of PTC mid temperature collectors (Genova, San Bartolomeo, Lecce), even if those are space heating and DHW production.

Portugal The implementation of SHIP in Portuguese industry is very limited, with a few systems for hot water production installed and operating for a few years and, at present, with only one SHIP installation on record, and another under implementation: The existing installation is made on a metallurgic factory to deliver heat for process wash and drying (temperatures ranging from 50 ºC to 160 ºC) attaining 180 ºC outlet temperature. It is designed to generate 67.0 kWth through a small-scale (108.0 m2 collector aperture area) parabolic trough collector (Icarus Heat®), using thermo-oil as working fluid. The system is hybridized with a natural gas burner12. An installation is being implemented at an electronic components manufacturing industry, aiming at delivering process heat for electrolyte preparation and impregnation at a controlled temperature (ranging from 40 ºC to 180 ºC). The solar system aims to generate 100 kWth (at 180 ºC) by using a 186 m2 aperture area solar field of CPC-type collectors with thermal oil as heat transfer fluid. It will include a thermal energy storage system with a phase change material as well as a sensible heat storage in order to balance the solar supply - process demand mismatch due to the batch production and variable loads.

Spain

Although Spain has good conditions for SHIP applications and the potential market is supposed to be large, no specific study about the size of this market has been performed in the last seven years. Some studies were performed in the past putting altogether low temperature and medium temperature solar applications. The most complete study so far available was performed by the Spanish Institute for Energy Saving and Diversification (IDAE), within the framework of the National Renewable Energy Plan 2011-2020. That study, which was published in 2011, analyzed the potential use of solar thermal energy in Spain for the period 2011-2020. The study obtained the energy consumption of the Industrial sector from national statistics and made a detailed analysis of the characteristics of the industrial processes used in several sub-sectors to decompose the use of energy in different temperature levels. At the same time, information about the available roof and land surface to install solar collectors in the industries was gathered by means of phone calls13.

Concerning commercial projects, three SHIP applications were built in Spain in the 80´s of last century. However, those solar systems were in operation for a short period of time only because of technical problems with the parabolic trough solar fields implemented. At present, there are eight SHIP systems in operation in Spain, while two more projects are at an advanced stage of development. Three of these projects have a design temperature at the lower range of SHIP applications (80ºC). These systems have an overall collector area of 4,395 m2 and a thermal power of 2.56 MWth.

11 Solar Heat for Industry (accessed at https://www.solar-payback.com/wp-content/uploads/2017/07/Solar-Heat-for- Industry-Solar-Payback-April-2017.pdf on 25.05.18). 12 For further details, please see here: http://ship-plants.info/solar-thermal-plants/170-silampos-s-a- portugal?country=Portugal. 13 The complete study (written in Spanish) can be downloaded from: http://www.idae.es/file/9699/download?token=LRGSkNH7

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 14 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Switzerland The solar thermal industry in Switzerland is relatively small and mainly comprises water-heating collectors. About half of the installed collectors are imported, mainly from European countries. Domestic production supplies the other half. From the total Swiss collector production, about one quarter is exported. As per the International Energy Agency’s Country Report14, the total installed capacity of solar thermal systems peaked in 2009 at around 160,000 m2.

Out of those, and according to the ship-plants database, Switzerland has 2,004 m2 of collectors installed serving SHIP purposes, roughly 1.25% of the overall.

Turkey Despite the huge size of the formal and informal solar thermal market in Turkey, which is as large as the market size for all EU28 countries combined, only two SHIP installations were identified in the country. In 2008, 125 parabolic trough collectors were installed at the Pepsi Co. FritoLay potato chips factory in the Mediterranean town of Tarsus to supply process steam at 190 oC15. The collectors were supplied by SOLITERM Gmbh, which is a German company with a production facility in Ankara, Turkey16. In 2012 a linear Fresnel collector field was installed by the German company Feranova17 to dry the mineral feldspar at an ore mine in the Southwest of Turkey. From

Feranova’s 2014 brochure on their website, the system has a thermal capacity of 1 MWth, annual production of 1.4 GWth, and produces high pressure water at 200 oC that is used to heat air that is used in a drum dryer.

Additionally, a consortium consisting of the Turkey’s Clean Energy Foundation (TEMEV), the town of Eldivan, and the Turkish section of the International Solar Energy Society (GUNDER) is currently running the project Green Economy in the Village with support from the United Nation’s Development Program and Coca-Cola18. The objective of the project is to enable women living in Eldivan to sell a wide range of dried food products produced solar energy.

In the 2017 brochure Solar Heat for Industry, 71 suppliers of turnkey SHIP systems from 22 countries throughout the world are listed. The only Turkish company listed is Anitcam Sunstrip19 and is only generally described as “ready to offer turnkey” SHIP systems, which is in contrast to many other suppliers for which a specific list of services is described.

2.1.2 End-user deployment

The existing SHIP installations are scattered around a multitude of different end-uses, mostly dictated by the desired temperature of solar heat. Generally, low heat applications dominate, with a few exceptions of higher T systems using concentrating collectors. The concept notes only provide summary information, which is presented in the passages below. The interested reader may want to visit the ship-plants.info database where most of the plants discussed here are logged, with details on costs, collector sizes, installed power etc.

14 Country Report – Switzerland, Status of Solar Heating/Cooling and Solar Buildings – 2017. Solar Heating & Cooling Programme, International Energy Agency. URL: http://www.iea-shc.org/country-report-switzerland 15 http://www.ccila-portugal.com/fileadmin/ahk_portugal/site_upload/pdf_diverses/PDFs_energiasRenovaveis/SOLITEM.pdf 16 www.solitermgroup.com 17 www.feranova.com 18 www.temev.org.tr/koyde-yesil-ekonomi-projesi-cankiri-eldivan 19 www.sunstrip.com.tr

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 15 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Austria The sectors, which have already installed SHIP in Austria according to the database, are:

 Manufacture of furniture  Manufacture of food products  Manufacture of beverages  Manufacture of leather and related products  Manufacture of chemicals and chemical products  Manufacture of non-metallic mineral products  Manufacture of basic metals  Manufacture of fabricated metal products, except machinery and equipment  Manufacture of machinery and equipment n.e.c.  Electricity, gas, steam and air conditioning supply  Other service activities

Cyprus The sole SHIP system installed in Cyprus is deployed at a copper mine using flat plate collectors at very low temperatures (between 20 and 50oC), with another under construction at a soft drinks industry which will use concentration and higher T. There are possibilities for installations in various industries and within a variety of temperatures, but it’s difficult to make predictions of which, if any, will ever be materialised.

France SHIP is a means to provide process heat for the food and beverage, the textile and chemical industries as well as for simple cleaning processes, e.g. car washes representing circa 30% of the global industrial heat market.

This is due to the low temperatures required for the processes (30°C to 90°C), allowing the use of commercially available flat plate or vacuum tube collectors which are very efficient in this temperature range.

Figure 2: Industrial sectors and processes with the greatest potential for solar thermal use, according to the French concept note. Source: AIE task 33

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 16 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

On the demand side, heat is very largely used in food chemical and paper industry accounting for 30%, 28% and 18% of the global consumption of heat bellow 250 °C according to CEREN (Center for Studies and Economic Research on Energy).

Germany Although potential is identified for applications in the food & beverage (with special relevance to breweries) and fabricated metal products (with special relevance to galvanizing baths), both presenting some examples, a significant share of the existing systems stand for three applications: cleaning of vehicles, drying (mainly biomass), and rearing of piglets, all of them low temperature applications.

Considering the available solar resource, with DNI values ranging from 800 to 1150 kWh/(m2/year)20, likely SHIP applications reside on the low temperature / stationary technologies in sectors such as the Chemicals and chemical products, food & beverage, fabricated metal products, machinery and equipment or motor vehicles21. Additionally, applications in Agriculture and Forestry might also be relevant, as demonstrated by the current MAP statistics.

Greece The market of solar thermal applications for SHIP is quite limited given the potential of the sector. There are five sectors where SHIP systems can be deployed:

 Food industry (dairy products, tinned fruits and vegetables, cold cut and process meat factories, pastry and cake confectioneries, olive oil refineries)  Agriculture (solar drying, horticulture-nursery greenhouses, slaughterhouses, meat processing, livestock landings)  Textiles (tanneries, leather treatment, cloth refineries, textile treatment workshops)  Chemical industry (cosmetics, detergents, wax, pharmaceuticals, car rubber tyres)  Beverage industry (wineries, liquor and wine distilleries, breweries, fruit juices and soft drinks)

The ship-plants database contains only plants built with flat-plate collectors, which limits the temperatures used in the 100-150oC range, as is the case for most of the systems examined in this report.

Italy In Italy, as in other many EU countries, solar thermal is used today mainly for providing hot water to households and pools. Nevertheless, given its relevance in total final energy consumption, the industrial sector cannot be ignored.

SHIP target industrial sectors are well developed in Italy. In fact, key sectors for Italian economy are the food industry (including wine and beverage, count for the 12% of the Italian GNP), textile, transport equipment and chemical (including metal and plastic treatment, the overall Italian chemical industry is the third largest in Europe and the tenth in the world). In this sectors, the SHIP application could be used for industrial processes such cleaning, drying, evaporation and distillation, blanching, pasteurization, sterilization, cooking, melting, painting, and surface treatment.

20 Solargis, 2018. https://solargis.com/maps-and-gis-data/download/germany 21 Lauterbach, C. et al. Potential for Solar Process Heat in Germany - Suitable Industrial Sectors and Processes. Proceedings of EUROSUN 2010.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 17 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Another survey conducted within the IEA SHC Task 3322 shows how the investment in SHIP application could sensibly contribute to the achievement of the H2020 objectives. The analysis of the country potential states that, even though using quite different methodologies, the solar thermal could provide the industrial sector with 3-4% of its heat demand.

Portugal As outlined in the previous section, there are only a handful of Portuguese systems in operation or planning. The technologies used are again FPCs or CPC-type, with output temperatures in the range of 80-180oC.

Spain

From the analysis in the previous passages it becomes apparent that in Spain the industry energy consumption at low or medium temperature ( 250 ºC) occupied 40.9% of the total energy consumption in the industry sector in 2010, while the energy consumption in the range 60ºC

Switzerland According to the SHIP-plants database, Switzerland distributes its collector area for SHIP among six systems. These are all operating in a quite narrow temperature window of 120 to 180oC, using a mixture of flat plate (usually evacuated tubes) and parabolic troughs. Three of those systems are serving the dairy industry; two are used for processes related to asphalt and bitumen treatment, and one in surface treatment and coating.

Turkey The scant information available for the Turkish SHIP systems indicates that FPCs are not deployed in any known system in the country (according to the concept note), and only PTs and Fresnel-lens systems can be found in the existing installations. Concentrators allow for higher temperatures, and those infrastructures provide heat at around 190-200oC.

2.1.3 Local technology suppliers

This report is aiming to provide an overview of the concept notes for SHIP prepared by all core members of the INSHIP project. The local technology suppliers in each country has been reported in varying levels of detail by the notes’ authors, and therefore this section will not attempt to summarise what is essentially a catalogue of SHIP suppliers by country. The interested reader is

22 Vannoni C, Battisti R, Drigo S., “Potential for Solar Heat in Industrial Processes”. Report within IEA SHC Task 33/IV, Rome, Italy, 2008, https://www.aee-intec.at/0uploads/dateien561.pdf. 23 The complete study (written in Spanish) can be downloaded from: http://www.idae.es/file/9699/download?token=LRGSkNH7

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 18 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes encouraged to seek the individual note documents for further information. As an indication, the French concept note contains a rich and detailed account of the local suppliers.

2.1.4 Research activities and Infrastructures

The concept notes themselves contain a wealth of information on the Research Infrastructures (RIs) the project partners have recorded for their individual countries. This does not only include RIs in the possession or control of the partners themselves, but also in the wider research areas of each country. The list presented in Table 1 is a summary of those reported, but does not include every RI infrastructure; rather, the most relevant are presented here, and the interested reader is encouraged to examine closer the concept notes to acquire a more detailed view. The RIs omitted also include those for which there was not enough data in the concept notes to guarantee inclusion. The most important point however that is the RIs in the table are only those that the concept notes contain, and do not necessarily represent a complete picture for every country. For example, Spain has some of the most advanced RIs in the world for research related to CSP, but since the Spanish note gives emphasis only on those related to SHIP, these are the ones presented in this document. As this deliverable is a ‘dynamic’ document, Table 1 will be subject to updates as INSHIP progresses.

Note that many of the RIs are serving many purposes, some of which are closely related to SHIP activities. Those are labelled as ‘Partial’ in the ‘Designed for SHIP’ column. Infrastructures dedicated to such tasks are thusly indicated in the same column.

An updated map of the RIs declared and described within INSHIP is available in: http://www.inship.eu/research_infrastructures.php

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 19 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Table 1: Research Infrastructures reported in the national concept notes

Country Name / description Owned / Operated by Designed for T range Type SHIP Cyprus Liner Fresnel Facility The Cyprus Institute Yes 80-279 Fresnel PROTEAS The Cyprus Institute No 230-550 Tower Desalination Lab The Cyprus Institute No N/A N/A TESLAB The Cyprus Institute No N/A N/A Solar cooling & heating CUT Yes ? Evac. Tubes Archimedes Solar Lab CUT No Various ET and PT Advanced Energy System Lab AELab No Various Flat plate only

Spain Meduim scale Power Plant U of Lleida Yes 50 - 380 ? CAPSOL test facility PSA Yes 0-230 PT Thermal collectors test Lab CENER No N/A N/A

Austria Collector test rig AEE INTEC No Various Various Lab for Membrane Distillation AEE INTEC No N/A N/A Sensible Storage tanks testing facility AEE INTEC No N/A N/A Kinetics of solid sorption materials testing AEE INTEC No N/A N/A

France SOCRATE PROMES Partial Various Furnace, Tower SOLSTICE PROMES No Various Various MiscroSol-R PROMES Yes 300-400 PT ALSOLEN CEA/INES Yes up to 300 Fresnel ALSOLENSUP CEA/INES Yes up to 450 Fresnel Microsol CEA No up to 180 PT

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 20 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Val-ThERA School of Enginners Albi- Yes ? Beam-down Carmaux

Germany Sopran DLR No Various Various Solar Furnace DLR Partial up to 2500 Dish Solar Thermal Test and Demonstration Power Plant Jülich DLR No ? Tower (STJ) OPAC DLR / CIEMAT No Various Various DSC (Differential Scanning Calorimetry) FISE No N/A N/A

Greece Solar heating and cooling system CRES Yes <100 Flat plate Desiccant Evaporative Cooling (DEC) CRES Yes ? Flat plate Testing facilities for solar collectors Demokritos SESL No Various Various District heating demo plant Democritus University of Thrace Partial ? PT

Italy Laterizi Gambettola Soltigua No up to 180 Fresnel CNR-INO labs CNR-INO Partial Various PT Energy Exchange laboratory of Eurac Eurac research No up to 250 PT Prototype solar system University of Padua No Various PT Solar Dish FBK Partial 2,500 Dish Dish stirling concentrator University of Palermo Partial ? Dish SoLL Living Lab ARCA, UniPa Partial up to 270 Fresnel CSP absorber and storage (Napoli) CNR No ? ? Solar Lab University of Salento Partial Various PT PCS system ENEA (Casaccia) No up to 550 Tower MOSE storage testing facility ENEA (Casaccia) No N/A N/A Solar Collectors Optical Laboratory ENEA (Casaccia) No N/A N/A Testing facilities for swivel joints Meccanotecnica Umbra Group No N/A N/A

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 21 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Portugal Évora Molten Salts Platform U of Evora and DLR No N/A N/A Solar Concentrators Testing Platform U of Evora No N/A N/A Direct Normal Irradiance measurement network U of Evora No N/A N/A Soiling characterization and mitigation U of Evora No N/A N/A Laboratory of Solar Energy (LES) LNEG No N/A N/A Laboratory of Materials and Coatings (LMR) LNEG Partial N/A N/A

Switzerland Professorship of Renewable Energy Carriers (PREC) ETHZ Partial Various Various

Turkey Laboratory ODAK METU Partial Various Various Ege University’s Solar Energy Institute EU-SEI Partial Various Various

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 22 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

2.2 Incentives for market deployment

The following passages present an overview of the incentives provided in the concept notes, by country. The summary of the detailed presentation of incentives is that the schemes in place are not geared towards supporting SHIP. This is certainly the case for Austria, Cyprus, Greece, Portugal, Switzerland and Turkey, where any schemes that exist are designed for renewables in general and more often than not, would target the domestic hot water market.

In Spain, there is support mostly in regional programmes, but yet to garner considerable interest for SHIP. In Italy, even though the relevant scheme has enough funds for support, it is not geared toward larger SHIP systems. France and Germany have generously financed programmes of support that cover a large umbrella of activates (related mostly to renewable heat), but there again the amounts secured for SHIP are miniscule compared to the size of the fund. The general trend therefore seems to be of increasing interest from funding bodies, but little to show so far, according to the data in the concept notes.

Table 2 summarises these trends captured for all countries. In addition to the above, the incentive landscape on a national level is very diverse in every country, with wide variety of instruments on offer. Almost all financial sources for SHIP support utilise public funds, but their use varies: Grants tend to dominate, but there are also a few financing schemes offering favourable conditions for loans, as well as instances of tax breaks, green energy certificates, free audits etc. There is a mixture of centralised (or federal) funding and regional, depending on country and level of devolution. Spain in a prime example where most opportunities appear to come from the regional level.

No scheme is designed for SHIP though. In all of the cases, SHIP is supported via bundles containing other types of energy (usually renewables), via energy efficiency schemes, or by general business development. In addition, the scope is not always clearly catered towards businesses; often the schemes serve residential customers too, and it is hard to discern fund absorption for SHIP only. It is also observed that often funds remain underutilised, with low numbers of applications.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 23 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Table 2: Summary of SHIP incentives

Country Scheme name Source Sector Type of Existing Start. Impact / Notes incentive (Y/N) date

Austria Regional programmes Public All CAPEX / Y Over 10 years, about 3,500 companies subsidy have benefited from 4,700 subsidised consultant visits Energy contracting OÖ Public All CAPEX / Y 2013 Over 150 projects, total investment 40 subsidy Mio. Euro, Subsidy: 2.6 Mio. (state 2013) UFI Energy Public Companies, CAPEX / Y 2015 € 62 Mio. for all UFI projects in 2015. municipalities subsidy More than 1970 projects in 2015 (regarding all UFI projects) Solar Thermal Public All CAPEX Y More than 180 plants larger 100m² Soft Loan ERP Funds SMEs Financing / Y Yearly donation of fund: €500 – 600 Loan Mio. Financing instrument Diverse ESCOs Financing / Y 2005 Members have invested around 100 Loan Mio. Euro (2005-2011) only in Energy Performance Contracting Cyprus Energy Efficiency Revolving Public All Financing / N 2019 Considerable energy saving potential Fund (EERF) Loan Energy Audit Reports (EAR) Public All Free audit to N 2019 Floor area over 1,000 m2 identify largest energy saving France Heat Fund Public Collective CAPEX / Y 2009 The scheme has funded 4,000 housing, industry, subsidy renewable heat production plants, for tertiary, a total of €1.57 billion agriculture, tourism Appel à projets national : Future large-scale CAPEX Y 2009 Fund has received 14 applications and APP Grandes Installations Investments commercial solar approved 6. Including a 4,000-m² plant Solaires Thermiques Program thermal plants to supply heat to a paper mill.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 24 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

(Investisseme nts d’avenir) Appel à projets national : Future All renewables CAPEX / Y 2009 In 2012-2016, ADEME aimed to support AAP Énergies Renouvelables Investments subsidy technologies that are not yet widely Program available (Investisseme nts d’avenir) Germany Promotion of Measures for Public All CAPEX Y 2000 more than 1.7 million installations and the Use of Renewable their components have been funded, Energies in the Heating including more than 1.1 million solar Market (MAP) thermal systems Greece Infrastructure Fund Public All Financing / N 2019 favourable financing conditions to the Loan private and public sector for the implementation of small and medium- sized projects Obligation for energy audits Public Large enterprises Indirect Y Enterprises over a certain size are incentive obliged to undertake energy audits, with SHIP a probably recommendation Italy Conto Termico Public (levy All CAPEX Y 2012 Incentive calculated cia a formula. on NG) Large plants the less incentivised. Budget underutilised. Ecobonus Public Private buildings CAPEX Y Tax refunding scheme for private (residential & buildings. industrial) Certificati Bianchi Public All CAPEX / Y 2017 Market-based certificate exchange subsidy system Portugal Operational Program for Public All CAPEX / Y 3 investment axes, most relevant to Sustainability and Efficient subsidy SHIP is the Promotion of energy Use of Resources (POSEUR) efficiency and use of renewable energy in enterprises scheme COMPETE2020 Public Business sector CAPEX / Y Relevant axis aims to ‘strengthen subsidy research, technological development and innovation’ Various regional Public / All CAPEX / Y Programmes NORTE2020; CENTRO2020; programmes regional subsidy LISBOA2020; ALENTEJO2020;

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 25 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

ALGARVE2020; AÇORES2020; MADEIRA14-20. All managed by the Commissions for Regional Coordination and Development (CCDR) Spain Institute for Energy Saving Public Large-scale Loan / Y 2011 Supports solar thermal energy and and Diversification (IDAE) commercial solar Financing other types of energy for heating and thermal plants cooling. Not very successful. Programmes ‘Andalucía es Public / All CAPEX / Y 2018 Programmes issued yearly, and may be Más’, ‘IVACE’, ‘Improvement regional Subsidies / scrapped after only one year of of the energy efficiency and Loans operation. use of renewable energies in public infrastructures and industries’, ‘Regional incentives for corporate investments’, ‘Agro-industrial incentives to the investment’, ‘Regional incentives’, ‘Renewable energy projects’. Switzerland EnergieSchweiz Public All CAPEX / Y 2017 Programme brings together voluntary Subsidies measures to implement Swiss energy policies under its umbrella. Not SHIP specific Turkey None N/A N/A N/A N/A N/A N/A

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 26 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

2.2.1 Austria

The observed incentives in Austria can be divided into the subsidies, loan and financing instruments. The mentioned incentives will be described in more detail in the following sections.

Subsidies Table 3 gives an overview on subsidies related to SHIP respectively energy efficiency. The individual programmes are described in more detail after the table.

Table 3: Overview of Subsidies in Austria24

Name Instrument Source Sector Technology Impact Regional Subsidy/ Public All Energy Over 10 years, about programmes Grant Audits, EMS 3,500 companies have benefited from 4,700 subsidised consultant visits Energy Subsidy/ Public All Energy Over 150 projects, contracting Grant (regional Efficiency, total investment 40 OÖ funds) Renewables Mio. Euro, Subsidy: 2.6 Mio. (state 2013) UFI Energy Subsidy/ Public/National Companies, Renewables, € 62 Mio. for all UFI Grant municipalities Energy projects in 2015. services, More than 1970 Energy projects in 2015 Efficiency (regarding all UFI projects) Solar Thermal Investment Public/National All Solar More than 180 plants Large Plants Incentive / Thermal larger 100m² Grant

Regional programmes supporting energy consultancy for businesses Regional programmes support consultancy on environmental topics, the implementation of an energy environmental system and help companies to detect energy savings potentials as well as potentials for the use of RES. The focus of the programmes is depending on the region where the money comes from. Parts are co-financed by the ministry of environment or others like the regional chamber of commerce or the regional energy utility25.

Energy Contracting Oberösterreich The programme supports energy supply contracting projects (construction of energy installations using mainly renewable sources) and energy performance contracting projects in companies and municipalities in Upper Austria by partially covering payments to the ESCO via a public grant. It is a preparatory measure for implementing the energy efficiency regulation in the service and buildings sectors1 .

UFI Umweltförderung im Inland (Environmental Support Programme) Within this programme, funds are given to companies or organisations for building and rehabilitation, energy savings and renewable energies. The following technologies are covered:

24 TrustEE: Deliverable. https://www.trust-ee.eu/files/otherfiles/0000/0010/TrustEE_D1_6.pdf 25 TrustEE: Deliverable. https://www.trust-ee.eu/files/otherfiles/0000/0010/TrustEE_D1_6.pdf

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 27 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 Renewables (Biogas, Wood, renewable heat)  Energy Services (Energy management)  Energy Efficiency (Awareness rising activities in companies, building of knowhow) 1

Solar thermal – solar thermal large plants The programme supports large-scale solar thermal systems with collector areas of between 100 and 10,000 m². Funding is provided for the following areas:

 Solar process heat in production plants  Solar feed into grid-connected heat supply systems (micro grids, local and district heating networks)  High solar coverage (over 20 % of total heat demand) in commercial and service enterprises  New technologies and innovative approaches (special funding requirements and subsidies possible from 50 m² collector area)

The aim is to intensify the integration of solar thermal systems in commercial applications as well as on focusing on high innovative content and technology development26.

Loans Table 4 shows basic information on loans given to companies for investments in Renewables and Energy Efficiency as well as Energy Contracting.

Table 4: Overview of loans and financing instruments in Austria27

Name Instrument Source Sector Technology Impact ErP Loan, Soft Loan ERP Small, Renewables, Yearly donation of fund: Guarantee Funds SMEs, big Energy €500 – 600 Mio. Efficiency Energy Financing Diverse ESCOs Energy Members have invested Contracting instrument Efficiency, around 100 Mio. Euro Renewables (2005-2011) only in Energy Performance Contracting28

Erp Loan, Loan Guarantee for investments in Environmental protection Companies are supported at financing projects in research (within the meaning of experimental development. Energy saving measures, measures for improving energy efficiency, use for renewable energy or high efficient CHPs are examples for supported investments. The funds come from the ERP Funds and underlie the European law on state aid1.

Energy Contracting The instrument aims at an efficient use and saving of energy, making efficient technologies and Renewables accessible1.

26 Biermayr et al. (2017): innovative Energietechnologien in Österreich Marktentwicklung 2016, Berichte aus Energie- undUmweltforschung 13/2017, Nachhaltigwirtschaften, bmvit https://www.google.at/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwiy4- vX2PjZAhUEkiwKHSWEDi4QFggzMAE&url=https%3A%2F%2Fnachhaltigwirtschaften.at%2Fresources%2Fnw_pdf%2F201713- marktentwicklung-2016.pdf&usg=AOvVaw1f9y9bwwc3apEmF5S2i_mI 27 TrustEE: Deliverable. https://www.trust-ee.eu/files/otherfiles/0000/0010/TrustEE_D1_6.pdf 28 DECA (2013): press release, June 2013: http://www.deca.at/up_files/75.pdf

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 28 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

2.2.2 Cyprus

Currently there are no direct incentives in place for the promotion of SHIP applications in Cyprus due to limited available budget of the Fund that is responsible by law for the promotion of Renewable Energy Sources and Energy Efficiency. For this reason, the Government is in a transitional phase to a more market-oriented financial support scheme. One such possible scheme under examination is the creation of a dedicated Energy Efficiency Revolving Fund (EERF), where the Government can provide low interest rate loans (with minimal procedural steps) to prospective investors. The funding of the projects being examined will be made according to the energy saving potential they will bring. In order to support and enhance the above initiative, another support scheme, called Energy Audit Reports (EAR), will also be announced to provide incentives through financial support for the service sector called Energy Audit Reports (EAR). The EAR instrument will help the investors to identify the optimum measures and projects to be taken to achieve the highest economic benefit from such investments. The above scheme will be eligible only for buildings with a useful floor area above 1000 m².

Pilot actions should be also supported under the next period but under a specific market strategy that would foresee and anticipate the replication of these interventions and/or the uptake of various market mechanisms. In addition, the Fund has been subsidizing various RES and Energy Efficiency measures from the year 2004-2013, as well as, cogeneration Projects. Table 5 summarises these incentives for Cyprus.

Table 5: List of SHIP incentives for Cyprus

Scheme Incentive Incentive Other Existing Start. date Access name on CAPEX on OPEX incentive (Y/N) conditions Energy Low interest N 2019 Considerable Efficiency loans energy Revolving saving Fund (EERF) potential Energy Free audit N 2019 Floor area Audit to identify over 1,000 m2 Reports largest (EAR) energy saving

2.2.3 France

The ADEME, the French Environment and Energy Efficiency Agency, participates in implementing public policy in environmental, energy and sustainable development areas. Among others, the Agency assists with funding projects from research through to implementation. It manages different financing support tools at national and regional level such as the Heat fund (Fonds Chaleur) and issues different calls for projects at both national and regional level managed as State-Region Project Contracts.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 29 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 3: Public aide scheme

Heat Fund The Heat Fund was set up in 2009 in order to support the production of heat from renewable resources and recovered energy. Since its inception, this scheme has funded 4,000 renewable heat production plants, for a total of €1.57 billion. More work needs to be done though: the annual number of projects granted by the Heat Fund should reach 600 ktoe to meet France's renewable heat targets, compared to 250 ktoe as of 2017. Furthermore, more than 100 M€ of ongoing or upcoming projects have been postponed in 2018 and subsidies could be replaced by repayable advances.

Financial support for solar thermal installations can be granted under certain conditions

In 2015, 17 industrial installations were granted for a total amount of €1.4 M subsidies including one project of 1440m² and 32 agricultural installations totalling €2 M.

Call for proposals The program is mainly implemented through two national calls for proposals, requiring interested applicants to submit proposals for their projects within a given period. One is dedicated to solar thermal (Grants for large-scale commercial solar plants) while the other one has a broader scope (Grants for renewables). The French government’s Future Investments Program (Investissements d’avenir) finances both calls. Established in 2009, this funding program provides grants for partnership

29 SOCOL ( "Solar Collective") is an initiative of ENERPLAN in support of the Heat Fund. It has been supported by ADEME since 2009, and GRDF since 2013, in order to structure the offer through performance and quality, as well as boost the market. In 2018, SOCOL brings together nearly 3,000 members, professionals and project owners

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 30 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes research projects together with other European countries in order to achieve the identified targets of the various Declaration of Intents endorsed by the SET-Plan Steering group.

 Grants for large-scale commercial solar thermal plants (Appel à projets national : APP Grandes Installations Solaires Thermiques) o Two tender rounds annually since 2015 ; two new submission deadlines planned for March and November 2018 o Main objectives: . Enable economically competitive renewable energy projects to be achieved through economies of scale. . support project leaders in a quality approach and promote solar thermal for large applications o Applicable sectors : multi-family buildings, industry, hospitals, district heating o Requirements: . Industry > 300m² collector area (T°< 100°C), District heating >500 m² collector area . Certified sensors. Simple hydraulic diagram and functional logic . Feasibility study o Investment grant /Objective: 250€/toe . Up to 50 % -60% for the feasibility study, up to 60% of the investment depending on the size of the company and the technical and economic analysis of the project. Ex: 60 % for a first installation o Advantages : . Possibility of analysis of particular hydraulic diagrams (the patterns of the Heat Fund are very specific) . Adjusted aid according to the economic analysis of the project (contrary to a lump sum aid) o Since the launch of the subsidy scheme in 2015, ADEME has received a total of 14 applications and approved six. The largest project to date was approved in July 2016: a 4,000 m² solar plant to supply heat to a paper mill in the Dordogne region, together with a third-party investor, French-based NEWHEAT.  Grants for renewables (Appel à projets national : AAP Énergies Renouvelables) o Main objectives: . Support the development of projects in the field of renewable energies: biomass, photovoltaic, solar thermal, wind, geothermal, renewable energy as well as hybridization projects of different renewable solutions. . Three tender rounds annually; Tender schedule for 2018/2019: June14th 2018, October 25th 2018 and September 19th 2019 o It focuses on 6 axis including: . Development of innovative technological bricks and Demonstration systems . Consideration of solar thermal energy for buildings and for industrial processes

In 2012-2016, ADEME issued a new call for proposals called NTE "New Emerging Technologies". It aimed to support technologies that are not yet widely available but already exist at an industrial or quasi-industrial scale, in France or abroad. It looks like it was not renewed in 2018.

Moreover, some international bilateral call for proposals can be initiated to grant cooperative research projects in the field of renewables (e.g.: a bilateral French-German call for proposals focused on “sustainable energy” will be launched in 2018).

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 31 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

2.2.4 Germany

The Market Incentive Program for the Promotion of Measures for the Use of Renewable Energies in the Heating Market (MAP) is the Federal Government's central funding instrument for renewable energy installations. These include solar thermal systems, solid biomass combustion plants and efficient heat pumps in applications in the residential, services and industrial sectors. Since 2000, more than 1.7 million installations and their components have been funded, including more than 1.1 million solar thermal systems30.

Regarding SHIP related proposals, a non-reimbursable incentive of up to 50% of the overall investment, including planning and installation costs, costs for system integration or costs for system monitoring and data collection is available to systems presenting a solar field area from 20 m2.

Eligible solar thermal systems can be partly also used for space and water heating though the major share of the annual produced solar heat needs to be used for solar process heat. The application process is standardized and includes access to cumulated 31financing through certain KfW or BAFA and federal states’ funding programmes.

In total, more than € 2.7 billion in grants have been disbursed, including more than € 1.4 billion for solar thermal systems.

2.2.5 Greece

The incentives for market deployment in Greece are limited and generally addressed in RES technologies and not directly to the implementation of solar thermal systems.

Apart from the funding programmes described in chapter 2.1.5, the Greek Government supports a more market-oriented financial support scheme. To this aspect, it is currently under development the establishment of an Infrastructure Fund (Government Gazette B 4159 / 29.11.2017), which aims at offering favourable financing conditions to the private and public sector for the implementation of small and medium-sized projects, with emphasis on energy, environment and urban development.

An indirect incentive for the SHIP market deployment is included in the Greek legislation 4342/2015 (Article 10) and in the Ministry of Finance Circular “ΔΕΠΕΑ/Γ/οικ.181906/5.10.2017” concerning the energy audits in large enterprises with total number of employees over 250 or total number of employees less than 250 but with annual turnover over 50 million € and annual balance sheet total over 43 million €. According to this legislation, all large enterprises are obligated to undergo energy audit, carried out in an independent and cost-effective manner. They should specify in which of the following categories of energy audit belong in order to be ensured that the energy audit is made by energy auditors with the proper qualifications (ΦΕΚ 1927/30.05.2018):

 Residential, office and commercial buildings up to 2,000 m2 and laboratories with installed electric power up to 22 kW or thermal power up to 50 kW  Office and commercial buildings over 2,000 m2 and other buildings of tertiary sector as well as industrial installations with a total installed capacity up to 1,000 kW  Industrial and small-scale installations with a total installed capacity of more than 1,000 kW.

30http://www.bafa.de/DE/Energie/Heizen_mit_Erneuerbaren_Energien/Solarthermie/Neubau/Innovationsfoerderung_Prozesswa erme/prozesswaerme_node.html 31 It can be only cumulated with specific subsidy programs of the different federal states, considering the maximum allowed subsidy on EU-level (45/55/65 %)

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 32 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Large enterprises should be subjected to a new energy audit (by external auditors registered in the Registry of Energy Auditors of ministry of Energy) no later than 4 years from the date of the previous energy audit. A platform, related to the registered large enterprises (within the framework of Article 10) is currently under construction through which large enterprises will be obligated to define specific energy efficiency measures (proposed after the conduction of the energy audit) which, some of them, will be implemented within a certain period of time.

Large enterprises that implement “ISO 50001 - Energy management” are also obligated to carry out energy audit. The ISO 50001 – Energy management implementation is considered an incentive for SHIP applications in all types of industrial enterprises – large, small and medium ones.

Finally, indirect incentive for SHIP interventions in Greece is the enforcement of the “Energy efficiency obligation schemes”32, created according to the Article 7 of the Energy Efficiency Directive 2012/27/EU33 and described in the Article 9 of the Greek legislation 4342/201534. According to this, each EU member state shall set up an energy efficiency obligation scheme, which shall ensure that energy distributors and/or retail energy sales companies - that are designated as obligated parties - operating in each Member State's territory, achieve a cumulative end-use energy savings target by 31 December 2020.

2.2.6 Italy

In Italy, three main incentives models are applicable to the SHIP technologies and increase the market deployment:

 the so-called “Conto Termico”,

 the “Ecobonus” for energy efficiency of buildings

 the so-called “Certificati Bianchi” or Energy Efficiency Credits (EEC).

Conto Termico Conto Termico is the national subsidy scheme for energy efficiency and small renewable heat plants, is far behind the expected budget. The incentive scheme has been issued in 2012 and revised in 2016. Resources (900 million of Euro per year) come from as levy on natural gas tariffs. It seems far behind the expected budget: the official figures by the programme´s administrator “Gestore dei Servizi Energetici (GSE) show that, by the end of 2017, resources available in 2018 for public bodies are around 198 out of 200 million EUR and resources available for private persons and companies are about 688 out of 700 million EUR35. The incentive is a rebate calculated from an expected performance level. Solar hot water systems (also including solar process heat and solar district heating), solar space heating, solar cooling; also concentrating solar collectors are eligible. The incentive is paid in 2 annual instalments for systems below 50 m2 and in 5 annual installations for systems above 50 m2 and up to 2,500 m2 (maximum threshold).

32 Energy efficiency obligation schemes, www.cres.gr/obs/index.html 33 European Energy Efficiency Directive 2012/27/EU, http://www.cres.gr/obs/EN%20-SWD%202013%20451%20ARTICLE%207.pdf 34 Greek national legislation 4342/2015, http://www.publicrevenue.gr/elib/view?d=/gr/act/2015/4342 35 source: www.gse.it

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 33 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 4: Incentive levels for different collector types based on the new rules of Conto Termico 2.0 compared to the ones of Conto Termico 1.0 (continuous black line). Source: SDH Energy

The yearly instalment is calculated as follows:

Ia tot = Ci •Qu• Sl where Sl refers to the system’s gross area, Ci is a parameter ranging from 0.09 to 0.43 depending on the system size and application, and Qu is the annual collector yield (as reported on the Solar Keymark certificate for Würzburg / Athens at a temperature dependent on the application) divided by the gross area of the collector. Solar heating and cooling installations are financed up to a maximum of 2,500 m² of gross collector area and up to 65 % of the investment cost. If the calculated incentive is higher than this threshold, then it is automatically lowered to cover the 65 % of the total system cost. Collectors/systems must be certified with EN12975 or EN12976 and Solar Keymark. In specific cases, where no reference standards are available, collectors might be certified by ENEA. Collectors must meet minimum values for their efficiency curves and systems must meet minimum values for their expected annual yield.

The largest plants, which are more suitable for SHIP applications, are the less incentivized. In addition to that, a quality assurance measure is introduced for plants above 100 m² of collecting surface, which are obliged to include a metering system for the produced heat, although the measured yield will not be relevant for the incentive amount. Solar cooling systems are explicitly considered.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 34 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Table 6: Incentives allowed by the “Conto Termico” accordingly with the size of the solar field and the application

Ecobonus The “Ecobonus” tax refunding scheme has been designed to promote energy efficiency intervention in private buildings. It is specifically considered the installation of solar collectors for hot water production, also for industrial applications. Solar panels must be guaranteed for at least five years, having a quality certification in compliance with the UNI EN 12975 or UNI EN 12976 standards issued by an accredited laboratory. The refund covers the 65% of the cost, with a threshold of 96.000 Euro (to be reduced to 48.000 Euro after the 30th of June 2018). The refund will be distributed in 10 years.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 35 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes implementing measures to increase energy efficiency. The system is based on a mandatory primary energy saving scheme for electricity and natural gas distributors with more than 50,000 end customers. For each mandatory year, from 2017 to 2020, it targets the savings that distributors have to achieve through the implementation of energy efficiency measures have been set. The obliged parties can fulfil the savings obligation in two ways:

1. realizing directly or through the companies controlled by them, or by controlling them, the energy efficiency projects admitted to the mechanism;

2. purchasing the securities from the other parties admitted to the mechanism, or other distributors, certified ESCOs or public or private end users who have appointed a certified Expert in Energy Management (EGE).

For each TOE (Tonne of Oil Equivalent) of savings achieved thanks to the implementation of the energy efficiency intervention, a Certificate is recognized throughout its useful life established by the legislation for each type of project (from 3 to 10 years). The volunteers and the obliged parties exchange the WCs on the market platform managed by the “Gestore dei Mercati Energetici SpA (GME) or through bilateral negotiations.

WC can be obtained also by the adoption and installation of SHIP systems.

2.2.7 Portugal

At the moment there are no direct and specific incentives in place for the promotion of SHIP applications in Portugal. However, incentives for SHIP market deployment can be obtained under the Portugal 2020 operational programmes (competitive funding). Main funding for energy related innovation and demonstration projects comes through the Operational Program for Sustainability and Efficient Use of Resources (POSEUR), the thematic Portugal 2020 OP devoted to sustainability. POSEUR has three investment axes, being the first axis dedicated to support the transition to a low carbon economy in all sectors, where SHIP investments could be supported. Particularly the second investment priority is very relevant for SHIP deployment (Promotion of energy efficiency and use of renewable energy in enterprises), although its operationalization is made through the regional operational programmes. This axis has regular open calls, which can be easily accessed at: https://poseur.portugal2020.pt/pt/candidaturas/avisos/. It should also be noticed that despite the considerable potential for SHIP implementation in Portugal, SHIP is not explicitly mentioned in this programme.

Another important Portugal 2020 OP is the COMPETE2020 that aims at promoting the Competitiveness and Internationalization of the Portuguese business sector. It is again constituted by several priority axes. The first axis relevant aims to “strengthen research, technological development and innovation”, promoting projects for technological transfer from the research centres to the market; being well suited to SHIP. The open calls can be consulted here: http://www.poci- compete2020.pt/Avisos.

2.2.8 Spain

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 36 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

In Spain there are some incentives for both development and fully commercial SHIP projects. These incentives are provided at national and regional level by funding entities belonging to the Central Administration and also entities belonging to the regional governments. At national level, one public entity of the Central Administration is managing incentives: the Institute for Energy Saving and Diversification (IDAE). However, no incentive is specially defined for SHIP applications, because the incentives are available for a wide range of technologies, within which SHIP technologies are included.

IDAE is managing the GIT (Large Thermal Installations) program, which started in 2011 under the 2005- 2010 Renewable Energy Plan and is still on-going. It consists on a soft loan scheme through which, renewable installations in buildings and industrial processes operated by Energy Service Companies (ESCOs), are financed. The program supports solar thermal energy and also biomass and geothermal energy for heating and cooling, with a budget between 250 k€ and 3 Mio Euro. It is worth mentioning here that this funding program has not been very successful so far, because a very little number of applications have been submitted. Detailed information about the GIT program is available at: http://www.idae.es/ahorra-energia/renovables-de-uso-domestico/programa-git

Concerning regional funding programs, they are usually issued on a yearly basis and therefore programs implemented in 2018 could be not available in 2019. This characteristic of regional funding programs in Spain makes preparation of a detailed list of programs currently available useless, because most of them could be unavailable beyond 2018. So, only some regional funding programs currently available in 2018 for SHIP projects are mentioned in next paragraphs as examples.

Funding programme “Andalucía es Más” Implemented by the Andalusian regional government. Detailed information about this program is available at: http://www.solarconcentra.org/wp-content/uploads/2017/12/10.Agencia-Andaluza-de- la-Energ%C3%ADa.pdf.

Beneficiaries: SMEs.

Scope related to SHIP: large solar thermal systems for processes (without temperature limits)

Type of funding: 35-45% of the solar system extra cost over a similar system using non-renewable energies

Deadline: Year 2020

Funding programme “IVACE”, Implemented by the regional government of Valencia. Detailed information about this program is available at: http://www.dogv.gva.es/datos/2018/03/02/pdf/2018_2111.pdf

Beneficiaries: any public or private entity.

Scope related to SHIP: solar thermal systems, without temperature limits

Type of funding: up to 45% of the project eligible cost

Deadline: December 31st, 2018

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 37 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Funding programme: “Improvement of the energy efficiency and use of renewable energies in public infrastructures”. To be implemented shortly by the Regional government of the Canary Island (the regulatory framework was already published on April 5th, 2018, and can be downloaded from: http://www.gobiernodecanarias.org/boc/2018/073/001.html).

Beneficiaries: public entities.

Scope related to SHIP: solar thermal facilities for heating/cooling systems installed in public infrastructures and buildings.

Type of funding: 60% of the budget, with a maximum funding of 80 k€ per project

Deadline: to be published in each Call

Funding programme: “Incentives for energy efficiency and use of renewable energies in industries”. Implemented by the Regional government of Murcia (the regulatory framework was published on April 17th, 2018, and can be downloaded from: https://www.borm.es/borm/documento?obj=anu&id=766615l).

Beneficiaries: private companies.

Scope related to SHIP: purchasing of equipment to produce thermal energy for self-consumption

Type of funding: up to 200 k€ per project

Deadline: May 11th, 2018

Funding programme: “Regional incentives for corporate investments”. Implemented by the Regional government of Extremadura (the regulatory framework is available at the link: http://doe.juntaex.es/pdfs/doe/2017/2170o/17040197.pdf).

Beneficiaries: private companies.

Scope related to SHIP: purchasing of equipment to upgrade, improve or enlarge enterprises

Type of funding: between 25% and 45% of the total investment, which must be less than 1.2 Mio €

Deadline: December 31st, 2020

Funding programme: “Agro-industrial incentives to the investment”. Implemented by the Regional government of Extremadura (the regulatory framework is available at the link: http://doe.gobex.es/pdfs/doe/2018/580o/18050074.pdf).

Beneficiaries: only agro-food industries.

Scope related to SHIP: improvement or modification of facilities related to food processing

Type of funding: between 25 k€ an 20 Mio € per project

Deadline: December 31st, 2018

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 38 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Funding programme: “Regional incentives”. Implemented by the Regional government of Extremadura (the regulatory framework is available at the link: https://extremaduraempresarial.juntaex.es/subvenciones?idContenido=57017&redirect=/subvencion es).

Beneficiaries: only processing industries.

Scope related to SHIP: purchasing of equipment to create a new processing industry, or improvement of an existing processing industry

Type of funding: between 25% and 45% of the total investment, which must be higher than 900 k€

Funding programme: “Renewable energy projects”. Implemented by the Regional government of Extremadura (the regulatory framework is available at the link: http://doe.gobex.es/pdfs/doe/2018/800o/18061019.pdf).

Beneficiaries: private enterprises and their associations.

Scope related to SHIP: Medium temperature concentrating solar facilities for industrial applications.

Type of funding: 40% of the total investment, with a limit of 300 k€ per project

Deadline: There is no dead line yet. Only the regulatory framework defined by the regional government is publicly available for comments /suggestions before its official issue.

Although there are also funding programs implemented by the Basque regional government including SHIP applications within their scope, the low DNI in the Basque country significantly reduces the interest in SHIP systems in that region of Spain.

As a summary, there are several funding programs in Spain, promoted by the central or regional governments for commercial projects with renewable energies, and SHIP projects could therefore benefit from them. Central funding programs are multi-year programs, while regional programs are usually yearly programs.

2.2.9 Switzerland

EnergieSchweiz The EnergieSchweiz programme brings together voluntary measures to implement Swiss energy policies under its umbrella. The program promotes knowledge and competence in energy issues while providing a vessel for market testing of innovative ideas. The financial resources of EnergieSchweiz are gradually increasing from CHF 35 million a year in 2013 to around CHF 50 million in 2015. EnergieSchweiz is planning its activities from 2017 to 2020 within this annual budgetary framework. However, there is no explicit provision for SHIP.

2.2.10 Turkey

As of 2015, Turkey is one of the few countries with a large solar thermal market that does not use subsidies. The existence of a large informal solar thermal market in the country is consistent with this lack of incentives, as effective incentives would push transactions into the formal market to benefit from these incentives.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 39 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

2.3 Regulatory framework

The overall picture among the national concept notes is that usually there is no specific regulatory framework in place to support SHIP on a national level. Switzerland and Turkey explicitly say so, but the recurring theme in all concept notes is that there is no specificity in the regulations for SHIP.

Some countries however mention indirect regulations that cover some aspects of SHIP, such as standardisation and testing regulations (Spain), energy performance of buildings (Cyprus, Portugal), energy efficiency in general and in industrial infrastructure (Austria, Cyprus, Germany, Greece, Portugal), renewable generation (France, Italy), emissions reduction frameworks (France), and energy security (France) among others.

The following paragraphs present the findings from each country:

2.3.1 Austria

Energy Efficiency Regulation According to the Energy Efficiency Act, the obligation of energy consuming companies is based on the size of each company or corporate group. Large companies have to carry out an external energy audit every four years and implement a management system (Energy Management System, Environmental Management System or EMS or UMS equivalent, internationally recognized management system). Small or medium-sized enterprises can report to the National Energy Efficiency monitoring agency36 .

Energy suppliers - from 25 GWh of energy sold against payment to end consumers - are obliged to take efficiency measures for themselves, their end customers or other end energy consumers or to make a corresponding compensation payment (supplier obligation). It is irrelevant whether the supplier sets the energy; efficiency measures himself, has them implemented or procures them elsewhere37.

2.3.2 Cyprus

In Cyprus, The promotion of Renewable Energy Sources and Energy Savings is achieved through the 112(I)/2013 Law. The fund38 associated with it is financed by a levy of 1 eurocent per kilowatt-hour on electricity consumption for all final consumers. In general, the purpose of the fund is to support the efforts of the MECIT to achieve the RES and Energy Efficiency targets of 2020 and beyond. SHIP projects can be one additional pathway for the Government of Cyprus to achieve (or even overachieve) the RES target in the Heating Sector. Despite this, the legislation as it stands does not target SHIP explicitly, and therefore support for it falls into a grey area of a number of potentially eligible support schemes. One such scheme mentioned by MECIT is the ability to fund a SHIP installation if it is a recommendation coming out of an energy audit; another is to characterise it as solar heat (irrespective of the end use) where it can get support if it gets the necessary building permit. Overall, however, the framework is not clear, and thus one of the objectives going forward will be to provide the necessary guidelines to the Government to implement the necessary changes for the proper support of SHIP applications, based on other countries' experiences and best practices.

36 Jelinek, R. (2015): Energy Efficiency Trends and Policies in Austria, Austrian Energy Agency, https://www.google.at/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwj9iYqr3vjZAhVFfywKHSP4DQcQFggzMAA& url=http%3A%2F%2Fwww.odyssee-mure.eu%2Fpublications%2Fnational-reports%2Fenergy-efficiency- austria.pdf&usg=AOvVaw0Z8V_KRsg00xylx6mbmC0s 37 WKO: Energieeffizienzgesetz, https://www.wko.at/service/umwelt-energie/EEffG_Gesetzliche_Grundlagen.html 38 Here the "Fund" means the Fund for Renewable Energy Sources and Energy Efficiency, that was established based on Article 9 of the Law 2013(I)/112 for the Promotion and Encouragement of RES and Energy Efficiency.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 40 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Complementing the Law on Energy Efficiency of Buildings (No. 210(I)/2012) a series of decrees have been passed 2011 - 2015 on:

 Mandatory inspections of heating (>20 kW) and air conditioning (>12 kW) systems  Efficiency and size of heating, cooling, hot water and large air conditioning systems  Requirements for installing certified heat pumps and solar thermal equipment as well as performance requirements for biomass heaters and boilers

All these measures can assist or complement a SHIP installation, in addition to the framework changes described in point 1 above.

The Cyprus government has adopted a number legal acts to regulate the establishment and work of Energy Service Companies (ESCOs) with the main legislative measures being the law on Energy Efficiency in End Use and Energy Services Law and subsequent amendments (N53 (I) / 2012, PIC 210/2014 and N56 (I) / 2014). Cyprus also complies with article 18 and other relevant articles of the EED and has created the necessary regulatory framework conditions for ESCO companies operating in Cyprus. SHIP projects can be further promoted once they become commercially available from individual companies with the end consumers by taking advantage of the benefits of an ESCO agreement. In some cases (and especially for public sector projects), such agreements can be further supported by bilateral governmental agreements.

2.3.3 France

Regulation, subsidies and other public policy measures have been spurring the development of renewable energies. Regarding the French context, two regulatory measures will help shifting away from carbon intensive power generation towards renewable power such as solar thermal energy: the French Energy Transition for Green Growth Law and the EU Emissions Trading System (EU ETS)

French Energy transition for green growth act (LTECV) In August 2015, the French Parliament adopted the Energy Transition for Green Growth Law in order to address the global challenges of energy security, climate change and sustainable development. This law sets medium-and long-term ambitious qualitative and quantitative targets to be implemented by 2030 and provides a framework for individuals, businesses, regions and the State to take collective action. The PPI (multi-annual investment plan) in March 2016 complements this scheme.

The following goals are stated:

 More than double the share of renewables in the French energy mix over the next fifteen years. The aim is to increase the share of renewable energy sources to as much as 23% of total energy consumption by 2020 and 32% by 2030 (In 2014, 14.3% of the energy we consumed in France was produced from renewable sources).  Heat production from renewable energy sources is due to increase by 50% by 2030 while the share of heat production from solar thermal sources should reach 80 %.  Triple the amount of renewable and recoverable heating and cooling supplied by the district heating or cooling systems in order to reach 38% of final heat consumption with renewables in 2030.

Table 7: solar thermal objectives fixed by the multi-annual investment plan (PPI) in 2016 (French ministry)

Date Energy production December 31th, 2018 180 Ktoe

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 41 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

December 31th, 2023 Week market : 270 Ktoe Favourable market : 400 Ktoe

The energy transition fund, worth €1.5 billion and supported by the Caisse des Dépôts, comes in addition to existing measures (e.g. the Fonds Chaleur, the Heat Fund) and supports new projects. An important share of the success of this energy and climate policy also relies on local governments.

State of the play by mid 2018 Three years after the launch Energy Transition for Green Growth Law, the results are mixed. Based on present trends, the ambitious goals set in the action plans over the last years won’t be achieved. In March 2018, a specific working group has been set up to boost the development of solar PV and thermal energy, which will be reporting in June.

European Emissions Trading System (ETS) The European Union’s Emissions Trading System (ETS) charges power plants and factories for every ton of carbon dioxide (CO2) they emit. The revision of EU-wide rules for the free allocation of emission allowances launched by the European Commission (EC) on March 2018 would significantly increase the pressure on industry.

The new rules would be applicable in the fourth trading period of the EU ETS (2021-2030):

The French Environmental taxation will be impacted by these new rules. The projections for the next years lead to the following results:

Table 8: The carbon tax (TICGN Taxe Intérieure sur la Consommation de Gaz Naturel) (French ministry)

2.3.4 Germany

Whereas no specific obligations on the adoption of renewable energy technologies are in place for industrial end-users, the regulatory framework in place for energy supply to Industry has its stronghold on Energy Efficiency related measures/policies, spilling over to renewables to some extent.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 42 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

As referred in the Analysis of National Energy Efficiency Action Plans and Policies in EU Member States39, important drivers to this policy are the obligation to implement energy audits and energy management systems in exchange for partial exemptions on energy taxation. Such obligations are framed with adequate energy audit incentives and energy efficiency financing schemes.

A National Action Plan on Energy Efficiency (NAPE) and a National Action Programme on Climate Protection 2020 have been launched in December 2014. Alternative measures and strategies for the implementation of the EE 2012/27/EU Directive Article 7 are under definition.

Besides central policies at federal level, local programs at state or municipal level are also in place. Federal energy agencies (dena, regional climate protection agencies or BfEE) support and monitor the implementation of central and/or local policies.

By 2011 an Energy Efficiency Fund was already established under the Energy and Climate Fund (Energie-‐und Klimafonds; EKF), facility fed by revenues from emissions trading and funding of diverse programs was under the coordination of the national development bank, KfW. Yet, by 2014, in spite such mechanisms were in place still no funds for coordination had been established.

Another aspect envisaged in these policies has been the establishment of adequate framework conditions for energy services. On this regard, a list of energy efficiency experts has been created; guarantee offers by banks improving financing conditions for SMEs as well as market studies for the implementation of such services have been developed.

On regard to specific measures in the Industrial sector, voluntary agreements on energy savings obligations are under discussion with different industrial sectors. After 2011 and under the Energy efficiency Fund, a Grant Scheme for the purchase and installation of Energy Management Systems directed mainly to SMEs has been established. Energy related tax cuts and renewable electricity levy exemptions have also been established to the manufacturing industries, regarded they adopt energy management systems and invest on energy efficient equipment and processes. Another important measure is the implementation of the STEP up competitive tendering programme, aiming to facilitate the take-up of energy efficient technologies and electric appliances.

2.3.5 Greece

In Greece there is no specific regulation framework specialized in SHIP technology, as existing for photovoltaics and wind power applications. However, there are certain Law frameworks, within which SHIP technologies could be incorporated, such as the national legislation 4342/2015 for energy efficiency and the European Energy Efficiency Directive 2012/27/EU.

2.3.6 Italy

The legislation concerning energy production systems using thermodynamic solar systems refers to the Decree of the Ministry of Economic Development issued in June 2016: “Incentives for electricity produced from renewable sources other than photovoltaics”. A revision is under finalisation

2.3.7 Portugal

39 Energy Efficiency Policies in Europe: Analysis of National Energy Efficiency Action Plans and Policies in EU Memeber States 2014 – Country Report Germany. www.energy-efficiency-watch.org . Energy Efficiency Watch, 2015. www.energy-efficiency- watch.org

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 43 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Reducing energy consumption in industry is the first step for the rational use of energy. In Portugal, for energy-intensive consumer installations (> 500 toe / year), the regulatory framework is Decree-Law no. 71/2008, of 15 April, which regulates the SGCIE - Energy Intensive Consumption Management System. The management of this system is responsibility of ADENE – National Energy Agency (http://sgcie.publico.adene.pt/Paginas/default.aspx).

The SGCIE provides for periodic energy audits, mandatorily including:

 Analysis of the conditions of use of energy;  Promotion of measures to increase energy efficiency, including the use of renewable energy sources.

Another important regulatory framework is the regulation for energy performance of buildings (SCE), which is formed by two codes, one applied to the energy performance of residential buildings (REH) and another applied to the energy performance of commercial and services buildings (RECS) (Decreto-Lei n.º 118/2013. D.R. n.º159, Série I de 2013-08-20 (https://dre.pt/application/dir/pdf1s/2013/08/15900/0498805005.pdf).

The REH imposes the usage of solar thermal collectors for hot water production in all new buildings, if there is a good exposition to solar radiation in their cover. The same rules apply to big renovation of existing buildings. Although it is an imposition, it has been accompanied along the last years, by some punctual programs sponsoring the solar thermal systems for buildings of social benefit and for companies when integrated in their overall energy efficiency measures. In the same base punctual interventions in building’s façades had benefit of similar supporting programs.

The mandatory usage of solar thermal in the REH context is accompanied by the obligation of usage of certified collectors (CERTIF or SOLARKEYMARK), the obligation of certified installers and it imposes 6- year warranty maintenance.

Portugal, as a European country is committed to contribute to the targets established in the 20-20-20 Horizon, which implies to work during the remaining years to achieve the particular goals of the country. The most important one is the 31% target for percentage of final energy consumption with renewable energy origin. This value is actually foreseen as easily achieved because of recent large investments on the electric sector, namely in the wind power sector, complemented by a favourable hydropower profile. In 2016 this value was 28.5% (source: Observatório da Energia – ADENE based on information from General Direction of Energy – https://www.observatoriodaenergia.pt/pt/energia- em-numeros/portugal/2004/2016/line/%25/2276-2303-2304, viewed in 17-04-2018).

The contribution of all other RE on electric and thermal energy production, of the energy efficiency policy for buildings, industry and agriculture, of the transport sector (12.5 % of biofuels incorporated in 2.5 % gasoline and 10.0 % diesel), are also being considered with particular goals for each sector or source. The documents collecting all that information are the two National Plans:

 PNAER – National Action Plan on Renewable Energy

 PNAEE – National Action Plan on Energy Efficiency

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 44 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes an opportunity to promote the profile, relevance and necessity for the development and deployment of SHIP in conjunction with energy efficiency measures in the industry.

2.3.8 Spain

In Spain, there is no specific regulatory framework for SHIP systems, which must fulfil the standard regulatory framework that is compulsory for generic industrial systems to regulate issues related to pressure vessels, power lines, fire hazards, lightning protection, etc. So far, the need for a specific regulatory framework has not been identified.

Sometimes, the funding programs impose some rules to the systems in order to be eligible for the grants or soft loans (e.g., the use of certified components, accessibility to operational data, participation of public R+D entities in the project as subcontractors of the private entity promoting the project, etc.). In this case, the specific rules are listed within the general conditions of the respective funding program. The most usual requirement imposed by the Spanish funding programs is the use of certified solar collectors, thus assuring the quality and performance of the systems. UNE-EN-ISO 9806:2017 (“Solar energy — Solar thermal collectors — Test methods”) defines the test and characterization methods for small-size solar thermal collectors, while the standard IEC62862-3-2-ED1 is aimed at large-size parabolic trough collectors and it will be officially issued by IEC in 2018.

2.3.9 Switzerland

To the best of the authors’ knowledge, there is no legal framework that directly targets SHIP installations.at the moment.

2.3.10 Turkey

The primary energy policy objectives of Turkey are to diversify energy sources, maximize domestic energy resource usage, increase efficient generation and consumption of electricity, and to create an environment-friendly power system. These objectives include increasing the share of renewable energy sources in total electricity generation. While Turkey has significant experience with solar hot water technologies, there is limited awareness of SHIP technologies. Turkey has a general Law on Utilization of Renewable Energy Sources for the Purpose of Generating Electrical Energy [5], but as the title suggests, there is no consideration of SHIP. Consistent with the content in the previous sections, Turkey does not have any specific legislation or regulatory framework to support solar thermal energy in general or SHIP specifically.

2.4 Funding opportunities for SHIP research at National, EU and International level

There are multiple layers of funding reported in the concept notes, usually clustered around the regional & state level, national (or federal), EU and international schemes. The regional and state funding opportunities for research are (as reported) practically non-existent at the lower devolution levels, and are usually coordinated centrally by federal or national governments through a relevant ministry, usually that of education, environment and/or energy. In some cases (such as in Portugal, Spain and Cyprus) this takes place through Research Foundations, that are arms of the government, but not tied to a ministry.

At an EU level, most of the concept notes mentioned the ERANET and EUREKA schemes. To these, several regional cooperation funding mechanisms should be added, such as many MED-type

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 45 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes programmes (Interreg, Balkan MED, ENI-CBC MED etc.) and of course Horizon 2020, which is the main funding mechanism for many of the research institutions in SHIP in the countries covered in the concept notes.

It is not however possible to make a quantitative assessment of the relative importance of all these, as precise numbers are not provided. The following passages should be able to shed more light in to the funding mechanisms for SHIP research in all 10 countries of this report.

2.4.1 Austria

In Austria, there are different funding opportunities for research projects. On the one hand, there are programmes without thematic restrictions and on the other there are thematic programmes on federal level and on national level. In the context of this concept note, two representatives of thematic programmes on national level with a strong link to renewable energies and industry are presented. Furthermore, the link to the European Research Area is given.

Energieforschungsprogramm (energy research programme) The main focus of the energy research programme is in the area of energy efficiency and savings, renewable energies, intelligent networks, mobility and transport technologies for optimised energy efficiency, climate protection and storage. The focus is on research, development and full-scale testing of new materials and innovative technological components and systems in the fields of energy and mobility. Where relevant, the investigation of economic and legal issues and acceptance research are eligible for funding within the framework of larger research and technology development projects40.

Model region – New Energy for Industry (NEFI) NEFI is a thematic model region of the Climate and Energy Fund. The NEFI Sub projects develop and demonstrate key technologies for decarbonizing the industrial energy system. Over the next eight years, new projects will be developed, proven technologies demonstrated and brought to market maturity in an open innovation process together with industry, technology providers and users.

European Research Area To strengthen Austria's position in the European Research Area (ERA), the Climate and Energy Funds is participating in the multilateral FTI programmes ERA-NET Bioenergy, ERA-NetSmart Grids Plus, Industrial Energy Efficiency ERA-NET and SOLAR-ERA.NET Cofund41.

2.4.2 Cyprus

The latest funding initiative for Research, Technological Development and Innovation in Cyprus came through RPF’s RESTART 2016-2020 programme, which has a total budget of €100m to assign in various research categories, within this timeframe. It does not allocate a specific amount to SHIP, but through its various headings funds energy-related projects, that span from infrastructures to desk-based research, with a special focus on Interdisciplinarity. The main ‘pillars’ of research for Cyprus are chosen by local stakeholders and the government are documented in the ‘Smart Specialisation Strategy’ for Cyprus. In this, energy is a ‘dominant priority sector’, which means that it will attract a

40 Klima und Energiefonds: Jahresprogramm 2017 https://www.klimafonds.gv.at/assets/Uploads/Jahresprogramme/Jahresprogramm-2017.pdf 41 Klima und Energiefonds: Jahresprogramm 2017 https://www.klimafonds.gv.at/assets/Uploads/Jahresprogramme/Jahresprogramm-2017.pdf

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 46 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes large percentage of the aforementioned funds. SHIP related research is eligible to attract funding through this instrument.

The main external funding umbrella of H2020 and its previous incarnations (FP6, FP7 etc.) from the EU play a large role in energy research in Cyprus, and are the main cross-national funding pillars.

2.4.3 France

No specific information was provided.

2.4.4 Germany

At national level, SHIP research funding is foreseen directly as one of the eligible topics in the 6. Energy Research Program of the Federal Government [6. Energieforschungsprogramm der Bundesregierung] and the related announcement of research funding through the Federal Ministry for Economic Affairs and Energy (BMWi) [Bekanntmachung 2014, Section 3.12 Energieeffizienz in Industrie und Gewerbe, Handel und Dienstleistungen (GHD), subsection “3.12.3 Solare Prozesswärme“.].

Within this funding program of BMWi, stakeholders and consortia may receive funding for research. Funding rates may reach up to 100% to R&D institutions and up to 50% to industrial partners (up to 60% for SMEs), consortia involving industrial partners are strongly encouraged. Proposals follow a two-stage process, with presentation/pre-approval of sketches before submission of full proposals. It is estimated that this funding line provides the major contribution to SHIP related funding.

Research topics defined within the program are aligned with INSHIP R&D topics, yet usually aim higher TRL levels (TRL > 5), but are principally open to all topics proving sufficient industrial interest and engagement. Besides Process Heat, research activities may address related topics as well, e.g. thermal storage, energy efficiency in Industry (including process intensification or heat recovery technologies/processes), solar process heat (aiming heat production at T> 100°C and including implementation of demonstration activities) or waste water treatment/water consumption reduction technologies.

Another funding possibility stems from the Federal Ministry for the Environment, Nature Conservation and Nuclear Safety BMU which is running the national / international Klimaschutzinitiative (BMU NKI/IKI Program), with possible funding rates of 100%. In the category ”Mitigating GHG emissions” IKI assists partner countries in switching to a sustainable, low-carbon economy. IKI partners receive support in the form of knowledge transfer, technology cooperation, policy advice and investment measures. Consortia involve international partnership (action in developing countries) and might require public bodies. Projects must trigger some CO2 reduction level and mostly aim at higher TRLs.

Again in the framework of the 6. Energieforschungsprogramm, the Federal Ministry of Education and Research, BMBF, funds research topics on rather basic research level (e.g. materials research or other topics) which might also encompass SHIP related research, but typically tackling lower TRLs.

Besides these topically focussed research funding options, there are several funding programmes addressing other stakeholders in different ways. To give two examples, international collaborative research may receive funding from “BMBF 2+2” calls for binational research, or “CLIENT II - International Partnerships for Sustainable Innovations”. In such programmes, calls are published usually calling for several topics which, may include SHIP related topics or applications.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 47 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

It is important to mention that to the present, SHIP in the funding context of BMWi Energieforschung has been placed under the “umbrella” of solar thermal applications (i.e. being handled by the respective departments of the ministry and the project management organisation PTJ), which has traditionally been related to Residential sector related research addressing low temperature applications/technologies. Research on tracking technologies has been positioned in the CSP topic, falling under a different R&D funding topic and responsibility (power generation). This divide, posing some challenges, is currently being discussed within a more general discussion on the German Research Networks. It is also important to mention the important resources available for research on Industrial Energy Efficiency (yet in another funding framework).

Discussion around these questions are taking place in different fora: DSTTP, DCSP, Forschungsnetzwerk “Flexible Energiewandlung”, Forschungsnetzwerk “Industrie und Gewerbe”, Forschungsnetzwerk “Energie in Gebäuden und Quartieren” and will be influential in the definition of the coming 7.Energieforschungsprogramm which is currently developed. The Forschungsnetzwerke are expert groups created to provide input to the definition of the next program, but shall be maintained even beyond this definition phase.

At European level, and besides the possibility of accessing H2020 calls on the topic, Germany places national funding into Solar ERA-NET calls, yet another possibility for SHIP related research funding.

2.4.5 Greece

Greece has both direct and indirect national funding mechanisms, through which SHIP systems interventions could be eligible and partially funded.

In the first category (direct mechanisms), there are 3 upcoming funding programmes expected to be published within 2018, as follows:

The Greek Ministry of Environment, Energy and Climate Change is expected to publish within this year two funding programmes, for Small and Medium Sized Enterprises (SMEs), in which Processing enterprises are included. The details of the programmes are not available yet, as the “Call for proposals” are not published. The projects will be included in the National Strategic Reference Framework (NSRF) 2014-2020. Hereby some of the published so far information on these two programmes is given.

1. Improving the Energy Efficiency of Small and Medium Sized Enterprises (SMEs)

This action will concern interventions in the building shell (thermal insulation, window frames/ glazing, shading systems, etc), upgrading of the electromechanical equipment for production processes as well as for the space cooling / heating (e.g. hot water production, waste heat recovery, power distribution systems, lighting, etc.).

2. Promotion of heating and cooling systems from RES and cogeneration of high-efficiency heat (CHP) using RES for self-consumption

This action will concern RES installations (i.e. biomass, biogas, geothermal, solar thermal and other RES systems) and CHP systems using RES that will operate exclusively as self-production units.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 48 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Processing)”. This programme is already included in the “4th National Action Plan on Energy Efficiency for Greece” (ΦΕΚ B 1001/2018) - as one of the energy efficiency measures in the industry - created according to the 2nd paragraph of the 24th article of Energy Efficiency Directive 2012/27/EU. It concerns the financing of business plans for small and medium-sized enterprises and aims at transforming the manufacturing base of the Greek economy into new or diversified production lines, products and processing services with extrovert orientation. The program's total budget is 100 million euro, with 40% being public expenditure. The eligible budget of investment projects is in the range of 250,000-3,000,000 €.

In addition to these forthcoming programmes, SHIP systems may currently receive funding through the Greek Development Law 4399/2016, “Institutional framework for establishing Private Investment Aid schemes for the country’s regional and economic development - Establishing the Development Council and other provisions“42.

There are also indirect funding mechanisms, like the “Energy efficiency obligation schemes”, described in chapter 2.1.3.

The current main European funding framework for SHIP technologies in Greece is the Horizon 2020, which is the biggest EU Research and Innovation programme with nearly €80 billion of funding available over 7 years (2014 to 2020).

Also, the General Secretariat for Research and Technology (GSRT)43 of the Greek Ministry of Education, Research & Religious Affairs is the Greek responsible partner for a number of national/regional research call for proposals. In this category belongs the SOLAR-ERA.NET Cofund 2 Joint Call44. This call for proposals is carried out by national / regional RTD and innovation programmes and national / regional funding agencies in the field of solar electricity generation, i.e. photovoltaics (PV) and concentrating solar power (CSP)/ solar thermal electricity (STE). The Joint Call is commonly carried out by the following countries and regions: Austria, Belgium-Flanders and Wallonia, Cyprus, France, Germany and North-Rhine-Westphalia, Greece, Israel, Italy, The Netherlands, Spain, Sweden, Switzerland and Turkey. The total budget provided by national and regional funding agencies as well as by the European Commission is 22 million euros and the deadline for submitting preproposals is October 2nd, 2018.

Moreover, a SHIP project in Greece may receive funding through available in the examined period “Calls for proposals” in the co-funding frameworks of European, Mediterranean Balkan and Adriatic- Ionian Programmes – Interreg Europe45, MED Programme46, Interreg Med Programme47 and Balkan- Mediterranean48 and Interreg V-B Adriatic-Ionian programme, known as ADRION49.

2.4.6 Italy

The funding of SHIP technologies could be achieved under some RIS schemes, as well as within national call under the national OP 2014-2020 on Research and Innovation (priority “energy” is one of

42 Greek Development Law 4399/2016 “Institutional framework for establishing Private Investment Aid schemes for the country’s regional and economic development - Establishing the Development Council and other provisions.“, Articles 9-11 in English version of the law available at https://startupgreece.gov.gr/sites/default/files/gr_development_law_en_2.pdf 43 GSRT, http://www.gsrt.gr/ 44 SOLAR-ERA.NET http://www.solar-era.net/joint-calls/ 45 Interreg Europe, https://www.interregeurope.eu/ 46 MED programme, http://www.programmemed.eu/en 47 Interreg Med https://interreg-med.eu/ 48 Interreg Balkan-Mediterranean - European Regional Development Fund http://www.interreg-balkanmed.eu/ 49 Interreg - http://www.adrioninterreg.eu/

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 49 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes the 12). In addition, incentives for the adoption of energy efficient systems by industries can mobilise the market. Both regional and national funds can be matched with resources from the Horizon 2020 program.

2.4.7 Portugal

The national funding agency for research activities is FCT (National Foundation for Science and Technology), being partially supported by the national state budget and by the Portugal 2020 programme. Regularly, FCT opens general calls for scientific research and technological development projects that might be used to fund SHIP RTD projects, currently with budgets going up to ~200 k€. It also opens applications for PhD and Post-doc fellowships as well as applications to researcher contracts, funding the work of personnel; key to high quality research.

Portugal 2020, through the previously mentioned COMPETE2020 OP and the regional operational programmes managed by each CCDR, also funds research activities through competitive calls for individual and collaborative RTD projects.

The main external funding for SHIP RTD activities in Portugal comes from the European Union Framework Programmes (the current one being the Horizon 2020 Programme), playing a large role in energy research in Portugal, being the main cross-national funding pillars.

2.4.8 Spain

At national level, there are two main public entities in Spain financing R&D projects, CDTI (Centre for Industrial Technological Development) and the State Research Agency, both managed by the Spanish Ministry of Economy, Industry and Competitiveness. CDTI has different instruments to fund the R&D projects of the Spanish industry. The funding is mainly made of grants + soft loans in an open, not competitive call. There is not a dedicated budget per energy sector but almost no budget limitation either. Spanish entities, other than industry, must participate in the projects as subcontracted entities.

The State Research Agency also supports R&D projects in Spain mainly through competitive calls for consortia including Spanish companies and research organizations. The goal of this call is to promote the development of new technologies, and the business application of new ideas and techniques. There is not a dedicated budget per sector. The funding support is again with grants + soft loans.

In the Spanish R+D programs funded by the central government there is not specific budget nor specific R&D lines for SHIP technologies. SHIP R+D activities must compete with the rest of technologies in the competitive-calls launched by these programs.

CDTI and the State Research Agency are participating in ERANETs programs as one instrument for cross-national funding. International (EU and associated countries) cooperation projects can be developed also through the Multilateral Programmes (EUREKA, IBEROEKA, Bilateral programmes, EUROSTARS, ...). However, no specific funding for SHIP R+D activities is available and projects related to different technologies must compete each with others to get funds.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 50 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes entities are additional disadvantages in Spanish ERANET projects because the financing of projects is up to 36 months only and the maximum amount of funding is usually less than 200 k€. So, Spain should strive to make these programmes more appealing for Spanish R+D entities and to define a common time schedule for all the countries.

At European level, the situation in Spain is similar to that in other E.U. countries, because R+D projects promoted by international consortia may be submitted to the calls issued within the H2020 programme. Although some calls have a very generic topic (e.g., “Increasing penetration of Renewables into the Energy Market”) there are also specific calls for SHIP R+D activities, like the Call of the H2020 Programme “LCE-12-2017: Near-to-market solutions for the use of solar heat in industrial processes”, which was defined for projects with a TRL (Technology Readiness Level) of up to 7.

2.4.9 Switzerland

At the national level, the Swiss State Secretariat for Education, Research and Innovation (SERI) will continue to play a crucial role in funding for SHIP research in academia. The Horizon2020 and its previous incarnations (FP6, FP7, etc.) from the EU form the main pillars for cross-national funding.

2.4.10 Turkey

At the national level, Turkey does not have any research funding mechanisms specific to SHIP, but SHIP related research can be supported through a variety of funding mechanisms. The Scientific and Technological Research Council of Turkey (TÜBİTAK, www.tubitak.gov.tr/en) is the main scientific research funding agency for Turkey. The two primary TÜBİTAK funding mechanisms for universities are as follows:

TÜBİTAK 1001 Scientific and Technological Research Projects Funding Program It is the primary funding mechanism for research at lower TRLs and is open to universities, public research institutes, industry and Small and Medium Enterprises (SMEs). There is no inherent budget limit for this mechanism but a budget limit is set for each call. Currently this budget limit is 360 000 TRY (~ 73 000 Euro) for equipment, consumables, travel, and student scholarships. Not included in this 360 000 TL are overhead costs and personnel costs in addition to student scholarships such as for faculty members at universities. Currently this call is opened twice per year and is completely open, and therefore is open to SHIP related proposals.

TÜBİTAK 1003 Primary Subjects R&D Funding Program It generally addresses higher TRLs than the TÜBİTAK 1001 program and calls are only opened in specific areas. As for the TÜBİTAK 1001 program, there is no inherent budget limit but representative budgets are 2.5 Million TRY (~500 000 Euro) for a large-scale project, 1 Million TRY (~ 200 000 Euro) for a medium-scale project, and 500 000 TRY (~100 000 Euro) for a small-scale project. Recently TÜBİTAK 1003 calls related to Concentrating Solar Thermal in general but not SHIP specifically have been opened.

TÜBİTAK also has a wide range of funding mechanisms for Business and Industry, but these mechanisms are general and not targeted to SHIP specifically. These Programmes are given below.

1509 - TÜBİTAK International Industrial R&D Projects Grant Programme The objective of this program is to create market focused R&D Projects between European countries and to increase cooperation between Europe wide firms, universities and research institutions, by using cooperation webs such as EUREKA. The Programme is open to all the R&D topics including SHIP.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 51 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The call is open to SMEs and large companies settled in Turkey. Eligible costs include personnel, travel, equipment/tool/software, R&D services from domestic RTOs, consultancy/other services, material costs. The program funds applied research and experimental development. There is no budget limit of the Programme but a limit is determined per call. Moreover, there is no budget limit per project.

1511 - Research & Technology Development and Innovation Program Its Priority Fields are support and coordinate result-oriented, observable, national R&D and Innovation projects that are well-matched with the priority fields determined within the scope of the National Science Technology and Innovation Strategy. 1511 is similar to the 1003 Programme except that an industrial organization/SME must be included. SHIP technologies have been supported under this Programme. The budget limit is specified according individual calls.

At the EU level, Turkey participates in the Horizon 2020 (H2020) program. The Horizon 2020 Work Programme 2018-2020 10. Secure, clean and efficient energy [6] contains the following SHIP call:

LC-SC3-RES-7-2019: Solar Energy in Industrial Processes This work programme also contains the following call that aligns strongly with SHIP research:

LC-SC3-RES-8-2019: Combining Renewable Technologies for a Renewable District Heating and/or Cooling System The work programme also contains many other more general calls that may include SHIP research.

At the International level, Turkey is a regular participant in energy-related bi-lateral, ERANET, and EUREKA Co-Fund programs. Often TÜBİTAK uses the TÜBİTAK 1001 and 1509 funding instruments to fund accepted bi-lateral, EUREKA and ERANET projects with only slight budget modifications to account for the international nature of the project, such as increases in the maximum travel budget allowed. As a specific SHIP example, using the TÜBİTAK 1001 instrument TÜBİTAK funded a bi-lateral project starting on March 1, 2018 with The Research and Technology Center of Energy (CRTEn) of Tunisia on Development of Solar Drying Technologies for the Valorization of Sludge.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 52 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes 3 Future trends at national level

In the previous section of the document, the recurrent theme has been that SHIP is a promising and upcoming technological and scientific trend, but one that only commands a small niche of the general solar thermal market, and an even smaller one of industrial heat.

Looking to the future, the concept notes attempted to forecast which industrial sectors would be relevant for future SHIP demand. This section of the notes does not contain a formulated market analysis, but rather a qualitative assessment of future directions expressed through mentions to specific sectors in the different national concept notes texts. The result is summarized in Table 9:

Table 9: Future trends mentions for SHIP in the concept notes

metallic minerals

Agriculture Forestry & Food beverage & Automotive machinery & Textile Metallicminerals quarrying & Insulatingmaterials Tourismindustry (laundering etc.) PulpPaper & Non Chemical Pharmaceutical & Wood cork & Sewage & watertreatment Mining Plastics Electronics Desalination & watertreatment Austria x x x x x x x Cyprus x x x x x France Germany x x x x x Greece x x x Italy x x x x x x x Portugal x x x x x Spain x x x x x x Switzerland Turkey x x

Two of the concept notes do not explicitly mention any particular industrial activity (France and Switzerland). The data from the rest seems to suggest that there is clustering of interest towards agriculture, food, textile, and the tourism industry, sectors that are already served by the current technological solutions. What these have in common is the relatively low temperature of the processes associated, and is an indication that high-T SHIP solutions are needed if the sector is to expand into other areas.

The detailed response for each country can be found in the passages that follow.

3.1 Austria

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 53 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The Austrian industry is characterised by its high diversity of industrial companies. Based on Statistics Austria's performance and structural statistics for 2016, there are more than 320,000 companies in sectors B-N (excluding K)50.

The sectors, which have already installed SHIP in Austria according to the database http://ship- plants.info/, are:

Compared to already installed plants in whole Europe (based on the information provided by the database) following sectors show further multiplication potential for implementations in Austria.

 Agriculture, forestry and fishing  Manufacture of textiles  Manufacture of wood and of products of wood and cork, except furniture; manufacture of articles of straw and plaiting materials  Manufacture of basic pharmaceutical products and pharmaceutical preparations  Manufacture of computers, electronics and optical products  Manufacture of motor vehicles, trailers and semi-trailers  Repair and installation of machinery and equipment  Water supply; sewage; waste management and remediation activities  Construction  Transport and storage  Information and communication

As the database is a collection of already implemented SHIP plants it does not fully reflect the whole potential. However, having a closer look at specific sectors where projects have been conducted or are currently running once can identify some sectors that show great potential:

 Food sector  Automotive sector  Textile sector  Metal production and treatment sector  Insulating materials sector  Laundries  Pulp and Paper

3.2 Cyprus

50 Statistik Austria: Leistungs- und Strukturstatistik 2016 https://www.statistik.at/web_de/statistiken/wirtschaft/produktion_und_bauwesen/leistungs_und_strukturdaten/index.html

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 54 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

This section attempts to map the directions SHIP technologies may take at the national level, related to this concept note:

STE for large residential complexes and hotels: This is not strictly an industrial process, but the tourism industry plays a very significant role in the economy of Cyprus. Flat plate and evacuated tube collector proliferation is widespread, but topics of investigations could include higher temperatures for domestic hot water use, and the usage of SHIP for washing, drying and sterilising of linens.

Non-metallic minerals: Two main industries fall under these categories, which are also major energy consumers: Cement production and ceramics. Both are major energy consumers, but rely on their own petcoke and oil burners to fuel their operations. A thorough investigation (perhaps with the inclusion of reps from these companies) is worth considering. The temperatures of the operations however are usually high, and the appropriateness of SHIP technologies needs to be investigated.

Metallic minerals, mining and quarrying: This category contains the only known SHIP application in Cyprus, in the facilities of Hellenic Copper Mines Ltd. Other mining companies operate on the island, as well as a few quarries. Expansion to the industries is a realistic prospect.

Food & beverages industry: The Food sector in Cyprus is dominated by food packaging and retail companies, plus some processing, preservation, and pasteurisation of foodstuffs, mainly dairy. There is no recorded SHIP application in this economic sector, but this is an area of economic activity, which is very active around the world, and new projects are added all the time [4]. Especially in the dairy sector, there are potential applications in pasteurisation and sterilisation that are applicable to Cypriot industries. In addition, washing, cleaning and tempering could link the beverages industry (mostly bottling in Cyprus) with SHIP.

Chemical and Pharmaceutical: Two medium-sized industries (Remedica and Medochemie) operate in Cyprus that are manufacturing generic medication and supplying the local and regional markets. The processes the industries use utilise heat in the 100-170C range, and should be approached and explored for the integration of industrial heat in their operations.

3.3 France

Stakeholders consider that in the residential sector, it is feasible to install between 150 000 m² and 358 000 m² per year in 2028 (to be compared to 58 000 m² in 2016) and up to 300 000 m² per year for the industrial sector (less than 10 000 m² in 2016).

The multiannual energy program (PPE), which is the monitoring tool of the energy policy set the following objectives:

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 55 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 5: PPE Objectives for solar thermal heat final consumption in France

3.4 Germany

When considering future trends at national level, it is important to divide three important questions:

1. the possible role of SHIP as an instrument of industrial decarbonisation in Germany; 2. the important potentials identified in the agriculture and forestry sectors; 3. the promotion of technology development by the German industry, either at solar technology, related components or industrial process manufacturing levels.

Considering the available solar resource, with DNI values ranging from 800 to 1150 kWh/(m2.year)51, likely SHIP applications reside on the low temperature / stationary technologies in sectors such as the Chemicals and chemical products, food & beverage, fabricated metal products, machinery and equipment or motor vehicles52. Statistics on the usage of the available incentive schemes for SHIP applications (MAP) though, reflect that applications in the agriculture and forestry sectors have been predominant in Germany.

Given not only the industrial framework but also the available endogenous resources and energy efficiency driven policies in place, a likely focus on the development of hybridization concepts (including thermal storage, waste heat recovery, biomass, biogas or power to heat) and on the development of technological solutions for heat distribution networks in industrial parks might be foreseen as a strategy.

Considering the promotion of technological developments, four major axes might be highlighted53:

1. the development of low temperature solar technologies, stemming from a well-established solar industry which might be supported by the internal market (as has been the case with the residential sector), currently aggregated by the German solar industry association BSW-Solar;

51 Solargis, 2018. https://solargis.com/maps-and-gis-data/download/germany 52 Lauterbach, C. et al. Potential for Solar Process Heat in Germany - Suitable Industrial Sectors and Processes. Proceedings of EUROSUN 2010. 53 Further investigation on the alignment of these topics to the existing/former strategy documents is to be included in a revised version of this document: roadmaps of DSTTP and “Zukunftsthemen” defined by Forschungsnetzwerk Flexible Energiewandlung, AG 3 CSP, probably other Roadmaps / documents, e.g. by BSW, or other stakeholders.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 56 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

2. the development of medium and high temperature technologies, highly dependent on external markets (even overseas), whose related research support must follow an “export- driven” rationale and might find echo on the existing export initiatives by the chambers of commerce (AHK) or by the Ministry of Foreign Affairs. Highly based on SMEs, the solar industry tackling these applications is aggregated within the Deutsche CSP (DCSP); 3. the development of components, from thermal storage to heat exchangers or Balance of Plant concepts, whose drive must be related to a foreseeable market opportunity in SHIP applications; 4. industrial process manufacturers, developing process technologies to the manufacturing industry (e.g. for the food & beverage or chemical sectors), presenting the capability of developing intensified and/or solar compatible processes driven by the foreseeable marketing opportunities related to industrial decarbonisation in new industrial capacity.

3.5 Greece

There are new sectors where SHIP systems could be applied in Greece in the short to mid-term horizon. Examples are the sectors of mining, of industrial processes for animals and of surface treatment. In fact, and considering a wider context of SHIP’s mid-to-long term applicability perspective, it could be reasonably assumed that all industrial sectors requiring heat for the implementation of their processes constitute – at least to some extent – are potential application areas of interest for SHIP.

For each applicable sector for SHIP technology targeted actions should be organized. By this mean, the SHIP systems will be standardized and therefore simplified. Hybrid systems with other RES and conventional technologies, as well as SHIP systems together with energy saving interventions will be included in these standardized solutions per applicable sector.

The energy saving interventions in industries are expected to be obligatory in the future. Specific energy target is expected to be set for industry. These measures will enhance the SHIP market development.

For funding opportunities, the future trend is that the enterprises, including industry, should mostly use private resources and there will be mechanism of facilitating the private funding.

3.6 Italy

The identification of upcoming market opportunities for SHIP at the national level is very important in order to orient the R&I efforts. As we reported in the introduction, in Italy the research to market pipeline suffered of a serious mismatching in the CSP sector, where the R&I efforts were not combined with a persistent policy in the creation of a suitable market field. In the revamping of the sector, a particular attention should be paid in correctly modulating the research and innovation accordingly with the sectoral needs. The action of the NSG group could certainly facilitate this process, centering the objective of a balanced development.

3.6.1 Food & Beverage

The Food and Beverage sector has always played a key role in the Italian economy, also for the support of proper implemented policies aimed at promoting abroad the true ‘Made in Italy‘ of the food.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 57 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Italy is one of the largest agricultural producers and food processors in the European Union (EU). Agriculture is one of the key economic sectors, accounting for around 2.3% of Italy's GDP. The northern part of Italy produces primarily grains, soybeans, meat, and dairy products, while the south specializes in fruits, vegetables, olive oil, wine, and durum wheat. By this way, Italian industries in the food-processing sector (food production, packaging and retail companies) could benefit from SHIP applications for specific process like preservation and pasteurization of foodstuffs. In addition, glassware industry and washing and cleaning process in the beverages industry, which are strictly related to food process transformation (e.g. wine production), could benefit from SHIP applications.

3.6.2 Chemical and Pharmaceutical

Chemical, refinery and biorefinery sectors are characterized by a remarkable heat demand more or less continuous throughout the year. Furthermore the temperature level required by many processes is compatible with the efficient operation of solar thermal collectors. Several studies demonstrated that SHIP has great potentiality to increase sustainability of these sectors. 54 55

An interesting scenario is the chemical and refinery/biorefinery industry which are large consumer of enthalpy to energetically drive chemical processes necessary to produce fuels, biofuels and goods. As an example, in Sicily is under evaluation an agreement with Sicilian Region and ENI, the largest Italian chemical company, for the conversion of Gela crude oil refinery in a bio-refinery in which solar heat could be considered as option to increase the sustainability of the new processes.

Another interesting sector related to chemical industry is the Italian cosmetic market, which is the fourth largest in Europe (comprising 13% of the European market volume) behind Germany, UK and France. This market ranks as the first in the number of Italy's SMEs. By this way, a large amount of industry could benefit of SHIP applications in all the transformation process for cosmetic production.

3.6.3 Metallic and non-metallic materials

Processing of materials is a quite energy demanding sector. In Italy both extraction and transformation of metallic and non-metallic materials have been progressively reducing due to globalization processes. Building materials are still a relevant field for SHIP applications especially in some low-mid temperature processes. Interesting opportunities could rise from extraction processes from sea water, circular economy loops (plastic recycling), expansion of the wood/biomass sector in energy.

3.6.4 STE for civil application

In addition to typical applications in the civil sector, as DWH, other applications could be considered at higher temperature, for services as sterilization, laundry services, food processing in large communities: residential campus, universities, hospitals, touristic resorts and large hotels. The number of potential installations is quite high, even if it is limited from the availability of suitable spaces where collectors could be installed.

3.6.5 Desalination and water treatment

Most of the desalination and water treatment systems are energy intensive and can be driven by heat at temperature level easily matched by solar thermal collectors. Anyway, limitation in energy

54 C. Lauterbach, B. Schmitt, U. Jordan, K. Vajen, The potential of solar heat for industrial processes in Germany, Renewable and Sustainable Energy Reviews 16 (2012) 5121–5130. 55 Vannoni C, Battisti R, Drigo S. Potential for Solar Heat in Industrial Processes (cit.).

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 58 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes efficiency and actual cost of adopted equipment require investment to increase the economics of the utilization of the renewable solar energy to generate clean water.

3.6.6 Hybridization of other heat sources

SHIP technologies could be effectively applied in hybridization of other sources as biomass, geothermal and natural gas in existing plants, in order to improve the source exploitation and maximize the payback of the investment. Approaches as the one adopted by ENEL in the Stillwater hybrid plant in Nevada 56 could be replicated in different national sites.

3.7 Portugal

This section attempts to map the directions SHIP technologies may take at the national level, related to this concept note:

Plastic industry: this industry uses thermal reactors to thermally treat the raw material before delivering it to be industrially processed. These reactors are heated by the circulation of hot thermal oil at temperatures ~300 ºC; this is usually accomplished by gas burners or electrical heaters. The circulation of the thermal oil by a solar collector for pre-heating before entering the conventional heaters might constitute a simple way to implement SHIP.

Food and Beverage industry: Portugal has a vigorous food and beverage industry in which solar heat can be implemented in different stages of the production chain. Solar energy harvesting technologies may help in guarantying stable temperatures in green houses, especially in winter, and it may as well be implemented in boilers and dryers at temperatures around ~100-150 ºC.

Electronics industry: a prototype of a solar collector of the CPC type is being installed in a Portuguese electronic component factory with the objective of becoming a reference for future installation in this industrial sector. Applications of solar energy in this sector range from domestic hot water to thermal baths that can require temperatures as high as 200 ºC. With appropriate design for each case solar systems can have a good implementation in this sector.

Cork industry: this industry has a significant prevalence in southern Portugal were as well solar irradiation availability reaches 2000 kWh/m2/year, these two conditions make a perfect match. Cork before has to undergone substantial process before going to market what tends to increase it selling price. Among those processes are boiling and drying; which can be attainable by common solar energy systems.

Tourism sector: hotels in Portugal have a consumption profile fitted to solar availability as most of its demand comes during summer vacations when solar irradiance is at its maximum. Most of the heat demand comes from hot water in many applications like: laundry, swimming pools; but solar energy can also be interesting in the use of solar cooling systems for building refrigeration.

Other sectors of possible interest are the automobile industry with “estufas” using hot air heat by solar energy for the car painting process.

3.8 Spain

This section attempts to map the industrial sectors that are more interesting for SHIP applications in Spain, as well as the directions SHIP technologies may take at the national level. The Spanish

56 https://www.energy.gov/articles/hybrid-power-plant-combines-3-clean-energy-sources-one accessed on 28/05/18

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 59 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes technology platform Solar Concentra has recently financed a study to assess the potential of SHIP applications in Spain. The best industrial processes for SHIP applications have been identified and the results obtained from this study are summarized in the following paragraphs

Food and beverages: This sector presents one of the highest potential for SHIP applications in Spain. Thermal energy consumption in this sector is generally higher than electricity consumption, however, due to the difference in price (electricity is significantly more expensive than fossil fuels for heat generation), the share of electricity in the energy bill is usually equal or slightly higher than the thermal one. Dairy and meat industry are among the most interesting subsectors. Dairy industry shows a high yearly consumption of thermal energy for the pasteurization process, and it can be found in rural areas with no access to natural gas, which is the cheapest competitor of solar thermal energy in Spain. Meat Industry is also an extremely heat-intensive sector. One clear example is the production of meat by-products for animal consumption, in which thermal consumption is ten times higher than the electrical demand, and it is constant through the whole year.

Although food preserves manufacturing, has traditionally been identified as a very attractive sector for solar process heat, the seasonal behaviour of the product impacts drastically in the economic performance of solar applications. One example is tomato, which season lasts less than 6 months.

Textile: Spanish textile industry is located mainly in the Eastern part of the country. Thermal energy consumption is usually steam for the dyeing process of textiles and steam/thermal oil for the drying stage of the manufacturing process. Although from a technical point of view, this sector has great potential (high thermal demand through the whole year) the main production hubs (Barcelona and Alicante) have easy access to the Spanish natural gas network and therefore the cost of thermal energy is very low at those places. In fact, 74% of the textile industries interviewed during the study had a thermal energy cost lower than 3c€/kWh

Paper: This sector is one of the most heat intensive sectors studied so far. In Spain, paper industry is very concentrated (small number of factories of very big size), and this results in an exceptionally high thermal energy consumption versus available surface ratio (kWhthermal/m2), which justifies the use of big cogeneration systems. The main barriers of solar energy in this sector are: low cost of current thermal energy supply, and the low solar fractions that can potentially be achieved due to the high demand but limited available surface.

Industrial Laundry: Probably the most promising sector for solar process heat in the Spanish islands (Canary and Balearic Islands). Industrial laundries provide service to big hotels and resorts, and their main energy demand is steam for cleaning processes and steam/thermal oil for ironing. The main advantages for solar heat generation are: Peak demand during the sunniest months of the year, high density of hotels in areas with no access to natural gas.

Sewage water treatment plants: The main process in which solar process heat can be applied in sewage water treatment plants is drying sewage sludge. This process requires a continuous supply of thermal energy through the whole year. The main advantages of this kind of application are: High availability of surface, which enable solar systems to be mounted on ground, and limited access to natural gas network.

Wood and Cork industry: Although energy demand has a significant role in several processes of this sector, most of the demand is supplied using by-products of the manufacturing processes. Since these by-products are virtually free for the factories, the return of investment of most solar applications is not attractive for the industry.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 60 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

3.9 Switzerland

3.9.1 Research & Development

While low-temperature (80-150°C) and medium-temperature (150-400°C) SHIP technologies are heavily researched in the international academic community, there is a need to invest in R&D for high-temperature (400-1500°C) SHIP applications, in order to build upon Switzerland’s research capabilities and strengths in this area (as highlighted in Section 2.1.2).

3.9.2 Commercial

Low- and medium-temperature processes in industries prominent in Switzerland could be targeted for SHIP installations, limited largely by the availability and quality of direct solar irradiation in Switzerland. Solar heat can be ideally combined with any other energy carrier. Although the proportion of solar heat to overall consumption in Switzerland is still relatively low, its potential is considerable. If all existing buildings were to be optimally improved in terms of energy efficiency, it would be possible to meet the heating requirements of all Switzerland's households through the use of solar collectors.

In terms of business development, support mechanisms at the national level could be further expanded to help commercialize innovations coming from academia, especially high-temperature SHIP, which could also help foster high-tech start-ups.

3.10 Turkey

Based on the preceding content, Turkey has large domestic markets and strong industrial capacities for domestic solar thermal hot water technologies, but Turkish SHIP markets and industrial capacities are almost non-existent. This gap in market-uptake between domestic solar thermal and SHIP is likely the result of gaps related to technology push and technology pull as follows:

Technology Push Gaps: For low-temperature SHIP applications that could use the same or similar solar thermal collectors as domestic applications, the main technology gaps are estimated to be integration related and include at least the following. First, the temporal matching of supply and demand. Solar thermal is ultimately driven by solar resources, which are inherently variable. Process demands may also be variable. A gap exists for technologies to temporally match supply and demand include thermal energy storage, back-up thermal energy sources, hybridization of solar thermal with other thermal energy sources, and modifying the demand to better match supply. Second, finding sufficient and appropriate space for solar thermal collectors. For example, the roofs of many industrial facilities may not be appropriate for a large field of solar thermal collectors due to space and/or weight limitations. Third, the system needs to operate in a reliable and cost-effective manner.

In contrast to low temperature solar thermal technologies, Turkey does not have a robust market or industrial capacities for medium and high temperature solar thermal technologies. Therefore, there is not the opportunity to directly adopt or adapt existing non-SHIP solar thermal capacities to grow these SHIP markets and capacities.

The above situation suggests that low-temperature SHIP technologies can be brought into the Turkish market more quickly than medium and high temperature SHIP technologies. Therefore as a roadmap, the focus in the near term should be on adopting and adapting Turkey’s low-temperature solar thermal capacities to enable market uptake of low-temperature SHIP technologies and the focus in

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 61 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes the medium term should be on developing the medium- and high-temperature SHIP capacities and technologies to enable market uptake.

Technology Pull Gaps: Technology pull gaps are estimated to exist at both the industrial level and the policy level. At the industrial level, a lack of awareness and know-how is expected among potential SHIP technology producers, suppliers, and users. At the policy level, Turkey tends to lag many Western European countries in terms of policies and incentives to promote renewable energy technologies in general, and as described above no Turkish policies or incentives were found that specifically promote the market uptake of SHIP technologies. Both the industrial and policy technology pull gaps should be addressed through outreach and promotional activities including training.

Focusing on opportunities for specific SHIP technologies, a broad synthesis of the ideas presented herein with those of the larger INSHIP project suggest that large near-term market opportunities may exist for solar-driven dryers. Specifically, Turkey has large agro-food and textile sectors that have large drying demands, and it may be possible to adopt or adapt existing Turkish low-temperature solar thermal capacities to these drying applications. In addition, there may be other low-temperature SHIP applications not yet identified that can readily be driven using low-temperature collectors. In the medium-term, GUNAM-ODAK is currently developing fundamental capacities in the use of particle technologies for Concentrating Solar Thermal. Potential applications include drying of particles, and use in any medium or high temperature industrial processes. The use of particles in medium and high- temperature CST technologies aligns with the CST central receiver technology developed by the

Turkish company Greenway CSP (www.greenwaycsp.com), which has a 5 MWth central receiver demonstration facility in Turkey.

4 Stakeholders

The collection of stakeholders’ and the formation of the NSGs has been the subject of MS23 of the project, and this report will not elaborate further. The concept notes themselves give a detailed account for each country that is not relevant to the scope of this report and will not therefore be reproduced here. The interested reader can seek further details in the national notes themselves, appended at the end of this document.

What has become apparent from the NSG database is that the composition of the groups varies by country, but all four predefined groups are well represented, with the exception of ‘Finance’. This group is represented only once, but this may be skewed by the fact that many of the institutions classified as ‘policy’ also perform funding functions (see section 2.4).

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 62 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

30 25

20 16 13 11 9 9 10 8 4

Totalnumber NSG members of per country 2

Policy Industry/Technology Research Finances

Figure 6: Stakeholders’ composition per country

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 63 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes 5 Needs assessment

The market for SHIP is expanding at a steady pace, but as already established commands a small proportion of the heat and renewable markets overall. Sever proposals have been identified in the National Concept Notes, with some clustering around similar concept, and some including measures that are unique to the characteristics of the respective national market. Here is a summary of the most important trends:

 Cost reduction / hybridisation (Austria, Germany)  Emissions target – integration into national plans (Cyprus)  Simplify and integrate SHIP into existing policies and funds for renewable penetration. Augment incentives. (Cyprus, France, Greece, Italy, Portugal, Spain, Austria)  Train new planners/installers, introduce new construction techniques (Germany, Greece, Austria)  Improve standardisation (Austria, Germany, Greece)  Strengthen ties with southern EU countries, adopt and export-driven mentality and deploy pilot plants in places that enjoy higher DNI (Germany, Italy)  Overcome difficulties with funding (Greece, Italy)  Enhance dissemination (Greece, Italy, Spain)  Introduce SHIP as a viable option in industrial energy audits (Austria, Portugal, Greece)  Adopt best practices from more mature markets (Turkey)

Moreover, the most prominent barriers were:

 Distinct lack of reference systems (Spain)  Need for new designs for higher temperatures, even in countries with lower DNI (Germany)  Need to modify for SHIP other sub-systems of an industrial energy installation (Greece)

The dominant proposal is a call for national support through incentives, or proper introduction of SHIP to existing RES schemes. The feeling amongst respondents is that the systems will not be able to take off without an initial period of support, similar to what has happened with PV and wind across Europe. There are also calls for standardisation, and the introduction of SHIP into energy audits for industrial processes as a viable alternative. All these will be required to overcome the lack of reference systems, which the Spanish concept note identifies and the major weakness for the time being.

The following passages are the detailed positions from each country.

5.1 Austria

A needs assessment was done within the national project EnPro financed by the climate and energy funds. Within the project a catalogue was created and a ranking was carried out by 15 reviewers from science, engineering, associations and plant manufacturers. The needs ranking in the area of regulations and subsidies yielded the following result.

 Funding for universities and non-university research institutions

 CO2 tax at the level of production plants  Direct taxation of emission-intensive production factors  Awareness raising and knowledge transfer measures on existing opportunities  Investment support for the implementation of solar thermal energy  Monetary support for research in companies

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 64 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 Quota or certificate trading systems for efficiency trading  Quota or certificate trading systems for emissions

The following ranking was outlined in the area of research and development. The 10 measures with the best ranking are listed below.

 Conversion from steam to hot water, if process-technically possible  Development of strategies, e.g. for implementing a life cycle assessment to avoid lock-in effects  Reduction of system investment costs, for example through approaches such as modular construction, standardization and higher quantities  Easy access to information and solutions with integration concepts  Methodical design procedure to reduce system costs  Development of storage concepts for discontinuous waste heat  Standardized integration and control concepts especially for large solar applications  Optimization of collector field efficiency through intelligent control of seasonal and/or daytime-dependent partial shading of the field  Creation of suitable conditions for (energetic) process monitoring  Identification of the most energy-intensive processes and supply systems as a basis for optimization

5.2 Cyprus

The main need would be for more incentives at the Cyprus and EU level for further developing SHIP, as has been the case for other renewable energies in the past, as well as more dependable financial governmental backing. In terms of support to research and technology development, it would be good to promote further alignment at the European level between structural funds, which allow low- RDI countries such as Cyprus to build the necessary infrastructure, with Horizon Funding mechanisms, where that infrastructure can be leveraged to implement projects in cooperation with leading European partners. More specifically, it would be important for future calls at the national level to have a section specifically dedicated to research into SHIP.

More recently, (16th of October 2017) the Cyprus government opened up a support scheme for promoting RES technologies to participate in the electricity market. The support scheme has allocated a 50MW capacity for CSP plants (with the possibility to modify the cap based on investors’ interest). There is a significant advantage of SHIP projects to participate in such a scheme since the market price in Cyprus is based on the prices of Heavy fuel oil (HFO) and is expected that the market price in Cyprus will increase even further after 2020 in case that no Natural Gas will be available in Cyprus.

In addition, it is very likely that SHIP projects will also play an important role for the targets of Cyprus of 2020 in heating Sector. Cyprus has already utilize the potential of Solar Water Heaters (SWH) for Hot Water use (>92% of households have already install SWH panels and more than 50% of Hotels). Based on the new Renewable Energy Directive, the target for RES in Heating and Cooling Sector should increase even further (1% per year) up to 2030. Since Solar Cooling Technologies are very limited and not economic viable for Cyprus, and SWH are almost fully utilized, the SHIP projects might be one very good alternative for Cyprus to meet the above target for 2030.

5.3 France

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 65 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The SER listed several measures to promote the French offer in the field of solar heat for industry:

5.3.1 Implement a regulatory framework to grand-aid R&D

The ADEME published in 2010 a strategic roadmap for CSP, which served as a base for a call for proposals launched in 2011.

An assessment of needs of the sector must be done to serve as a base for a new support frame for the R&D and to meet demonstrations needs. The grant topic, for example through a purchase rate of the electricity produced by demonstrators, should be studied. In addition to classical plants, this support may focus on:

 Demonstrator operating thanks to several decarbonized energy sources (CSP and biomass for example)  Solar heat for industrial processes or for district heating (100-300°C)  CSP plants with high efficiency and integrating high capacity storage (6-12h)  Renewable cooling production, namely thanks to absorption unit  Solar plants heat waste promotion for applications in agriculture, aquaculture or desalination

5.3.2 Extend the ADEME Heat Fund program to solar concentrated technologies

The ADEME Heat Fund program allows already to assign financing facilities to solar thermal proposals which aim at providing hot water to industry. The extension of this program to solar concentrated technologies will allow to French stakeholders to develop projects in France in order to meet the water steam needs of the industrial sector such as food-processing industry, petro-chemistry and paper mill.

A new call for proposals NTE « new emerging technologies » including CSP will enable to determine the benefit of proposals submitted before the integration of this technology into the Heat Fund.

5.3.3 Finance R&D dedicated to solar concentrated technologies within an Institute for the Energetic Transition (ITE)

The grant allocated will enable to complete existing technical platform in research or training center and to finance research and training activities at the best international level. These innovations will make possible a growth of the French solar sector, industrial and services, at an international level.

5.3.4 Adapt Grants for development to support industry at the export

Two types of grants for development are available for French industrial. The “tied grants” enable to finance goods and services to French providers, whereas the “released grants” enable to do it to any partner. Today, the tied grants are the FASEP (studies and support to private sector fund) and treasury credit. Nevertheless, these grants are not adapted to the solar concentrated sector. Indeed, the FASEP is not destined, because of the limitations of the concerned grants, to support plant proposals integrally. Until now, it has only financed few feasibility studies. In addition, the minimum French part required by these tied grants must be analysed precisely for each country, for each technology.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 66 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The French government has just launched the process « Make way for the sun » (« Place au soleil ») which claims to be a general rallying for solar photovoltaic and thermal in France. On the one hand, this process rally big land property owners so that they should produce solar energy (supermarket, national railway company, farmers, and local communities). On the other hand, it requests to the sector of energy producers to increase investments. Several measures are taken for that purpose which are for solar thermal:

 Concerning the assessment of the rate of renewable and recovery energies in district heating which can provoke a lower rate of value-added taxes, it is necessary to consider solar thermal in the feeding of district heating (article L278-0 bis CGI). This is about correcting a mistake in the tax general code, which omitted to consider solar into the renewable heat energies.  Extend the « Heat Fund » call for proposals to large solar thermal units (industry, collective) to 3 years at least and revise proposal assessment criteria from around 2019. Many sectors are concerned: accommodation, industry, tertiary sector, agriculture. These units have a lower cost than small and medium units  Allow « Heat Fund » grants to renovation of deficient units from around 2019 (sizing audit, performance instrumentation, operator training)  Simplify and standardise « Heat Fund » grant awarding for the solar thermal in new buildings from around 2019  Integrate in energetic audits of large and medium company a technical and economic assessment of solar heat production. In this way, industrial and tertiary operators will be aware of the opportunity of an investment for solar heat.  Diversify the role of the wood energy facilitator to other renewable energies such as solar. Those facilitators, financed by the ADEME agency and the regions, aims at promoting renewable solutions to collectivities, prime contractors and contracting authorities.  Develop a communication on the interest of solar thermal to the agricultural sector.

5.4 Germany

At present, the German SHIP framework receives support at both R&D funding and market incentive levels. Nevertheless, one might identify some questions hindering the development of market penetration and technology development activities:

1. Despite the significant incentive scheme available for SHIP projects, the combination of current heat production costs in industry with solar technology costs and availability of alternative endogenous resources, such as biomass, raises competitiveness questions; 2. considering the low DNI resource available in Germany, SHIP applications are more likely to occur in the low temperature end, where competition with energy efficiency and waste heat recovery adds to the competitiveness challenge; 3. the low number of qualified planners/installers and the small number of market players additionally prevents competition on the market thus preventing a turnkey costs reduction, which could also be circumvented through the development and support of business models beside the predominant multi-level distribution system; 4. Reduction of complexity/standardization of system concepts is necessary; 5. Politics: measures to make solar thermal (and other RE) more attractive: e.g. shorter depreciation times (amortization) 6. Despite the existing German solar industry has had a relevant role in the development of medium and high temperature solar technologies, their potential markets are in Southern Europe or overseas. Support to research on new technology developments would need an

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 67 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

“export-driven” rationale, not yet very present in the SHIP R&D funding framework (unlike e.g. in CSP). Support to demo plants in large industry sectors with high potential at national level could also be sought; 7. whereas Industrial Energy Efficiency is receiving a major political drive and receives a significant financial support, a link between EE and RE sources as two steps towards industrial decarbonisation is not clearly stated, thus creating a “divide” between EE and renewables.

As so, a more effective support to the development of SHIP could be envisaged after the assessment of the following aspects:

1. potential impacts of SHIP in the reduction of emissions by the German Industry: in light of moderate solar resource and competition with other endogenous resources (including waste heat) SHIP faces competitiveness challenges. Investment on technology cost reduction and on the development of hybridization concepts is key. Competitiveness challenges are also more acute when payback driven approaches to investments are used. Development of support to energy services and to NPV driven investment assessment are also crucial; engagement of the industrial process manufacturing industry in the development of intensified processes and solar-driven processes is also a potential topic to focus on; assessment of hot water distribution networks aiming heat supply at temperatures below 120°C, as an alternative to the conventional steam-driven distribution approach, for new industrial plant designs; establishment of a clear connection between EE and SHIP as a strategy to industrial decarbonisation might provide access to available EE related support and financing; 2. support to the German solar industry leadership of SHIP related technologies: an export-driven vision of R&D financing policies is key to foster the leadership of German solar industry in the development of SHIP focused technologies and components; development of demonstration activities overseas is also an important aspect to follow, generating visibility on external markets and track record to German solar industry.

5.5 Greece

In Greece, there is high potential for wide employment of SHIP technologies in terms of both energy savings and cost effectiveness. Specifically, for industrial applications, which require relatively low water temperatures (range 40- 80 oC), SHIP systems are particular effective.

In order to further develop the sector, the following aspects should be considered:

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 68 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 The dissemination of the effectiveness of SHIP applications should be enhanced. Proper dissemination tools (leaflets, workshops, seminars etc) should be established in order to widespread the SHIP technologies.  Regarding research, there is a need to optimize certain components of SHIP systems - such as controllers, heat storage and collectors.  Best SHIP practices in other countries should be studied and adopted also in Greece.  During the industrial energy audits, there should be careful evaluation of the proper ranging of possible energy audit interventions. By this mean, more SHIP systems may be applicable.  The transparency of fuel prices and the transparency of energy supply contracts could also enhance the SHIP development. Nowadays, the fuel prices and which part of them is subsidized are not clear. Also, the energy supply contracts engage the industries for long periods, thereby preventing industries to examine the installation of SHIP systems.  Taking into account the high cost of land in Greece, small scale SHIP applications for low water temperatures are more likely to be implement.  In the legislation framework it is of great importance that there should be specific energy efficient indicators for industrial process heat production. Also, there should be legislation framework specific address to solar thermal systems, like there is in other RES technologies.

5.6 Italy

Different actions, not only on the economical side, could help to the assessment of the resources today available and increase the deployment of SHIP solutions. In the following paragraphs some action to be discussed at national level and possibly merged/integrated into a common European strategy, are proposed:

5.6.1 National Stakeholder Group (NSG) consolidation

The NSG ITALY is today composed by 36 entities representative of the overall supply chain, from manufacturing to the final user, from micro to large enterprise, from research to policy makers.

To effectively exploit in the next years all the potential of the overall stakeholder in Italy, different action to consolidate the NSG could be taken:

 Stimulate the participation at the NSG by other entities, especially as regards the manufacturing (mechanical, mirrors, etc..) and final user categories;  Organize meeting and events to discuss and share ideas and solution for SHIP technology development and deployment.

5.6.2 Increase awareness on SHIP technologies

A relevant, promising, suitable and so far almost unexploited market sector for applying solar thermal technology to industrial process is available57. Some difficulties still to be solved – as an effective funding model for deployment of the technologies – but today it seems that most of the stakeholders - especially the manufacturing companies (mechanical part, mirrors, etc.) and possible end users - didn’t know about the benefit and advantages of SHIP available market solutions.

By this way, a proper and coordinated communication action should be taken into account to involve the most suitable and most representative industrial sectors in Italy to exploit the SHIP

57 Vannoni C, Battisti R, Drigo S. Potential for Solar Heat in Industrial Processes. .

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 69 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes potential. In addition to the action promoted by the NSG-ITALY, two main stakeholders could act an important role, according of previous recommendations57 here summarized:

 For policy makers, national, and EU institutions, it is of utmost importance that current policies for renewable development carefully consider and promote (with specific measures and policy tools) the industrial applications of solar thermal in order to support the development of a SHIP market that could decrease the cost of production& installation. Instruments to increase industrial applications of solar thermal could be: o Make economic incentives available for industries willing to invest in SHIP technologies and systems. These incentives, aiming at reducing payback periods, could be provided by different schemes (e.g., low interest rate loans, tax reduction, direct financial support, third party financing, etc). This measures – according to a new funding model – must be combined or supported in collaboration with the already available funding schemes at regional level; o Carry out demonstration and pilot solar thermal plants in industries, including advanced and innovative solutions, like small concentrating collectors. This could be done moving the already available system at research level (see paragraph 2.1.3) to real environment demos with proper INTRA-REGION funding schemes.  For INSHIP stakeholders provide information by organizing workshop and campaigns, to the industrial sectors involved to make them aware of several issues: o the real cost of heat production and use of conventional energy sources and their relevance in the total industry management cost; o the benefits of using appropriate solar thermal technology; o Support further research and innovation to improve technical maturity and reduce costs, especially for applications at higher temperatures.

In this field, the NSG ITALY initiative could give an important contribution.

5.7 Portugal

National funding through Portugal 2020 and from future national and regional programmes beyond the 2020 Horizon, need to consider specific targets for funding research and demonstration projects in solar energy industrial applications. A similar necessity exists at policy level, in the national plans regarding energy efficiency and renewable energy deployment, which should also commit with specific targets regarding renewable energy deployment in industries, including specific targets for solar thermal energy penetration in the industrial sector. Such targets would help to drive SHIP development and deployment activity in Portugal. To develop such targets preparatory work with clear identification of Industries and their energy consumption needs (namely by temperature levels) should be performed. Ideally, this preparatory work should include the development of a proposal for a national research and development programme for SHIP. Such kind of targets should also be set at European level.

5.8 Spain

The main need detected in Spain is the lack of reference SHIP systems in operation to convince potential users about the reliability and profitability of these solar systems. The managers of Spanish industries that are potential users of SHIP systems usually show reluctance to introduce changes in their processes, unless they are fully convinced about the reliability and profitability of these changes. The more frequent questions the promoters of SHIP applications must answer when they first meet

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 70 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes potential clients are: where can I see a similar system already in operation ? and how many systems like the one you are offering me have you previously designed and installed ? .

It seems that the best way to overcome this barrier would be the implementation of public subsidies high enough to significantly reduce the payback time and thus overcome the reluctance of the potential clients to install SHIP systems in their business. Generous non-refundable public subsidies would be more efficient than soft loans for this.

The deployment in Spain of solar thermal power plants led to the construction of factories for key components (receiver tubes, curved mirrors, sun tracking systems, etc..). In a similar way, the implementation of important public subsidies creating favorable conditions for SHIP applications could be a good way to promote the construction of factories for key SHIP components and the launching of a first generation of SHIP applications in Spain that would be a seed for the second generation, which would require less public subsidies. As a compensation for the high initial subsidies, the users of the first generation of SHIP applications could be requested to put the operation and maintenance data in a special platform publicly available. Availability of real O&M data would also enhance the commercial deployment of first SHIP applications in Spain.

Since the unavailability of high-quality key components is considered another important barrier for the development of SHIP applications, Spanish Public Administration should define incentives for the implementation of these factories. Tax incentives could be a good option to achieve this. Since the industrial development will demand a local scientific support to avoid dependence on foreign technology it would also be useful to have in future Calls of national and regional R+D programs sections specifically dedicated to research activities related to SHIP technologies and applications.

Last but not least, a great dissemination effort is also considered necessary in Spain to help develop the SHIP sector. The target of this dissemination effort should be the industrial sector (to acquaint it with the benefits and characteristics of SHIP applications) and engineering companies (to teach them about the peculiarities of SHIP systems and how to design and install them).

5.9 Turkey

Turkey has both strengths and weaknesses relative to Western European countries such as Germany and Austria in terms of SHIP capacities and markets. As a strength, Turkey has much larger solar resources and large and vibrant domestic solar thermal industries and markets that exist without any subsidies or incentives, which demonstrates the cost-effectiveness of solar thermal in Turkey. As a weakness, Turkey lacks sophisticated national SHIP capacities defined as relatively mature research, innovation, industrial, funding and policy capacities working in a coordinated and symbiotic manner to support the development and commercialization of SHIP technologies. Therefore developing SHIP capacities and markets in Turkey is expected to require coordinated efforts to simultaneously develop all these capacities. In this respect, Turkey can benefit from its involvement in INSHIP by studying best- practices from partner countries in these areas, and then adapting appropriate best-practices to Turkey. Importantly, due to significant differences in solar resources and levels of economic development, the blind adoption of best-practices from countries such as Germany to Turkey is not expected to result in successful outcomes, and therefore the critical assessment of these best- practices within the context of Turkey is important.

The Mission, Goal and Short-Term Objectives for Turkey resulting from the development of this SHIP National Concept Note are as follows:

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 71 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Mission: Have Turkey benefit from the growth of national SHIP industries and markets.

Goal: Develop Turkey’s SHIP related research, innovation, industrial, funding and policy capacities in a symbiotic manner.

Short-Term Objectives:

1. Have the TSTNSG and METU GUNAM develop a model for collaboration that encourages members to engage with one another and as appropriate to exchange experiences, ideas and opportunities, and through this engagement to develop a common vision for SHIP in Turkey.

2. Develop a larger Turkish Solar Thermal R&I Group (TSTRIG). While the TSTNSG consists only of a limited number of key stakeholders (or equivalently leading actors) and is designed to encourage two-way communication among members, the TSTRIG is envisioned to include all actors interested in solar thermal R&I in Turkey and would use regular one-way communication to disseminate information such as events and opportunities to all TSTRIG members supplemented with less frequent events such as workshops using the Open Innovation model that fosters two-way communication.

After these Short-Term Objectives are largely met, the current situation in Turkey will be reassessed and appropriate new Short-Term Objectives developed that support attainment of the Goal and Mission.

Funding opportunities from national, EU and international mechanisms to support SHIP research in Turkey are all seen in the near future. Writing winning proposals will require at least strong ideas aligned with the call, and for EU and international calls a strong partner / consortium. The active engagement among the TSTNSG members and METU GUNAM and the TSTRIG more generally is expected to develop these ideas and networks and therefore result in more winning proposals.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 72 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes 6 Possible funding alignment models

The concept notes provide a mixture of approaches and positions on what constitutes a good funding alignment model. There are some convergence trends, mainly around the utility of the SET- plan, and the alignment of the national research and structural funds with EU-wide research schemes such as H2020. There are other ideas too, such as the creation of Public-Private Partnerships serving SHIP infrastructure. Spain is proposing that a Joint Research Programme that will define research priorities for SHIP, and considers this an essential step towards technological maturity. This can be associated with a European Common Fund, tied to the vision of the Programme. This model is also proposed by Portugal.

Proposed schemes:

 SET-Plan (Cyprus, Greece, Portugal)  Funding, standardisation – national schemes, structural funds alignment with EU-wide research, like H2020 (Austria, Germany, Italy, Spain)  Public-Private partnerships (Portugal, Spain)  The need to become world leaders in SHIP, assisted by a European Common Fund (Spain)

Road map:

 ERANET, ECRIA (Cyprus, Germany, Switzerland, Greece, Spain)  EUREKA (Spain)  Through regional cooperation within national borders  A Joint Research Programme and working groups, defining research priorities for SHIP (Portugal, Spain)

As before, the following passages present the countries’ detailed position on the matter.

6.1 Austria

The needs assessment of the national project EnPro shows a huge need for funding in the field of research. Technological developments like the development of multifunctional components, solar reactor technologies or emerging technologies enhancing the possible use of solar; to name a few, need funding. Despite technological developments, integration concepts are needed. Another important driver is to explore innovative strategies for financing as investment costs are a huge barrier for the implementation of the solar technologies.

Beside this, the need for normative regulations (e.g. standardised integration concepts) is shown.

One overriding point concerns the structure of the funding system itself. The possibility of providing funding without a submission deadline could above all stimulate implementation, but also accelerate research and thus lead to a market uptake.

6.1.1 Road map to define an effective funding alignment model

The Austrian Roadmap “Solarwärme 2025” – “Solar Heat 2025” shows possible measures for the market uptake of Solar Heat. In addition, the European Common Research and Innovation Agenda (where INSHIP operates) has to be named.

6.2 Cyprus

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 73 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

As described above, the main priority is aligning the structural funds programmes with the Horizon Programmes, and aligning those in turn with the EU-level SET Plan priorities relating to SHIP. In the very specific case of Cyprus, funding for SHIP related activities should also be seen as an investment into an industry, which has the possibility to meet technological demand not only of the small Cyprus market but also of the much wider EMME region, where Cyprus can be a leader in technology transfer. Therefore, in addition to science funding grants, national and international investment is also needed in the form of loans for the private sector to become interested in the field.

6.2.1 Road map to define an effective funding alignment model

Two possible financing instruments are proposed here: ERANET and ECRIA.

In addition, the European Common Research and Innovation Agendas (ECRIA) has to be mentioned here, as this is the scheme on which INSHIP itself operates under. While not designed for commercial systems or high TRLs, it is the firm belief of the NSG of Cyprus and the EC that such systems can take advantage of ECRIA schemes to accelerate their penetration in Europe.

6.3 Germany

When considering possible trans-national funding alignment models, it is important to have in mind the very favourable national funding framework in Germany, whose eventual alignment in trans- national initiatives must not prejudice (e.g. by shortening the scope of topics/eligibility, by rendering access or consortia formation more difficult, etc.).

When seeking for funding alignment models, two different interests must be harmonized: the EU objectives translated into the SET-PLAN and the national interest of each of the aligned countries (e.g. in supporting their industry, in enforcing market penetration or environmental impacts, etc.).

The main priority is aligning the structural funds programmes with the Horizon Programmes, and aligning those in turn with the EU-level SET Plan priorities relating to SHIP. Considering the German framework, support to SHIP related R&D might be regarded both from the industrial decarbonisation potential side, providing an input to the national policy targets, but also from the German solar industry promotion side, promoting the establishment of a German business opportunity or even technological leadership built on the already existing capabilities in SHIP technology development and marketing.

As a fully-fledged investment on technological development by the solar industry depends on the existence of market conditions, the possibility of trans-national incentives to SHIP applications (such as the existing incentive scheme in Germany) would definitely raise new opportunities for the development of real projects. Such incentives could also take the form of financing tools (longer term loans, guarantee facilities, subsidized interest rates).

6.3.1 Road map to define an effective funding alignment model

Bearing in mind the general principle that funding alignment must not translate into a disadvantageous funding framework compared to the already established at national level (e.g. on

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 74 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes scope, access rules or provisions/eligibility conditions), two possible financing instruments are proposed here: ERANET and ECRIA.

The ERANET Co-fund under Horizon 2020 is designed to support public-public partnerships, including joint programming initiatives between Member States that lead to the funding of trans-national research and/or innovation projects. Whereas it aims already at aligning national funding into trans- national R&D along concrete topics, the ERANET Co-fund presents some aspects which might be critical for the development of joint activities:

 Potentially strong asymmetries in funding for activities of partners from different Member states due to strong asymmetry in funding conditions and avail.

In addition, the European Common Research and Innovation Agendas (ECRIA) have to be mentioned here, as this is the scheme on which INSHIP itself operates under. While not designed for commercial systems or high TRLs, the development of Networking and Infrastructure Access activities therein foreseen might trigger concrete cooperation between industrial and R&D partners in the development of new technologies and/or components, whose exploitation/demonstration can take advantage of ECRIA schemes to accelerate their penetration in Europe

6.4 Greece

Funding models in line with European priorities could be accomplished by the European Strategic Energy Technology Plan (SET-Plan), which aims to accelerate the development and deployment of low-carbon technologies. SET-Plan tries to improve new technologies and bring down costs by coordinating national research efforts and helping to finance projects. Setting priorities relating to SHIP both in EU SET-Plan and Horizon Programmes, would contribute to the development of SHIP technologies.

On national level, Article 20 (“Other measures promoting energy efficiency”) of the Greek law 4342/201558 describes the governments’ wiliness to establish financial measures, incentives and funding mechanisms to promote energy efficiency. Moreover, in Article 10 of the same law (paragraph 8), various support schemes may be established for SMEs, covering the cost of the energy audit and the implementation of its recommendations, leading to higher economic efficiency, only in case where the proposed measures are implemented. These measures include industries where the implementation of a SHIP system is of high potential.

6.4.1 Road map to define an effective funding alignment model

As an effective funding alignment models in Greece, is considered ERANET. ERANET Cofund under Horizon 2020 is designed to support public-public partnerships, including joint programming initiatives between Member States, in their preparation, establishment of networking structures, design, implementation and coordination of joint activities as well as Union topping-up of a trans-national call for proposals. It allows for programme collaboration in any part of the entire research-innovation cycle.

58 Greek national legislation 4342/2015, http://www.publicrevenue.gr/elib/view?d=/gr/act/2015/4342

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 75 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The active participation of Greece in the above initiative could provide effective solutions in terms of the main needs and obstacles stated earlier in the study. Concluding, the penetration of SHIP technologies in Greece could be benefited via boosting local market penetration, acquiring knowledge on specific SHIP-related good practices/technologies - already adopted in other EU members with substantial expertise in the field - and transfer of this knowledge to the local industry/policy makers with the aim of designing strategies to overcome relevant obstacles.

6.5 Italy

Additional funding for R&D Programmes for SHIP technologies are needed both at National and Regional levels in order to implement a National strategy to accompany the Italian SHIP supply chain and push the deployment of the technology into the market.

A primary objective is not to disperse resources and better finalize what has been done, even privately, by enterprises that focused their market strategy on thermodynamic solar systems. It would be interesting to combine the possible financing instruments such as research funds, structural funds and funding for European projects. As these are innovative production systems, it is advisable in the context of research, for intervals of time during which the loans stalled, to encourage companies to operate on the tax credit.

6.5.1 Road map to define an effective funding alignment model

As previously mentioned, the NSG group should integrate the interests of the various stakeholders with those of the research units. The primary objective is to avoid the dispersion of resources and the achievement of objectives; this can be done through a meticulous work of knowledge within the NSG group. The knowledge of the individual activities of each stakeholder can lead to a well-developed roadmap. The strategic and temporal union of supports such as tax credit, national research and development plans and financing through European platforms like H2020, pushing all the stakeholders to best fit the alignment of the Italian funding Programme to the H2020 Programme.

For an adequate integration of local resources with those, EU is currently indispensable to improve the coordination between the regions that actually promote local actions also in the energy sector. In fact, the intention of stimulating local growth leads in many cases not to sight the opportunity of collaborations that cross local boundaries of individual regions. This is an obvious obstacle at co- funding model. The removal at this obstacle would favour the creation of new model of a balanced polycentric of co-funding. This new model, combining the resources that individual regions have to spend in this area, could create significant critical mass and foster synergic collaborations between institutions normally distributed in the Italian context.

The Italian Ministries, which deal with research funding mechanism relative to R&D on Energy (MIUR and MISE) will coordinate the alignment of the regional projects and programmes within a national strategy. The new funding model for the Italian strategy could be a combination of different cited schemes (ESIF OPs, trans-regional funds, S3 on Energy Technologies as well as others regional funding). The removal at this obstacle that can be easily removed, also because combining the resources that individual regions have to spend in this area they can create significant critical mass and foster synergic collaborations between institutions normally distributed in the Italian context.

6.6 Portugal

Current strategies to perform cross national alignment of research programmes and funding based on the ERA-NET scheme do not seem to be sufficiently fruitful to spur the envisioned development

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 76 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes level. More favourable and interesting instruments exist and should be thoroughly considered, such as a Joint Research Programme (JRP).

Considering the link between SHIP research and SHIP deployment it might be advantageous to develop a Public-Private Partnerships for research and development (PPP), with the European Commission, Member States, research institutions and private companies as stakeholders, to promote the desired alignment of funding for SHIP RTD activities. Relevant lessons can be drawn from the SPIRE and FoF initiatives.

6.6.1 Road map to define an effective funding alignment model

In Portugal RTD funds correspond to a mix of structural and national funds which are channelled through the Portugal 2020 operational programmes or the FCT calls for research projects. Thus it is necessary to ensure the alignment of the national funding programmes priorities with the European priorities (SET-Plan and Framework Programme). For SHIP this corresponds to bring forth this area as an individual priority. This requires significant work with policy makers to raise their awareness for the necessity of development and deployment of SHIP technology. This first step is a very important one since the development of an effective funding alignment model significantly depends on commitment at national level by the relevant stakeholders (i.e. by policy makers and consequently by the national and regional funding agencies).

Afterwards it is necessary to perform a comparative analysis of the national priorities and funding schemes available for SHIP RTD in different countries (including the European level) in order to identify the common themes and possible synergies. This will be the basis for the development of a Joint Research Programme proposal. These exercises must be performed taking into account the input of all stakeholders, not only research institutions, particularly, care must be taken to ensure that industrial RTD needs are reflected in the defined priorities.

Alternatively, if a PPP is preferred, it is also necessary to define the resources and incentives needed for industrial development and deployment. In fact, the development of SHIP will be closely related with the industrial development and deployment.

6.7 Spain

The current leadership of Spain in the sector of solar thermal electricity has an excellent background to become also a leader in SHIP technologies, not only for internal use in the country, but also transferring and exporting the technology to other countries Worldwide. Development of a powerful SHIP sector in Spain would be of great benefit for SMEs mainly, because the investment required for typical SHIP applications is much lower than that required for solar thermal power plants. Development of a technology that can be exploited by SME companies is always a boosting factor for the local economy due to the creation of jobs and implementation of new business lines, from equipment manufacture to design and construction of SHIP facilities in Spain and abroad.

Additionally, the implementation of SHIP facilities will enhance the Spanish industry competitiveness as the dependence on fossil fuel will be reduced. So that, the more solar fraction the industry implements, the less risk linked to fossil fuel price volatility will face. SHIP facilities last for more than the payback period. Sunniest industrial areas in Spain may become more competitive than the north region area thanks to a great potential of lowering the fossil fuel energy bill by implementing SHIP facilities.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 77 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

This benefit should be considered by Spanish authorities a good incentive to provide funds for the development of this sector in Spain, at both commercial and R+D levels. However, the impact of national efforts to provide funds for SHIP technologies would be much more efficient if it is aligned with the efforts devoted by other countries.

This alignment could be materialized with the creation of a European Common Fund with financial contributions from the European Union, the industries and Member States interested in SHIP technologies. This fund could be managed in a way similar to the current JTIs (Joint Technology Initiatives), like the JTI-ECSEL - the Public-Private Partnership for Electronic Components and Systems - , for example, where the funding is provided by the E.U., the member States and the industries. So, the creation of a JTI devoted to SHIP technologies could be a good way to achieve the required funding alignment at European level. However, since there is not yet a strong SHIP industrial sector in Spain the main problem concerning the participation of Spain in this type of funding tool is that the contribution of the Spanish Government would be subject to the existence of at least a similar funding contribution by the industrial sector to this “European common fund” for SHIP.

It has been already pointed out that the main need detected in Spain is the lack of reference SHIP systems in operation to convince potential users about their reliability and profitability. Perhaps the structural funds could be partially used by the Member States to finance the first pilot SHIP systems in their countries, in parallel with the alignment of efforts in the R+D field through a common fund. Nevertheless, this use of structural funds cannot be imposed from Brussels because each Member State decides how their structural funds are spent, and therefore the pursued alignment is unlikely to be achieved concerning the structural funds.

The alignment of funds at European level to promote specific common objectives in a more efficient way is something that has been traditionally discussed and pursued in several projects during the last years without much success, because each Member State has their own administrative rules for funds expenditure, and they do not seem to be willing to modify their rules to adopt common rules. Taking this fact into consideration, perhaps an alignment of priorities is more feasible than funding alignment, so that all the countries adopt the same high-priority topics and they then tackle these common objectives accordingly to their internal funding rules and procedures, in parallel with the European Framework Programs. For R+D activities this could be similar to current ERANET programs, with common priorities previously agreed by the interested Member States.

6.7.1 Road map to define an effective funding alignment model

Taking into consideration that:

- there already exist tools to develop projects co-funded by several countries at European level (e.g., ERANET, EUREKA,..) and these tools are not very useful for Spanish R+D entities (i.e., Universities, technological centers and public R+D centers) because of the problems already explained in section 2.1.5.

 it seems very difficult to go further using these tools,  the creation of a common fund at European level managed by a central office seems difficult too,  funding alignment has been unsuccessfully pursued during the last years in several projects,

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 78 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Perhaps it is time to think on a different option: priority topics alignment among all the countries interested in SHIP with the engagement to adopt such priorities internally also for their own national funding programs.

The roadmap to go in this direction could be composed of the following steps:

 Definition of a specific section within the SET Plan for SHIP, because development of something that is not included in the SET Plan is unlikely to get the support of the E.C.  Implementation of a European Working Group to define the priority topics related to SHIP. This group would be something similar to the Temporary Working Group implemented in 2016 to define the priority actions for solar thermal electricity. This new group could be composed of members from the National Stakeholders Group already defined in INSHIP to prepare the Concept Notes.  Definition of the priority topics for SHIP at European level  Acceptance of the priority topics by the national funding agencies of the countries involved and the E.C.

6.8 Switzerland

Structured funds programmes at the Swiss national level could be aligned with those of the Horizon Programmes, and aligning those in turn with the EU-level SET Plan priorities related to SHIP.

6.8.1 Road map to define an effective funding alignment model

Two possible financing instruments are proposed here: ERANET and ECRIA.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 79 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes List of acronyms

CDTI Centro para el Desarrollo Tecnológico Industrial (Spanish Centre for Industrial Technological Development)

CST Concentrating Solar Thermal

ESCO Energy Service Company

GIT Gran Instalación Térmica (Large Thermal Installation, Spanish program managed by IDAE)

HTF Heat Transfer Fluid

IDAE Instituto de Diversificación y Ahorro Energético (Spanish Institute for Energy Saving and Diversification)

IEC International Electrotechnical Commission

JTI Joint Technology Initiative

MTG Medium Temperature Group

NTG National Stakeholder Group

PCM Phase Change Material

SET Strategic Energy Technology

SHIP Solar Heat Industrial Process

SME Small and Medium Enterprise

TRL Technology Readiness Level

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 80 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes 7 Appendix: Country concept notes

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 81 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.1 Concept Note Germany

Integrating National Research Agendas on Solar Heat for Industrial Processes

Concept Note for Germany

WP7

Due Date: June 2018

Submitted: June 2018

Partner responsible: FISE

Person responsible Pedro Horta, Josephine Stemmer

Reviewed/supervised by: Peter Nitz

GA number: 731287

Start of the project: January 2017

Duration of the project: 48 months

DISSEMINATION LEVEL

PU Public

NATURE OF THE DELIVERABLE

HISTORY

Author Date Comments Pedro Horta 14/05/18 Version 0 Josephine Stemmer 17/05/18 Version 1 Josephine Stemmer 23/05/18 Version 2 Pedro Horta 13/06/18 Version 3

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 82 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Contents

1. Introduction ...... 84

2. Background and context ...... 84 2.1 Status of the SHIP domain in Germany...... 84 2.1.1 Market deployment and industry ...... 84 2.1.2 Research activities and infrastructures ...... 85 2.1.3 Incentives for market deployment...... 88 2.1.4 Regulatory framework ...... 88 2.1.5 Funding opportunities for SHIP research at National, EU and International level ...... 89

3. Future trends at national level ...... 90

4. Stakeholders ...... 91

5. Needs assessment ...... 92 5.1 Possible funding alignment models ...... 93 5.2 Road map to define an effective funding alignment model ...... 93

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 83 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1 Introduction This document is developed as part of the INSHIP project (Integrating National Research Agendas on Solar Heat for Industrial Processes), led by the Fraunhofer Institute for Solar Energy Systems (Fraunhofer ISE) in Germany, and which focuses on engaging major European research institutes with recognized activities on Solar Heat for Industrial Processes (SHIP), into an integrated structure. In this context, the INSHIP project aims at engaging major European research institutes with recognized activities on SHIP, to integrate their activities, and work with national authorities to align SHIP research with national research objectives, and with industry to bring SHIP to a higher Technology Readiness Level (TRL), for example by exploring synergies with district heating and the electricity grid.

Central to the above goals is the activation of the National Stakeholder Groups (NSGs), composed of representatives from organisations who have an interest in SHIP technology either as a research challenge (research institutes, universities etc.), or as a national research and development priority (e.g. relevant government agencies and departments, funding agencies etc.), or for industrial applications (e.g. in any industry that requires heat for its processes).

One of the core mandates of the NSGs is to draft a National Concept Note on SHIP RTD and technology transfer strategies for their respective countries. This concept note for Germany will be presented along with the National Concept Notes of 9 other countries (Cyprus, Spain, Austria, Italy, Portugal, Greece, Switzerland, France, Turkey), at a European Workshop in June 2018, aimed at creating an integrated strategy at the European Level.

The Concept notes themselves should be a summary of the current and future directions of SHIP related activities (both R&D and commercial) in each country, the present and future regulatory and funding framework, as well as future trends in SHIP that may have a direct or indirect impact on SHIP development for each country. The following sections develop these themes for the state of SHIP in Germany.

The present document reflects the contents of the first discussion held by the German National Stakeholders Group (NSG), upon their first meeting in December 2017 and has received its contribution and revision. The concept note is to be regarded as a “live” document, to be updated through the discussions held within the NSG along the project.

2 Background and context

2.1 Status of the SHIP domain in Germany

2.1.1 Market deployment and industry Despite ranking third worldwide in terms of installed solar thermal capacity (over 18 million m2 installed by the end of 2014, ninth in terms of installed capacity per capita59) available statistics on SHIP show a marginal penetration of solar thermal applications among industrial end-users: 23 plants, standing for an installed capacity of 4.878 m2 reported in the (non-comprehensive) SHC Solar Heat for Industrial Processes – SHIP database created in the framework of the IEA Task 4960;

59 Mauthner, F. et al. Solar Heat Worldwide: Markets and contribution to the Energy supply 2014. IEA/SHC Programme, 2016. 60 http://ship-plants.info

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 84 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Additionally to those results shown in the aforementioned database, around 12.000 m2 were installed by the end of 2016, according to the German Marktanzeigeprogramm (MAP) statistics,61 thus standing for a penetration way below 1% of the total installed solar thermal capacity.

Although potential is identified for applications in the food & beverage (with special relevance to breweries) and fabricated metal products (with special relevance to galvanizing baths), both presenting some examples, a significant share of the existing systems stand for for three applications: cleaning of vehicles, drying (mainly biomass), and rearing of piglets, all of them low temperature applications.

Considering the available solar resource, with DNI values ranging from 800 to 1150 kWh/(m2/year)62, likely SHIP applications reside on the low temperature / stationary technologies in sectors such as the Chemicals and chemical products, food & beverage, fabricated metal products, machinery and equipment or motor vehicles63. Additionally, applications in Agriculture and Forestry might also be relevant, as demonstrated by the current MAP statistics.

2.1.2 Research activities and infrastructures Within many institutions working on SHIP related topics, three main actors in SHIP research in Germany may be identified. These are:

1. DLR: focusing its activities on the application of solar concentrating technologies in medium and high temperature applications as well as on the development of solar concentrating technologies and DSG related control and BoP;

2. Fraunhofer ISE: focusing its activities on both low and medium temperature applications as well as on the development of stationary or tracking technologies and related integration components, including TES and heat exchangers;

3. University of Kassel: focusing its activities on low temperature applications and on the development of fast feasibility tools for system design procedures as well as integration concepts, have been fulfilling a relevant role as technical auditor providing the accompanying research for the German subsidies program MAP;

4. Solar-Institut Jülich (SIJ): focusing its activities high, medium and low temperature applications. More specifically the SIJ focusses on the development, the simulation and monitoring of prototype solar thermal collector and tracking systems as well as analysis of industrial energy processes and development of synergies. Also In addition, CSP technologies are under development and investigation.

Besides these, other Universities and R&D institutions (e.g. ITW - Institut für Thermodynamik und Wärmetechnik, Universität Stuttgart, ISFH - Institute for Solar Energy Research in Hamelin, ZAE Bayern - Bayerische Zentrum für Angewandte Energieforschung e.V., Solar Institut Jülich SIJ and many more) work or have worked on SHIP related projects. As for research infrastructures, one might highlight DLR, Fraunhofer ISE and Solar-Institut Jülich infrastructures, the two former already mapped within INSHIP, including:

61 Schmitt, B. Uni. Kassel. Der Beitrag solarer Prozesswärme zur Wärmewende in der Industrie, Berliner Energietage Solare Wärmewende, Mai 2017 62 Solargis, 2018. https://solargis.com/maps-and-gis-data/download/germany 63 Lauterbach, C. et al. Potential for Solar Process Heat in Germany - Suitable Industrial Sectors and Processes. Proceedings of EUROSUN 2010.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 85 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

DLR infrastructures

1. SOPRAN – The Sopran installation consists of a testing unit for line focusing solar thermal collectors and of several collector modules. It allows performance testing of collectors at up to 200°C according to standard ISO 9806 and testing of collector components. Additionally testing of other equipment like absorption chillers or small turbines is possible. 2. The high-flux solar furnace provides highly concentrated sunlight and artificial light for the development and testing of new technologies and materials at a max. temperature of 2500°C and a max. irradiance power of 5 MW/m² from a 42m² mirror surface. The installation has been designed for experiments such as solar hydrogen generation, the testing of receiver components for solar thermal power plants, and irradiation tests with materials to be deployed in space. 3. SOCRATUS – Test facility for photo catalysis evaluation 4. The Solar Thermal Test and Demonstration Power Plant Jülich (STJ) is a research facility for solar tower technologies. The tower’s core element is its volumetric receiver at the top, measuring 22 square meters. The tower has a research level halfway up the tower, enabling tests of new receiver concepts or solar chemical processes, i.e. the solar production of hydrogen 5. OPAC Laboratory for optical and durability testing jointly with Ciemat-PSA. Accelerated ageing according to standards: Humidity, thermal cycling, salt spray, abrasion, UV etc. 6. Quarz Centre - Test and qualification centre for CSP components: 7. Accelerated solar ageing of absorbers and absorber coatings, indoor qualification of linear receivers for thermal losses, optical efficiency in three different test benches 8. Photogrammetric measurement and analyses of concentrators shape of mirrors 9. Deflectometry measurement and analyses of concentrators shape for mirrors, full collectors and full solar fields 10. Synlight is a solar simulator that has solar radiation powers of up to 310 kilowatts and two times up to 240 kilowatts in three separately usable radiation chambers. Synlight started operation in March 2017 and is located in Jülich, Germany. The focus in the coming years will be on the development of production processes for solar fuels. In addition, researchers and industrial partners in the solar thermal power plant or aerospace industries find ideal conditions for tests using full-size components in Synlight.

Fraunhofer ISE infrastructures (already declared in INSHIP):

1. DSC (Differential Scanning Calorimetry) – Differential Scanning Calorimetry (DSC) is a thermal analysis that measures temperatures and heat flows associated with thermal transitions in a material. Common thermal properties measured by DSC techniques are phase changes (enthalpy and temperature), glass transitions, specific heat capacity and thermal product stability.

2. Test Facility for Small Expansion Machines – Steam loop enabling dynamic testing of steam- driven components and/or equipment (e.g expanders, Thermal Energy Storage systems, Absorption Chillers, membrane distillation modules) under controlled energy source and load profiles.

3. High power heat source with dynamic control - High power heat source for thermally driven processes.

4. Liquid Entry Pressure Characterization - Characterization of hydrophobic membranes.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 86 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

5. MD field operation testing plant - Diesel generator waste heat driven membrane distillation plant on Mediterranean island.

6. MD module test facility - Fully automated membrane distillation module testing rig.

7. MD pilot plant for direct contact operation - Full scale membrane distillation pilot plant with integrated heat recovery, pre-filtration and chemical pre-treatment.

8. MD test facility for flat bed membrane test cells -aggressive media - Flat bed membrane test cell.

9. MD test facility for flat bed membrane test cell - Test facility for membrane distillation with a small flat bed test cell for any research question.

10. Membrane module winding machine - Machine for the production of spiral wound membrane modules.

11. PV-Pumping test facility - Submersible pump working against a special valve simulating the static pump head of a well and booster pump emulating the typical irrigation situation.

12. RO test facility for dynamic operation and ERD - Small reverse osmosis laboratory facility allowing transient operation and integration of energy recovery devices.

13. Scaling test facility - Generation of thermally induced scaling in hydraulic components (membranes, heat exchangers, pipes…). to which other (yet non declared within INSHIP) infrastructures might be added, such as: medium and high Temperature thermal storage test facilities, facilities to assess heat transfer, heat exchangers, heat pipes and other thermal components, or extensive facilities for coatings and materials research and testing, degradation and durability assessment etc.

University of Kassel infrastructures (not in INSHIP)

1. Hybrid cooling and sorption plant

2. AILR- open sorption plant

3. Air conditioning system to provide air under precise defined conditions

4. Water conditioning system to provide water under precise defined conditions

5. Liquid desiccant field test system for hay ball drying

6. Solar thermal drain-back system to test new components

7. Indoor Drain-Back hydraulic test rig

8. Heat storage test facility

9. Heat transfer coefficient test rig for tubes and pipes

10. Test facility for internal heat exchangers

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 87 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

11. Mobile measurement equipment for energy audits of industrial facilities and other buildings (heat fluxes, temperatures, humidity, air flows, etc.)

SIJ infrastructures (not in INSHIP)

1. HiTexStor – high-temperature test facility for air-particle heat exchangers, up to 800 °C, 15 kW

2. 640 kW/m² high-flux test facility, beam 0.3 m x 0.3 m

3. Test rig for heating processes of pressurized gas up to 10bar, Air, helium

4. Test rig for sulphuric acid evaporation processes, up to 5 kg/s and 400 °C

5. PARIS – 2-axis tracking test facility with pressurized water for low and medium temperature solar collectors, up to 200 °C, 0.2 kg/s

6. Radiation flux sensor, up to 1000 kW/m²

7. Simulation tools for the annual yield calculation of solar thermal coupling in industrial processes

A survey conducted in 2016 stood for 26 ongoing or recently concluded nationally funded R&D projects around SHIP related topics.

2.1.3 Incentives for market deployment The Market Incentive Program for the Promotion of Measures for the Use of Renewable Energies in the Heating Market (MAP) is the Federal Government's central funding instrument for renewable energy installations. These include solar thermal systems, solid biomass combustion plants and efficient heat pumps in applications in the residential, services and industrial sectors. Since 2000, more than 1.7 million installations and their components have been funded, including more than 1.1 million solar thermal systems64.

Eligible solar thermal systems can be partly also used for space and water heating though the major share of the annual produced solar heat needs to be used for solar process heat. The application process is standardized and includes access to cumulated 65financing through certain KfW or BAFA and federal states’ funding programmes.

In total, more than € 2.7 billion in grants have been disbursed, including more than € 1.4 billion for solar thermal systems.

2.1.4 Regulatory framework Whereas no specific obligations on the adoption of renewable energy technologies are in place for industrial end-users, the regulatory framework in place for energy supply to Industry has its stronghold on Energy Efficiency related measures/policies, spilling over to renewables to some extent.

64http://www.bafa.de/DE/Energie/Heizen_mit_Erneuerbaren_Energien/Solarthermie/Neubau/Innovationsfoerderung_Prozesswa erme/prozesswaerme_node.html 65 It can be only cumulated with specific subsidy programs of the different federal states, considering the maximum allowed subsidy on EU-level (45/55/65 %)

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 88 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

As referred in the Analysis of National Energy Efficiency Action Plans and Policies in EU Member States66, important drivers to this policy are the obligation to implement energy audits and energy management systems in exchange for partial exemptions on energy taxation. Such obligations are framed with adequate energy audit incentives and energy efficiency financing schemes.

2.1.5 Funding opportunities for SHIP research at National, EU and International level At national level, SHIP research funding is foreseen directly as one of the eligible topics in the 6. Energy Research Program of the Federal Government [6. Energieforschungsprogramm der Bundesregierung] and the related announcement of research funding through the Federal Ministry for Economic Affairs and Energy (BMWi) [Bekanntmachung 2014, Section 3.12 Energieeffizienz in Industrie und Gewerbe, Handel und Dienstleistungen (GHD), subsection “3.12.3 Solare Prozesswärme“.].

66 Energy Efficiency Policies in Europe: Analysis of National Energy Efficiency Action Plans and Policies in EU Memeber States 2014 – Country Report Germany. www.energy-efficiency-watch.org . Energy Efficiency Watch, 2015. www.energy-efficiency- watch.org

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 89 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes engagement. Besides Process Heat, research activities may address related topics as well, e.g. thermal storage, energy efficiency in Industry (including process intensification or heat recovery technologies/processes), solar process heat (aiming heat production at T> 100°C and including implementation of demonstration activities) or waste water treatment/water consumption reduction technologies.

3 Future trends at national level When considering future trends at national level, it is important to divide three important questions:

1. the possible role of SHIP as an instrument of industrial decarbonisation in Germany;

2. the important potentials identified in the agriculture and forestry sectors;

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 90 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

3. the promotion of technology development by the German industry, either at solar technology, related components or industrial process manufacturing levels.

Considering the available solar resource, with DNI values ranging from 800 to 1150 kWh/(m2.year)67, likely SHIP applications reside on the low temperature / stationary technologies in sectors such as the Chemicals and chemical products, food & beverage, fabricated metal products, machinery and equipment or motor vehicles68. Statistics on the usage of the available incentive schemes for SHIP applications (MAP) though, reflect that applications in the agriculture and forestry sectors have been predominant in Germany.

Considering the promotion of technological developments, four major axes might be highlighted69:

3. the development of components, from thermal storage to heat exchangers or Balance of Plant concepts, whose drive must be related to a foreseeable market opportunity in SHIP applications;

4. industrial process manufacturers, developing process technologies to the manufacturing industry (e.g. for the food & beverage or chemical sectors), presenting the capability of developing intensified and/or solar compatible processes driven by the foreseeable marketing opportunities related to industrial decarbonisation in new industrial capacity.

4 Stakeholders The German National Stakeholders Group has currently 25 members from 20 organizations stemming from the sectors Industry and Technology (15), Research (3), Policy (1) and Finances (1). In October 2017, 46 possible members were invited to join the German National Stakeholders Group from research, finances, policy, industry or associations (such as DCSP (German Association for Concentrated Solar Power) and German Solar Association (Bundesverband Solarwirtschaft e.V.)). 7 invitees took part in the first German NSG meeting in November 2017. The election process for the

67 Solargis, 2018. https://solargis.com/maps-and-gis-data/download/germany 68 Lauterbach, C. et al. Potential for Solar Process Heat in Germany - Suitable Industrial Sectors and Processes. Proceedings of EUROSUN 2010. 69 Further investigation on the alignment of these topics to the existing/former strategy documents is to be included in a revised version of this document: roadmaps of DSTTP and “Zukunftsthemen” defined by Forschungsnetzwerk Flexible Energiewandlung, AG 3 CSP, probably other Roadmaps / documents, e.g. by BSW, or other stakeholders.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 91 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

National representative was concluded on May 15th 2018. Christian Zahler from Industrial Solar GmbH is the German representative and will join the Stakeholders Group of the INSHIP project.

5 Needs assessment At present, the German SHIP framework receives support at both R&D funding and market incentive levels, as referred in Section 2. Nevertheless, one might identify some questions hindering the development of market penetration and technology development activities:

1. despite the significant incentive scheme available for SHIP projects, the combination of current heat production costs in industry with solar technology costs and availability of alternative endogenous resources, such as biomass, raises competitiveness questions;

2. considering the low DNI resource available in Germany, SHIP applications are more likely to occur in the low temperature end, where competition with energy efficiency and waste heat recovery adds to the competitiveness challenge;

3. the low number of qualified planners/installers and the small number of market players additionally prevents competition on the market thus preventing a turnkey costs reduction, which could also be circumvented through the development and support of business models beside the predominant multi-level distribution system;

4. Reduction of complexity/standardization of system concepts is necessary;

5. Politics: measures to make solar thermal (and other RE) more attractive: e.g. shorter depreciation times (amortization)

6. despite the existing German solar industry has had a relevant role in the development of medium and high temperature solar technologies, their potential markets are in Southern Europe or overseas. Support to research on new technology developments would need an “export-driven” rationale, not yet very present in the SHIP R&D funding framework (unlike e.g. in CSP). Support to demo plants in large industry sectors with high potential at national level could also be sought;

7. whereas Industrial Energy Efficiency is receiving a major political drive and receives a significant financial support, a link between EE and RE sources as two steps towards industrial decarbonisation is not clearly stated, thus creating a “divide” between EE and renewables.

As so, a more effective support to the development of SHIP could be envisaged after the assessment of the following aspects:

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 92 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

establishment of a clear connection between EE and SHIP as a strategy to industrial decarbonisation might provide access to available EE related support and financing;

2. support to the German solar industry leadership of SHIP related technologies: an export-driven vision of R&D financing policies is key to foster the leadership of German solar industry in the development of SHIP focused technologies and components; development of demonstration activities overseas is also an important aspect to follow, generating visibility on external markets and track record to German solar industry.

5.1 Possible funding alignment models When considering possible trans-national funding alignment models, it is important to have in mind the very favourable national funding framework in Germany, whose eventual alignment in trans- national initiatives must not prejudice (e.g. by shortening the scope of topics/eligibility, by rendering access or consortia formation more difficult, etc.).

The main priority is aligning the structural funds programmes with the Horizon Programmes, and aligning those in turn with the EU-level SET Plan priorities relating to SHIP. Considering the German framework, support to SHIP related R&D might be regarded both from the industrial decarbonization potential side, providing an input to the national policy targets, but also from the German solar industry promotion side, promoting the establishment of a German business opportunity or even technological leadership built on the already existing capabilities in SHIP technology development and marketing.

5.2 Road map to define an effective funding alignment model Bearing in mind the general principle that funding alignment must not translate into a disadvantageous funding framework compared to the already established at national level (e.g. on scope, access rules or provisions/eligibility conditions), two possible financing instruments are proposed here: ERANET and ECRIA.

 a high effort on aligning proposal and project work between numerous national entities / funding schemes (both in content and, maybe even more challenging, in timing) [effort mostly on the applicants sides, but also on the funding bodies sides];  potentially strong asymmetries in funding for activities of partners from different Member states due to strong asymmetry in funding conditions and avail.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 93 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 94 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.2 Concept Note Spain

Integrating National Research Agendas on Solar Heat for Industrial Processes

Concept Note for Spain

WP7

Due Date: June 2018

Submitted: June 2018

Partner responsible: CIEMAT-PSA

Person responsible Eduardo Zarza

Prepared by: Spanish Core Stakeholder Group

Reviewed/supervised by: Spanish Medium Temperature Group

GA number: 731287

Start of the project: January 2017

Duration of the project: 48 months

DISSEMINATION LEVEL

PU Public

NATURE OF THE DELIVERABLE

HISTORY

Author Date Comments

Eduardo Zarza 19/06/18 Final version

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 95 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes CONTENTS

1. Introduction ...... 97

2. Background and context ...... 98

2.1. Status of the SHIP domain in Spain ...... 99

2.1.1. Market deployment and industry ...... 99 2.1.2. Research activities and Infrastructures...... 101 2.1.3. Incentives for market deployment ...... 102 2.1.4. Regulatory framework ...... 104 2.1.5. Funding opportunities for SHIP research at National, EU and International level ...... 105 3. Future trends at national level ...... 106

4. Stakeholders ...... 107

5. Needs assessment ...... 109

5.1. Possible funding alignment models ...... 110

5.2. Road map to define an effective funding alignment model ...... 116

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 96 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Acronyms

CDTI Centro para el Desarrollo Tecnológico Industrial (Spanish Centre for Industrial Technological Development)

CST Concentrating Solar Thermal

ESCO Energy Service Company

GIT Gran Instalación Térmica (Large Thermal Installation, Spanish program managed by IDAE)

HTF Heat Transfer Fluid

IDAE Instituto de Diversificación y Ahorro Energético (Spanish Institute for Energy Saving and Diversification)

IEC International Electrotechnical Commission

JTI Joint Technology Initiative

MTG Medium Temperature Group

NTG National Stakeholder Group

PCM Phase Change Material

SET Strategic Energy Technology

SHIP Solar Heat Industrial Process

SME Small and Medium Enterprise

TRL Technology Readiness Level

1 Introduction

This Spanish Concept Note is developed as part of the INSHIP project (Integrating National Research Agendas on Solar Heat for Industrial Processes), led by the Fraunhofer Institute for Solar Energy Systems (ISE) in Germany. In this context, the INSHIP project aims at engaging major European research institutes with recognized activities on SHIP, to integrate their activities, and work with national authorities to align SHIP research with national research objectives, and with industry to bring SHIP to a higher Technology Readiness Level (TRL), for example by exploring synergies with district heating and the electricity grid.

National Stakeholder Groups (NSGs) have been implemented in the ten participating countries of INSHIP (i.e., Germany, Spain, Austria, Cyprus, Italy, Portugal, Greece, Switzerland, France and

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 97 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Turkey) to undertake the development of a national Concept Note related to SHIP (Solar Heat Industrial Process) activities in the respective country. The National Concept Note of each country should give an overview of the situation at the respective country concerning SHIP applications, thus providing information of the research infrastructures available, the existing funding opportunities for both R+D and commercial projects and suggesting ways to align efforts at international level to enhance the development of SHIP technologies, which have a huge potential market.

The NSGs are composed of representatives from organizations interested in the promotion of SHIP activities either as a research challenge (research institutes, universities etc.), or as a national research and development priority (e.g. relevant government agencies, funding agencies etc.), or for industrial applications (e.g. in any industry that requires heat for its processes).

This Concept Note for Spain will be presented, along with the National Concept Notes of the nine other countries (Germany, Cyprus, Austria, Italy, Portugal, Greece, Switzerland, France and Turkey), at a European Workshop planned in June 2018. This workshop will be aimed at creating an integrated strategy for SHIP at European Level. One member of the Spanish NSG will be chosen to attend this workshop on behalf of the complete Spanish NSG.

The national Concept Notes must provide not only an overview of SHIP technologies and applications at the respective country but also a summary of the future directions of SHIP related activities (both R&D and commercial) in the country, the present and expected future regulatory and funding framework, as well as future trends in SHIP that may have a direct or indirect impact on SHIP development for each country. The following sections develop these topics for Spain.

2 Background and context

Since Spain is a sunny country with a high industrialization level, SHIP applications have a high potential to not only contribute to the decarbonization of the Spanish energy sector, but also to boost the local economy by providing the SME (Small and Medium Enterprise) sector with new business lines devoted to the manufacture of components for SHIP systems, as well as the design, implementation and maintenance of such solar systems. Having in mind this high potential, a specific working group devoted to the promotion of SHIP applications in Spain, the so-called “Medium Temperature Group” (hereinafter referred to as MTG), was implemented in 2014 within the framework of the public technological platform Solar Concentra (www.solarconcentra.org), which is a forum build up by the most representative agents in the Concentrating Solar Thermal (CST) sector. This platform is an active tool that fosters the R&D activities in the CST sector. The outcomes are achieved due to the structure that holds the platform and the working groups that gather entities across the complete value chain in Spain. Solar Concentra began its activities in 2010 and it is currently managed by PROTERMOSOLAR (www.protermosolar.com), the Spanish industrial association of the CST sector. The financing entity of Solar Concentra is the Ministry of Economy, Industry and Competitiveness.

Nowadays the members of the Spanish MTG represent industry firms, R&D entities, public institutions, associations and Universities. The main two targets of the MTG are:

 Fostering the SHIP market, which will hopefully lead to companies creation and job growth D 7.2 Co-funded by the Horizon 2020 GA No. 731287 98 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 Helping towards financing program calls, work on the internationalization of this sector and foster the R&D towards new markets

There is therefore an evident affinity between the objectives at national level of the Spanish MTG and the INSHIP project objectives at European level. Since the Spanish MTG is composed of entities across the complete value chain in the Spanish SHIP sector, it has 76 members. Due to the large size of the MTG a smaller working group was considered advisable in order to prepare the Spanish Concept Note for INSHIP in an efficient manner. So, a “core” Spanish Stakeholder Group was implemented in December 2017 with nine members from the MTG representing all the Spanish entities involved in SHIP activities The Spanish Concept Note thus prepared by this “core” Stakeholder Group was then distributed to the entire MTG for comments/approval. The final result of this process is the present document, which content is therefore supported by a wide number of representatives from Spanish industry firms, R&D entities, public institutions, associations and Universities involved in SHIP activities.

2.1 Status of the SHIP domain in Spain

2.1.1 Market deployment and industry

From this analysis it was obtained that the industry energy consumption at low or medium temperature ( 250 ºC) meant the 40,9 % of the total energy consumption in the industry sector in 2010, while the energy consumption in the range 60ºC

Concerning commercial projects, three SHIP applications were built in Spain in the 80´s of last century. However, those solar systems were in operation for a short period of time only because of technical problems with the parabolic trough solar fields implemented. At present, there are eight SHIP systems in operation in Spain, while two more projects are at an advanced stage of development. Three of these projects have a design temperature at the lower range of SHIP applications (80ºC). Table 1 summarizes the technical details of these SHIP systems in Spain. D 7.2 Co-funded by the Horizon 2020 GA No. 731287 99 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Table 1: SHIP systems in operation in Spain

Regio Project Sector Mirr Pow T HTF Start Technolog Status n or er (˚C Year y Are (kW) ) a (m2 ) Sevill University of Cooling 352 120 180 Pressurize 2009 Fresnel Operation e Seville Purposes. d water al Double Effect Absorp. machine Barcel FRELCATSO Food / 2.80 1.800 80 Water 2012 Fresnel Operation ona L slaughterh 0 al ouse Cord INERSUR - Food / fat 89 56 130 Pressurize 2015 Fresnel Operation oba Grasas del processing d water al Guadalquiv ir Valen SOLATOM Agroquemi 72 50 80 Water 2017 Fresnel Operation cia DADELOS cal al

Gero SOLATOM Food 36 25 80 Water 2017 Fresnel Operation na MARGALID al A Badaj Instituto del Cork 44 30,8 120 Water / 2013 CPC Operation oz corcho processing Glycol al Valen PINCASA Metal 180 26 180 Thermal Evacuat Operation cia products oil ed flat al plate Barcelo RACKAM - Laundry 822 454 10 Water 2018 Paraboli Operatio na ELIS 0 c Trough nal

As already explained in the introduction of Section 2, there is a growing interest in Spain concerning SHIP applications and a specific working group was implemented in 2014 within the public technological platform Solar Concentra (www.solarconcentra.org). The main objective of this group, which is named the “Medium Temperature Group”(MTG), is the promotion of SHIP sector in Spain, putting together the efforts of industries, public administration, research groups, associations and universities. At present there are 76 members in this Spanish group, with the following affiliation:

 Public administration: 8 members from national and regional governments in Spain  Associations: 4 national associations  Technological centers: 10 centers from different regions of Spain  Private companies and technical advisors: 46 from Spain (most of them), France and Austria D 7.2 Co-funded by the Horizon 2020 GA No. 731287 100 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 Universities: 8 universities More information about the Spanish MTG is given at: http://www.solarconcentra.org/en/working- group-2-medium-temperature/

2.1.2 Research activities and Infrastructures

There is a growing interest in Spain about the SHIP applications, not only at industry level, but also in the public Administration and R+D centers. The benefits associated to the development of a national industry for SHIP market are evident in Spain and the whole value chain is concerned about that. This is the reason why more and more entities are getting involved in the effort to promote SHIP applications in Spain. Since most of the R+D efforts in the last decade were aimed at solar thermal power plant technologies the number of research infrastructures specifically designed for SHIP is still low. After the end of the booming of solar thermal power plant in Spain (from 2007 to 2013), the industrial sector (SMEs mainly), public entities and R+D centers have been increasing their efforts to develop SHIP applications in Spain.

Although there is not a complete list of research infrastructures available in Spain for SHIP technology, it is known that most of the R+D centers formerly working on solar thermal power plant technologies are now opening research lines related to SHIP applications. Besides the growing interest of the Spanish SME sector, another reason is that most of the know-how and experience acquired by the R+D centers on solar thermal power plant technologies is also applicable for SHIP technologies. Since Spain is a World leader in solar thermal power plants, there already exists a good technological and scientific background to build a strong and powerful SHIP sector in Spain.

It has to be pointed out here that many of the R+D facilities available in Spain for solar thermal power plant technologies are also useful for SHIP technologies. So, for instance, we have in several R+D Spanish centers the following facilities available: solar components ageing test chambers, calibration facilities for solar radiation sensors, characterization facilities for concentrating reflector panels, optical laboratories for selective coatings and anti-reflective coatings, test facilities and field inspection devices for line-focus receiver tubes, and other R+D facilities that can be used fort SHIP technologies too.

Additionally, there are also R+D facilities specially designed for SHIP technologies. Three examples of these facilities already available in Spain are:

1. The Medium scale pilot plant existing at the University of Lleida Experimental facility with an operating temperature range of 50 - 380ºC which is integrated by four main parts: (1) the heating system, a 24 kWe electrical boiler that heats up and recirculates the HTF; (2) the cooling system, a 20 kWth air-HTF heat exchanger that cools down the HTF; (3) the storage system, two 0.154 m3 latent heat storage tanks for PCM storage and two 0.154 m3 sensible heat storage tanks for molten salts storage; and (4) the HTF-molten salts heat exchanger.

2. The CAPSOL test facility at the Plataforma Solar de Almería CAPSOL is a concentrating solar thermal energy test facility designed and built for testing of small- sized, high-precision parabolic-trough solar collectors under real environmental conditions. The facility is designed to operate with pressurized water under a wide range of operating conditions: fluid temperatures from ambient to 230ºC, flow rates from 0.3 to 2.0 m3/h and water pressure up to 25 bar.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 101 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

3. The accredited laboratory of CENER to perform solar thermal collectors test: This laboratory is composed of outdoor and indoor infrastructures for testing the durability and efficiency tests of solar collectors for heating liquid or air, according to the international ISO 9806 standard.

So, although there is not a complete list of Spanish research infrastructures available for SHIP technologies, there are already some facilities and many others could be implemented soon if it is required.

2.1.3 Incentives for market deployment

IDAE is managing the GIT (Large Thermal Installations) program, which started in 2011 under the 2005-2010 Renewable Energy Plan and is still on-going. It consists on a soft loan scheme through which, renewable installations in buildings and industrial processes operated by Energy Service Companies (ESCOs), are financed. The program supports solar thermal energy and also biomass and geothermal energy for heating and cooling, with a budget between 250 k€ and 3 Mio Euro. It is worth mentioning here that this funding program has not been very successful so far, because a very little number of applications have been submitted. Detailed information about the GIT program is available at: http://www.idae.es/ahorra-energia/renovables-de-uso- domestico/programa-git

a. Funding programme “Andalucía es Más”, implemented by the Andalusian regional government. Detailed information about this program is available at: http://www.solarconcentra.org/wp-content/uploads/2017/12/10.Agencia-Andaluza-de-la- Energ%C3%ADa.pdf Beneficiaries: SMEs.

Scope related to SHIP: large solar thermal systems for processes (without temperature limits)

Type of funding: 35-45% of the solar system extra cost over a similar system using non- renewable energies

Deadline: Year 2020

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 102 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

b. Funding programme “ “IVACE”, implemented by the regional government of Valencia. Detailed information about this program is available at: http://www.dogv.gva.es/datos/2018/03/02/pdf/2018_2111.pdf Beneficiaries: any public or private entity.

Scope related to SHIP: solar thermal systems, without temperature limits

Type of funding: up to 45% of the project eligible cost

Deadline: December 31st, 2018

c. Funding programme: “Improvement of the energy efficiency and use of renewable energies in public infrastructures”. To be implemented shortly by the Regional government of the Canary Island (the regulatory framework was already published on April 5th, 2018, and can be downloaded from: http://www.gobiernodecanarias.org/boc/2018/073/001.html). Beneficiaries: public entities.

Scope related to SHIP: solar thermal facilities for heating/cooling systems installed in public infrastructures and buildings.

Type of funding: 60% of the budget, with a maximum funding of 80 k€ per project

Deadline: to be published in each Call

d. Funding programme: “Incentives for energy efficiency and use of renewable energies in industries”. Implemented by the Regional government of Murcia (the regulatory framework was published on April 17th, 2018, and can be downloaded from: https://www.borm.es/borm/documento?obj=anu&id=766615l). Beneficiaries: private companies.

Scope related to SHIP: purchasing of equipment to produce thermal energy for self- consumption

Type of funding: up to 200 k€ per project

Deadline: May 11th, 2018

e. Funding programme: “Regional incentives for corporate investments”. Implemented by the Regional government of Extremadura (the regulatory framework is available at the link: http://doe.juntaex.es/pdfs/doe/2017/2170o/17040197.pdf). Beneficiaries: private companies.

Scope related to SHIP: purchasing of equipment to upgrade, improve or enlarge enterprises

Type of funding: between 25% and 45% of the total investment, which must be less than 1.2 Mio €

Deadline: December 31st, 2020

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 103 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

f. Funding programme: “Agro-industrial incentives to the investment”. Implemented by the Regional government of Extremadura (the regulatory framework is available at the link: http://doe.gobex.es/pdfs/doe/2018/580o/18050074.pdf). Beneficiaries: only agro-food industries.

Scope related to SHIP: improvement or modification of facilities related to food processing

Type of funding: between 25 k€ an 20 Mio € per project

Deadline: December 31st, 2018

g. Funding programme: “Regional incentives”. Implemented by the Regional government of Extremadura (the regulatory framework is available at the link: https://extremaduraempresarial.juntaex.es/subvenciones?idContenido=57017&redirect=/s ubvenciones). Beneficiaries: only processing industries.

Scope related to SHIP: purchasing of equipment to create a new processing industry, or improvement of an existing processing industry

Type of funding: between 25% and 45% of the total investment, which must be higher than 900 k€

h. Funding programme: “Renewable energy projects”. Implemented by the Regional government of Extremadura (the regulatory framework is available at the link: http://doe.gobex.es/pdfs/doe/2018/800o/18061019.pdf). Beneficiaries: private enterprises and their associations.

Scope related to SHIP: Medium temperature concentrating solar facilities for industrial applications.

Type of funding: 40% of the total investment, with a limit of 300 k€ per project

Deadline: There is no dead line yet. Only the regulatory framework defined by the regional government is publicly available for comments /suggestions before its official issue.

As a summary, in Spain there exist several funding programs, promoted by the central or regional governments for commercial projects with renewable energies, and SHIP projects could therefore benefit from them. Central funding programs are multi-year programs, while regional programs are usually yearly programs.

2.1.4 Regulatory framework

In Spain there is no specific regulatory framework for SHIP systems, which must fulfil the standard regulatory framework that is compulsory for generic industrial systems to regulate issues related to pressure vessels, power lines, fire hazards, lightning protection, etc. So far, the need for a specific regulatory framework has not been identified.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 104 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Sometimes, the funding programs impose some rules to the systems in order to be eligible for the grants or soft loans (e.g., the use of certified components, accessibility to operational data, participation of public R+D entities in the project as subcontractors of the private entity promoting the project, etc..). In this case, the specific rules are listed within the general conditions of the respective funding program. The most usual requirement imposed by the Spanish funding programs is the use of certified solar collectors, thus assuring the quality and performance of the systems. UNE- EN-ISO 9806:2017 (“Solar energy — Solar thermal collectors — Test methods”) defines the test and characterization methods for small-size solar thermal collectors, while the standard IEC62862-3-2- ED1 is aimed at large-size parabolic trough collectors and it will be officially issued by IEC in 2018.

2.1.5 Funding opportunities for SHIP research at National, EU and International level

Although ERANET and EUREKA programmes in Spain are useful for the industrial partners because they can get a significant percentage of funding, these programmes are not very appealing for Spanish R+D entities (i.e., Universities, technological centers and public R+D centers) because only their marginal cost can be funded, thus reducing their usefulness to promote SHIP–related research. Another disadvantage of these programs is the lack of a unified time schedule for the Calls at European and national levels. The duration of the funding period and the funding intensity for R+D entities are additional disadvantages in Spanish ERANET projects because the financing of projects is up to 36 months only and the maximum amount of funding is usually less than 200 k€. So, Spain should strive to make these programmes more appealing for Spanish R+D entities and to define a common time schedule for all the countries.

At European level, the situation in Spain is similar to that in other E.U. countries, because R+D projects promoted by international consortia may be submitted to the calls issued within the H2020 programme. Although some calls have a very generic topic (e.g., “Increasing penetration of D 7.2 Co-funded by the Horizon 2020 GA No. 731287 105 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Renewables into the Energy Market”) there are also specific calls for SHIP R+D activities, like the Call of the H2020 Programm,e “LCE-12-2017: Near-to-market solutions for the use of solar heat in industrial processes”, which was defined for projects with a TRL (Technology Readiness Level) of up to 7.

3 Future trends at national level

This section attempts to map the industrial sectors that are more interesting for SHIP applications in Spain, as well as the directions SHIP technologies may take at the national level. The Spanish technology platform Solar Concentra has recently financed a study to assess the potential of SHIP applications in Spain. The best industrial processes for SHIP applications have been identified and the results obtained from this study are summarized in the following paragraphs

Industrial Laundry: Probably the most promising sector for solar process heat in the Spanish islands (Canary and Balearic Islands). Industrial laundries provide service to big hotels and resorts, and their main energy demand is steam for cleaning processes and steam/thermal oil for ironing. The main D 7.2 Co-funded by the Horizon 2020 GA No. 731287 106 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes advantages for solar heat generation are: Peak demand during the sunniest months of the year, high density of hotels in areas with no access to natural gas.

Sewage water treatment plants: The main process in which solar process heat can be applied in seawage water treatment plants is drying sewage sludge. This process requires a continuous supply of thermal energy through the whole year. The main advantages of this kind of application are: High availability of surface, which enable solar systems to be mounted on ground, and limited access to natural gas network.

4 Stakeholders

Spanish stakeholders group of the SHIP sector is much larger than that currently involved in the project INSHIP. At present there are 76 Spanish entities already involved or willing to get involved in SHIP activities. All these entities are members of the MTG of the Spanish technology platform Solar Concentra, where their names, contact details, infrastructures and technical&scientific profile are registered in a data base. Table 2 gives the names of the stakeholders participating in the MTG, grouped in accordance with their profile.

Table 2: Spanish SHIP stakeholders

Public Agencia Andaluza de la Energía Administration Agencia Energía Extremadura Agencia Idea CDTI - Centro para el desarrollo tecnológico industrial IDAE - Instituto para la Diversificación y Ahorro de la Energía Instituto Valenciano de Competitividad Empresarial IVACE Energía Ministerio de Economía, Industria y Competitividad CIEMAT - PSA (Plataforma Solar de Almería) Associations ANESE - Asociación de Empresas de Servicios Energéticos Asoc. Cluster Energía Extremadura PROTERMOSOLAR - Asociación para la Promoción de la Industria Termosolar PTE-ee - Plataforma Tecnológica Española de Eficiencia Energética Technological AICIA Centers Cener CIC-Energigune Fundación Tecnalia Research & Innovation Fundación Tekniker

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 107 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

IMDEA Energía Instituto Tecnológico de Canarias (ITC). ISFOC Junta de Extremadura - CICYTEX Leitat Big Enterprises Abengoa Solar España, s.a. ACS Industria - COBRA Engie FCC Power Generation, s.l.u. OHL Rioglass Solar,s.a. Sener STEAG Energy Services Solar, s.l.u. SUNCNIM TSK Energy Solutions S.L.U. SME and Industrial Aalborg CSP Advisors ABACO Estudios y Proyectos Absolicon ACE REFRACTORY INTERNATIONAL, S.L Aiguasol Aira Robótica Aitesa Aorasolar APRICOT INGENIERIA, S.L. ARRAM Asit-Solar ATA Renewables Atria Smart Energy Solutions Ayesa Barrizar Batz Energy, s.l.u. BCB Cadesoluciones CREARA CSP Services España S.L. CSP Today (FCBI energy LTD.) E3i ESCAN the Energy Consulting Fresnex Gonzalo Lobo – Industrial Advisor Greenflex HELIOVIS D 7.2 Co-funded by the Horizon 2020 GA No. 731287 108 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Inersur Isotrol Juan Ignacio Burgaleta - Ingeniero Consultor Serled Consultores SOLATOM Juan Ignacio Burgaleta – Industrial advisor Soltune CPV TECNODRON Virtual Mech Universities CIESOL-Centro de Investigaciones en Energía Solar. Centro Mixto Universidad de Almería-CIEMAT Colegio de Ingenieros Industriales de Madrid Universidad Carlos III de Madrid Universidad de Almería Universidad de Cataluña Universidad de Extremadura Universidad de las Islas Baleares Universidad de Sevilla

Despite the high number of Spanish stakeholders, there is a significant lack of suppliers for key components (i.e., high quality receiver tube for medium temperature range and small curved mirrors). Since the demand of these components is still very low, the investment in new factories is unprofitable and the use of low or medium-quality receiver tubes or reflectors is the only option available most of the times. This is a problem that is further discussed in section 5.

5 Needs assessment

The deployment in Spain of solar thermal power plants led to the construction of factories for key components (receiver tubes, curved mirrors, sun tracking systems, etc..). In a similar way, the implementation of important public subsidies creating favorable conditions for SHIP applications D 7.2 Co-funded by the Horizon 2020 GA No. 731287 109 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes could be a good way to promote the construction of factories for key SHIP components and the launching of a first generation of SHIP applications in Spain that would be a seed for the second generation, which would require less public subsidies. As a compensation for the high initial subsidies, the users of the first generation of SHIP applications could be requested to put the operation and maintenance data in a special platform publicly available. Availability of real O&M data would also enhance the commercial deployment of first SHIP applications in Spain.

5.1 Possible funding alignment models The current leadership of Spain in the sector of solar thermal electricity is an excellent background to become also a leader in SHIP technologies, not only for internal use in the country, but also transferring and exporting the technology to other countries Worldwide. Development of a powerful SHIP sector in Spain would be of great benefit for SMEs mainly, because the investment required for typical SHIP applications is much lower than that required for solar thermal power plants. Development of a technology that can be exploited by SME companies is always a boosting factor for the local economy due to the creation of jobs and implementation of new business lines, from equipment manufacture to design and construction of SHIP facilities in Spain and abroad.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 110 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes funding tool is that the contribution of the Spanish Government would be subject to the existence of at least a similar funding contribution by the industrial sector to this “European common fund” for SHIP.

It has been already pointed out in section 5 that the main need detected in Spain is the lack of reference SHIP systems in operation to convince potential users about their reliability and profitability. Perhaps the structural funds could be partially used by the Member States to finance the first pilot SHIP systems in their countries, in parallel with the alignment of efforts in the R+D field through a common fund. Nevertheless, this use of structural funds cannot be imposed from Brussels because each Member State decides how their structural funds are spent, and therefore the pursued alignment is unlikely to be achieved concerning the structural funds.

5.2 Road map to define an effective funding alignment model

Taking into consideration that:

- it seems very difficult to go further using these tools,

- the creation of a common fund at European level managed by a central office seems difficult too,

- funding alignment has been unsuccessfully pursued during the last years in several projects, perhaps it is time to think on a different option: priority topics alignment among all the countries interested in SHIP with the engagement to adopt such priorities internally also for their own national funding programs.

The roadmap to go in this direction could be composed of the following steps:

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 111 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 Definition of the priority topics for SHIP at European level  Acceptance of the priority topics by the national funding agencies of the countries involved and the E.C.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 112 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.3 Concept Note Austria

Integrating National Research Agendas on Solar Heat for Industrial Processes

Concept Note for Austria

WP7

Partner responsible: AEE Institute for Sustainable Technologies

Person responsible Elena Guillen, Jürgen Fluch

Reviewed/supervised by: Christian Fink, Christoph Brunner, Jürgen Fluch

DISSEMINATION LEVEL

PU Public

HISTORY

Author Date Version

Petra Königshofer 11/06/2018 1

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 113 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Contents

1 Introduction ...... 115

2 Background and context ...... 115 2.1 Status of the SHIP domain in Austria ...... 116 2.1.1 Market deployment and industry ...... 116 2.1.2 Research activities and Infrastructures ...... 117 2.1.3 Incentives for market deployment ...... 119 2.1.4 Regulatory framework...... 122 2.1.5 Funding opportunities for SHIP research at National, EU and International level ...... 122

3 Future trends at national level ...... 123

4 Stakeholders ...... 124

5 Needs assessment ...... 124 5.1 Possible funding alignment models ...... 125 5.2 Road map to define an effective funding alignment model ...... 125

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 114 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1 Introduction This document is developed as part of the INSHIP project (Integrating National Research Agendas on Solar Heat for Industrial Processes), led by the Fraunhofer Institute for Solar Energy Systems (ISE) in Germany which focuses on engaging major European research institutes with recognized activities on Solar Heat for Industrial Processes (SHIP) into an integrated structure. In this context, the INSHIP project aims at engaging major European research institutes with recognized activities on SHIP, to integrate their activities, and work with national authorities to align SHIP research with national research objectives, and with industry to bring SHIP to a higher Technology Readiness Level (TRL), for example by exploring synergies with district heating and the electricity grid.

One of the core mandates of the NSGs is to draft a National Concept Note on SHIP RTD and technology transfer strategies for their respective countries. This concept note for Austria, will be presented, along with the National Concept Notes of 9 other countries (Germany, Spain, Cyprus, Italy, Portugal, Greece, Switzerland, France, Turkey), at a European Workshop in June 2018, aimed at creating an integrated strategy at the European Level. One member of the Cyprus National Stakeholder Group should be chosen to attend this workshop on behalf of the Stakeholder Group.

The Concept notes themselves should be a summary of the future directions of SHIP related activities (both R&D and commercial) in each country, the present and future regulatory and funding framework, as well as future trends in SHIP that may have a direct or indirect impact on SHIP development for each country. The following sections develop these themes for the state of SHIP in Austria.

2 Background and context The draft version of the Austrian Climate and Energy Strategy was published in April 2018 and will be finalised till June 2018. Austria has set itself the goal of reducing its greenhouse gas emissions a 36 % by 2030 compared to the emissions during 2005. In 2016, Austria's greenhouse gas emissions outside the EU emissions trading scheme amounted to around 50.6 million tonnes of CO2 equivalent (million tonnes of Co2eq). The target for 2030 is around 36.4 million tonnes of Co2eq, a decrease of around 28 %. All sectors outside the EU Emissions Trading Scheme will contribute to achieving this goal. The focus is on the transport and buildings sectors.

Greenhouse gas emissions from companies subjected to EU emissions trading must be reduced by 43 % across the EU by 2030 compared to 2005, thus contributing to the overall European target. This corresponds to an annual reduction path of 2.2 %. Austria aims to phase out the fossil energy industry - achievement of decarbonisation - by 2050. In the energy and industry sector (excluding those involved in emissions trading), the promotion of energy efficiency measures and the broadest possible switch to renewable energy sources or electricity-based processes should trigger a boost for innovation. Strategies concerning the heating sector will be defined in a national heating strategy together with the federal states70.

70 Draft of Climate and Energy Strategy 2030: https://mission2030.info/wp-content/uploads/2018/04/mission2030_Klima-und- Energiestrategie.pdf D 7.2 Co-funded by the Horizon 2020 GA No. 731287 115 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The relevant competent authorities in terms of funding management and administration are the Austrian Research Promotion Agency, the Kommunal Kredit Public Consulting and the climate- and energy funds, which also delegates the two aforementioned to certain parts. To complete the list, regional institutions and the AWS (Austria Wirtschaftsservice Gesellschaft, Austrian federal development and financing bank) must also be mentioned.

2.1 Status of the SHIP domain in Austria

2.1.1 Market deployment and industry The areas of application of solar thermal systems were investigated in the recent years. In the 1980s, solar thermal systems in Austria, but also in the other countries in which these technologies were applied, were almost exclusively used for the production of hot water for Single-family houses and swimming pool heating. Although these applications still have a considerable market share today, the following new areas of application have nevertheless been opened up through permanent research and development by Austrian R&D institutions and companies:

 Systems combination for space heating and water heating in single-family houses  Large combined systems for space heating in multi-storey residential buildings  Solar local and district heating (large-scale plants with several megawatts thermal power)  Solar heat for commercial and industrial applications

Applications in single-family houses (water heating and space heating) continue to determine the solar heating market. Whereas in the past it was only applications in single-family houses, efforts were made to open up new areas of application for solar heat from the year 2000 onwards, which is also visible in statistical evaluations.

The allocation of the solar systems newly installed in 2016 is shown in Figure 7.

7% 5%

Single-family house 18% Appartement buildings Accomodation Industry 70%

Figure 7 New installed solar thermal plants in 2016 in Austria (AEE INTEC).

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 116 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

As already mentioned above, the single-family house sector represents the largest market. 70 % of the solar systems were installed in single-family homes, 18 % in apartment buildings. Accommodation, trade and industry account for 5 % and 7 % respectively. Local and district heating are very low (less than 1% and therefore not included in the diagram).71

Based on the listed entries of http://ship-plants.info/ there are currently 26 plants with a total size of over 7500 m² installed in the Austrian industry. SHIP-plants is a database created within the framework of IEA SHC Task 49 and currently updated by AEE INTEC. The sectors, which have already installed SHIP in Austria according to the database, are:

Section 0 of this document contains sector-specific information on the systems already installed in Europe and shows potential for further integration in Austria.

2.1.2 Research activities and Infrastructures AEE INTEC is one of the main actors in SHIP research in Austria. Technological developments, emerging technologies to strengthen SHIP and system integration are among the research fields of the institute. The current research infrastructures at the institute are as follows:

 High-temperature collector test rig Collector test rig (according to ISO FDIS 9806) for determining the efficiency curve of a solar thermal collector at high temperature levels.  Collector test rig Collector test rig (according to ISO FDIS 9806) for determining the efficiency curve of up to three solar thermal collectors at the same time.  Laboratory Test Facility for Membrane Distillation Applications The membrane distillation plant (MD plant) in laboratory scale offers the possibility to illustrate the potential and technical performance of different MD applications in industrial processes through experimental investigations. Through its modular configuration, feasibility studies for different applications (water separation, ammonia separation, concentration of chemicals, desalination, etc.) can be performed. The link to SHIP is given, as the technology enhances the potential for integrating SHIP.  Test Facility for performance tests of sensible storage tanks

71 Biermayr et al. (2017): innovative Energietechnologien in Österreich Marktentwicklung 2016, Berichte aus Energie- undUmweltforschung 13/2017, Nachhaltigwirtschaften, bmvit https://www.google.at/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwiy4- vX2PjZAhUEkiwKHSWEDi4QFggzMAE&url=https%3A%2F%2Fnachhaltigwirtschaften.at%2Fresources%2Fnw_pdf%2F201713- marktentwicklung-2016.pdf&usg=AOvVaw1f9y9bwwc3apEmF5S2i_mI D 7.2 Co-funded by the Horizon 2020 GA No. 731287 117 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Test facility to test performance of different standard sensible heat storage tanks. The behaviour during charging, discharging and storing period can be measured and evaluated. The test facility is mentioned based on the linkage between solar thermal and thermal storages.  Test facility for testing kinetics of solid sorption materials Test facility to test the performance of solid thermochemical materials at an intermediate scale (50-200 g) under vacuum conditions. As standard sorptive distilled water is taken, but can be replaced also by other sorptives. The test rig allows to perform full desorption and ab-/adsorption cycle controlling the heating/cooling power, while permanently measuring the temperature, pressure and weight difference of the tested material.  Test facility for evaporator under vacuum conditions Test rig to test different heat exchanger designs for evaporation under vacuum conditions and low temperatures. The test rig enables to test falling film evaporation and pool boiling at a low-pressure range.

To show the Austrian research activities examples are given, focusing on roadmaps, guidelines, implementations as well as technological developments:

 IEA SHC Task 49 The work of SHC Task 49/SolarPACES IV “Solar Heat Integration in Industrial Processes” has been dedicated to process heat collectors, process integration and process intensification and design guidelines. Christoph Brunner (Austria) has been the operating agent.  R&D Roadmap A roadmap showing the path for energy efficiency in the textile and food industry has been elaborated including the possible role of SHIP.  Solar Roadmap A Roadmap developing strategic goals for the implementation of solar thermal technologies has been conducted.  EnPro project Within the project "EnPro" planning directives were elaborated to reduce barriers for an efficient and cost-effective integration of solar heat and heat pumps in industry.  Green Brewery project Within the project Green brewery, a methodological optimisation approach has been

elaborated for reducing the emissions of fossil and climate-relevant CO2 from the production of beer. SHIP is part of the optimisation approach.  SolarBrew project The projects’s aim was to show the practicability in terms of integrating big solar thermal systems in brewing industry processes. Within the project a solar thermal plant has been installed at Gösser Brewery (Austria).  SolarFoods project A concept for the implementation of a "Solar Industry Approach" in the food industry, based on an energetic and economic analysis of representative plants taking into account the integration of solar thermal energy as well as the use of other renewable energy sources and other efficiency measures has been established. The industry approach includes a planning software tool, a series of guidelines and the conclusions of the project within a solar-roadmap for the food industry.  Accompanying Research of big solar plants (currently running)

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 118 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

In Austria a specific subsidy program for large solar thermal systems was started in 2010 based on two pillars. The first pillar is an investment subsidy which was given since 2010 to more than 180 plants larger 100m² collector area. The second pillar is an accompanying research which consists of consulting services for all applicants as well as a comprehensive system monitoring for one year for selected plants. Currently approx. 80 projects are selected and for more than 40 plants the monitoring process is finished. Seven of them are SHIP applications.  SolarAutomotive project (currently running) Solar Automotive has the aim to establish solar process heat in the automotive and their supplier industry. In addition to target group analyses and potential analyses a planning tool and simulation tool as well as general integration concepts will be developed and the cooperation between the solar thermal and the automotive and supplier industry will strengthen. (bilateral project together with Germany).  GREENFOODS project (trainings are currently running) The overall objective of the GREENFOODS project is to lead the European food and beverage industry to higher energy efficiencies and reductions on fossil fuels emissions in order to ensure and foster the world-wide competitiveness, improve the security of energy supply and guarantee a sustainable production in Europe. Output of the project: sector concept for the European food and beverage industry for the identification and implementation of energy efficiency and renewable energies, development of compendium and tools, identification of necessary promotion and financing concepts, training.  Renewables4Industry project (currently running) The aim of the project is the development of a technology roadmap for the alignment of energy-intensive industrial processes to a fluctuating energy supply of both renewable electricity and renewable heat.  TrustEE project (currently running) TrustEE is a three-year project financed by the European Commission Horizon 2020 Programme to accelerate implementation of energy efficiency (EE) and renewable energy (RE) solutions. This project aligns with and supports the EU energy efficiency, renewable energy and climate goals for 2020 focussing on supporting industries facing a lack of funding and financing possibilities for EE and RE projects.  IEA Task definition (currently running) There is an ongoing IEA task definition action to identify the solar integration potential for process and wastewater separation technologies  SolarReaktor (currently running) The project is an exploratory study aiming at identifying the potential for the development of highly innovative reactor and collector technologies.

TU Wien, AIT (Austrian Institute of Technology) and SOLID mbH are also major role players in the Austrian research solar scene.

2.1.3 Incentives for market deployment The observed incentives in Austria can be divided into the subsidies, loan and financing instruments. The mentioned incentives will be described in more detail in the following sections.

Subsidies

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 119 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Table 0.1 gives an overview on subsidies related to SHIP respectively energy efficiency. The individual programmes are described in more detail after the table.

Table 0.1 Overview of Subsidies in Austria72

Name Instrument Source Sector Technology Impact Regional Subsidy/ Public All Energy Audits, Over 10 years, programmes Grant EMS about 3,500 companies have benefited from 4,700 subsidised consultant visits Energy Subsidy/ Public All Energy Over 150 contracting Grant (regional Efficiency, projects, total OÖ funds) Renewables investment 40 Mio. Euro, Subsidy: 2.6 Mio. (state 2013) UFI Energy Subsidy/ Public/National Companies, Renewables, € 62 Mio. for Grant municipalities Energy all UFI projects services, in 2015. More Energy than 1970 Efficiency projects in 2015 (regarding all UFI projects) Solar Thermal Investment Public/National All Solar Thermal More than 180 Large Plants Incentive / plants larger Grant 100m²

Regional programmes supporting energy consultancy for businesses

Regional programmes support consultancy on environmental topics, the implementation of an energy environmental system and help companies to detect energy savings potentials as well as potentials for the use of RES. The focus of the programmes is depending on the region where the money comes from. Parts are co-financed by the ministry of environment or others like the regional chamber of commerce or the regional energy utility73.

Energy Contracting Oberösterreich

The programme supports energy supply contracting projects (construction of energy installations using mainly renewable sources) and energy performance contracting projects in companies and municipalities in Upper Austria by partially covering payments to the ESCO via a public grant. It is a preparatory measure for implementing the energy efficiency regulation in the service and buildings sectors1 .

72 TrustEE: Deliverable. https://www.trust-ee.eu/files/otherfiles/0000/0010/TrustEE_D1_6.pdf 73 TrustEE: Deliverable. https://www.trust-ee.eu/files/otherfiles/0000/0010/TrustEE_D1_6.pdf D 7.2 Co-funded by the Horizon 2020 GA No. 731287 120 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

UFI Umweltförderung im Inland (Environmental Support Programme)

Within this programme funds are given to companies or organisations for building and rehabilitation, energy savings and renewable energies. The following technologies are covered:

 Renewables (Biogas, Wood, renewable heat)  Energy Services (Energy management)  Energy Efficiency (Awareness rising activities in companies, building of knowhow) 1

Solar thermal – solar thermal large plants

The programme supports large-scale solar thermal systems with collector areas of between 100 and 10,000 m². Funding is provided for the following areas:

The aim is to intensify the integration of solar thermal systems in commercial applications as well as on focusing on high innovative content and technology development74.

Loans

shows basic information on loans given to companies for investments in Renewables and Energy Efficiency as well as Energy Contracting.

Table 0.2 Overview of loans and financing instruments in Austria 75

Name Instrument Source Sector Technology Impact ErP Loan, Soft Loan ERP Funds Small, SMEs, Renewables, Yearly Guarantee big Energy donation of Efficiency fund: €500 – 600 Mio. Energy Financing Diverse ESCOs Energy Members Contracting instrument Efficiency, have invested Renewables around 100 Mio. Euro (2005-2011) only in Energy Performance Contracting76

74 Biermayr et al. (2017): innovative Energietechnologien in Österreich Marktentwicklung 2016, Berichte aus Energie- undUmweltforschung 13/2017, Nachhaltigwirtschaften, bmvit https://www.google.at/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&cad=rja&uact=8&ved=0ahUKEwiy4- vX2PjZAhUEkiwKHSWEDi4QFggzMAE&url=https%3A%2F%2Fnachhaltigwirtschaften.at%2Fresources%2Fnw_pdf%2F201713- marktentwicklung-2016.pdf&usg=AOvVaw1f9y9bwwc3apEmF5S2i_mI 75 TrustEE: Deliverable. https://www.trust-ee.eu/files/otherfiles/0000/0010/TrustEE_D1_6.pdf 76 DECA (2013): press release, June 2013: http://www.deca.at/up_files/75.pdf D 7.2 Co-funded by the Horizon 2020 GA No. 731287 121 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Erp Loan, Loan Guarantee for investments in Environmental protection

Companies are supported at financing projects in research (within the meaning of experimental development. Energy saving measures, measures for improving energy efficiency, use for renewable energy or high efficient CHPs are examples for supported investments. The funds come from the ERP Funds and underlie the European law on state aid1.

Energy Contracting

The instrument aims at an efficient use and saving of energy, making efficient technologies and Renewables accessible1.

2.1.4 Regulatory framework Energy Efficiency Regulation

According to the Energy Efficiency Act the obligation of energy consuming companies is based on the size of each company or corporate group. Large companies have to carry out an external energy audit every four years and implement a management system (Energy Management System, Environmental Management System or EMS or UMS equivalent, internationally recognized management system). Small or medium-sized enterprises can report to the National Energy Efficiency monitoring agency 77 .

Energy suppliers - from 25 GWh of energy sold against payment to end consumers - are obliged to take efficiency measures for themselves, their end customers or other end energy consumers or to make a corresponding compensation payment (supplier obligation). It is irrelevant whether the supplier sets the energy efficiency measures himself, has them implemented or procures them elsewhere78.

2.1.5 Funding opportunities for SHIP research at National, EU and International level In Austria there are different funding opportunities for research projects. On the one hand there are programmes without thematic restrictions and on the other hand there are thematic programmes on federal level and on national level. In the context of this concept note, two representatives of thematic programmes on national level with a strong link to renewable energies and industry are presented. Furthermore, the link to the European Research Area is given.

Energieforschungsprogramm (energy research programme)

The main focus of the energy research programme is in the area of energy efficiency and savings, renewable energies, intelligent networks, mobility and transport technologies for optimised energy efficiency, climate protection and storage. The focus is on research, development and full-scale testing of new materials and innovative technological components and systems in the fields of energy and mobility. Where relevant, the investigation of economic and legal issues and

77 Jelinek, R. (2015): Energy Efficiency Trends and Policies in Austria, Austrian Energy Agency, https://www.google.at/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0ahUKEwj9iYqr3vjZAhVFfywKHSP4DQcQFggzMA A&url=http%3A%2F%2Fwww.odyssee-mure.eu%2Fpublications%2Fnational-reports%2Fenergy-efficiency- austria.pdf&usg=AOvVaw0Z8V_KRsg00xylx6mbmC0s 78 WKO: Energieeffizienzgesetz, https://www.wko.at/service/umwelt-energie/EEffG_Gesetzliche_Grundlagen.html D 7.2 Co-funded by the Horizon 2020 GA No. 731287 122 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes acceptance research are eligible for funding within the framework of larger research and technology development projects79.

Model region – New Energy for Industry (NEFI)

NEFI is a thematic model region of the Climate and Energy Fund. The NEFI Sub projects develop and demonstrate key technologies for decarbonizing the industrial energy system. Over the next eight years, new projects will be developed, proven technologies demonstrated and brought to market maturity in an open innovation process together with industry, technology providers and users.

European Research Area

To strengthen Austria's position in the European Research Area (ERA), the Climate and Energy Funds is participating in the multilateral FTI programmes ERA-NET Bioenergy, ERA-NetSmart Grids Plus, Industrial Energy Efficiency ERA-NET and SOLAR-ERA.NET Cofund80.

3 Future trends at national level The Austrian industry is characterised by its high diversity of industrial companies. Based on Statistics Austria's performance and structural statistics for 2016, there are more than 320,000 companies in sectors B-N (excluding K)81.

The sectors, which have already installed SHIP in Austria according to the database http://ship- plants.info/, are:

Compared to already installed plants in whole Europe (based on the information provided by the database) following sectors show further multiplication potential for implementations in Austria.

79 Klima und Energiefonds: Jahresprogramm 2017 https://www.klimafonds.gv.at/assets/Uploads/Jahresprogramme/Jahresprogramm-2017.pdf 80 Klima und Energiefonds: Jahresprogramm 2017 https://www.klimafonds.gv.at/assets/Uploads/Jahresprogramme/Jahresprogramm-2017.pdf 81 Statistik Austria: Leistungs- und Strukturstatistik 2016 https://www.statistik.at/web_de/statistiken/wirtschaft/produktion_und_bauwesen/leistungs_und_strukturdaten/index.html D 7.2 Co-funded by the Horizon 2020 GA No. 731287 123 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 Manufacture of computers, electronics and optical products  Manufacture of motor vehicles, trailers and semi-trailers  Repair and installation of machinery and equipment  Water supply; sewage; waste management and remediation activities  Construction  Transport and storage  Information and communication

 Food sector  Automotive sector  Textile sector  Metal production and treatment sector  Insulating materials sector  Laundries  Pulp and Paper

4 Stakeholders The composition of the Austrian stakeholder group aims at covering the most important actors in the development of a research agenda. Representatives from government, funding/regulatory agencies are involved to enable a top-down approach, as well as representatives from industry and respective associations to enable a bottom-up approach. The composition is rounded off by scientific partners.

5 Needs assessment A needs assessment was done within the national project EnPro financed by the climate and energy funds. Within the project a catalogue was created and a ranking was carried out by 15 reviewers from science, engineering, associations and plant manufacturers. The needs ranking in the area of regulations and subsidies yielded the following result.

 Funding for universities and non-university research institutions

The following ranking was outlined in the area of research and development. The 10 measures with the best ranking are listed below.

 Conversion from steam to hot water, if process-technically possible

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 124 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 Development of strategies, e.g. for implementing a life cycle assessment to avoid lock-in effects  Reduction of system investment costs, for example through approaches such as modular construction, standardization and higher quantities  Easy access to information and solutions with integration concepts  Methodical design procedure to reduce system costs  Development of storage concepts for discontinuous waste heat  Standardized integration and control concepts especially for large solar applications  Optimization of collector field efficiency through intelligent control of seasonal and/or daytime-dependent partial shading of the field  Creation of suitable conditions for (energetic) process monitoring  Identification of the most energy-intensive processes and supply systems as a basis for optimization

5.1 Possible funding alignment models The needs assessment of the national project EnPro shows a huge need for funding in the field of research. Technological developments like the development of multifunctional components, solar reactor technologies or emerging technologies enhancing the possible use of solar; to name a few, need funding. Despite technological developments, integration concepts are needed. Another important driver is to explore innovative strategies for financing as investment costs are a huge barrier for the implementation of the solar technologies.

Beside this, the need for normative regulations (e.g. standardised integration concepts) is shown.

5.2 Road map to define an effective funding alignment model The Austrian Roadmap “Solarwärme 2025” – “Solar Heat 2025” shows possible measures for the market uptake of Solar Heat. In addition, the European Common Research and Innovation Agenda (where INSHIP is operated) has to be named.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 125 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.4 Concept Note Italy

Integrating National Research Agendas on Solar Heat for Industrial Processes

Concept Note for ITALY

WP7

Due Date: June 2018

Submitted: June 2018

Partner responsible: FBK

Person responsible Luigi Crema

Reviewed/supervised by: Mattia Malfatti, Fabio Montagnino, Mattia Roccabruna

GA number: 731287

Start of the project: January 2017

Duration of the project: 48 months

DISSEMINATION LEVEL

PU Public

NATURE OF THE DELIVERABLE

HISTORY

Author Date Comments

Mattia Malfatti 27.03.2018 v0 - Skeleton of document

Amedeo Amoresano 29.03.2018 v1.1 - Contribution by UniNA

Mattia Malfatti 10.04.2018 v1.2 - Added new topic

Fabio Montagnino 11.04.2018 v1.3 – Contribution on status of SHIP

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 126 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

domain by Consorzio Arca

Mattia Malfatti, Maurizio De Lucia, 18.04.2018 V2.0 – Revision of the document Amedeo Amoresano, Fabio Montagnino, Alessandro Galia

Mattia Malfatti, Daniela Fontani, Amedeo 08.05.2018 V3.0 - Added contributions and Amoresano, Alessandro Galia revision of the document

Mattia Malfatti, Fabio Montagnino 30.05.2018 V4.0 - Added contributions and revision of the document

Mattia Malfatti, Fabio Montagnino, Luigi 05.06.2018 V5.0 - Final revision of the document Crema and sharing with NSG Italy

Mattia Roccabruna, Luigi Crema 29.06.2018 V6.0 - Added contributions and integrations by (EURAC, Meccanotecnica Umbra, UNIPD SUN GEN srl, Elianto)

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 127 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Contents

1 Introduction ...... 129

2 Background and context ...... 129 2.1 Status of the SHIP domain in ITALY ...... 131 2.1.1 Target market – End user of SHIP tech ...... 131 2.1.2 Market deployment and maturity of the SHIP industry ...... 134 2.1.3 Research activities and Infrastructures ...... 137 2.1.4 Incentives for market deployment ...... 140 2.1.5 Regulatory framework for CSP applications ...... 143 2.1.6 Funding opportunities for SHIP research at National, EU and International level ...... 143

3 Future trends at national level ...... 143

4 Stakeholders ...... 145

5 Needs assessment ...... 148 5.1 National Stakeholder Group (NSG) consolidation ...... 148 5.2 Increase awareness on SHIP technologies ...... 148 5.3 Possible funding alignment models ...... 149 5.4 Road map to define an effective funding alignment model ...... 149

6 Conclusion ...... 150

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 128 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1 Introduction INSHIP project (Integrating National Research Agendas on Solar Heat for Industrial Processes) is focused on engaging major European research institutes and enterprises, with recognized activities on Solar Heat for Industrial Processes (SHIP), into an integrated structure that could successfully coordinate the achievement of the following objectives:

• more effective and intense cooperation between EU research institutions • alignment of different SHIP-related national research/funding programs, avoiding overlaps and duplications & identifying gaps • acceleration of knowledge transfer to the European industry.

This document is developed as part of the INSHIP project as part of the activation of the National Stakeholder Groups (NSGs). NSGs are composed by representatives from organizations who have an interest in SHIP technology either as a research challenge (research institutes, universities etc.), or as a national research and development priority (e.g. relevant government agencies and departments, funding agencies etc.), or for industrial applications (e.g. in any industry that requires heat for its processes).

One of the core mandates of the NSGs is to draft a National Concept Note on SHIP RTD and technology transfer strategies for their respective countries. The Concept Notes themselves should be a summary of the future directions of SHIP related activities (both R&D and commercial) in each country, the present and future regulatory and funding framework, as well as future trends in SHIP that may have a direct or indirect impact on SHIP development for each country.

This Concept Note for Italy will be presented, along with the National Concept Notes of 9 other countries (Germany, Spain, Austria, Cyprus, Portugal, Greece, Switzerland, France, Turkey), at a European Workshop in June 2018, aimed at creating an integrated strategy at the European Level. The integrated strategy should envisage both R&D and industrial perspectives, identifying the key figures of regulatory and funding frameworks, as well as their future trends. Factors that may have a direct or indirect impact on SHIP development for each country will be identified.

2 Background and context After a period of slow and parallel expansion of both solar thermal and photovoltaic (PV) market, the dramatic cost reduction of PV panels and the availability of favorable incentives, has boosted the diffusion of photovoltaic systems, also within the industrial sector. As a matter of fact, the potential interest for thermal industrial applications has been overcome by the easy access to PV systems to be installed either on roofs or ground available areas, which could contribute to reduce the energy cost as well as impact on the environment. The rising competitiveness of PV has in fact limited also the development of Concentrating Solar Power (CSP) projects, even if an attractive feed-in-tariff had been introduced as an incentive and specific know-how ad been developed under national and EU initiatives.A number of industrial initiatives have been started, which could serve both the CSP and the SHIP market, but their deployment is still limited at the early commercial stage. A clear limit encountered in the development of CSP plants is linked to a lack of coordination at national and local level between management structures, research centres and stakeholders, which could affect also the SHIP perspectives and should be considered a priority by the NSG group within INSHIP, as its initiative could contribute to reach a homogeneous coordination and development action.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 129 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The ESIF Energy database reports projects financed within European Structural and Investment Funds (ESIF) Operational Programmes (OPs) which countries and regions plan to invest in different energy areas, due to them mentioning specific energy-related keywords in different OPs that cover the territory. Selecting the “Energy efficiency in industry” activity area, a number of 109 projects is reported, while the keyword “CSP” gives only 14 projects can be identified. The following figures show their regional distribution.

Figure 1: Distribution of the 109 “Energy efficiency in industry” projects financed in Italy by ESIF funds (Database ESIF – Energy accessible under the S3 Platform http://s3platform.jrc.ec.europa.eu/esif-energy)

Figure 2: Distribution of the 14 “CSP” projects financed in Italy by ESIF funds (Database ESIF – Energy accessible under the S3 Platform http://s3platform.jrc.ec.europa.eu/esif-energy).

In Italy the SMART Specialisation Strategy (S3) was finalized in 2015, and there are specific programs at National or Regional level. The funding bodies of these programs are “Ministero dell'Istruzione, dell'Università e della Ricerca” (MIUR) for the research domain, “Ministero dello Sviluppo Economico” (MISE) for the industrial development and the Region itself. It is worth to mention that

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 130 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes the domain of “renewable energy sources” has been indicated only in 9 regional S3 (43% of the Italian region), as shown in Figure 3.

Figure 3: Regions where the S3 consider the domain “renewable energy sources”.

2.1 Status of the SHIP domain in ITALY In Italy the development of the solar source has been, alternately, promoted and supported through different schemes, both at a national and local level ("Photovoltaic roofs" initiative, "Solar thermal" program, use of funds deriving from the "Carbon Tax", etc.). Since 2008, a specific action on CSP has been put in place, combining investments in R&I and incentives for the early adoption of such systems. Research programs, involving both companies and public R&I performers have been promoted by the MISE (Ministry of Economic Development), MIUR (Ministry of Education, University and Research) and MATTM (Ministry of Environment and Protection of the Land and the Sea). Also regional Operative Programs have supported this sector through ESIF incentives. Some of the results are remarkable, as the leading linear absorber designed by ENEA and have been successfully transferred to the industry.

The national capability in the field of SHIP can be considered as a side product of such intense investment in CSP technologies, which hasn’t unfortunately entered into the industrial phase by itself. Most of the active industries that are part of the NSG, have gathered and revamped the know-how available in R&I institution towards different solutions and business models, less influenced by the national energy utility market, including SHIP.

2.1.1 Target market – End user of SHIP tech In Italy, as in other many EU countries, solar thermal is used today mainly for providing hot water to households and pools. Nevertheless, given its relevance in total final energy consumption, the industrial sector cannot be ignored. Figure 4 summarizes the main application and industrial sectors where SHIP technologies can be applied.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 131 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 4: Solar heat application and range

Figure 5 shows the key figures and data for SHIP technologies according to a detailed analysis made by IRENA82.

82 Kempener R., “Solar Heat for Industrial Processes”, Technology Brief E21, IEA-ETSAP and IRENA, January 2015 D 7.2 Co-funded by the Horizon 2020 GA No. 731287 132 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 5: key figures and data for SHIP technologies.

Also according to a report issued by CIEMAT83, the potential of using solar thermal for providing heat to industrial application is relevant in many sectors, which require heat in temperature ranges that are achievable by solar thermal systems. Typical applications for SHIP are envisaged by CIEMAT in the low to medium temperature ranges, where process heat accounts for 45% of the total demand. Solar thermal technology can also provide an alternative to cooling processes in sectors (food and tobacco) where most of the cold generation is currently done by electric chillers.

As shown in Figure 6, reported from a report issued within the IEE ALTENER project84, in Europe an extremely high percentage of heat demand in the low temperature range is requested in food, beverages and textiles industries, while the medium temperature range is requested in plastics and chemical industries. For these industries, more than 50% of the total process heat consumption falls in the temperature range up to 250°C.

83 Vannoni C, Battisti R, Drigo S., “Potential for Solar Heat in Industrial Processes”. Report within IEA SHC Task 33/IV, Rome, Italy, 2008, https://www.aee-intec.at/0uploads/dateien561.pdf. 84 ECOHEATCOOL (IEE ALTENER Project). The European Heat market, Final Report published by Euroheat&Power D 7.2 Co-funded by the Horizon 2020 GA No. 731287 133 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 6: Share of industrial heat demand by temperature level and industrial sector. Data for 2003, 32 countries (EU + Turkey, Iceland, Norway and Switzerland).

Another survey conducted within the IEA SHC Task 3385 shows how the investment in SHIP application could sensibly contribute to the achievement of the H2020 objectives. The analysis of the country potential states that, even though using quite different methodologies, the solar thermal could provide the industrial sector with 3÷4% of its heat demand

2.1.2 Market deployment and maturity of the SHIP industry The market of industrial heat in Italy is very large and diversified. The total demand of thermal energy in 2014 was 680 TWh, with a 41% arising from the industrial sector. The average annual consumption of thermal energy by an Italian industry is 700 MWh, corresponding to a bill of about 50.000 Euro. Investments in energy efficiency are growing, mainly with the adoption of cogenerative and heat recovery systems86.

According to the SHIP systems database87, which lists 213 projects with 129 MWth installed capacity (0.18 million m2), only a SHIP plant has been installed in Italy, namely the Linear Fresnel collectors

85 Vannoni C, Battisti R, Drigo S., “Potential for Solar Heat in Industrial Processes”. Report within IEA SHC Task 33/IV, Rome, Italy, 2008, https://www.aee-intec.at/0uploads/dateien561.pdf. 86 http://www.energystrategy.it/ 87 AEE-INTEC, 2013. Database for applications of solar heat integration in industrial processes. http://ship-plants.info/ (2013- 2016). Accessed February 2017 D 7.2 Co-funded by the Horizon 2020 GA No. 731287 134 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes delivered by CSP.F Solar in Sardinia to supply heat to the cheese production factory Nuova Sarda Industria Casearia.

A more recent survey performed by Solrico for the Solar Payback initiative88 89. points out that there are over 500 SHIP systems with total installed capacity superior to 280 MWth (0.4 million m2), but no further detail is available for the Italian market. The survey maps 71 companies in 22 countries as specialist of SHIP, where two of those are Italian (Soltigua and Trivelli Energia). As for available information we should consider among the active manufacturers also Reflex (PTCs), Idea (LFR), Sun Gen (Dish), CSP-F (LFR).

The following table summarizes the main installations known today in Italy. The list is reduced to the sites at highest TRL levels (TRL at least 7).

Table 0.3: Pilot and commercial plants available in Italy

LINEAR TECHNOLOGIES Laterizi Gambettola Soltigua In Laterizi Gambettola, Linear Fresnel collectors, manufatured by the same company under the trade name Soltigua, have been installed. The solar field has a 2,640m² size and a power capacity of 1.2 MW at a steam outlet temperature of 180°C. Steam is produced by two collectors’ fields working in parallel, both directly (Direct Steam Generation) and indirectly (by a thermal oil solar circuit). The solar integration takes place mostly with a steam to air heat exchanger, by increasing up to 160°C the temperature of the ambient air used in the dryer. Università di Palermo Idea A pilot plant of 210kWth has been istalled in the STS-Med plant university campus of Palermo in the framework of the STS-Med project. It consists of three rods of 28m each, for a total number of 21 LRF collectors. The solar heat is collected by an eco-compatible oil and stored in a thermokline molten salts TES. Operating temperature is about 250 °C. Nuova Sarda Industria CSP-F The plant, operating since 2015, generating a Casearia peak thermal power of 470 kWth from 995 m2 of collecting mirrors. Steam at 200 °C and 12 bar is directly fed into steam system of cheese production without any thermal storage. The investment has been subsidized by EU regional development funds. Freesun pilot plant CSP-F The Fera Group installed a pilot LFR plant in

88 SOLRICO, Bärbel Epp, 2017. Solar Process Heat: Surprisingly popular. Sun&Wind Energy. http://www.sunwindenergy.com/topic-of-the-month/solar-process-heat-surprisingly-popular (online 14.02.2017) 89 Solar Heat for Industry (accessed at https://www.solar-payback.com/wp-content/uploads/2017/07/Solar-Heat-for- Industry-Solar-Payback-April-2017.pdf on 25.05.18).

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 135 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Noto (Sicily). Its is a DSG collector,64m long for a collecting surface of 768 m2. Peak power is 400 kWth. Operating temperature is 260°C at 60 bar. EiantoCSP plants Elianto Elianto’s Concentrating Solar Power system, based on the use of Linear Fresnel reflectors, is a high temperature thermal application for heat, cooling and electric production. Elianto designed the first concentrating solar power plant operative in Italy (operational since December 2013). The heat transfer fluid can be a diathermic oil or pressurized water, both environmentally friendly and in accordance with the strict regulations foreseen in the sector. Operating temperature for the technology can reach nearly 280°C. Reggio emilia SUN GEN srl In 2018 SUN GEN srl got from ISA (International Search Authority) a positive evaluation on the international patentability of its PCT application for an innovative solar concentrating optic called “Parabolic Cline Collector”. PCC features are high concentration (> 400), linear focal area, high flow uniformity, leading to high yield (> 80%) in all solar applications. Based on PCC, they are developing multiple products: FOCUS for thermal apps up to 120 °C, FOCUS HT for apps up to 300-350 °C, FOCALSTREAM HCPVT for electric + thermal generation, granted by Horizon 2020. Prototypes are visible at our factory. We are also developing a revolutionary “short focus” version, based on small size PCC concentrators, to be installed in flat roofs. POINT TECHNOLOGIES San Filippo del Mela Magaldi In June 2016, the first Solar Thermo Electric (Sicily) Magaldi unit went in operation in San Filippo del Mela (Sicily). It was installed in the Integrated Energy Pole of the A2A Group – the largest Italian multi-utility in the energy sector. This system is based on modular steam generator units (SGU), which can be combined together to produce the superheated steam flow rate (at around 500 °C), to be used to generate electricity or as process heat. Solar radiation captured by heliostats field is concentrated on a secondary reflector (beam down) and subsequently focused into a receiver, positioned at ground level. The receiver is based on a fluidized bed technology: 270 tons of fluidized sand, at an operating temperature of 550-650 °C, are used to effectively transfer and store the solar thermal energy. Up to 8.2 MWh thermal energy D 7.2 Co-funded by the Horizon 2020 GA No. 731287 136 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

can be stored per module.

PTC TECNOLOGIES Università Kore di Enna Soltigua In this plant a natural gas heater is matched by a small PTC field. The heat serves a low temperature ORC ZE-50-ULH by Zuccato Energia with a nominal power of 50kWe. PTC collectors cover about the 10% of the heat demant in peak radiation conditions.

In addition to this list, which it is worth to mention that Trivelli Energia has completed some installations of PTC mid temperature collectors (Genova, San Bartolomeo, Lecce), even if those are space heating and DHW production.

2.1.3 Research activities and Infrastructures In the following table are summarized the main technological initiative known today. The survey classified the infrastructure and research activities in the middle TRL levels (from TRL3 to TRL6) in order to point out the research infrastructures available for experimental campaign and additional research activities – and so the most mature technologies - that could contribute to a faster market deployment.

Table 0.4: R&I facilities available in Italy

LINEAR TECNOLOGIES Laterizi Gambettola Soltigua In Laterizi Gambettola, Linear Fresnel collectors, manufatured by the same company under the trade name Soltigua, have been installed. The solar field has a 2,640m² size and a power capacity of 1.2 MW at a steam outlet temperature of 180°C. Steam is produced by two collectors’ fields working in parallel, both directly (Direct Steam Generation) and indirectly (by a thermal oil solar circuit). The solar integration takes place mostly with a steam to air heat exchanger, by increasing up to 160°C the temperature of the ambient air used in the dryer. Firenze (Toscana) CNR-INO In the labs of CNR-INO at Arcetri it is possible to perform studies on the materials and components for solar applications: 1 Optical characterization of materials, transmittance and reflectance from 190nm up to 2500nm of wavelength. 2 Analysis of solar components, profile measurement on linear parabolic mirrors, outdoor test using our solar tracker, indoor test on reflecting and refracting components.

Bolzano (Trentino Alto Eurac research In the Energy Exchange laboratory of Eurac Adige) research Parabolic trough collectors, manufactured by Soltigua, are installed. The D 7.2 Co-funded by the Horizon 2020 GA No. 731287 137 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

solar field is composed by two PTMx-18 collectors in series and the net aperture area is about 82 m². The heat capacity is 40 kW and the heat transfer fluid used is diathermic oil with a maximum outlet temperature of 250°C. The solar field can be used coupled with a gas boiler (in series or in parallel) in order to give heat to a laboratory facility including an ORC.

Padova (Veneto) University of Padua A prototype of an asymmetrical parabolic Department of trough linear concentrating system is operating Industrial engineering on the roof of the Department of Industrial Engineering. Four parabolic trough mirrors concentrate the solar radiation onto a linear receiver. The system moves about two-axes (azimuthal and zenithal motions), to have the beam radiation normal to the aperture plane. The motion is governed by a solar algorithm when approaching the sun and by a solar sensor when achieving the best receiver alignment. The facility can be used to perform tests on different types of solar receiver (thermal, CPV or CPVT) on a real linear solar concentrator. POINT TECNOLOGIES Rovereto (Trentino FBK The system is a point focus technologies based Alto Adige) facility. A solar dish of about 9m in diameter totally design internally by FBK with a new modular approach could be completely controlled remotely by a dedicated SW interface. The facility can be used to provide a real solar concentrator of thermal power (concentration ratio of about 2500) for different purposes, changing the device placed in the focal point. Palermo (Sicilia) University of Palermo At the end of 2017 has been completed the installation of a dish stirling concentrator for research activity on the conversion of solar heat in electricity inside the UNIPA Campus. UNIPA is equipped also with other multicentral laboratory and installations focused to study the utilization of solar heat to drive chemical processes, water desalination, drying and electric energy production. Napoli (Campania) University of Napoli The facilities available are strongly oriented towards the production of electricity obtained from small plants (10-30 kW). Engines Laboratory: This is the laboratory where expanders for small power plants that expand in two-phase systems are studied. Computer Lab: It is the laboratory where optimization software of energy systems are developed in the context of integrated systems

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 138 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

for smart grids. Palermo (Sicily) Consorzio ARCA, The SoLL - SOLAR LIVING LAB, is has been University of Palermo ackonwledged by ENoLL, the European Network of Living Labs. With its 3000 smq of extension, it hosts the first polygenerative pilot plant in Europe developed in urban settings, based on the concentrating mirrors technology, which is able to provide electricity, heat and cooling for multiple uses. The field is mainly devoted to the demonstration and testing of new solar components and technologies; it is open to all the citizens for visits, in order to let them access the site, receive explanations about the technologies applied and raise social challenges for which they would need solutions. It has been meant to move research results and innovation out of university labs and make them visible and easily accessible to people, thanks to the demonstrative plant.

Napoli (Campania) CNR - Istituto di Fundamental as well applied research Ricerche sulla developments for the development of CSP Combustione absorbers and CSP thermal storage based on multiphase (fluidized beds) systems. Hybridization of CSP solar with biomass or other fuels (fuel flexibility) for the efficient, clean and reliable recovery of energy content in waste streams or for the micro-cogeneration. Availability of relevant lab scale prototypes and computational facilities.

Lecce (Apulia) University of Salento The solar lab is devoted to the study of concentrating solar systems both in indoor and outdoor. A field of resarch is the application of nanofluid gases. Among the facilities:  high flux solar simulator - 1200 suns  PTC field (600m2) with nanoparticle gas as HTF;  minitower (150m2 of collecting surface) with a 20 kW Stirling engine  spectroscopic lab  CO2 treatment and reforming processes.

Novara (Piemonte) Centro Ricerche ENI PTC development and testing in cooperation per le Energie with Boston MIT. Rinnovabili e l’Ambiente

Roma (Lazio) ENEA - Casaccia Three facilities are available:  the PCS system, which allows the qualification of components as collectors, receiver tubes, control systems in lines up to 100 meters long at a maximum operating

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 139 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

temperature of 550 ° C. also devices for the accumulation of thermal energy (molten salt circuit, storage tank, fuser, auxiliary system of heating, etc.) can be tested, as well as procedures and instrumentation.  the MOSE plant (Molten Salt Experiences), where the researchers perform dynamic corrosion resistance tests on structural materials and components exposed to the action of high molten salts temperature, with cyclic variations and long term analysis  the Solar Collectors Optical Laboratory, which performs a service of characterization and quality control of solar concentrators through innovative methods and with original tools developed by ENEA. Campello sul Clitunno Meccanotecnica Testing facilities for swivel joints using diatermic (Umbria) Umbra Group oil and molten salt as HTF. N° 3 dynamic test benches to simulate working conditions with a setup of pressure, temperature and speed, monitoring friction torque and all the previous parameters. Concerning molten salt application, Joule Effect Heating System is available with current value up to 500 A.

2.1.4 Incentives for market deployment In Italy there are three main incentives models that are applicable to the SHIP technologies and increase the market deployment:  the so-called “Conto Termico”,  the “Ecobonus” for energy efficiency of buildings  the so-called “Certificati Bianchi” or Energy Efficiency Credits (EEC).

Conto Termico Conto Termico is the national subsidy scheme for energy efficiency and small renewable heat plants, is far behind the expected budget. The incentive scheme has been issued in 2012 and revised in 2016. Resources (900 million of Euro per year) come from as levy on natural gas tariffs. It seems far behind the expected budget: the official figures by the programme´s administrator “Gestore dei Servizi Energetici (GSE) show that, by the end of 2017, resources available in 2018 for public bodies are around 198 out of 200 million EUR and resources available for private persons and companies are about 688 out of 700 million EUR90. The incentive is a rebate calculated from an expected performance level. Solar hot water systems (also including solar process heat and solar district heating), solar space heating, solar cooling; also concentrating solar collectors are eligible. The incentive is paid in 2 annual installments for systems below 50 m2 and in 5 annual installation for systems above 50 m2 and up to 2,500 m2 (maximum threshold).

90 source: www.gse.it D 7.2 Co-funded by the Horizon 2020 GA No. 731287 140 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 7: Incentive levels for different collector types based on the new rules of Conto Termico 2.0 compared to the ones of Conto Termico 1.0 (continuous black line). Source: SDH Energy

The yearly instalment is calculated as follows:

Ia tot = Ci •Qu• Sl where Sl refers to the system’s gross area, Ci is a parameter ranging from 0.09 to 0.43 depending on the system size and application, and Qu is the annual collector yield (as reported on the Solar Keymark certificate for Würzburg / Athens at a temperature dependent on the application) divided by the gross area of the collector. Solar heating and cooling installations are financed up to a maximum of 2,500 m² of gross collector area and up to 65 % of the investment cost. If the calculated incentive is higher than this threshold, then it is automatically lowered to cover the 65 % of the total system cost. Collectors/systems must be certified with EN12975 or EN12976 and Solar Keymark. In specific cases, where no reference standard are available, collectors might be certified by ENEA. Collectors must meet minimum values for their efficiency curves and systems must meet minimum values for their expected annual yield.

Table 0.5: Incentives allowed by the “Conto Termico” accordingly with the size of the solar field and the application.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 141 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Certificati Bianchi The so-called “Certificati Bianchi”, White Certificates (WCs) or Energy Efficiency Credits (EEC), are negotiable securities that certify the energy savings achieved in the final uses of energy, implementing measures to increase energy efficiency. The system is based on a mandatory primary energy saving scheme for electricity and natural gas distributors with more than 50,000 end customers. For each mandatory year, from 2017 to 2020, it targets the savings that distributors have to achieve through the implementation of energy efficiency measures have been set. The obliged parties can fulfil the savings obligation in two ways:

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 142 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

3. realizing directly or through the companies controlled by them, or by controlling them, the energy efficiency projects admitted to the mechanism; 4. purchasing the securities from the other parties admitted to the mechanism, or other distributors, certified ESCOs or public or private end users who have appointed a certified Expert in Energy Management (EGE). For each TOE (Tonne of Oil Equivalent) of savings achieved thanks to the implementation of the energy efficiency intervention, a Certificate is recognized throughout its useful life established by the legislation for each type of project (from 3 to 10 years). The volunteers and the obliged parties exchange the WCs on the market platform managed by the “Gestore dei Mercati Energetici SpA (GME) or through bilateral negotiations. WC can be obtained also by the adoption and installation of SHIP systems.

2.1.5 Regulatory framework for CSP applications The legislation concerning energy production systems using thermodynamic solar systems refers to the Decree of the Ministry of Economic Development issued in June 2016: “Incentives for electricity produced from renewable sources other than photovoltaics”. A revision is under finalisation.

2.1.6 Funding opportunities for SHIP research at National, EU and International level The funding of SHIP technologies could be achieved under some RIS schemes, as well as within national call under the national OP 2014-2020 on Research and Innovation (priority “energy” is one of the 12). Also incentives for the adoption of energy efficient systems by industries can mobilise the market. Both regional and national funds can be matched with resources from the Horizon 2020 program.

3 Future trends at national level The identification of upcoming market opportunities for SHIP at the national level is very important in order to orient the R&I efforts. As we reported in the introduction, in Italy the research to market pipeline suffered of a serious mismatching in the CSP sector, where the R&I efforts weren’t combined with a persistent policy in the creation of a suitable market field. In the revamping of the sector, a particular attention should be paid in correctly modulating the research and innovation accordingly with the sectoral needs. The action of the NSG group could certainly facilitate this process, centering the objective of a balanced development.

Food & Beverage The Food and Beverage sector has always played a key role in the Italian economy, also for the support of proper implemented policies aimed at promoting abroad the true ‘Made in Italy‘ of the food. Italy is one of the largest agricultural producers and food processors in the European Union (EU). Agriculture is one of the key economic sectors, accounting for around 2.3% of Italy's GDP. The northern part of Italy produces primarily grains, soybeans, meat, and dairy products, while the south specializes in fruits, vegetables, olive oil, wine, and durum wheat. By this way, Italian industries in the food-processing sector (food production, packaging and retail companies) could benefit from SHIP applications for specific process like preservation and pasteurization of foodstuffs. In addition, glassware industry and washing and cleaning process in the beverages industry, which are strictly related to food process transformation (eg. wine production), could benefit from SHIP applications.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 143 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes Chemical and Pharmaceutical Chemical, refinery and biorefinery sectors are characterized by a remarkable heat demand more or less continuous throughout the year. Furthermore the temperature level required by many processes is compatible with the efficient operation of solar thermal collectors. Several studies demonstrated that SHIP has great potentiality to increase sustainability of these sectors. 91 92 An interesting scenario is the chemical and refinery/biorefinery industry which are large consumer of enthalpy to energetically drive chemical processes necessary to produce fuels, biofuels and goods. As an example, in Sicily is under evaluation an agreement with Sicilian Region and ENI, the largest Italian chemical company, for the conversion of Gela crude oil refinery in a bio-refinery in which solar heat could be considered as option to increase the sustainability of the new processes. Another interesting sector related to chemical industry is the Italian cosmetic market, which is the the fourth largest in Europe (comprising 13% of the European market volume) behind Germany, UK and France. This market ranks as the first in the number of Italy's SMEs. By this way, a large amount of industry could benefit of SHIP applications in all the transformation process for cosmetic production.

Metallic and non-metallic materials Processing of materials is a quite energy demanding sector. In Italy both extraction and transformation of metallic and non-metallic materials have been progressively reducing due to globalization processes. Building materials are still a relevant field for SHIP applications especially in some low-mid temperature processes. Interesting opportunities could rise from extraction processes from sea water, circular economy loops (plastic recycling), expansion of the wood/biomass sector in energy.

STE for civil application In addition to typical applications in the civil sector, as DWH, other applications could be considered at higher temperature, for services as sterilization, laundry services, food processing in large communities: residential campus, universities, hospitals, touristic resorts and large hotels. The number of potential installations is quite high, even if it is limited from the availability of suitable spaces where collectors could be installed.

Desalination and water treatment Most of the desalination and water treatment systems are energy intensive and can be driven by heat at temperature level easily matched by solar thermal collectors. Anyway, limitation in energy efficiency and actual cost of adopted equipment require investment to increase the economics of the utilization of the renewable solar energy to generate clean water.

Hybridization of other heat sources SHIP technologies could be effectively applied in hybridization of other sources as biomass, geothermal and natural gas in existing plants, in order to improve the source exploitation and maximize the payback of the investment. Approaches as the one adopted by ENEL in the Stillwater hybrid plant in Nevada 93 could be replicated in different national sites.

91 C. Lauterbach, B. Schmitt, U. Jordan, K. Vajen, The potential of solar heat for industrial processes in Germany, Renewable and Sustainable Energy Reviews 16 (2012) 5121–5130. 92 Vannoni C, Battisti R, Drigo S. Potential for Solar Heat in Industrial Processes (cit.). 93 https://www.energy.gov/articles/hybrid-power-plant-combines-3-clean-energy-sources-one accessed on 28/05/18 D 7.2 Co-funded by the Horizon 2020 GA No. 731287 144 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

4 Stakeholders CSP has a good tradition in Italy, both at research and industrial level. The key reference research centre is ENEA, which cooperate with the others Institutes such as University, CNR and FBK. In particular, several historical R&D groups are acquiring a growing relevance in this field, such as University of Cagliari, University of Florence, University of Naples and University of Palermo. For the industrial scene, in Italy several firms act in the CSP world that could be interested in SHIP applications, both as single market player or in form of association/consortium. ANEST (Associazione Nazionale per l’Energia Solare Termodinamica) is the main association of the sector (more than 20 companies) whose major representatives are: Archimede Solar Energy, ARCA, CSP-F, Enel, KT - Kinetics Technology, Innova Energy Solutions, Meccanotecnica Umbra, MF Energy, Reflex, Soltigua, Turboden. Major representative’s firms not included in ANEST but active in CSP sector are: Astroflex, Almeco and Polokrio, Ronda and Maccaferri Group. For research programs, promotion of initiatives which involve both companies and public R&I performers previous cited, is in charge of MISE (Economic Development Ministry), MIUR (University and Research Ministery) and MA (Environment Ministry). Also APRE premises in Italy (Agency for the Promotion of European Research) play an important role in this field.

The INSHIP National Stakeholder Group Italy is composed by representatives from organizations which have an interest in SHIP technology: • research challenge (research institutes, universities etc.) or as a national research and development priority (e.g. relevant government agencies and departments, funding agencies etc.) for example as part of the National Smart Specialization Strategy; • companies involved in SHIP technologies for industrial applications (e.g. in any industry that requires heat for its processes). In particular, the INSHIP Italian partners have completed a detailed survey of the all entities that could be interested in the SHIP technologies. All the stakeholders participating in the CSP/STE National Working Group formed under the STAGE/STE project are involved also in the INSHIP Consortium and constitute the basis for the INSHIP NSG-Italy activation. This small group, after a detailed state of the art analysis and thanks to the networking action taken by each Italian partner, invite more than 60 relevant stakeholder to participate at the NSG confident in their contribution to the SHIP roadmap. Participation in the NSG and NCG is on a purely voluntary basis, but will include some benefits such as being informed on state-of-the art developments in SHIP R&D, getting a better idea of what efforts are ongoing in other countries, as well as identification of possible opportunities for partnerships across the continent. The NSG is an open group and everyone who wants to join, also after the completion of this Concept Note, is welcomed to participate.

Due to the high participation in the NSG Italy, a National Core Group (NCG) has been settled up in order to better coordinate the future actions of the NSG. Today the NCG is composed by the main contact of the INSHIP Italian partner and the elected NSG Representative. The NCG board will be completed after the first meeting of the NSG to guarantee a broad representation across the three main stakeholder sectors (Technology, Finance and Policy).

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 145 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 8: NSG Italy organization

Today the NSG-Italy is composed by 36 entities representative of the overall supply chain that could be divided in three main categories:  Research Institution and Universities;  Government agencies and Departments, Funding agencies, Enterprise Consortium, etc.;  Industries and Companies. Figure 9 shows the actual composition of the NSG. It could be noticed that the industrial sector embrace all the enterprise dimension, from the micro dimension to the large enterprise (Like ENI, ENEL, Ansaldo, Ferrero).

Figure 9: NSG Italy composition

A detailed analysis of the NSG composition put in evidence that the single entities, taken together, represent the overall value chain for a successful implementation of the National Roadmap for SHIP

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 146 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes technology deployment. In particular, as shown in Figure 10, all the different sector from manufacturing to the final user is involved. In particular, a consistent number of MICRO and SME are distributed between the system integrator category (design, construction and deployment) of CSP system) and service provider (Design, simulation, energy provider, etc.).

Figure 10: NSG Italy - categories

Figure 11 shows the territorial distribution of the NSG participant. It is interesting to notice that, in comparison with the Regions where the S3 consider the domain “renewable energy sources”, no entities from Valle d’Aosta, Basilicata and Puglia participate at the NSG. Nevertheless, the 62% of the Italian regions are represented and this number could increase if proper NSG consolidation action is taken.

Figure 11: NSG Italy – territorial distribution (in orange the region represented inside NSG)

The NSG-Italy list is included in the overall EU relevant stakeholders list, available from the leader of the relevant WP (CYL) and through the EMDESK online platform.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 147 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

5 Needs assessment Different action, not only on the economical side, could help to the assessment of the resources today available and increase the deployment of SHIP solutions. In the following paragraphs some action to be discussed at national level and possibly merged/integrated into a common European strategy, are proposed:

5.1 National Stakeholder Group (NSG) consolidation The NSG ITALY is today composed by 36 entities representative of the overall supply chain, from manufacturing to the final user, from micro to large enterprise, from research to policy makers. To effectively exploit in the next years all the potential of the overall stakeholder in Italy, different action to consolidate the NSG could be taken:

5.2 Increase awareness on SHIP technologies A relevant, promising, suitable and so far almost unexploited market sector for applying solar thermal technology to industrial process is available94. Some difficulties still to be solved – as an effective funding model for deployment of the technologies – but today it seems that most of the stakeholders - especially the manufacturing companies (mechanical part, mirrors, etc.) and possible end users - didn’t know about the benefit and advantages of SHIP available market solutions.

By this way, a proper and coordinated communication action should be taken into account to involve the most suitable and most representative industrial sectors in Italy to exploit the SHIP potential. In addition to the action promoted by the NSG-ITALY, two main stakeholders could act an important role, according of previous recommendations57 here summarized:

 For policy makers and national and EU institutions, it is of utmost importance that current policies for renewable development carefully consider and promote (with specific measures and policy tools) the industrial applications of solar thermal in order to support the development of a SHIP market that could decrease the cost of production&installation. Instruments to increase industrial applications of solar thermal could be: o Make economic incentives available for industries willing to invest in SHIP technologies and systems. These incentives, aiming at reducing payback periods, could be provided by different schemes (e.g., low interest rate loans, tax reduction, direct financial support, third party financing, etc). This measures – according to a new funding model – must be combined or supported in collaboration with the already available funding schemes at regional level; o Carry out demonstration and pilot solar thermal plants in industries, including advanced and innovative solutions, like small concentrating collectors. This could be done moving the already available system at research level (see paragraph 2.1.3) to real environment demos with proper INTRA-REGION funding schemes.  For INSHIP stakeholders provide information by organizing workshop and campaigns, to the industrial sectors involved to make them aware of several issues:

94 Vannoni C, Battisti R, Drigo S. Potential for Solar Heat in Industrial Processes. . D 7.2 Co-funded by the Horizon 2020 GA No. 731287 148 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

o the real cost of heat production and use of conventional energy sources and their relevance in the total industry management cost; o the benefits of using appropriate solar thermal technology; o Support further research and innovation to improve technical maturity and reduce costs, especially for applications at higher temperatures. In this field, the NSG ITALY initiative could give an important contribution.

5.3 Possible funding alignment models Additional funding for R&D Programmes for SHIP technologies are needed both at National and Regional levels in order to implement a National strategy to accompany the Italian SHIP supply chain and push the deployment of the technology into the market.

5.4 Road map to define an effective funding alignment model As previously mentioned, the NSG group should integrate the interests of the various stakeholders with those of the research units. The primary objective is to avoid the dispersion of resources and the achievement of objectives; this can be done through a meticulous work of knowledge within the NSG group.The knowledge of the individual activities of each stakeholder can lead to a well- developed roadmap. The strategic and temporal union of supports such as tax credit, national research and development plans and financing through European platforms like H2020, pushing all the stakeholder to best fit the alignment of the Italian funding Programme to the H2020 Programme.

For an adequate integration of local resources with those EU is currently indispensable to improve the coordination between the regions which actually promote local actions also in the energy sector. In fact, the intention of stimulating local growth leads in many cases not to sight the opportunity of collaborations that cross local boundaries of individual regions. This is an obvious obstacle at co-funding model. The removal at this obstacle would favour the creation of new model of a balanced polycentric of co-funding. This new model, combining the resources that individual regions have to spend in this area, could create significant critical mass and foster synergic collaborations between institutions normally distributed in the Italian context.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 149 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

6 Conclusion This National Concept Note is a first version of the Italian strategy that will be updated during the project with the different contribution of the NSG Italy members and according to the European integrated strategy which results from the alignment of the 9 National Concept Notes produced inside INSHIP project. A final version of this Concept Note will be completed at the end of the project, identifying in a better way the key figures of regulatory and funding frameworks, as well as their future trends.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 150 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.5 Concept Note Portugal

Integrating National Research Agendas on Solar Heat for Industrial Processes

Concept Note for Portugal

WP7

Due Date: June 2018

Submitted: July 2018

Partner responsible: Renewable Energy Chair, University of Évora

Person responsible Hugo Gonçalves Silva (UEVORA)

Reviewed/supervised by: Manuel Collares-Pereira (UEVORA)

GA number: 731287

Start of the project: January 2017

Duration of the project: 48 months

DISSEMINATION LEVEL

PU Public

NATURE OF THE DELIVERABLE

HISTORY

Author Date Comments

Hugo Silva (UEVORA) 13/07/2018 Draft 1

João Cardoso (LNEG) 31/07/2018 Draft 2

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 151 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Contents

1 Introduction ...... 153 2 Background and context ...... 153 2.1 Status of the SHIP domain in Portugal ...... 154 2.1.1 Market deployment and industry ...... 154 2.1.2 Research activities and Infrastructures ...... 154 2.1.3 Incentives for market deployment ...... 156 2.1.4 Regulatory framework ...... 157 2.1.5 Funding opportunities for SHIP research at National, EU and International level ...... 158 3 Future trends at national level ...... 158 4 Stakeholders ...... 159 5 Needs assessment ...... 159 5.1 Possible funding alignment models ...... 160 5.2 Road map to define an effective funding alignment model ...... 160

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 152 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1 Introduction This document was developed as part of the INSHIP project (Integrating National Research Agendas on Solar Heat for Industrial Processes), led by the Fraunhofer Institute for Solar Energy Systems (ISE) in Germany. The project focuses on engaging major European research institutes with recognized activities on Solar Heat for Industrial Processes (SHIP) to integrate their activities. Additionally, it fosters work with national authorities and industry aiming to align SHIP research activities, national and European research objectives and industry development activities in order to bring SHIP to a higher Technology Readiness Level (TRL).

Central to the above goals is the activation of the National Stakeholder Groups (NSGs), composed of representatives from organisations who have an interest in SHIP technology either as a research challenge (research institutes, universities etc.), as a national research and development priority (e.g. relevant government agencies and departments, funding agencies, etc.), or for industrial applications (e.g. technology suppliers, industries that require heat for its processes, etc.).

One of the core mandates of the NSGs is to draft a National Concept Note on SHIP RTD and technology transfer strategies for their respective countries. All 10 concept notes (from Austria, Cyprus, France, Germany, Greece, Italy, Portugal, Spain, Switzerland and Turkey) will be presented at a European Workshop in during the second half of 2018, aimed at creating an integrated strategy at the European Level. One member of each NSG should be chosen to attend this workshop on the behalf of the NSG.

The concept notes themselves should be a summary of the future directions of SHIP related activities (both R&D and commercial) in each country, the present and future regulatory and funding framework, as well as future trends in SHIP that may have a direct or indirect impact on SHIP development for each country.

The following sections develop these themes for the state of SHIP in Portugal. They have been elaborated by University of Évora with inputs from LNEG, expecting contributes from all the stakeholders involved.

2 Background and context Historically, the first relevant SHIP installations in Portugal date back to the second half of the 1980s. These installations (three in total) belonged to the food and beverage industry, with applications ranging from drying to steam production. The deployment of solar thermal energy technologies (including SHIP) has been supported through national programmes for energy efficiency and endogenous energy utilization (for example the Programa E4 from 2001 or the Resolução do Conselho de Ministros nº 623/2003, de 28 de Abril), as well as through the application of European Structural and Investment Funds (through the QREN programme and its operational programmes). However, these programmes failed to make significant inroads in the SHIP domain, despite their successful application in the building sector.

Funding for SHIP research and technological development (RTD) activities has been available in the past decades under the EU’s Framework Programmes, by the Foundation for Science and Technology (FCT) general calls for scientific research and technological development and through the QREN’s operational programmes (European Structural and Investment Funds. ESIF).

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 153 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Medium term energy policy, up to 2020, is set in two main documents: the National Action Plan on Renewable Energy (PNAER) and the National Action Plan on Energy Efficiency (PNAEE). In terms of long term policy there is only a general objective for the future energy policy explicitly stated, that of a substantial decarbonization of the Portuguese Economy by 2050, but still no explicit plan for when and how this should start happening.

Until 2020 the national and regional funding programmes for RTD, demonstration and technology deployment activities are defined within the scope of the Portugal 2020 programme (the Partnership Agreement between Portugal and the European Commission for 2014-2020) and its Operational Programmes (OP). Renewable energies are mentioned and supported as a priority in the National and Regional Research Innovation Strategies for Smart Specialisation (RIS3). Although SHIP is not explicitly mentioned in the RIS3 or the ensuing OPs, they can be used to fund SHIP related actions.

2.1 Status of the SHIP domain in Portugal

2.1.1 Market deployment and industry The solar thermal energy market in Portugal is mainly driven by domestic hot water applications. In

2016 an estimated total power of 714 MWth was in operation, corresponding approximately to a total installed collector area of 1 020 000 m2. The newly installed capacity reached 32 MWth (approximately 46 000 m2 of installed collector area), a reduction in comparison with previous years. These numbers show that there is an established market for solar thermal collectors, as well as technical and industrial expertise which can be used in the SHIP domain.

Although the first relevant SHIP installations in Portugal date back to the second half of the 1980s, and the despite the favourable resource availability as well as technical and industrial expertise, the implementation of SHIP on the Portuguese industry is still very unsubstantial, mostly comprised by systems for hot water production installed and operating since several years ago. At present, one operational installation is on record and another being implemented: 1) The installation is located on a metallurgic factory to deliver heat for process wash and drying (temperatures ranging from 50

ºC to 160 ºC), attaining 180 ºC at the collector outlet. It is designed to generate 67 kWth (108 m2 total collector aperture area) through a small scale parabolic trough collector, Icarus Heat®, using thermo-oil as working fluid. The system is hybridized with a natural gas burner. Further details can be found here: http://ship-plants.info/solar-thermal-plants/170-silampos-s-a-portugal?country=Portugal. 2) An installation is being implemented at an electronic components manufacturing industry, aiming at deliver process heat for electrolyte preparation and impregnation at a controlled temperature (ranging from 40 ºC to 180 ºC). The solar system aims to generate 100 kWth (at 180 ºC) by using a 186 m2 aperture area solar field of CPC-type collectors with thermal oil as heat transfer fluid. It will include a thermal energy storage system with a phase change material as well as a sensible heat storage in order to balance the solar supply - process demand mismatch due to the batch production and variable loads.

2.1.2 Research activities and Infrastructures Portugal RTD institutions have a well-established background in SHIP research, both at national and international level. Currently the main national actors in SHIP research are the Renewable Energy Chair of the University of Évora (UEVORA), the National Laboratory for Energy and Geology (LNEG), the Institute of Science and Innovation in Mechanical and Industrial Engineering (INEGI) and the University of Lisbon.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 154 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

UEVORA is a main actor in SHIP research in Portugal, ranging from the development of solar thermal technologies to their testing at an industrial level and supporting their subsequent commercial implementation. UEVORA works closely with two Portuguese research institutions, LNEG and INEGI, in some of these subjects. Presently UEVORA has the following research infrastructure:

Évora Molten Salts Platform: this platform (www.emsp.uevora.pt/) is meant to test, on an industrial scale, the use of molten salts (up to ~580 ºC) as operating fluid in linear solar collector field equipped with a two salt tanks (hot and cold tank) energy storage facility. The Platform is a joint collaboration between the University of Évora (Portugal) and German Aero-space Agency (Germany).

Solar Concentrators Testing Platform: 2D tracking platform with 18x13 m2 useful installation area connected to a thermal oil hydraulic loop able to test any type of solar concentrating collector up from ambient temperature up to 380 ºC. The platform is open to the industry for the development and test of prototypes as well as commercial products following the ISO9806 standard test methods.

Direct Normal Irradiance measurement network: jointly with LNEG, INEGI, and other partners a DNI Network is run consisting of 11 sun tracker measuring stations installed with the aim of assess DNI resource for future CSP implementation by producing reliable availability maps. Along-side with the network, expertise in data solar irradiance processing is included in this research infrastructure.

Soiling characterization and mitigation: focus is given to monitoring particle deposition on mirrors and the characterization of the deposited material in agricultural environments as SHIP presents good prospects for implementation on the food industry sector.

LNEG has a long experience working in SHIP applications, including the development of models and system simulation to study integration schemes as well as potential and feasibility studies (such as the ones performed for the POSHIP or the STAGE-STE projects). LNEG has testing facilities transversal to many research areas within the field of renewable energy and especially in Solar Thermal Energy, including Process Heat applications. These facilities include the Solar Energy Laboratory and the Laboratory for Materials and Coatings, testing laboratories accredited in accordance to EN ISO 17025:

Laboratory of Solar Energy (LES) focuses on Solar Thermal Systems and its components. It is an accredited Laboratory since 1993 and tests Solar Thermal Collectors according to ISO 9806, Factory Made Systems according to EN 12976 and Hot water storage tanks according to EN 12977. It also has the possibility to perform optical characterization of collector components using a Spectrophotometer Perkin Elmer Lambda 950 with a 150 InGas Integrating Sphere and a Spectrophotometer FTIR Perkin Elmer Frontier with a gold coated integrating sphere.

Laboratory of Materials and Coatings (LMR) is specialized in the areas of durability, corrosion and anticorrosive protection of materials. The main services provided within the project are: 1) Durability of solar reflectors, absorbers and absorbers coatings under accelerated aging environments with and without cycles of temperature, humidity, radiation (UV and Xenon-

arc) and contaminants (salt spray, SO2, NO2); 2) Durability of materials by exposure in two Outdoor Exposure Testing (OET) Sites: LUMIAR/LISBOA-PORTUGAL with corrosivity C2-C3 (low- medium corrosivity) and SINES-PORTUGAL with corrosivity C5-CX (very high-extreme D 7.2 Co-funded by the Horizon 2020 GA No. 731287 155 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

corrosivity in an industrial setting); 3) Corrosion and anticorrosive protection studies under artificial aging environments with and without cycles of temperature, humidity, radiation (UV

and Xenon-arc) and contaminants (salt spray, SO2, NO2) and under outdoor exposure; 4) Compatibility and corrosion behaviour of metallic construction materials in contact with the molten salts (MS) mixtures and chemical stability of MS. The main equipments for this service are high temperature furnaces, 15-20 L capacity cylindrical pot bath with and without mechanically stirred mixtures and TG/DTA/DSC; Morphological, physical and chemical characterization of materials and coatings.

A High-Performance Computing (HPC) Cluster is also available at LNEG. The HPC Cluster capabilities are very interesting for a non-IT facility/infrastructure, considering the 96 computation cores, the 768 GB of RAM, the 32 TB for storage and an Infiniband (56 Gb/s) communication infrastructure among nodes for MPI computation. This resource is dependent on the applications packages’ available or to be available but at the moment it’s mainly devoted to Concentrated Solar Power, namely Thermal Energy Storage problems. Services are based on existing commercial and open source software such as an ANSYS Package for CFD; TRNSYS and Tonatiuh but also in-house developed software.

The Portuguese Roadmap of Research Infrastructures 2014-2020 includes a National Research Infrastructure on Solar Energy Concentration (INIESC), joining the efforts of both UEVORA and LNEG in the Concentrating Solar Thermal sector, and including specific tasks for SHIP research.

2.1.3 Incentives for market deployment At the moment there are no direct and specific incentives in place for the promotion of SHIP applications in Portugal. However, incentives for SHIP market deployment can be optained under the Portugal 2020 operational programmes (competitive funding). Main funding for energy related innovation and demonstration projects comes through the Operational Program for Sustainability and Efficient Use of Resources (POSEUR), the thematic Portugal 2020 OP devoted to sustainability. POSEUR has three investment axes, being the first axis dedicated to support the transition to a low carbon economy in all sectors, where SHIP investments could be supported. Particularly the second investment priority is very relevant for SHIP deployment (Promotion of energy efficiency and use of renewable energy in enterprises), although its operationalization is made through the regional operational programmes. This axis has regular open calls, which can be easily accessed at: https://poseur.portugal2020.pt/pt/candidaturas/avisos/. It should also be noticed that despite the considerable potential for SHIP implementation in Portugal, SHIP is not explicitly mentioned in this programme.

Another important Portugal 2020 OP is the COMPETE2020 that aims at promoting the Competitiveness and Internationalization of the Portuguese business sector. It is again constituted by several priority axis. The first axis relevant aims to “strengthen research, technological development and innovation”, promoting projects for technological transfer from the research centers to the market; being well suited to SHIP. The open calls can be consulted here: http://www.poci-compete2020.pt/Avisos.

Another relevant source of support for SHIP development and market deployment are the regional operational programmes (NORTE2020; CENTRO2020; LISBOA2020; ALENTEJO2020; ALGARVE2020; AÇORES2020; MADEIRA14-20), managed by the Commissions for Regional Coordination and Development (CCDR). . D 7.2 Co-funded by the Horizon 2020 GA No. 731287 156 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

2.1.4 Regulatory framework Reducing energy consumption in industry is the first step for the rational use of energy. In Portugal, for energy-intensive consumer installations (> 500 toe / year), the regulatory framework is Decree- Law no. 71/2008, of 15 April, which regulates the SGCIE - Energy Intensive Consumption Management System. The management of this system is responsibility of ADENE – National Energy Agency (http://sgcie.publico.adene.pt/Paginas/default.aspx).

The SGCIE provides for periodic energy audits, mandatorily including:

- Analysis of the conditions of use of energy;

- Promotiion of measures to increase energy efficiency, including the use of renewable energy sources.

Portugal, as an European country is committed to contribute to the targets established in the 20-20- 20 Horizon, which implies to work during the remaining years to achieve the particular goals of the country. The most important one is the 31% target for percentage of final energy consumption with renewable energy origin. This value is actually foreseen as easily achieved because of recent large investments on the electric sector, namely in the wind power sector, complemented by a favourable hydropower profile. In 2016 this value was 28.5% (source: Observatório da Energia – ADENE based on information from General Direction of Energy – https://www.observatoriodaenergia.pt/pt/energia-em-numeros/portugal/2004/2016/line/%25/2276- 2303-2304, viewed in 17-04-2018).

 PNAER – National Action Plan on Renewable Energy  PNAEE – National Action Plan on Energy Efficiency

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 157 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

A new National Plan for the period 2021-2030 (Integrated National Plan for Energy and Climate) is being prepared and expected to have a first proposal until the end of 2018. In this plan new and increased objectives for Renewable Energies and for Heating and Cooling are foreseen, representing an opportunity to promote the profile, relevance and necessity for the development and deployment of SHIP in conjunction with energy efficiency measures in the industry.

2.1.5 Funding opportunities for SHIP research at National, EU and International level The national funding agency for research activities is FCT (National Foundation for Science and Technology), being partially supported by the national state budget and also by the Portugal 2020 programme. Regularly, FCT opens general calls for scientific research and technological development projects that might be used to fund SHIP RTD projects, currently with budgets going up to ~200 k€. It also opens applications for PhD and Post-doc fellowships as well as applications to researcher contracts, funding the work of personnel; key to high quality research.

3 Future trends at national level This section attempts to map the directions SHIP technologies may take at the national level, related to this concept note:

Other sectors of possible interest are the automobile industry with “estufas” using hot air heat by solar energy for the car painting process.

4 Stakeholders The national stakeholders group (NSG) participating in the STE National Working Group formed under the STAGE/STE project constitutes the basis of the composition of the INSHIP NSG, as well as, additional stakeholders specifically interested in SHIP. The INSHIP NSG integrates PRODUTECH (Production Technologies Cluster) that is an articulated network of manufacturing technology providers capable of responding to both competitiveness and sustainability challenges and to the manufacturing industry’s requirements with innovative, flexible, integrated and competitive solutions. It further includes MCG Mind for Metal, a metallurgic factory manufacturing mid temperature solar concentrators of the CPC type specially designed for SHIP applications. INEGI (Institute of Science and Innovation in Mechanical and Industrial Engineering) that plays an important rule on the NSG as it is an institute dedicated to bringing the gap between research and industry with its activity dedicated to solve the problems presented by the industry. It promotes energy efficiency measures, as well as, the use of renewable energies. Moreover, the NSG includes IPES (Portuguese Institute for Solar Energy) that is contributing in a significant way to promote solar energy in Portugal across political to industrial institutions. Due to its importance in the energy sector the NSG also integrates DGEG (General Direction of Energy and Geology) the public administration body whose mission is to contribute to the design, promotion and evaluation of documents related to energy and geological resources, with a view to sustainable development and secure supply. Besides, the stakeholders integrate IAPMEI (Agency for Competitiveness and Innovation) that supports the development of small and medium-size companies through innovation and entrepreneurship, in particular, by promoting the use of solar energy systems. Additionally, CCDR Algarve (Algarve Regional Coordination and Development Commission) is as well included as it is a regional and governmental player in the funding of successful innovative projects in different sectors of activity, but mainly on solar energy. The NSG brings together ISQ (Welding and Quality Institute) the most important inspection body operating in Portugal with dominance in the energy sector. Finally, it integrates the CQE (Centre for Structural Chemistry of University of Lisbon) with important contribution to thermal energy storage and IST-ID (Association of Instituto Superior Técnico for Research and Development) developing solar materials directed to SHIP. New possible members are being contracted and will hopefully be included.

5 Needs assessment National funding through Portugal 2020 and from future national and regional programmes beyond the 2020 Horizon, need to consider specific targets for funding research and demonstration projects in solar energy industrial applications. A similar necessity exists at policy level, in the national plans regarding energy efficiency and renewable energy deployment, which should also commit with specific targets regarding renewable energy deployment in industries, including specific targets for solar thermal energy penetration in the industrial sector. Such targets would help to drive SHIP D 7.2 Co-funded by the Horizon 2020 GA No. 731287 159 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes development and deployment activity in Portugal. To develop such targets preparatory work with clear identification of Industries and their energy consumption needs (namely by temperature levels) should be performed. Ideally this preparatory work should include the development of a proposal for a national research and development programme for SHIP. Such kind of targets should also be set at European level.

5.1 Possible funding alignment models Current strategies to perform cross national alignment of research programmes and funding based on the ERA-NET scheme do not seem to be sufficiently fruitful to spur the envisioned development level. More favourable and interesting instruments exist and should be thoroughly considered, such as a Joint Research Programme (JRP).

5.2 Road map to define an effective funding alignment model In Portugal RTD funds correspond to a mix of structural and national funds which are channelled through the Portugal 2020 operational programmes or the FCT calls for research projects. Thus it is necessary to ensure the alignment of the national funding programmes priorities with the European priorities (SET-Plan and Framework Programme). For SHIP this corresponds to bring forth this area as an individual priority. This requires significant work with policy makers to raise their awareness for the necessity of development and deployment of SHIP technology. This first step is a very important one since the development of an effective funding alignment model significantly depends on commitment at national level by the relevant stakeholders (i.e. by policy makers and consequently by the national and regional funding agencies).

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 160 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.6 Concept Note Cyprus

Integrating National Research Agendas on Solar Heat for Industrial Processes

Concept Note for Cyprus

WP7

Due Date: June 2018

Submitted: June 2018

Partner responsible: CyI

Person responsible Nestor Fylaktos

Reviewed/supervised by: Manuel J. Blanco

GA number: 731287

Start of the project: January 2017

Duration of the project: 48 months

DISSEMINATION LEVEL

PU Public

NATURE OF THE DELIVERABLE

HISTORY

Author Date Comments

Nestor Fylaktos 19/06/18 4

Nestor Fylaktos 12/04/18 3

Nestor Fylaktos 09/03/18 2

Nestor Fylaktos 08/03/18 1

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 161 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Contents

1 Introduction ...... 163

2 Background and context ...... 163 2.1 Status of the SHIP domain in Cyprus ...... 163 2.1.1 Market end-user deployment ...... 163 2.1.2 Local technology suppliers ...... 164 2.1.3 Research activities and Infrastructures ...... 164 2.1.4 Incentives for market deployment ...... 166 2.1.5 Regulatory framework...... 166 2.1.6 Funding opportunities for SHIP research at National, EU and International level ...... 167

3 Future trends at national level ...... 167

4 Stakeholders ...... 168

5 Needs assessment ...... 168 5.1 Possible funding alignment models ...... 169 5.2 Road map to define an effective funding alignment model ...... 169

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 162 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1 Introduction This document is developed as part of the INSHIP project (Integrating National Research Agendas on Solar Heat for Industrial Processes), led by the Fraunhofer Institute for Solar Energy Systems (ISE) in Germany, and which focuses on engaging major European research institutes with recognized activities on Solar Heat for Industrial Processes (SHIP), into an integrated structure. In this context, the INSHIP project aims at engaging major European research institutes with recognized activities on SHIP, to integrate their activities, and work with national authorities to align SHIP research with national research objectives, and with industry to bring SHIP to a higher Technology Readiness Level (TRL), for example by exploring synergies with district heating and the electricity grid.

One of the core mandates of the NSGs is to draft a National Concept Note on SHIP RTD and technology transfer strategies for their respective countries. This concept note for Cyprus, due in March 2018, will then be presented, along with the National Concept Notes of 9 other countries (Germany, Spain, Austria, Italy, Portugal, Greece, Switzerland, France, Turkey), at a European Workshop in June 2018, aimed at creating an integrated strategy at the European Level. One member of the Cyprus National Stakeholder Group should be chosen to attend this workshop on the behalf of the Stakeholder Group.

2 Background and context In Cyprus, the Smart Specialisation Strategy (s3Cy) was finalised in 2015, with no explicit direct references to SHIP, even though there are a number of references to solar heating and cooling, solar thermal hybrid systems and solar thermal in buildings, without a clear distinction between residential and industrial uses. The relevant competent authorities in terms of channelling funds in Cyprus are the Directorate General for European Programmes, Coordination and Development (DGEPCD), the Research Promotion Foundation (RPF), with policy and programmatic support for all forms of RES from the Ministry of Energy, Commerce, Industry and Tourism (MECIT). All of these entities are represented in the Cyprus National Stakeholders Group on SHIP, which has its foundation in the equivalent group set up under the aegis of the STAGE-STE project. Similarly, currently in Cyprus there is also no explicit funding for SHIP research per se.

2.1 Status of the SHIP domain in Cyprus

2.1.1 Market end-user deployment Despite the extremely widespread proliferation of solar thermal systems for domestic hot water uses, the SHIP end-user industrial base in Cyprus is small, and the potential applications for SHIP are limited in the short term. The only known SHIP application in Cyprus is in the facilities of Hellenic

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 163 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Copper Mines Ltd. that employs 760 m2 of flat plate collectors for an installed capacity of 532 kWth. See section 3 below for a list of some of the Cyprus industries where SHIP has the potential to be deployed in the future. Moreover, a new small pilot system is under construction in a soft drinks industry in Limassol. This is a system employing on parabolic trough collector system operating at 400 Deg. C and employing concrete storage for energy dispatchability.

2.1.2 Local technology suppliers The local industry in Cyprus is geared almost exclusively towards the manufacturing of systems for use in the local hot water industry for residential uses. Cyprus has one of the highest penetration of such system per capita in the world and is served by a large number of companies (relative to the number of households in the country), represented by two associations (ELBHEK95 and SEAPEK96). Many of these can potentially bridge over to higher temperatures and explore SHIP, but demand currently from the local industry in need of industrial heat is low and prevents any serious expansion. At the research side of the spectrum two institutions are active, one is the Cyprus Institute, which has attempted (especially through the STS-Med97 project) to reach out to the local technology suppliers and engage them in technology transfer. The other is Cyprus University of Technology with Archimedes Solar Energy Laboratory (ASEL) and Solar Simulator Laboratory, for indoor testing of solar systems and components under controlled conditions.

2.1.3 Research activities and Infrastructures The Cyprus Institute (CyI) is the main actor in SHIP research in Cyprus, mainly dealing with solar thermal technologies for island environments, and the development of technologies for the future of related technologies. The Cyprus University of Technology (CUT) is also experimenting with solar thermal systems of low and medium temperature that can offer a test bed for SHIP-type testing and experiments.

The current research infrastructure at the Cyprus Institute is as follows:

 Fresnel system: A novel Concentrating Solar Thermal (CSTP) system with approximately 170 m2 of Linear Fresnel Reflectors has been constructed at the Nicosia Athalassa Campus of CyI in Nicosia. Its aim is to supplement the existing heating, ventilation and air-conditioning (HVAC) system of the nearby Near-Zero Energy Building. It stores excess energy in a specially designed storage system to supply the building thermal energy needs beyond its normal operating hours based on pressurised water; it will also feed electric power to the building via an array of PV cells installed on the underside of the Fresnel mirrors, controlled by a centralised building management system. The expertise developed with the construction and operation of this system can be directly transformed transferred to an industrial SHIP system setting with a T operating within range of temperatures from about 130oC to close to 400oC, occupying a large portion of the gamut of possible industrial applications.

 Platform for Research, Observation, and TEchnological Applications in Solar Energy (PROTEAS): The mission of the PROTEAS facility, inaugurated on 3rd October 2015, is to purse research and development of solar technologies and in particular Concentrated Solar Power (CSP) and Solar Desalination of Sea Water (DSW). This coastal solar experimental field facility is a testing field for devices intended to be used in coastal/island conditions, and for

95 http://www.ebhek.org.cy/en/ 96 https://seapek.org.cy/ 97 http://www.stsmed.eu/ D 7.2 Co-funded by the Horizon 2020 GA No. 731287 164 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Solar desalination technologies. The facility consists of 50 heliostats (each with a reflective area of 4.8 m2) designed by the Australian National Research Agency, CSIRO. (each with a reflective area of 4.8 m2), a novel solar receiver, a thermal molten salt thermal energy storage, a steam generation generator and electricity production power block, and a Multi-Effect Distillation (MED) device system for sea water desalination. Despite the fact that the design principles of the PROTEAS facility are geared towards electricity generation and desalination, the lessons learned from the study of optics, efficiency, operation in coastal environments and system integration makes it a good testbed facility for future SHIP- related technology deployment.

 Thermal Energy Storage Laboratory (TESLA): Key to the research program of the Energy Systems division is the development of the Thermal Energy Storage Laboratory (TESLA), located at the Athalassa Nicosia Campus, where advanced thermal energy storage concepts are developed and tested. TESLA has been operating since early 2013, with significant work (in close collaboration with ENEA) in characterizing the thermal decomposition of nitrate salts. Again, in cases where SHIP may be deployed alongside Thermal Energy Storage (TES), the TESLA facility could prove valuable.

 Solar Energy Desalination Laboratory: The Solar Energy Desalination Laboratory has been operating at the Athalassa Campus since 2010. Significant work is being carried out on designing, constructing and evaluating the performance of a Multiple-Effect Distillation unit for seawater desalination under variable operating conditions, such as the number of effects used, the temperature of the incoming seawater, the characteristics of the heat input provided to the system, and the amount seawater provided, aiming to determine optimal operating conditions. This lab can be relevant in case the SHIP application requires the supply of fresh water (e.g. in industrial washing) that can be supplied from such a system.

The current research infrastructure at the Cyprus University of Technology is as follows:

 Archimedes Solar Energy Laboratory: This is a laboratory equipped with all necessary equipment to perform experiments with solar energy systems (both thermal and electrical) and include radiation, wind speed and temperature measuring equipment, data acquisition systems, thermal camera and various types of solar collectors (flat plate and a small parabolic trough) and a small PV system with three different PV technologies based on polycrystalline, monocrystalline and amorphous silicon solar cells.

 Solar Simulator Laboratory: The main piece of equipment of this laboratory is an indoor 12kW solar simulator with which a large variety of experiments can be performed under control conditions. The simulator can move up and down, can take various inclinations and all its 20 lamps can be controlled individually. The laboratory includes also a sky simulator to simulate the passage of the solar radiation trough the vacuum in its way from the sun to earth.

 Solar Cooling and Heating System: This is a 300 kW operating solar cooling and heating system based on the LiBr technology. It is equipped with a 300 m2 evacuated tube collector system and three absorption chillers. Part of the cooling process is satisfied with a geothermal system to reduce the use of cooling tower.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 165 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

2.1.4 Incentives for market deployment Currently there are no direct incentives in place for the promotion of SHIP applications in Cyprus due to limited available budget of the Fund that is responsible by law for the promotion of Renewable Energy Sources and Energy Efficiency. For this reason, the Government is in a transitional phase to a more market-oriented financial support scheme. One such possible scheme under examination is the creation of a dedicated Energy Efficiency Revolving Fund (EERF), where the Government can provide low interest rate loans (with minimal procedural steps) to prospective investors. The funding of the projects being examined will be made according to the energy saving potential they will bring. In order to support and enhance the above initiative, another support scheme, called Energy Audit Reports (EAR), will also be announced to provide incentives through financial support for the service sector called Energy Audit Reports (EAR). The EAR instrument will help the investors to identify the optimum measures and projects to be taken to achieve the highest economic benefit from such investments. The above scheme will be eligible only for buildings with a useful floor area above 1000 m².

Table 0.6: List of SHIP incentives for Cyprus

2.1.5 Regulatory framework In Cyprus, The promotion of Renewable Energy Sources and Energy Savings is achieved through the 112(I)/2013 Law. The fund 98associated with it is financed by a levy of 1 eurocent per kilowatt-hour on electricity consumption for all final consumers. In general, the purpose of the fund is to support the efforts of the MECIT to achieve the RES and Energy Efficiency targets of 2020 and beyond. SHIP projects can be one additional pathway for the Government of Cyprus to achieve (or even overachieve) the RES target in the Heating Sector. Despite this, the legislation as it stands does not target SHIP explicitly, and therefore support for it falls into a grey area of a number of potentially eligible support schemes. One such scheme mentioned by MECIT is the ability to fund a SHIP installation if it is a recommendation coming out of an energy audit; another is to characterise it as solar heat (irrespective of the end use) where it can get support if it gets the necessary building

98 Here the "Fund" means the Fund for Renewable Energy Sources and Energy Efficiency, that was established based on Article 9 of the Law 2013(I)/112 for the Promotion and Encouragement of RES and Energy Efficiency. D 7.2 Co-funded by the Horizon 2020 GA No. 731287 166 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes permit. Overall, however, the framework is not clear, and thus one of the objectives going forward will be to provide the necessary guidelines to the Government to implement the necessary changes for the proper support of SHIP applications, based on other countries' experiences and best practices.

Complementing the Law on Energy Efficiency of Buildings (No. 210(I)/2012) a series of decrees have been passed 2011 - 2015 on: - Mandatory inspections of heating (>20 kW) and air conditioning (>12 kW) systems - Efficiency and size of heating, cooling, hot water and large air conditioning systems - Requirements for installing certified heat pumps and solar thermal equipment as well as performance requirements for biomass heaters and boilers All these measures can assist or complement a SHIP installation, in addition to the framework changes described in point 1 above.

2.1.6 Funding opportunities for SHIP research at National, EU and International level The latest funding initiative for Research, Technological Development and Innovation in Cyprus came through RPF’s RESTART 2016-2020 programme, which has a total budget of €100m to assign in various research categories, within this timeframe. It does not allocate a specific amount to SHIP, but through its various headings funds energy-related projects, that span from infrastructures to desk-based research, with a special focus on Interdisciplinarity. The main ‘pillars’ of research for Cyprus are chosen by local stakeholders and the government are documented in the ‘Smart Specialisation Strategy’ for Cyprus. In this, energy is a ‘dominant priority sector’, which means that it will attract a large percentage of the aforementioned funds. SHIP related research is eligible to attract funding through this instrument.

The main external funding umbrella of H2020 and its previous incarnations (FP6, FP7 etc.) from the EU play a large role in energy research in Cyprus, and are the main cross-national funding pillars.

3 Future trends at national level This section attempts to map the directions SHIP technologies may take at the national level, related to this concept note:

Non-metallic minerals: Two main industries fall under these categories, which are also major energy consumers: Cement production and ceramics. Both are major energy consumers, but rely on their

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 167 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes own petcoke and oil burners to fuel their operations. A thorough investigation (perhaps with the inclusion of reps from these companies) is worth considering. The temperatures of the operations however are usually high, and the appropriateness of SHIP technologies needs to be investigated.

4 Stakeholders All the stakeholders participating in the CSP/STE National Working Group formed under the STAGE/STE project formed the basis of the composition of the INSHIP NSG, as well as the SMEs identified through the construction of the Fresnel system in Nicosia and the PROTEAS facility. However, to date, no Cypriot SME is dedicated to SHIP products. Despite this, CyI has a partnership with the Cyprus Chamber of Commerce and Industry (CCCI) under the STS-MED programme, and CCCI, along with the Employers and Industrialists’ federation of Cyprus (OEB) are members of the INSHIP NSG. Two associations representing the Cyprus solar industry, as well as the national utilities company, the Electricity Authority of Cyprus, have also been invited to take part in the NSG, which also includes academic partners such as the Cyprus University of Technology and the University of Cyprus. The relevant stakeholders list is available from the leader of the relevant WP (CyI) and available through the EMDESK online platform.

5 Needs assessment The main need would be for more incentives at the Cyprus and EU level for further developing SHIP, as has been the case for other renewable energies in the past, as well as more dependable financial governmental backing. In terms of support to research and technology development, it would be good to promote further alignment at the European level between structural funds, which allow low-RDI countries such as Cyprus to build the necessary infrastructure, with Horizon Funding mechanisms, where that infrastructure can be leveraged to implement projects in cooperation with leading European partners. More specifically, it would be important for future calls at the national level to have a section specifically dedicated to research into SHIP.

More recently (16th of October 2017) the Cyprus government opened up a support scheme for promoting RES technologies to participate in the electricity market. The support scheme has allocated a 50MW capacity for CSP plants (with the possibility to modify the cap based on investors’ interest). There is a significant advantage of SHIP projects to participate in such a scheme since the market price in Cyprus is based on the prices of Heavy fuel oil (HFO) and is expected that D 7.2 Co-funded by the Horizon 2020 GA No. 731287 168 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes the market price in Cyprus will increase even further after 2020 in case that no Natural Gas will be available in Cyprus.

5.1 Possible funding alignment models As described above, the main priority is aligning the structural funds programmes with the Horizon Programmes, and aligning those in turn with the EU-level SET Plan priorities relating to SHIP. In the very specific case of Cyprus, funding for SHIP related activities should also be seen as an investment into an industry, which has the possibility to meet technological demand not only of the small Cyprus market but also of the much wider EMME region, where Cyprus can be a leader in technology transfer. Therefore, in addition to science funding grants, national and international investment is also needed in the form of loans for the private sector to become interested in the field.

5.2 Road map to define an effective funding alignment model Two possible financing instruments are proposed here: ERANET and ECRIA.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 169 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.7 Concept Note Greece

Integrating National Research Agendas on Solar Heat for Industrial Processes

Concept Note for Greece

WP7

Due Date: June 2018

Submitted: July 2018

Partner responsible: Centre for Renewable Energy Sources and Saving (CRES)

Person responsible Theni Oikonomou

Reviewed/supervised by: Vassiliki Drosou

GA number: 731287

Start of the project: January 2017

Duration of the project: 48 months

DISSEMINATION LEVEL

PU Public

NATURE OF THE DELIVERABLE

HISTORY

Author Date Comments

Theni Oikonomou 02/07/2018 1st draft version sent to WP leader

Theni Oikonomou 18/07/2018 2nd draft version sent to WP leader

Theni Oikonomou 31/07/2018 Final version

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 170 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Contents

1 Introduction ...... 173

2 Background and context ...... 173 2.1 Status of the SHIP domain in Greece ...... 173 2.1.1 Market deployment and industry ...... 173 2.1.2 Research activities and Infrastructures ...... 176 2.1.3 Incentives for market deployment ...... 179 2.1.4 Regulatory framework...... 181 2.1.5 Funding opportunities for SHIP research at National, EU and International level ...... 181

3 Future trends at national level ...... 182

4 Stakeholders ...... 183

5 Needs assessment ...... 183 5.1 Possible funding alignment models ...... 184 5.2 Road map to define an effective funding alignment model ...... 184

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 171 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Acronyms

APTL Aerosol & Particle Technology Laboratory CERTH Centre for Research & Technology Hellas CHP Cogeneration of high-efficiency heat CPERI Chemical Process Engineering Research Institute CRES Centre for Renewable Energy Sources and Saving CSP Concentrated Solar Power CST Concentrating Solar Thermal DEC Desiccant Evaporative Cooling DHW Domestic Hot Water EBHE Greek Solar Industry Association ESTIF European Solar Thermal Industry Federation FORTH Foundation for Research and Technology – Hellas GSRT Greek General Secretariat for Research and Technology ISE Institute for Solar Energy Systems MIRTEC Materials Industrial Research & Technology Center S.A. NSGs National Stakeholder Groups NSRF National Strategic Reference Framework ORC Organic Rankine Cycle R&D Research & Development RES Renewable Energy Sources RES Renewable Energy Sources RTD Research and Technology Development SESL Solar & Other Energy Systems Laboratory SHIP Solar Heat for Industrial Processes SMEs Small and Medium Sized Enterprises STE Solar Thermal Electricity STS Solar Thermal Systems TRL Technology Readiness Level VET Vocational Education Training

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 172 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1 Introduction This document is developed as part of the INSHIP project (Integrating National Research Agendas on Solar Heat for Industrial Processes), led by the Fraunhofer Institute for Solar Energy Systems (ISE) in Germany, which focuses on engaging major European research institutes with recognized activities on Solar Heat for Industrial Processes (SHIP), into an integrated structure. In this context, the INSHIP project aims at engaging major European research institutes with recognized activities on SHIP, to integrate their activities, and work with national authorities to align SHIP research with national research objectives, and with industry to bring SHIP to a higher Technology Readiness Level (TRL), for example by exploring synergies with district heating and the electricity grid.

One of the core mandates of the NSGs is to draft a National Concept Note on SHIP Research & Development (R&D) and technology transfer strategies for their respective countries. This concept note for Greece, will then be presented, along with the National Concept Notes of 9 other countries (Germany, Spain, Austria, Italy, Portugal, Cyprus, Switzerland, France, Turkey), at a European Workshop, aimed at creating an integrated strategy at the European Level. One member of the Greek National Stakeholder Group should be chosen to attend this workshop on the behalf of the Stakeholder Group.

2 Background and context

2.1 Status of the SHIP domain in Greece

2.1.1 Market deployment and industry Worldwide, 66% of heat is generated by fossil fuels and 45% of that is used in industry as process heat99. At European level, 27% of total energy demand concerns heat consumed by industries100 . A percentage of 30% regards temperatures below 100 oC, 27% temperatures between 100 oC and 400 oC and the remaining 43% corresponds to higher temperatures101. Despite process heat being recognized as the application with highest potential among solar heating and cooling applications, solar heat for industrial processes still presents a quite modest share of about 88 MWth installed capacity (0.3% of total installed solar thermal capacity)102.

99 Energy Technology Perspectives 2012 - Pathways to a Clean Energy System, Int. Energy Agency (2012) 100 Technology Roadmap - Solar Heating and Cooling, International Energy Agency (2012) 101 SHC Task 49 Solar Heat Integration in Industrial Processes – 2013 Highlights, IEA/SHC Programme (2013) 102 REmap 2030: Renewables for industry sector -focus on commercial solar thermal: ISES Webinar, 23 June (IRENA, 2015) D 7.2 Co-funded by the Horizon 2020 GA No. 731287 173 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

In Greece, the total solar thermal installed capacity in operation by the end of 2016 for low and medium temperature application is 3.1 GWth, corresponding to 4,497,600 m2 of solar collective area103. Greece is ranged in the third position in EU28 both in terms of solar thermal capacity in operation (per 1000 capita) by the end of 2016 and of newly solar thermal installed capacity in 2016104. The majority of the solar systems in Greece is thermosiphon systems - more than 95%. However, the pumps systems have been included in the recent years in funding mechanisms (for example in “Energy Saving I and Energy Saving II” programmes)105 and their total number are expected to be increased in the future. The main solar thermal applications in Greece are Domestic Hot Water (DHW) in family houses (single and multiple), DHW in tourism sector, solar heat industrial processes, solar combi systems, solar air conditioning and cooling (with about 10 solar cooling applications) and several other, such as applications in athletic centers, hospitals, green houses etc.

SHIP concept in Greece is well known since 1990 decade. Several successful solar thermal systems for industrial applications, mainly using flat plate collectors for hot water production, have been installed as shown in the Table 1106. As the industrial heat in Greece is mostly produced by fossil fuels (heavy oil, natural gas, fuel oil) this sector show promising perspectives in solar thermal systems feasible implementation in terms of technical, environmental and economic parameters107.

The identified sectors where SHIP systems may be successfully applied are108:

 Food industry: dairy products, tinned fruits and vegetables, cold cut and process meat factories, pastry and cake confectioneries, olive oil refineries.

 Agriculture: solar drying, horticulture-nursery greenhouses, slaughterhouses, meat processing, livestock landings.

 Textiles: tanneries, leather treatment, cloth refineries, textile treatment workshops.

 Chemical industry: cosmetics, detergents, wax, pharmaceuticals, car rubber tyres.

 Beverage industry: wineries, liquor and wine distilleries, breweries, fruit juices and soft drinks.

In the following table a list of indicative SHIP applications in Greece is given109:

Table 1: Indicative SHIP applications in Greece

# SHIP system Place Operati Industrial Collector Solar Installed Process

103 Solar heat worldwide: Global Market Development and Trends in 2017 – Detailed Market Figures 2016. Weiss, W., Spörk- Dür, M., IEA Solar Heating and Cooling Programme (2018) 104 Solar Heat Markets In Europe – Trends and Market Statistics 2016, Solar Heat Europe - ESTIF (2017) 105 Πρόγραμμα «Εξοικονόμηση κατ’ οίκον ΙΙ» (Energy Saving II programme), https://exoikonomisi.ypen.gr/ 106 Industrial solar applications on megawatt-scale- examples from Greece. A. Aidonis, A. Botzios, V. Drosou, 8th International Symposium on Solar Energy “SOLAR 2006”, 6-8 September 2006, Gleisdorf, Austria, pp 187-194 (2006) 107 Technical Assessment of a Concentrating Solar Thermal System for Industrial Process Steam. P. Tsekouras, V. Drosou, 11th ISES EuroSun2016 (2016) 108 The Greek Solar Thermal Market and Industrial Applications. V. Drosou, M. Karagiorgas, C.Travasaros, Proceedings of World Sustainable Energy Days 2011, Conference “Solar Process Heat”, 2-4 March 2011, Wels, Austria (2011) 109 IEA SHC Task 49 / IV SHIP data base (2018), Solar Heat Integration in Industrial Processes. Retrieved from: http://task49.iea- shc.org SHIP database www.ship-plants.info D 7.2 Co-funded by the Horizon 2020 GA No. 731287 174 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

owner/ on start sector technology surface thermal used for operator (m2) power110 (kWth) 1 Achaia Patra 1994 Manufactur flat plate 308 215.6 bottle Clauss S.A. e of collector washing beverages in winery 2 Allegro S.A. Athens 1993 Manufactur flat plate 70 49.0 Hot water Children's e of textiles collector for the Cloathing washing Manufactur machines er of clothing 3 Alpino S.A. Thessalo 1999 Manufactur flat plate 740 518 Hot water niki e of dairy collector for products cleaning equipme nt and preheatin g of boiler feed water 4 Kastrinogian Iraklion, 1993 Manufactur flat plate 174 121.8 Hot water nis S.A. Crete e of textiles collector directly for dying machines , and hot water to feed the boiler 5 Koukaki Thessalo n/a Manufactur parabolic 10 7 hot water Farm S.A. niki, Kilkis e of dairy trough for dairy products collector processes 6 Mandrekas Korinthos 1993 Manufactur flat plate 170 119 Hot water S.A. e of dairy collector for products yoghurt productio n and SHW 7 Mevgal S.A. Athens 2000 Manufactur other or 725 507.5 Hot water e of food various for products collectors cleaning equipme nt and preheatin g of boiler feed water 8 Plektembori Heraklion 1999 Manufactur flat plate 50 35 Cleaning ki Kritis S.A. e of food collector olives products 9 Sarantis S.A. Inofita 1999 Manufactur 2700 1890 Warehous

110 Default value calculated by multiplying the gross collector area by 0.7 kWth/m² D 7.2 Co-funded by the Horizon 2020 GA No. 731287 175 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Viotias e of basic flat plate e cooling pharmaceu collector tical products and pharmaceu tical preparation s 10 Tripou - Athens 1993 Manufactur flat plate 300 210 leather Katsouris e of leather collector treatment Leather and related Treatment products Factory 11 Tyras S.A. Trikala, 2001 Manufactur flat plate 1040 728 Washing Central e of food collector of cisterns Greece products and lorries

The majority of the abovementioned SHIP plants in Greece was installed using products, components and services by members of EBHE. EBHE is the Greek Solar Industry Association (EBHE), founded in 1979. Today EBHE has over 50 members from solar thermal manufacture industry, research bodies and solar components suppliers (including the Solar Thermal Systems laboratory of the National Research Centre “Demokritos” and the Centre of Renewable Energy Sources and Saving).

EBHE objectives include monitoring, promotion and research of the technological and scientific evolution of solar thermal technologies, the dissemination of solar thermal applications, the cooperation among its members and the international representation of the industry. EBHE members offer a wide range of solar thermal products and for the customer the participation of a company/organization in EBHE is considered as a kind of quality label. Moreover, EBHE actively participates to the development of European Standards concerning quality, reliability and safety of solar thermal systems.

EBHE contributed to the initiation of the establishment of the European Solar Thermal Industry Federation (ESTIF) and it is a member of ESTIF ever since. ESTIF, currently named Solar Heat Europe – ESTIF, represents the solar thermal industry to the EU institutions and cooperates towards the implementation of solar thermal energy projects, the development of solar thermal systems standards, issues leaflets in order to raise the public awareness of solar thermal energy and promotes solar thermal energy in European and international level.

2.1.2 Research activities and Infrastructures In Greece there are both research centres and universities that are active in the field of SHIP technologies. The main Research Centres are:

 Centre for Renewable Energy Sources and Saving (CRES) / Division of Renewable Energy Sources (RES) / Solar Thermal Systems (STS) Department111

111 CRES, http://www.cres.gr/ D 7.2 Co-funded by the Horizon 2020 GA No. 731287 176 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 Centre for Research & Technology Hellas (CERTH) / Chemical Process & Energy Resources Institute mostly via the Aerosol & Particle Technology Laboratory (APTL)112  National Center for Scientific Research "Demokritos" / Solar & Other Energy Systems Laboratory (SESL)113

Apart from the abovementioned research centres, there are also other Greek centers, which indirectly support the solar thermal technologies, such as the Materials Industrial Research & Technology Center S.A. (MIRTEC)114 and the Foundation for Research and Technology – Hellas (FORTH)115.

The existing infrastructures in Greece, cover a great range of solar thermal components, systems and technologies for testing, demonstration and education purposes, applicable also to the research and development of SHIP technologies. These infrastructures validate the expertise and the knowhow of these centres.

In the following paragraphs a short description and indicative infrastructures and activities of the main research centres are given.

CRES / STS Dept. infrastructures and activities

The STS Department is one of the 7 departments of the Division of RES of CRES. STS Department has vast experience in all aspects of solar thermal technology development and it has contributed to the exploitation of all types of solar thermal technologies. It has participated in a significant number of industrial process heat oriented projects. Its’ activities include applied research at the system level (solar systems for production of hot water, heating, cooling, industrial process heat and electricity), applied research in product level (flat plate, vacuum tube and concentrating solar collectors), engineering studies and designs (energy studies, hydraulic, electrical and SCADA development), training, promotional and dissemination activities.

The main CRES infrastructures and activities related to SHIP applications are:

 Solar heating and cooling system with closed cycle absorption technology in CRES premises in Pikermi, Attiki (35 kW absortion chiller/ 150 m2 collector area)116. This infrastructure is currently under reconstruction phase.  Desiccant Evaporative Cooling (DEC) unit in the Park of Energy Awareness of CRES, in Keratea, Attiki. The system is used for air-conditioning of the room installed. Its operation is based on the balance between the temperature and the humidity of the air (when the humidity of the air drops, its temperature rises). DEC mainly consists of: “Silica gel” desiccant wheel, heat recovery wheel, 2 humidifiers (to increase the humidity of the air), regenerator (liquid-air exchanger for air heating with warm water from the solar collectors), supply and return fans. 10m2 flat plate selective collectors are used for the evaporation of the absorbed humidity (replace the electric heaters).  Participation in the Erasmus+ European project “Solar CV: SSA to cover skill needs delivery and recognition of EU joint CV in Concentrated Solar Power (CSP)”117 (duration 2015-2018),

112 APTL, http://www.apt.cperi.certh.gr/ 113 SESL, http://www.solar.demokritos.gr/ 114 Materials Industrial Research & Technology Center S.A., http://www.ebetam.gr/ 115 Foundation for Research and Technology – Hellas, https://www.forth.gr/ 116 High Combi - High Solar Fraction Heating and Cooling Systems with Combination of Innovative Components & Methods project. High Combi brochure and final report, available at http://www.cres.gr/cres/files/xrisima/ekdoseis/ekdoseis_EN3.pdf Last accessed: 21/06/2018 D 7.2 Co-funded by the Horizon 2020 GA No. 731287 177 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

which main objective is to increase the response of continuing Vocational Education Training (VET) systems to CST labor market demand for new skills; to strengthen the exchange of knowledge & practice between VET institutions & the Concentrating Solar Thermal (CST) labor market; to increase mobility of EU CST learners and to strengthen the Union’s capacity by the anticipation and matching of labor market and skills needs.

CERTH / APTL infrastructures and activities

APTL is a business unit of the Chemical Process Engineering Research Institute (CPERI), which is one of the 5 institutes of CERTH. APTL is involved in research projects with activities in the field of high temperature solar thermal technology, with emphasis on solar thermochemistry. Through its numerous participations in SHIP related projects, it has gained significant experience related to the synthesis and evaluation of active materials able to operate under high temperatures developed by concentrated solar radiation, their deposition upon inactive ceramic substrates, as well as with the design and manufacturing of integrated monolithic solar reactors/volumetric receivers.

Currently APTL coordinates two recently initiated collaborative national projects – not for SHIP applications but related to industry - entitled ‘‘SOLCEMENT: Use of concentrated SOLar radiation in the CEMENT industry: Design of a suitable, integrated and low carbon footprint process for limestone calcination’’ and ‘’MOBISOL: Development of a MObile system for processing and energy exploitation of recovered industrial materials, BIo-liquids, biological resources, waste/rejections utilizing SOLar thermochemical technology’’. Both projects introduce novel approaches for the exploitation of medium to high temperature solar heat to drive chemical reactions of industrial importance (i.e. lime production and energy carriers/useful chemicals from organic/inorganic residues/byproducts).

Moreover, APTL coordinates together with “Demokritos”118, the Research Infrastructure “PROMETHEUS: A Research Infrastructure for the Integrated Energy Chain”, which will develop a facility for the investigation of the Integrated Chain of "Sustainable Energy Carriers - Transformation Processes - Transport & Storage Applications - End Uses/Impact" in Greece. Within PROMETHEUS the available state-of-the-art Solar Technologies will be combined with technologies for Advanced Materials production for the application-oriented testing of components and sub-systems of the entire chain and techno-economic assessment of innovative technological solutions with emphasis on Green Mobility. Solar thermal technologies play a key role in PROMETHEUS’ vision and it is in the main objectives of this infrastructure to implement new and upgrade existing relevant platforms that possess exploitation potential which is well within the scopes of SHIP.

National Center for Scientific Research "Demokritos" / Solar & Other Energy Systems Laboratory (SESL) infrastructures and activities

SESL is part of the Nuclear & Radiological Scienes & Technology, Energy & Safety Institute, which is one of the 5 institutes of the National Center for Scientific Research "Demokritos". SESL started its activities in 1980 and has ever since been pursuing applied Research and Technology Development (RTD) in the fields of solar thermal energy utilization energy savings. It is equipped with significant measurement facilities and along with experimental investigations, it uses as basic analytical tools the metrology of energy quantities and numerical simulation, computational fluid

117 SolarCV project website: http://www.solar-cv.eu/ 118 “Κατάλογος των 20 Ερευνητικών Υποδομών του Οδικού Χάρτη 2014”, available at http://www.gsrt.gr/News/Files/New11267/List20RIs-1stbatch.pdf D 7.2 Co-funded by the Horizon 2020 GA No. 731287 178 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes dynamics in particular. Starting in the decade of 2000's and up until now, emphasis has been placed on R&D activities, with main areas of focus: solar collectors & systems, analysis & design of thermal storage systems, solar cooling, thermal distillation-desalination, mechanical/solar-assisted drying processes and systems, metrology of energy quantities, and computational fluid dynamics and heat transfer.

The main SESL infrastructures related to SHIP applications are:

 Installation for testing according to EN ISO 9806 / EN 12975 for efficiency and qualification tests in solar collectors, installation for testing according to EN 12976-2 for performance tests in domestic solar hot water systems), as well as other installations for determination of thermal insulation, for characterization of thermal storage tanks, etc.  Instrument calibration facilities: thermostatic bath and portable thermostatic oven for calibration of liquid and air temperature sensors, dead-weight tester and portable air pump for calibration of liquid and air pressure sensors, installation for calibration of flowmeters, installation for calibration of pyranometers.  Experimental setup for thermohydraulic investigation of heat exchange devices for medium temperatures (> 100 oC)

Besides the research centres, in Greece there are also universities with activities related to SHIP technologies and applications. The most active departments in this field are the Mechanical and the Environmental Engineering Departments, as well as the Physicist Departments, of the Aristotle University Thessaloniki, the National Technical University of Athens, the Technical University of Crete, the Democritus University of Thrace and the University of Patras.

Democritus University of Thrace, has installed a hybrid demo plant for district heating & power production via combined geothermal & solar-thermal sources119, which uses a solar concentration field and a geothermal plant to provide heat to various buildings, and electricity via a Rankine type of heat conversion turbine. The plant includes a ground field of parabolic solar concentration of 450 m² using Rackam's technology, connected to a thermal storage unit, a geothermal system drawing energy from the ground and connected to the same storage unit and a turbine using the Organic Rankine Cycle (ORC) principle, which can generate electricity from the heat stored in the aforementioned storage unit.

Finally, EU-SOLARIS, the European Solar Research Infrastructure for Concentrated Solar Technology, should be mentioned. Two members of the Greek NSG (CRES and CERTH) have actively participated in the preparatory phase of EU-SOLARIS project as core partners from Greece. The results of it are available in the project website120. Currently, it is under establishment the Legal Person of EU-SOLARIS Research Infrastructure. From Greece, CERTH and CRES are allocated by the Greek General Secretariat for Research and Technology (GSRT), as national entities to work on the EU-SOLARIS implementation. EU-SOLARIS platform includes infrastructures on SHIP technologies.

2.1.3 Incentives for market deployment The incentives for market deployment in Greece are limited and generally addressed in RES technologies and not directly to the implementation of solar thermal systems.

119Demo plant of the University of Thrace https://rackam.com/en/studies/university-thrace/ 120 EU-SOLARIS website, www.eusolaris.eu D 7.2 Co-funded by the Horizon 2020 GA No. 731287 179 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Apart from the funding programmes described in chapter 2.1.5, the Greek Government supports a more market-oriented financial support scheme. To this aspect, it is currently under development the establishment of an Infrastructure Fund (Government Gazette B 4159 / 29.11.2017), which aims at offering favorable financing conditions to the private and public sector for the implementation of small and medium-sized projects, with emphasis on energy, environment and urban development.

Large enterprises that implement “ISO 50001 - Energy management”, are also obligated to carry out energy audit. The ISO 50001 – Energy management implementation is considered an incentive for SHIP applications in all types of industrial enterprises – large, small and medium ones.

Finally, indirect incentive for SHIP interventions in Greece is the enforcement of the “Energy efficiency obligation schemes”121, created according to the Article 7 of the of Energy Efficiency Directive 2012/27/EU122 and described in the Article 9 of the Greek legislation 4342/2015123. According to this, each EU member state shall set up an energy efficiency obligation scheme, which shall ensure that energy distributors and/or retail energy sales companies - that are designated as obligated parties - operating in each Member State's territory, achieve a cumulative end-use energy savings target by 31 December 2020.

121 Energy efficiency obligation schemes, www.cres.gr/obs/index.html 122 European Energy Efficiency Directive 2012/27/EU, http://www.cres.gr/obs/EN%20- SWD%202013%20451%20ARTICLE%207.pdf 123 Greek national legislation 4342/2015, http://www.publicrevenue.gr/elib/view?d=/gr/act/2015/4342 D 7.2 Co-funded by the Horizon 2020 GA No. 731287 180 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

2.1.4 Regulatory framework In Greece there is no specific regulation framework specialized in SHIP technology, as existing for photovoltaics and wind power applications. However, there are certain Law frameworks, within which SHIP technologies could be incorporated, such as the national legislation 4342/2015 for energy efficiency and the European Energy Efficiency Directive 2012/27/EU.

2.1.5 Funding opportunities for SHIP research at National, EU and International level In Greece there are both direct and indirect national funding mechanisms, through which SHIP systems interventions could be eligible and partially funded.

In the first category (direct mechanisms), there are 3 upcoming funding programmes expected to be published within 2018, as follows:

3. Improving the Energy Efficiency of Small and Medium Sized Enterprises (SMEs)

4. Promotion of heating and cooling systems from RES and cogeneration of high-efficiency heat (CHP) using RES for self-consumption

This action will concern RES installations (i.e. biomass, biogas, geothermal, solar thermal and other RES systems) and CHP systems using RES that will operate exclusively as self-production units.

The Greek Ministry of Economy and Development along with Ministry of Energy (supervisory authority) is expected to publish within this year one funding programme for Industries, in which SHIP systems is expected to be eligible. The funding programme is called “Σύγχρονη Μεταποίηση (Modern Processing)”. This programme is already included in the “4th National Action Plan on Energy Efficiency for Greece” (ΦΕΚ B 1001/2018) - as one of the energy efficiency measures in the industry - created according to the 2nd paragraph of the 24th article of Energy Efficiency Directive 2012/27/EU. It concerns the financing of business plans for small and medium-sized enterprises and aims at transforming the manufacturing base of the Greek economy into new or diversified production lines, products and processing services with extrovert orientation. The program's total budget is 100 million euro, with 40% being public expenditure. The eligible budget of investment projects is in the range of 250,000-3,000,000 €.

In addition to these forthcoming programmes, SHIP systems may currently receive funding through the Greek Development Law 4399/2016, “Institutional framework for establishing Private Investment

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 181 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Aid schemes for the country’s regional and economic development - Establishing the Development Council and other provisions“124.

There are also indirect funding mechanisms, like the “Energy efficiency obligation schemes”, described in chapter 2.1.3.

Also, the General Secretariat for Research and Technology (GSRT)125 of the Greek Ministry of Education, Research & Religious Affairs is the Greek responsible partner for a number of national/regional research call for proposals. In this category belongs the SOLAR-ERA.NET Cofund 2 Joint Call126. This call for proposals is carried out by national / regional RTD and innovation programmes and national / regional funding agencies in the field of solar electricity generation, i.e. photovoltaics (PV) and concentrating solar power (CSP)/ solar thermal electricity (STE). The Joint Call is commonly carried out by the following countries and regions: Austria, Belgium-Flanders and Wallonia, Cyprus, France, Germany and North-Rhine-Westphalia, Greece, Israel, Italy, The Netherlands, Spain, Sweden, Switzerland and Turkey. The total budget provided by national and regional funding agencies as well as by the European Commission is 22 million euros and the deadline for submitting preproposals is October 2nd, 2018.

Moreover, a SHIP project in Greece may receive funding through available in the examined period “Calls for proposals” in the co-funding frameworks of European, Mediterranean Balkan and Adriatic-Ionian Programmes – Interreg Europe127, MED Programme128, Interreg Med Programme129 and Balkan-Mediterranean130 and Interreg V-B Adriatic-Ionian programme, known as ADRION131.

3 Future trends at national level There are new sectors where SHIP systems could be applied in Greece in the short to mid-term horizon. Examples are the sectors of mining, of industrial processes for animals and of surface treatment. In fact, and considering a wider context of SHIP’s mid-to-long term applicability perspective, it could be reasonably assumed that all industrial sectors requiring heat for the implementation of their processes constitute – at least to some extent – are potential application areas of interest for SHIP.

124 Greek Development Law 4399/2016 “Institutional framework for establishing Private Investment Aid schemes for the country’s regional and economic development - Establishing the Development Council and other provisions.“, Articles 9-11 in English version of the law available at https://startupgreece.gov.gr/sites/default/files/gr_development_law_en_2.pdf 125 GSRT, http://www.gsrt.gr/ 126 SOLAR-ERA.NET http://www.solar-era.net/joint-calls/ 127 Interreg Europe, https://www.interregeurope.eu/ 128 MED programme, http://www.programmemed.eu/en 129 Interreg Med https://interreg-med.eu/ 130 Interreg Balkan-Mediterranean - European Regional Development Fund http://www.interreg-balkanmed.eu/ 131 Interreg - http://www.adrioninterreg.eu/ D 7.2 Co-funded by the Horizon 2020 GA No. 731287 182 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

For funding opportunities, the future trend is that the enterprises, including industry, should mostly use private resources and there will be mechanism of facilitating the private funding.

4 Stakeholders In the framework of INSHIP project a National Stakeholder Group in Greece was established. Important key actors in the field SHIP technology and in the energy policy and planning were invited to participate. The Greek National Stakeholder Group has currently 10 members from research centers, universities and the industry and the Greek Solar Industry Association. Mr. Costas Travasaros, Director of Prime Laser Technology SA, being also EBHE representative to Solar Heat Europe -ESTIF is the Greek representative. Mr. Travasaros will join the Stakeholders Group European workshop of INSHIP project, in order to present the G reek position.

5 Needs assessment In Greece, there is high potential for wide employment of SHIP technologies both in terms of energy savings and cost effectiveness. Specifically, for industrial applications, which require relatively low water temperatures (range 40- 80 oC), SHIP systems are particular effective.

In order to further develop the sector, the following aspects should be considered:

 There are certain technical obstacles, such as the need to change the existing conventional equipment and production line of the industries in order to be compatible with the SHIP systems. Although these changes may be proved cost effective, the persons in charge to take the decision are reluctant to proceed with the required changes.  Due to lack of standardization of SHIP systems, there are difficulties in the design, supply equipment and installation.  The bank sector in Greece is quite cautious in approving private funding for SHIP systems because the personnel in the investment departments are not familiar with this technology.  There is a lack of cooperation among the involved SHIP designers, installers, auditors and manufactures. Moreover, especially the designers, the auditors and the installers of SHIP systems should receive proper education. Seminars and workshops should be organized on this field and a qualification system for solar thermal technology professionals should be established.  The dissemination of the effectiveness of SHIP applications should be enhanced. Proper dissemination tools (leaflets, workshops, seminars etc) should be established in order to widespread the SHIP technologies.  Regarding research, there is a need to optimize certain components of SHIP systems - such as controllers, heat storage and collectors.  Best SHIP practices in other countries should be studied and adopted also in Greece.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 183 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 During the industrial energy audits, there should be careful evaluation of the proper ranging of possible energy audit interventions. By this mean, more SHIP systems may be applicable.  The transparency of fuel prices and the transparency of energy supply contracts could also enhance the SHIP development. Nowadays, the fuel prices and which part of them is subsidized are not clear. Also, the energy supply contracts engage the industries for long periods, thereby preventing industries to examine the installation of SHIP systems.  Taking into account the high cost of land in Greece, small scale SHIP applications for low water temperatures are more likely to be implement.  In the legislation framework it is of great importance that there should be specific energy efficient indicators for industrial process heat production. Also, there should be legislation framework specific address to solar thermal systems, like there is in other RES technologies.

5.1 Possible funding alignment models Funding models in line with European priorities could be accomplished by the European Strategic Energy Technology Plan (SET-Plan), which aims to accelerate the development and deployment of low-carbon technologies. SET-Plan tries to improve new technologies and bring down costs by coordinating national research efforts and helping to finance projects. Setting priorities relating to SHIP both in EU SET-Plan and Horizon Programmes, would contribute to the development of SHIP technologies.

On national level, Article 20 (“Other measures promoting energy efficiency”) of the Greek law 4342/2015132 describes the governments’ wiliness to establish financial measures, incentives and funding mechanisms to promote energy efficiency. Moreover, in Article 10 of the same law (paragraph 8), various support schemes may be established for SMEs, covering the cost of the energy audit and the implementation of its recommendations, leading to higher economic efficiency, only in case where the proposed measures are implemented. These measures include industries where the implementation of a SHIP system is of high potential.

5.2 Road map to define an effective funding alignment model As an effective funding alignment models in Greece, is considered ERANET. ERANET Cofund under Horizon 2020 is designed to support public-public partnerships, including joint programming initiatives between Member States, in their preparation, establishment of networking structures, design, implementation and coordination of joint activities as well as Union topping-up of a trans- national call for proposals. It allows for programme collaboration in any part of the entire research- innovation cycle.

132 Greek national legislation 4342/2015, http://www.publicrevenue.gr/elib/view?d=/gr/act/2015/4342 D 7.2 Co-funded by the Horizon 2020 GA No. 731287 184 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.8 Concept Note Switzerland

Integrating National Research Agendas on Solar Heat for Industrial Processes

Concept Note for Switzerland

WP7

Due Date: June 2018

Submitted: July 2018

Partner responsible: ETH Zurich (ETHZ)

Person responsible Vikas Patil

Reviewed/supervised by: Aldo Steinfeld

GA number: 731287

Start of the project: January 2017

Duration of the project: 48 months

DISSEMINATION LEVEL

PU Public

NATURE OF THE DELIVERABLE

HISTORY

Author Date Comments

Vikas Patil, Aldo Steinfeld 20/07/2018

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 185 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Contents

1 Introduction ...... 187

2 Background and context ...... 187 2.1 Status of the SHIP domain in Switzerland ...... 187 2.1.1 Market deployment and industry ...... 187 2.1.2 Research activities and infrastructures ...... 187 2.1.3 Incentives for market deployment ...... 188 2.1.4 Regulatory framework...... 189 2.1.5 Funding opportunities for SHIP research at National, EU and International level ...... 189

3 Future trends at national level ...... 189

4 Stakeholders ...... 189

5 Needs assessment ...... 190 5.1 Possible funding alignment models ...... 190 5.2 Road map to define an effective funding alignment model ...... 190

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 186 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1 Introduction This document is developed as part of the INSHIP project (Integrating National Research Agendas on Solar Heat for Industrial Processes), led by the Fraunhofer Institute for Solar Energy Systems (ISE) in Germany, and which focuses on engaging major European research institutes with recognized activities on Solar Heat for Industrial Processes (SHIP), into an integrated structure. In this context, the INSHIP project aims at engaging major European research institutes with recognized activities on SHIP, to integrate their activities, and work with national authorities to align SHIP research with national research objectives, and with industry to bring SHIP to a higher Technology Readiness Level (TRL), for example by exploring synergies with district heating and the electricity grid.

Central to the above goals is the activation of the National Stakeholder Groups (NSGs), composed of representatives from organizations who have an interest in SHIP technology either as a research challenge (research institutes, universities etc.), or as a national research and development priority (e.g. relevant government agencies and departments, funding agencies etc.), or for industrial applications (e.g. in any industry that requires heat for its processes).

One of the core mandates of the NSGs is to draft a National Concept Note on SHIP RTD and technology transfer strategies for their respective countries. This concept note for Switzerland will be presented along with the National Concept Notes of nine other countries (Germany, Spain, Austria, Italy, Portugal, Greece, Cyprus, France, Turkey), at National Workshops during the year 2019, aimed at creating an integrated strategy at the European level.

2 Background and context

2.1 Status of the SHIP domain in Switzerland

2.1.1 Market deployment and industry The solar thermal industry in Switzerland is relatively small and mainly comprises water heating collectors. About half of the installed collectors are imported, mainly from European countries. Domestic production supplies the other half. From the total Swiss collector production, about one quarter is exported. As per the International Energy Agency’s Country Report133, the total installed capacity of solar thermal systems peaked in 2009 at around 160,000 m2.

2.1.2 Research activities and infrastructures Major research institutes/groups in Switzerland that either work directly or could potentially work on SHIP include:

 Professorship of Renewable Energy Carriers (PREC) at the Swiss Federal Institute of Technology, Zurich (ETHZ) http://www.prec.ethz.ch/ In the context of SHIP, research focus areas at PREC include solar fuels production, solar- driven metallurgical processing and thermal energy storage. Research activities include engineering design, fabrication, testing, optimization, and scale‐up of advanced materials, solar thermochemical reactor/receiver prototypes, and sensible, latent and thermochemical heat storage systems. Research infrastructure includes two High-Flux Solar Simulators, a rooftop-mounted on-sun dish, synchrotron tomograph, spectroscopic goniometer, solar-driven thermogravimeter and various material characterization facilities.

133 Country Report – Switzerland, Status of Solar Heating/Cooling and Solar Buildings – 2017. Solar Heating & Cooling Programme, International Energy Agency. URL: http://www.iea-shc.org/country-report-switzerland D 7.2 Co-funded by the Horizon 2020 GA No. 731287 187 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 Laboratory of Renewable Energy Science and Engineering (LRESE) at the Swiss Federal Institute of Technology, Lausanne (EPFL) https://lrese.epfl.ch/ LRESE investigates the conversion of renewable energies (solar, wind, biomass, hydro and geothermal) into storable fuels, materials and commodities. A special focus lies on novel, solar driven energy conversion processes based on solar thermal, thermochemical and electrochemical processes. In-depth numerical and experimental investigation of the processes, devices, reactors and systems are followed by prototype design, proof of concept, optimization and scale-up. Various facilities, such as a high-flux solar simulator, a large-scale, on-sun dish and an LED solar simulator (1 sun) are used for the experimental investigation of the processes. Additionally, experimental facilities for the detailed characterization of complex multi-phase media - present in the processes investigated - are designed and available.

 SPF Institute for Solar Technology, Rapperswil http://www.spf.ch/ The SPF Institute for Solar Technology is part of the HSR University of Applied Sciences in Rapperswil. The Institute holds research competencies in solar thermal systems for industrial processes and contributes to the Swiss Competence Center for Energy Research – Efficiency in Industrial Processes (SCCER EIP). Facilities include testing, certification and assessment of components and systems for solar technologies and heating appliances in the building sector. SHIP-related services include determination of the specific heat capacity (Cp) of heat transfer fluids, solar tracker for outdoor testing, accelerated ageing test, solar simulator for collector performance testing and optimization, thermal test rigs and various computational tools.

 Thermal Energy Systems and Process Engineering Lab, Lucerne University of Applied Sciences and Arts, Lucerne https://www.hslu.ch/en/lucerne-school-of-engineering-architecture/research/competence- centers/thermal-energy-systems-and-process-engineering/experimental-test-rigs/ The group develops and optimizes processes and methods for efficient, resource-saving energy and material conversions. Relevant competencies include heat pumps and refrigeration, process integration and pinch analysis, heat exchanger development, simultaneous heat- and material transfer, thermal separation- and environmental processes and thermal energy supply systems. Test rigs are available for research, education and the provision of services for applications such as heat pumps, refrigeration plants, air treatment, distillation column, evaporation system and measurement and analysis of phase change materials for latent heat storage. A demonstration plant to present the operation of a thermal collector for domestic hot water production is currently employed for academic purposes, but can also be used for research and providing industrial services.

2.1.3 Incentives for market deployment EnergieSchweiz https://www.energieschweiz.ch/home.aspx

The EnergieSchweiz programme brings together voluntary measures to implement Swiss energy policies under its umbrella. The program promotes knowledge and competence in energy issues while providing a vessel for market testing of innovative ideas. The financial resources of EnergieSchweiz are gradually increasing from CHF 35 million a year in 2013 to

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 188 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

around CHF 50 million in 2015. EnergieSchweiz is planning its activities from 2017 to 2020 within this annual budgetary framework. However, there is no explicit provision for SHIP.

2.1.4 Regulatory framework To the best of the authors’ knowledge, there is currently no legal framework that directly targets SHIP installations.

2.1.5 Funding opportunities for SHIP research at National, EU and International level At the national level, the Swiss State Secretariat for Education, Research and Innovation (SERI) will continue to play a crucial role in funding for SHIP research in academia. The Horizon2020 and its previous incarnations (FP6, FP7, etc.) from the EU form the main pillars for cross-national funding.

3 Future trends at national level Research & Development

Commercial

4 Stakeholders The Swiss NSG consists of two stakeholders:

Dr. Stefan Oberholzer is the head of research for PV, CSP/Fuel Cell and Hydrogen at the Swiss Federal Office of Energy (SFOE). His presence in the NSG serves as a direct link between research and public policy in Switzerland.

Dr. Philipp Furler is the founder and CEO of Sunredox, an ETHZ spin-off that is developing clean and sustainable solar fuels. His involvement in the NSG represents the interests of the small and medium

134 Website of the Swiss Federal Office of Energy SFOE. URL: http://www.bfe.admin.ch/themen/00490/00497/index.html?lang=en D 7.2 Co-funded by the Horizon 2020 GA No. 731287 189 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes enterprises in Switzerland, which will play an important role in the lab-to-field deployment of innovations.

5 Needs assessment

5.1 Possible funding alignment models Structured funds programmes at the Swiss national level could be aligned with those of the Horizon Programmes, and aligning those in turn with the EU-level SET Plan priorities related to SHIP.

5.2 Road map to define an effective funding alignment model Two possible financing instruments are proposed here: ERANET and ECRIA.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 190 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.9 Concept Note France

Integrating National Research Agendas on Solar Heat for Industrial Processes

Concept Note for France

WP7

Due Date: June 2018

Submitted: July 2018

Partner responsible: CEA

Person responsible Raphael Albert

Reviewed/supervised by: Valéry Vuillerme

GA number: 731287

Start of the project: January 2017

Duration of the project: 48 months

DISSEMINATION LEVEL

PU Public

NATURE OF THE DELIVERABLE

HISTORY

Author Date Comments

Véronique Charreyron 15/06/18 Draft version

Raphael Albert 15/07/18 Final document

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 191 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Contents

1. Introduction/Context ...... 194 1.1 Preamble ...... 194 1.2 Regulation ...... 194 1.2.1 French Energy transition for green growth act (LTECV) ...... 194 1.2.2 European Emissions Trading System (ETS) ...... 195 1.3 Incentives ...... 195 1.3.1 Heat Fund ...... 196 1.3.2 Call for proposals ...... 197

2. French Market ...... 198 2.1 Global solar thermal market in France ...... 198 2.2 Solar heat for industrial process market ...... 199 2.3 Key applications ...... 200 2.4 Future trend at a national level ...... 201

3. Key market stakeholders ...... 202 3.1 Value chain ...... 202 3.2 Companies profile ...... 204 3.2.1 ARTELIA ...... 204 3.2.2 AZOLIS ...... 205 3.2.3 ENGIE ...... 206 3.2.4 NEWHEAT ...... 206 3.2.5 SUNTI (Sunny times for industry) ...... 207 3.2.6 SUNCNIM ...... 208 3.2.7 LACAZE ENERGIES ...... 208 3.2.8 TECSOL ...... 209 3.2.9 HELIOCLIM ...... 209 3.3 Institutional players ...... 210 3.3.1 SER, The French Renewable Energy Association (Syndicat des énergies renouvelables) 210 3.3.2 ENERPLAN, French Solar Industry Association ...... 211 3.3.3 ADEME ...... 212 3.3.4 KIC INNO ENERGY France...... 212 3.3.5 UNICLIMA ...... 212

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 192 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

3.3.6 ANCRE ...... 212

4. Facilities and projects ...... 213 4.1 Facilities ...... 213 4.2 Demonstrators ...... 214 4.2.1 PROMES ...... 214 4.2.2 CEA/ INES ...... 215 4.2.3 School of Mining Engineers in Albi-Carmaux ...... 216 4.2.4 Energy & Heat, & Processes laboratory (LaTEP) of University of Pau ...... 216

5. Needs assessment ...... 217

Figures ...... 220

References ...... 221

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 193 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1 Introduction/Context

1.1 Preamble This deliverable relies on a documentary approach. Different sources were collected: public market surveys, press articles, conference proceedings and specific websites. As the market for solar heat solutions in the industrial process field remains a specific niche in France, very little data exist and therefore available for analysis. A list of references is provided at the end of this document.

1.2 Regulation Regulation, subsidies and other public policy measures have been spurring the development of renewable energies. Regarding the French context, two regulatory measures will help shifting away from carbon intensive power generation towards renewable power such as solar thermal energy: the French Energy Transition for Green Growth Law and the EU Emissions Trading System (EU ETS)

1.2.1 French Energy transition for green growth act (LTECV) In August 2015, the French Parliament adopted the Energy Transition for Green Growth Law in order to address the global challenges of energy security, climate change and sustainable development. This law sets medium-and long-term ambitious qualitative and quantitative targets to be implemented by 2030 and provides a framework for individuals, businesses, regions and the State to take collective action. The PPI (multi-annual investment plan) in March 2016 complements this scheme.

The following goals are stated:

Energy production (tons of oil equivalent) December 31th, 2018 180 Ktoe December 31th, 2023 Week market : 270 Ktoe Favourable market : 400 Ktoe Figure 1 : solar thermal objectives fixed by the multi-annual investment plan (PPI) in 2016 (French ministry)

State of the play by mid 2018

Three years after the launch Energy Transition for Green Growth Law, the results are mixed. Based on present trends, the ambitious goals set in the action plans over the last years won’t be

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 194 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes achieved. In March 2018, a specific working group has been set up to boost the development of solar PV and thermal energy, which will be reporting in June.

1.2.2 European Emissions Trading System (ETS)

The European Union’s Emissions Trading System (ETS) charges power plants and factories for every ton of carbon dioxide (CO2) they emit. The revision of EU-wide rules for the free allocation of emission allowances launched by the European Commission (EC) on March 2018 would significantly increase the pressure on industry.

The new rules would be applicable in the fourth trading period of the EU ETS (2021-2030) :

 Starting from 2021, emission allowances will be reduced (declined) each year by a linear factor of 2.2%, compared to the current linear factor of 1.74%.  Carbon taxation will increase gradually from of 20-30 euros per ton in 2020 to 80-100 euros per ton by 2030 The French Environmental taxation will be impacted by these new rules. The projections for the next years lead to the following results:

Figure 2: The carbon tax (TICGN Taxe Intérieure sur la Consommation de Gaz Naturel) (French ministry)

1.3 Incentives The ADEME, the French Environment and Energy Efficiency Agency, participates in implementing public policy in environmental, energy and sustainable development areas. Among others, the Agency assists with funding projects from research through to implementation. It manages different financing support tools at national and regional level such as the Heat fund (Fonds Chaleur) and issues different calls for projects at both national and regional level managed as State-Region Project Contracts.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 195 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 3: Public aide scheme

1.3.1 Heat Fund The Heat Fund was set up in 2009 in order to support the production of heat from renewable resources and recovered energy. Since its inception, this scheme has funded 4,000 renewable heat production plants, for a total of €1.57 billion. More work needs to be done though: the annual number of projects granted by the Heat Fund should reach 600 ktoe to meet France's renewable heat targets, compared to 250 ktoe as of 2017. Furthermore, more than 100 M€ of ongoing or upcoming projects have been postponed in 2018 and subsidies could be replaced by repayable advances.

Financial support for solar thermal installations can be granted under certain conditions

 Applicable sectors: collective housing, industry, tertiary, agriculture, tourism  Conditions of eligibility : use one of the six reference hydraulic diagrams used by the profession through the SOCOL 135 inter-professional organisation In 2015, 17 industrial installations were granted for a total amount of €1.4 M subsidies including one project of 1440m² and 32 agricultural installations totalling €2 M.

135 SOCOL ( "Solar Collective") is an initiative of ENERPLAN in support of the Heat Fund. It has been supported by ADEME since 2009, and GRDF since 2013, in order to structure the offer through performance and quality, as well as boost the market. In 2018, SOCOL brings together nearly 3,000 members, professionals and project owners D 7.2 Co-funded by the Horizon 2020 GA No. 731287 196 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1.3.2 Call for proposals The program is mainly implemented through two national calls for proposals, requiring interested applicants to submit proposals for their projects within a given period. One is dedicated to solar thermal (Grants for large-scale commercial solar plants) while the other one has a broader scope (Grants for renewables). The French government’s Future Investments Program (Investissements d’avenir) finances both calls. Established in 2009, this funding program provides grants for partnership research projects together with other European countries in order to achieve the identified targets of the various Declaration of Intents endorsed by the SET-Plan Steering group.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 197 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

 Grants for renewables (Appel à projets national : AAP Énergies Renouvelables) o Main objectives: . Support the development of projects in the field of renewable energies: biomass, photovoltaic, solar thermal, wind, geothermal, renewable energy as well as hybridization projects of different renewable solutions. . Three tender rounds annually; Tender schedule for 2018/2019: June14th 2018, October 25th 2018 and September 19th 2019 o It focuses on 6 axis including: . Development of innovative technological bricks and Demonstration systems . Consideration of solar thermal energy for buildings and for industrial processes In 2012-2016, ADEME issued a new call for proposals called NTE "New Emerging Technologies". It aimed to support technologies that are not yet widely available but already exist at an industrial or quasi-industrial scale, in France or abroad. It looks like it was not renewed in 2018.

Moreover, some international bilateral call for proposals can be initiated to grant cooperative research projects in the field of renewables (e.g. : a bilateral French-German call for proposals focused on “sustainable energy” will be launched in 2018).

2 French Market

2.1 Global solar thermal market in France The French global solar thermal market has witnessed a notable decline over the last six years. The market dropped by 35% in 2016 with a collector installation figure of 65 900 m² as of 2016 compared to 101,400 m² in 2015 according to the UNICLIMA association136. Collective systems is the most important segment. It accounts for 55.7% of the total solar collector market on a surface basis. 36,700 m² have been installed – a 38% fall compared to 2015. The overseas territories market is more active, it totalled 47,082 m² in 2016 (41 248 m² in 2015), up 14.1% from 2015.

The decline was a little less important in 2017 (only down 22 % compared to 35 % the previous year) with a total installed solar collector surface of 48,000 m². The market contracted by 23 % on the collective systems segment representing 25,900 m² compared to 32,600 m² in 2016. The combined installed base in main France at the end of 2017 was about 2,341,000 m².

As of 2017, only the equivalent of 94,000 Toe was in use which is still ways below the multi-annual investment plan (PPI) objective of 180,000 Toe for 2018.

136 The air-handling, cooling, heating and refrigeration industry association D 7.2 Co-funded by the Horizon 2020 GA No. 731287 198 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 4 : Evolution of the French solar thermal market (UNICLIMA)

The main reasons that account for decline of the market are linked to past policy orientations: failure to take proper account of solar heat in the 2012 RT thermal regulations, right to over- consume in multi-occupancy housing, standardisation of the Tax Credit aids for energy transition. The French market has also been suffering from inadequately performing solar thermal installations made in the boom years of 2009 to 2011 because of untrained installers.

Although, the sector is betting high on the development of the collective solar segment that includes social housing, industrial solar heat and solar district heating (large-scale commercial solar thermal plants) to offset the underperforming individual home segment.

Social landlords are considered ad a key target as they could equip as much as 50,000 to 60,000 housing units with solar thermal energy within 5 years. Since 2016, public housing associations have been allowed to recover 65% of their renewable investment while private stakeholders only recover 40% (ADEME grants). Such measures are hoped to revitalise the sector and create positive market dynamics.

2.2 Solar heat for industrial process market According to the ADEME (Enea Consulting and KERDOS Energy Study 2018) only 8 % of the energy consumed by the French industrial sector comes from renewable energy sources, most of it from biomass combustion or methanisation.

Although it’s based on mature technologies, the SHIP sector remains a niche market, poorly developed in France. Unfortunately, very little data is available for analysis. We estimate that less than 4000 m2 are installed based on the information that are made public by industrial companies and the ADEME.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 199 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Thermal solar remains, on average, the least competitive heat generation technology today for industrial companies in France, but significant cost reductions are expected. The total cost of production is estimated by the ADEME between 86.0 and 280.2 € / MWh for rooftop projects and between 47.5 and 206.5 €/ MWh for ground projects depending on the discount rate.

Figure 5: production costs for solar thermal in industrial processes depending on the discount rate (ADEME, Enea Consulting and KERDOS Energy Study 2018)

2.3 Key applications SHIP is a means to provide process heat for the food and beverage, the textile and chemical industries as well as for simple cleaning processes, e.g. car washes representing circa 30% of the global industrial heat market.

This is due to the low temperatures required for the processes -30°C to 90°C-, allowing the use of commercially available flat plate or vacuum tube collectors which are very efficient in this temperature range (ESTIF)

 Medium to favour: water or steam low temperature  Continuous process and need for continuous heat in the year (6 days per week)  Available surface and carrier: 1m² of conventional sensor for 500 kWh / year Solar heat is also used to heat industrial buildings.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 200 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 6: Industrial sectors and processes with the greatest potential for solar thermal use (Technology essentially adapted to processes <200 ° C (AIE task 33)

On the demand side, heat is very largely used in food chemical and paper industry accounting for 30 %, 28 % and 18 % of the global consumption of heat below 250 °C according to CEREN (Center for Studies and Economic Research on Energy)

Figure 7 : Heat Consumption < 250 °C per sector of activity in 2015 (CVT Ancre, 2015)

2.4 Future trend at a national level Stakeholders consider that in the residential sector, it is feasible to install between 150 000 m² and 358 000 m² per year in 2028 (to be compared to 58 000 m² in 2016) and up to 300 000 m² per year for the industrial sector (less than 10 000 m² in 2016).

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 201 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The multiannual energy program (PPE), which is the monitoring tool of the energetic policy set the following objectives :

Figure 8: PPE Objectives for solar thermal heat final consumption

3 Key market stakeholders

3.1 Value chain

Figure 9: Simplified value chain of the solar thermal industry in industrial processes

There are distinct segments within the whole ecosystem of solar thermal power, starting from the manufacturing of components and module production all the way to the installation and operation. The main products of the manufacturing process are collectors (flat plate,vacuum tube collectors, concentration). Services include financing, project development, design, engineering, training, construction and maintenance. There are 2 main ownership models: either the solar heating plant is owned by the industrial end-user or a third-party investor.

A number of “peripheral” players have an impact on the value chain such as public authorities, professional organisations, lobbyists, associations, standardisation and accreditation bodies, insurers, research centers,…

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 202 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Positioning of French players in the value chain

Solar heat for industrial process is a very limited market in France. A high number of companies have stopped their play in SHIP because its small size and low volumes. Clipsol, the « historical » collector manufacturer went bankrupt in June 2017 after 40 years in operation (the company was acquired by ENGIE in 2008). The firm suffered heavy losses (€36,1 M) with a turnover of €5 M in 2016.

Other companies such as Giordano Industries, Dual Sun, Systovi, and Solisart are focused on individual and collective housing and services. They are not active in the industrial segment.

Only a few private companies still have a play in SHIP : ARTELIA, AZOLIS, ENGIE, TECSOL , SUNTI, NEWHEAT , SUNCNIM, LACAZE ENERGIES and HELIOCLIM. Some of these are innovative start-up that are inventing new business models (e.g. SUNTI, NEWHEAT, AZOLIS)137.

Beside the aforementioned companies, a few associations and industry federations are representing the profession at a national level (e.g.: SER and ENERPLAN). These different actors will be described in the next section of this document.

137 Optimal Solutions, a subsidiary of Dalkia (part of the EDF Group) is well positioned on the district heating network market and may also occasionally venture into the SHIP market as an Energy Service Company (ESCO) ( e.g: Bonilait Proteines), as well as ENGIE Cofely, subsidiary of ENGIE Energie Services, European leader in energy services promoting renewable heating solutions.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 203 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 10: Positioning of French players in the value chain

3.2 Companies profile

3.2.1 ARTELIA  Creation : 2010  CEO : Benoit CLOCHERET  Headquarters : Lyon  Employees : 4900  Website : https://www.arteliagroup.com/fr

Born to Coteba and Sogreah merger, ARTELIA is an international multidisciplinary group of consulting, engineering and project management involved in the field of construction industry, infrasctructures, water management, industry and environment. ARTELIA’s assignments focus on nine sector : construction industry, multi-sites, industry, water management, maritime, environment, energy, transportation and city.

ARTELIA is made up of 55 agencies located in France, and is working in 30 countries around the world.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 204 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

ARTELIA proposes to its customers a whole projects accompanying, from conception to realisation.

In the field of solar energy, ARTELIA mainly acts in photovoltaics plants projects. Up to now, it accompanied more than 250 MWc photovoltaics projects and audited more than 1 GWc worldwide.

ARTELIA is also working in the field solar thermal and CSP although no significant project has been undertaken.

3.2.2 AZOLIS  Creation : 2014  Manager : Guillaume JEANGROS  Headquarters : Paris  Employees : 8  Website : http://azolis.com/

Since its creation, AZOLIS is involved in the field of renewable energy and energy efficiency. Its assignment is to propose to its customer sustainable solutions at competitive costs. Mainly acting in the development of the energy sector in Marroco, AZOLIS has a diversified and customised products and services mix according to customers’ needs. AZOLIS is a subsidiary of Aqylon company and is acting in Paris, Casablanca, Jakarta and Miami.

AZOLIS is acting as an energy provider.

Figure 11: AZOLIS Business model (AZOLIS website)

AZOLIS proposes solutions to provide solar heat thanks to conventional flat solar panels as well as CSP fields for temperature up to 300°C. In the field of CSP, 3 main projects were conducted in Marroco : INNOTHERM 1, INNOTHERM 3 and MAGHRENOV.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 205 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

3.2.3 ENGIE  Creation : 2008  CEO : Isabelle KOCHER  Headquarters : Paris  Employees : 150 000  Website : www.engie.com

GDF Suez was born from Gaz de France and Suez merger in 2008 and becomes ENGIE in 2015. ENGIE is a provider of natural gas and renewable electricity. ENGIE is the leader in France in producing electricity using photovoltaics with 900 MWc installed through its subsidiary Solairedirect. ENGIE also works in the field of solar thermal. In the field of solar energy, ENGIE acts on all the value chain.

3.2.4 NEWHEAT

 Creation : 2015  CEO : Hugues DEFRÉVILLE ; CTO: Pierre DELMAS  Headquarters : Bordeaux  Employees : 8  Website : ww.newheat.fr NEWHEAT develops, designs, finances, builds and operates its own heat production plants (water / steam / oil), based on solar thermal technologies. NEWHEAT calls itself an independent integrated solar heat producer targeting industrial customers and district heating. It is a rapidly growing start- up. About two years after it was founded in December 2015, management raised almost €1.8 million from private investors to finance the first solar heat delivery projects and strengthen its global sales force. In 2016, It was granted by ADEME in the context of the call for projects “initiative PME (Investissement d’Avenir program) for the OPTISHIP project (Optimized Solar Heat for Industrial Processes, €469 K investment (€200 K subsidies)

NEWHEAT’s fist solar plant (4000 m² trackers, 3 MWTh) is scheduled to start operations in September 2018 in Condat (Dordogne). The client is a paper mill. Hugues Defréville, NEWHEAT’s CEO, plans to install 30 000 additional m² in 2019.

The company is also an industry member of Task 55 of the IEA Solar Heating and Cooling program, towards the Integration of Large SHC Systems into DHC Networks.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 206 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 12: NEWHEAT’s Business model (NEWHEAT presentation, 2017)

3.2.5 SUNTI (Sunny times for industry)

 Creation: 2014  President : Jean-Michel GERMA ; CEO : Kevin MOZAS  Headquarters : Montpellier  Employees : 7  Website : ww.sunti.fr

SUNTI was founded in November 2014 by Jean-Michel Germa, a pioneer of the renewable industry who also set La Compagnie du Vent in 1989 (and sold it to ENGIE in 2017). The start-up operates as an ESCO (Energy Service Company) to provide process heat to customers in France and the Mediterranean region on a third investment business model. SUNTI targets both the industrial and district heating markets.

In 2015, the IEA Solar Heat for Industrial Processes day (SHIP 2015) has been organised in Montpelier by SUNTI and AEE INTEC in the framework of the joint task of IEA SHC Task 49 and Solar Paces IV on “Solar Heat Integration in Industrial Processes”.

Figure 13: SUNTI Business model (SUNTI website)

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 207 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

3.2.6 SUNCNIM

 Creation : 2015  President : Stanislas ANCEL, CEO : Sylvain LEGRAND  Headquarters : La Seyne-sur-Mer  Employees : 40  Website : ww.suncnim.com SUNCNIM designs, builds and operates solar steam generators for heavy oil production and process industries with CNIM and BPI138 as main investors (55% and 45 % respectively). A total of €55M has been invested in the company including contributions in kind of technology.

Specialised in EPC projects for utility power generation plants, the CNIM group has been operating over a dozen countries for more than 50 years (3 000 employees, turnover € 727M in 2015).

SUNCNIM has designed its own CSP (Concentrated Solar Power) solar technology based on Fresnel mirrors. Several rows of slightly curved mirrors reflect the sunlight onto a fixed receiver tube called absorber. Water circulated through a pump is injected into the absorber and then heated by the concentrated sun’s rays

SUNCNIM has developed and finance the eLLO project, which has a 20 years' power purchase agreement. eLLO is located in the Eastern Pyrenees and is the world’s first Fresnel thermodynamic power plant with an energy-storage capacity (95,200 mirrors fitted to 23,800 collector panels covering a total surface area of 153,000 m² )

Since 2010, SUNCNIM has been operating a Fresnel 500 kWth solar steam generator plant, locating of on CNIM industrial lease in La Seyne-sur-Mer. Operations are carried out in fully automatic mode with the use of automatic cleaning robots. In 2015, SUNCNIM installed a 4 hours capacity steam accumulator storage tank to demonstrate on-site storage technology performance.

3.2.7 LACAZE ENERGIES

 Creation: 1951  President : Thierry ROUAIX  Headquarters : LEYME (Lot)  Employees : 67  Website : www.lacaze-energies.fr/ In 1951, Julien Lacaze Company started his activity by making oil tanks and hot water heating system for the industrial and the tertiary / residential sector. In 2007, the company was changed for LACAZE ENERGIES and became one of 15 subsidiaries of Cahors Group (Groupe Cahors, 80%). Employing more than 1760 collaborators worldwide, the Cahors group is specialised in global solutions for electricity distribution networks, fluid distribution and global communication networks. LACAZE ENERGIES designs and manufactures in France equipment and complete solutions for hot water - chilled water, standardised products and tailor-made hot water production and storage systems. It offers hot water production alternatives using renewable energy sources such as thermic solar energy and/or waste heat recovery for preheating with recuperation made with a storage tank. Heat recovery is a systematic practice before solar production in order to have very moderate solar sizing.

138 a subsidiary of the state-owned Caisse des Dépôts D 7.2 Co-funded by the Horizon 2020 GA No. 731287 208 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Lacaze conducted several industrial projects involving solar thermal and heat recovery. The company aiming the food and beverage industry as well as the hotel sector can also sell process heat in the context of a leasing agreement. In this case, it manages investment & maintenance work and operates of the facility. After 3-5 years, the firm will own the facility. The company says ROI is limited to 2-3 years in the industrial sector and 5-10 years in the tertiary sector due to the Fonds Chaleur subsidies.

LACAZE ENERGIES is very interested in innovation including CSP. The company is investing nearly 7% of its turnover for Research and Development and employs more than 20 engineers.

3.2.8 TECSOL

 Creation: 1982  President : André JOFFRE  Headquarters : Perpignan  Employees : 27  Website : www.tecsol.fr/ TECSOL is an independent French engineering services company that has been playing an important role in the consultancy field for more than 35 years.

TECSOL is in the forefront of the solar heating and cooling technology (both thermal and photovoltaic) in France and abroad. The mother office is based in Perpignan with secondary offices in Paris, Lyon, Bordeaux, Toulouse, Orange, Angers and subsidiaries in Spain, Indian Ocean (La Réunion island), Caribbean (Guadeloupe, Martinique).

TECSOL is active from the design phase to the reception phase of solar thermal and photovoltaic projects. It offers different services: feasibility studies, design and monitoring of large scale solar plants. TECSOL is also conducting R&D on new system concepts and develops calculation tools.

TECSOL managed different projects like the solar plant in Merville that heats water for cleaning LYS Services trucks transporting food. This project saw 1,172 m² of Opticube collector area delivered by Belgian-based Sunoptimo.

3.2.9 HELIOCLIM

 Creation: 2011  CEO : Yannick GODILLOT  Headquarters : Mandelieu la Napoule  Employees : 18  Website : http://www.helioclim.fr/

HELIOCLIM was founded in May 2011 on the French Riviera. It has developed a reversible solar air conditioning solution for industrial and commercial buildings (air conditioning, heating, industrial refrigeration and DHW) in the context of SCRIB Project supported by ADEME as part of the low- carbon energies project in the investments for the future programme (€2,8 million investment including €1,4 million PIA support)

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 209 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The system consists of a reversible absorption machine, powered by a system of solar thermal heat panels based on innovative concentrators. HELIOCLIM technology produces temperatures between -60°C and + 200°C.

The pre-industrial demonstrator of the SCRIB (Solar Integrated Reversible Air Conditioning System) program will be located at the Leclerc mall in Saint Raphaël. A field of 130 Heliolight 4800 solar parabolic trough will be installed in 2018-2019 on the rooftop of the mall to power a 250 kW cold absorption machine (the largest solar cooling power installed in France).

HELIOCLIM also inaugurated at Saint-Christol d’Albion the largest concentrated solar field in France mid-2018: 160 solar collectors with a capacity of 560 kW occupying a floor area of 2537 m² and supplying heating and domestic hot water for 50 buildings.

Beyond air conditioning and district heating applications, the company is willing to address industrial applications.

Figure 14: HELIOCLIM’s solar power plant on the defense base at Saint-Christol d’Albion

3.3 Institutional players SER and ENERPLAN are the major lobbies involved in shaping the future of the French solar thermal sector. SER is the only professional organisation in Europe that brings together all the renewable energy industries; ENERPLAN is devoted to solar energy.

3.3.1 SER, The French Renewable Energy Association (Syndicat des énergies renouvelables)

 Creation : 1993  President : Jean-Louis BAL  Headquarters : Paris  400 members representing a turnover of 10 billion Euros and more than 80,000 jobs  Employees : 20  Website : www.enr.com

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 210 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The French Renewable Energy Association (SER) was established in 1993 to promote the interests of industrials and professionals in the sector to public authorities, parliament and all bodies in charge of energy, industry, employment, the environment and research. It groups industrials from all of the renewable energy channels: biofuels, biomass, wood, biogas, renewable marine power, wind power, geothermal energy, hydroelectricity, heat pumps, solar photovoltaics, thermal and concentrated solar power. It is the largest renewable energy organisation in France gathering 400 companies in all RE sectors. Among its members are the large European and French energy groups, as well as many SMEs and middle-market companies. It actively follows the preparation of legislative and regulatory texts contributing to the drafting of regulations. It has proposed to the various Administrations measures that have constituted the economic base for the businesses in this field: feed-in tariffs for renewable electricity, public support devices for renewable heating, etc.

The SER is also coordinating 12 specialised commissions including one thermal and concentrated solar power that is directed by Sylvain LEGRAND, SUNCNIM’s CEO.

SER and ADEME have developed an interactive cartography, which brings together all projects carried out by French companies in one or more sectors of renewable energy.

3.3.2 ENERPLAN, French Solar Industry Association

 Creation : 1983  President : Richard LOYEN  Headquarters : La Ciotat  Moore than 200 members  Employees : 5  Website : www.enerplan.asso.fr/ Launched in 1983, ENERPLAN is the French Trade Association for Solar Energy, promoting the development of solar energy. ENERPLAN represents the interests of the entire solar energy sector (heat and electricity) in France. Its members -manufacturers or service providers, designers, consultants, installers, architects, energy specialists, utilities, local association, banks, insurance companies - represent almost 100 % of French solar thermal energy providers and experts. Its mission is to encourage the promotion and development of solar energy, represent stakeholders in the solar industry, stimulate and shape the sector, and develop applications.

ENERPLAN works closely with its partners ADEME, public authorities and other professional organisations related to photovoltaic and other solar technologies. The association also collects and publishes data and statistics on solar thermal markets in France.

ENERPLAN established the SOCOL Network with the support of ADEME and GRDF in 2009 to share Best Practices for Multi-family Houses (SoCol is short for “Solaire collectif”, the French term for multi- family houses). This network has grown quickly from just 155 professionals in 2013 to 3,000 in 2018, which work in four groups. The SoCol network´s general objectives are to promote well-designed and well-sized installations together with systematic monitoring, in order to reach the guaranteed solar yields and reduce maintenance. Great efforts are made to improve the image of solar thermal as a cost-effective, reliable technology for commercial applications.

ENERPLAN is part of Solar Heat Europe ESTIF, the Brussels-based solar thermal industry association.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 211 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

3.3.3 ADEME See 1.3 Incentives

3.3.4 KIC INNO ENERGY France  Creation : 2008  CEO : Richard BIAGIONI  Headquarters : Grenoble  Employees : 50  Website : http://www.innoenergy.com

The goal of INNO ENERGY is to achieve a sustainable energy future for Europe. Innovation is the solution. New ideas, products and services that make a real difference, new businesses and new people to deliver them to market.

InnoEnergy support and invest in innovation at every stage of the journey – from classroom to end- customer. With our network of partners INNO ENERGY builds connections across Europe, bringing together inventors and industry, graduates and employers, researchers and entrepreneurs, businesses and markets.

INNO ENERGY works in three essential areas of the innovation mix: • Education to help create an informed and ambitious workforce that understands the demands of sustainability and the needs of industry. • Innovation Projects to bring together ideas, inventors and industry to create commercially attractive technologies that deliver real results to customers. • Business Creation Services to support entrepreneurs and start-ups who are expanding Europe’s energy ecosystem with their innovative offerings.

Bringing these disciplines together maximises the impact of each, accelerates the development of market-ready solutions, and creates a fertile environment in which we can sell the innovative results of our work.

3.3.5 UNICLIMA  Creation : 2009  CEO : Francois FRISQUET  Headquarters : Paris  Employees : 15  Website : www.uniclima.fr

UNICLIMA is the union of syndicates of thermal, aeraulics and cooling industries and gather 87 companies. UNICLIMA represents its member in the face of public authorities. It performs also statistical studies to track French market evolution and gives economical trends of the sector. It is also involved in the improvement of the quality (standardisation, certification). UNICLIMA gives a good visibility to industry and add value to its image.

3.3.6 ANCRE  Creation : 2009  CEO : Christophe GEGOUT  Headquarters : Paris  Employees : -  Website : www.allianceenergie.f D 7.2 Co-funded by the Horizon 2020 GA No. 731287 212 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Created on July 17, 2009, the National Energy Research Coordination Alliance (ANCRE) brings together 19 research and innovation organizations and conferences of higher education institutions in the field of energy.

Its missions, exercised in liaison with the competitiveness clusters and funding agencies, are:  strengthen synergies and partnerships between research organizations, universities and companies,  identify the scientific and technical barriers that limit industrial developments,  propose research and innovation programs and how to implement them,  contribute to the development of the national energy research strategy and the programming of funding agencies.

4 Facilities and projects

4.1 Facilities While the fist solar thermal installations in industrial process dating back to the mid- 2000’s: were rather small (e.g.: slaughterhouse Sicabat of Reunion Island (2006), cheese factory des Gors (2007), confectionery plant François Doucet (2008) ,…), recent projects are mostly limited to the food and beverage industry… and their number is still small.

The largest SHIP facility has been running for 5 years at Bonilait Proteines, a Sodial group subsidiary that produces diary ingredients for the food industry and a specialist in animal nutrition. The project integrates steam production from biomass, solar thermal collectors (1,420 m2) and heat recovery from cooling towers. This installation is operated by EDF Optimal solution.

Two large-scale solar installations should be commissioned this year with funding from the large- scale commercial solar thermal plants subsidy scheme in 2016: the first one is a solar plant in Merville ( 1,172 m²) providing hot water for cleaning LYS Services food transportation trucks. The project is managed by TECSOL. The second one is a 4,000 m² solar plant designed to supply heat to a paper mill in the Dordogne region, NEWHEAT as third-party investors.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 213 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 15: the major SHIP projects in France since 2012

4.2 Demonstrators R&D pilot plant and demonstrators are rather limited, CNRS/PROMES, CEA/INES and The School of Mining Engineers Albi-Carneaux being the most active R&D centers. Hybridisation is the great issue. Here are the main initiatives currently underway.

4.2.1 PROMES PROMES, a 150 persons CNRS -UPVD139 laboratory based in Perpignan is managing different projects funded by the Investments for the Future that aim at developing the new generation of concentrating solar energy conversion systems from the concept to the industrial pilot scale.

 The equipment of excellence SOCRATE (Concentrated solar energy: advanced research and energy technologies) links together the main French large scale concentrating solar facilities in order to improve the performances of these systems and to increase the technology capacity of the national industry. It includes particularly the 1 MW CNRS solar furnace in Odeillo-Font Romeu and the 5 MW “Themis” central receiver tower in Targasonne, both in the Pyrennees.

 The laboratory of excellence SOLSTICE (Solar energy: sciences, technologies and innovations for energy conversion) links together the scientific and technical skills of about 200 persons of 3 laboratories 140 for developing new solar energy conversion and storage systems, improving the conversion efficiency of solar energy to energy carriers and training engineers in solar energy.

139 French National Research Centre -University of Perpignan Via Domitia 140 PROMES (Odeillo-Font Romeu and Perpignan), RAPSODEE (EMAC, Albi) and IES (UM, Montpellier) D 7.2 Co-funded by the Horizon 2020 GA No. 731287 214 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

The micro solar concentration plant MicroSol-R (Microcentrale Solaire pour la Recherche) was inaugurated in September 2016 at Odeillo, in the Eastern Pyrenees. Its purpose is to optimise the combined production of electricity, heating/cooling and drinking water from solar energy. The pilot plant (150 kWth) operates using cylindro-parabolic sensors that concentrate solar radiation to a tube in which a coolant (transfer) is heated to 300 - 400 ° C. This hot fluid, circulating in exchangers, transforms water into steam at high pressure. An ORC turbine then generates electricity.

4.2.2 CEA/ INES The Solar and Thermodynamics Systems Laboratory (L2ST) is a 32 persons laboratory within the CEA (French Alternative Energies and Atomic Energy Commission) based in INES (French National Institute of Solar Energy) located in Le Bourget du Lac.

The CEA with its industrial partner ALSOLENTECH built two demonstrators in Cadarache center:

 ALSOLEN demonstrator is a 1000 m² linear Fresnel solar unit and was built in 2012. It produces electricity, drinkable water and cooling. The heat fluid transfer is a synthetic oil that is heated up to 300°C and a thermocline storage system is included to the unit.  ALSOLENSUP demonstrator is a 1600 m² linear Fresnel solar unit and was built in 2015. It produces water steam at 450°C under a pressure of 110 bar.

Figure 16: ALSOLEN demonstrator in Cadarache CEA’s center

Microsol is a 300 kWth parabolic trough demonstrator located in Cadarache CEA’s center, built in 2015 and coordinated by Schneider Electric. The heat fluid transfer is water that is heated up to 180° and is directly stored in a tank. Electricity is produced thanks to an organic Rankine cycle.

At INES site, a micro heat distribution network has been built in 2018. The heat is produced either thanks to a 280 kW gas boiler or a 300 m² flat thermal solar panels unit. A power-to-heat unit is planned to be installed in 2019. Advanced monitoring algorithms are being tested thanks to heat load emulation.

Within the European project STAGE STE, the L2ST developed a 4 kWth solar panel for medium temperature production. It will be connected to the heat distribution network for its demonstration in a relevant environment.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 215 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 17: Alternative solar collector for medium temperature

4.2.3 School of Mining Engineers in Albi-Carmaux The School of Mining Engineers Albi-Carmaux, one of France's top engineering institutes, and the CNRS RAPSODEE Research Centre in Albi are operating since January 2017 Val-ThERA , a technological platform dedicated to the development of energy-efficient thermal processes for the recovery of biomass processing residues and by-products that combine biomass and solar thermal. To do this, the institutes have developed a new Beam-Down Solar Thermal Concentrator concept with heliostats (this project included the French oil&gas group Total). 16 m² mirrors are now being installed on the roof of the building in order to provide clean energy (10 kW th).

Figure 18: Val-ThERA, the School of Mining Engineers in Albi technological platform, combines biomass and solar thermal

4.2.4 Energy & Heat, & Processes laboratory (LaTEP) of University of Pau The Energy & Heat, & Processes laboratory (LaTEP) of University of Pau operates a solar and micro- cogeneration platform that includes a set of more than 16 m² of different flat thermal solar collectors; a ROTARTICA absorption air conditioning machine; a STIRLING Whispergen micro CHP unit; a heat pump; storage balloons and climatic chambers.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 216 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figure 19: the solar and micro CHP power plant developed by the University of Pau

5 Needs assessment The SER listed several measures to promote the French offer in the field of solar heat for industry :

. Implement a regulatory framework to grand-aid R&D

The ADEME published in 2010 a strategic roadmap for CSP which served as a base for a call for proposals launched in 2011.

- Demonstrator operating thanks to several decarbonized energy sources (CSP and biomass for example) - Solar heat for industrial processes or for district heating (100-300°C) - CSP plants with high efficiency and integrating high capacity storage (6-12h) - Renewable cooling production, namely thanks to absorption unit - Solar plants heat waste promotion for applications in agriculture, aquaculture or desalination

. Extend the ADEME Heat Fund program to solar concentrated technologies

This extension was first experimented through the call for proposals NTE « new emerging technologies » initiated by the ADEME in 2013. Since this date, the price of CSP plants decreased and stakeholders get into position to propose terms and conditions to finance that kind of project. D 7.2 Co-funded by the Horizon 2020 GA No. 731287 217 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

A new call for proposals NTE « new emerging technologies » including CSP will enable to determine the benefit of proposals submitted before the integration of this technology into the Heat Fund.

. Finance R&D dedicated to solar concentrated technologies within an Institute for the Energetic Transition (ITE)

. Adapt Grants for development to support industry at the export

The French government has just launched the process « Make way for the sun » (« Place au soleil ») which claims to be a general rallying for solar photovoltaic and thermal in France. On the one hand, this process rally big land property owners so that they should produce solar energy (supermarket, national railway company, farmers, local communities). On the other hand, it requests to the sector of energy producers to increase investments. Several measures are taken for that purpose which are for solar thermal:

- Concerning the assessment of the rate of renewable and recovery energies in district heating which can provoke a lower rate of value-added taxes, it is necessary to consider solar thermal in the feeding of district heating (article L278-0 bis CGI). This is about correcting a mistake in the tax general code which omitted to consider solar into the renewable heat energies. - Extend the « Heat Fund » call for proposals to large solar thermal units (industry, collective) to 3 years at least and revise proposal assessment criteria from around 2019. Many sectors are concerned : accommodation, industry, tertiary sector, agriculture. These units have a lower cost than small and medium units. - Allow « Heat Fund » grants to renovation of deficient units from around 2019 (sizing audit, performance instrumentation, operator training) - Simplify and standardise « Heat Fund » grant awarding for the solar thermal in new buildings from around 2019 - Integrate in energetic audits of large and medium company a technical and economic assessment of solar heat production. In this way, industrial and tertiary operators will be aware of the opportunity of an investment for solar heat. - Diversify the role of the wood energy facilitator to other renewable energies such as solar. Those facilitators, financed by the ADEME agency and the regions, aims at promoting renewable solutions to collectivities, prime contractors and contracting authorities.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 218 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

- Develop a communication on the interest of solar thermal to the agricultural sector.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 219 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Figures

Figure 1: solar thermal objectives fixed by the multi-annual investment plan (PPI) in 2016 (French ministry)

Figure 2: The carbon tax (TICGN Taxe Intérieure sur la Consommation de Gaz Naturel) (French ministry)

Figure 3: Public aide scheme

Figure 4: Evolution of the French solar thermal market (UNICLIMA)

Figure 5: production costs for solar thermal in industrial processes depending on the discount rate (ADEME, Enea Consulting and KERDOS Energy Study 2018)

Figure 6: Industrial sectors and processes with the greatest potential for solar thermal use (Technology essentially adapted to processes <200 ° C (AIE task 33)

Figure 7: Heat Consumption < 250 °C per sector of activity in 2015 (CVT Ancre, 2015)

Figure 8: PPE Objectives for solar thermal heat final consumption

Figure 9: Simplified value chain of the solar thermal industry in industrial processes

Figure 10: Positioning of French players in the value chain

Figure 11: AZOLIS’s Business model (AZOLIS website)

Figure 12: NEWHEAT’s Business model (NEWHEAT presentation, 2017)

Figure 13: SUNTI Business model (SUNTI website)

Figure 14: HELIOCLIM’s solar power plant on the defense base at Saint-Christol d’Albion

Figure 15: the major SHIP projects in France since 2012

Figure 16: ALSOLEN demonstrator in Cadarache CEA’s center

Figure 17: Alternative solar collector for medium temperature

Figure 18: Val-ThERA, the School of Mining Engineers in Albi technological platform, combines biomass and solar thermal

Figure 19: the solar and micro CHP power plant developed by the University of Pau

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 220 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

References

ADEME, ENEA Consulting, KERDOS Energy, March 2018, Intégration des énergies renouvelables et de récupération dans l’industrie : à chaque secteur ses solutions. 148 pages.

ADEME, CIBE, SER, UNICLIMA, FEDENE, 2017, Panorama de la chaleur renouvelable et de récupération, édition automne. 40 pages

Berthomieu N. (Presentation). ADEME, ENERPLAN Etats généraux de la chaleur solaire, 2017. October 17, 2017.

CCI Nice Cote d’Azur, Atiane Energy, 2014, Etude de faisabilité du solaire thermique à destination des entreprises. 59 pages.

CVT ANCRE, 2015, Cogénération nucléaire : intérêts et potentiels d’une offre de chaleur basse température pour l’industrie française, 65 pages.

EurObserv’ER, June 2017,Solar thermal and concentrated solar power barometers.

French ministry of environment, energy and the sea, July 2016, Energy transition for green growth act in action Regions - Citizens – Business. 10 pages

IEA RETD TCP (2017), FosteringRenewable Energyintegration in the industry (RE-INDUSTRY), IEA RE Technology Deployment Technology Collaboration Programme (IEA RETD TCP), Utrecht, 2017.

SER, 2017, le lvre blanc des énergies renouvelables. 100 pages

French ministry of ecological and solidary transition, 2018, Place au soleil, Mobilisation pour accélérer le déploiement de l’énergie solaire. 30 pages

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 221 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

7.10 Concept Note Turkey

Integrating National Research Agendas on Solar Heat for Industrial Processes

Concept Note for Turkey

WP7 Due Date: June 2018 Submitted: April 2018 Partner responsible: METU GUNAM Person responsible Derek Baker Reviewed/supervised by: Manuel J. Blanco, The Cyprus Institute (CyI) GA number: 731287 Start of the project: January 2017 Duration of the project: 48 months

DISSEMINATION LEVEL PU Public

NATURE OF THE DELIVERABLE D

HISTORY Author Date Comments Derek Baker 13 April 2018 Final draft submitted. Derek Baker, Deniz Akdemir 01 April 2018 1st Draft: Circulated to Turkish National Stakeholder Group for feedback.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 222 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Contents

1 Introduction ...... 224 1.1. Overview of INSHIP ...... 224 1.2. Objectives and Scope of this Concept Note ...... 225

2 Background and context ...... 225 2.1 Status of the SHIP domain in Turkey ...... 225 2.1.1 Market deployment and industry ...... 225 2.1.2 Research activities and Infrastructures ...... 227 2.1.3 Incentives for market deployment ...... 228 2.1.4 Regulatory framework...... 228 2.1.5 Funding opportunities for SHIP research at National, EU and International level ...... 228

3 Future trends at national level ...... 230

4 Stakeholders ...... 231

5 Needs assessment ...... 232

6 References ...... 234

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 223 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

1 Introduction This Concept Note for Turkey was prepared as part of the European Commission Horizon 2020 funded project INSHIP (Integrating National Research Agenda on Solar Heat for Industrial Process, www.inship.eu) led by the Fraunhofer Institute for Solar Energy Systems (F-ISE) in Germany. INSHIP is a 4-year project that was launched on 01 January 2017 with 28 partners from 10 countries. Turkey is represented in INSHIP by Middle East Technical University’s Center for Solar Energy Research and Applications (METU-GUNAM), which took the lead in elaborating this Concept Note.

1.1 Overview of INSHIP Research and Innovation (R&I) leading to the development and market uptake of Solar Heat for Industrial Processes (SHIP) technologies has the potential to yield significant societal benefits at Turkish, European and global levels due to the potentially large but currently undeveloped SHIP markets. Globally fossil fuels are used to generate 66% of all heat, which includes heat for space heating, hot water, and industrial processes. Furthermore, process heat as an end-use represents a large percentage of total final energy consumption, with representative values for different regions and levels of development as follows:

• 15% for OECD Europe, OECD Americas and Africa; • 20% for non-OECD Europe, Eurasia, and Australia; • 30% for Asia and Latin America.

Solar thermal technologies have the potential to displace much of this fossil fuel consumption. In many countries throughout the world, large and mature solar thermal industries and markets exist to provide hot water for domestic applications, with some of the largest industrial sectors, markets, and penetrations rates being in European Research Area (ERA) countries participating in the INSHIP project including Turkey. In contrast, the market uptake of solar thermal technologies for industrial processes is still small, even in countries with large domestic solar hot water industries and markets. For example, while 45% of all heat generated is used for industrial processes, only approximately 0.3% of the global solar thermal capacity is used for SHIP. Therefore, very large growth potentials exist for SHIP markets. Catalysing this growth through targeted SHIP research leading to innovation will benefit European society in general and Turkish society specifically through

• innovation driven economic growth; • strengthened industrial competiveness; • improved environmental performance for industries including reductions in emissions of climate change gases and pollution; • and improved energy security through increases in the use of domestic renewable energy sources and resultant reductions in energy imports.

The lack of market uptake of SHIP technologies is related to a lack of both

• Technology Push due to a lack of mature SHIP technologies, and • Technology Pull due to a lack of awareness of SHIP’s benefits, a lack of know-how for how to install and use SHIP technologies, and a lack of government policies to promote SHIP technologies.

The aim of INSHIP is to respond to these opportunities by creating a European Common Research and Innovation Agenda (ECRIA) to foster among major European institutions with recognized research activities in SHIP

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 224 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

• more intense and synergistic collaboration; • alignment and coordination of national research and funding programs; • the identification of gaps and unnecessary research overlaps and duplications, and implementation of appropriate responses; • the acceleration of European innovation through targeted research and transfer of the created knowledge and know-how to European industry; • and the creation of a reference organization to catalyse and coordinate EU SHIP research at the global level.

INSHIP contains four Research Work Packages (WPs) to create technology push and three Integrating WPs to create technology pull. The four research WPs support the advancement of SHIP related technologies from the initial formulation of the concept (termed Technology Readiness Level 2, or TRL 2) to validation of the technology in a relevant environment (TRL 5). The ultimate goal is to develop commercially competitive SHIP technologies (TRL 9). The scope of each of these four research WPs reflects four broad categories of SHIP technologies and applications as follows: 1) Low Temperature (80-150 oC); 2) Medium Temperature (150-400 oC); 3) High Temperature (400-1500 oC); and 4) Hybrid Energy Systems and Emerging Process Technologies. The scope of the three complementary integrating WPs are as follows: 1) integration of SHIP Research Infrastructures (RIs); 2) integration of EU resources and dissemination; and 3) advanced networking activities.

1.2 Objectives and Scope of this Concept Note The objective for this Concept Note is to create a framework to strengthen Turkish SHIP R&I capacities and develop Turkish SHIP markets in a manner that synergistically aligns with European SHIP R&I capacities and markets.

One specific action being undertaken to achieve this objective is to strengthen Turkish SHIP R&I networks and technology transfer strategies through the creation of and engagement with a Turkish National Stakeholder Group (NSG) consisting of key actors from the research and academic communities, industry, government ministries, and funding agencies. The specific name for the Turkish NSG is the Turkish Solar Thermal National Stakeholder Group (TSTNSG).

This National Concept Note for Turkey was initially drafted by METU-GUNAM by synthesizing the current situation, challenges, and opportunities in Turkey with ideas from existing national concept notes for European countries that have more sophisticated and mature solar thermal R&I capacities. This National Concept Note was then circulated to the TSTNSG and revised based on their feedback and comments.

This National Concept Note for Turkey as well as the National Concept Notes for the 9 other countries participating in INSHIP (Germany, Spain, Austria, Italy, Portugal, Greece, Switzerland, France, Cyprus) will be presented at a European Workshop in June 2018 which is aimed at creating an integrated strategy at the European Level.

2 Background and context

2.1 Status of the SHIP domain in Turkey

2.1.1 Market deployment and industry According to the Renewables 2017 Global Status Report [1], Turkey has both formal and informal solar thermal markets. The formal market is estimated to be 2/3 of the total market and consists of

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 225 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes name-brand companies. The informal market is estimated to be 1/3 of the total market and consists of unregistered small producers who may not give invoices for their work. Reliable data for the informal market are not available, and therefore the following statistics for the Turkish solar thermal market are estimates. In 2016 the top six countries globally in terms of newly installed solar water heating collectors were as follows: 1) China (~ 27 GWth); 2) Turkey (~ 1.45 GWth); 3) Brazil (~ 0.9

GWth); 4) India (~ 0.9 GWth); 5) United States (~ 0.65 GWth); and 6) Germany (~ 0.5 GWth). In 2016,

Turkey’s market was approximately 7% of the global market and at ~ 1.45 GWth was almost equal to the total market for the 28 member states of the European Union (EU-28) of 1.8 GWth. Therefore, Turkey is an important solar thermal market at both European and global levels. Flat plate and evacuated tube collectors each represented approximately 50% of the total Turkish market [1]. In 2011 Turkey raised the import tax on vacuum tubes for solar thermal collectors and in 2012 almost all vacuum tubes sold in Turkey were domestically produced [2]. In 2016 approximately 98% of solar thermal installations were for domestic hot water systems, and only approximately 2% were for “district heating, solar process heat, and solar cooling” [1]. In 2015, 3 of the 20 largest flat plate solar collector manufacturers and the 2nd largest solar absorber manufacturer in the world were located in Turkey [3].

Only two SHIP installations were identified in Turkey. In 2008, 125 parabolic trough collectors were installed at the Pepsi Co. FritoLay potato chips factory in the Mediterranean town of Tarsus to supply process steam at 190 oC (www.energyglobe.info/awards/details/awdid/10470). The collectors were supplied by SOLITERM Gmbh, which is a German company with a production facility in Ankara, Turkey (www.solitermgroup.com). In 2012 a linear Fresnel collector field was installed by the German company Feranova (www.feranova.com) to dry the mineral feldspar at an ore mine in the Southwest of Turkey. From Feranova’s 2014 brochure on their website, the system has a thermal capacity of 1 MWth, annual production of 1.4 GWth, and produces high pressure water at 200 oC that is used to heat air that is used in a drum dryer.

Additionally, a consortium consisting of the Turkey’s Clean Energy Foundation (TEMEV), the town of Eldivan, and the Turkish section of the International Solar Energy Society (GUNDER) is currently running the project Green Economy in the Village with support from the United Nation’s Development Program and Coca-Cola (www.temev.org.tr/koyde-yesil-ekonomi-projesi-cankiri- eldivan). The objective of the project is to enable women living in Eldivan to sell a wide range of dried food products produced solar energy.

In the 2017 brochure Solar Heat for Industry [4], 71 suppliers of turnkey SHIP systems from 22 countries throughout the world are listed. The only Turkish company listed is Anitcam Sunstrip (www.sunstrip.com.tr/) and is only generally described as “ready to offer turnkey” SHIP systems, which is in contrast to many other suppliers for which a specific list of services is described.

The 2012 Solar Thermal in The Mediterranean Region: Market Assessment Report notes that Turkey has large potential SHIP markets in the food and textiles sectors, but that within Turkey there is little awareness of SHIP [2].

As described in Section 0, Turkey does not have incentives for SHIP market deployment specifically or any solar thermal technologies more generally. This lack of incentives is reflected by the large informal market in Turkey; i.e. a large informal market is not expected if incentives for market deployment exist, as the informal market cannot benefit from these incentives. Therefore in addition to the two SHIP installations noted above, there potentially may be additional SHIP installations throughout Turkey that in particular use the same low-temperature non-concentrating D 7.2 Co-funded by the Horizon 2020 GA No. 731287 226 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes collectors that dominate Turkey’s domestic market for which information could not be found. The lack of incentives means that there is no mechanism or incentive to register SHIP installations, and therefore no central database of SHIP installations exists for Turkey.

A broad conclusion for the SHIP market deployment and industry in Turkey is that the use of more sophisticated SHIP collector technologies in Turkey over the past 10 years appears to be isolated to a few demonstration type projects, and that the companies supplying these SHIP collector technologies did not find a sustainable business model as demonstrated by a lack of visible follow- up projects. Therefore, while Turkey has large solar thermal markets and capacities for low- temperature domestic applications, SHIP markets are almost non-existent and Turkey’s solar thermal industrial capacities have not been applied to SHIP.

2.1.2 Research activities and Infrastructures Turkey’s largest and leading solar research center is METU-GUNAM (www.gunam.metu.edu.tr), which as noted in the Introduction is representing Turkey in the INSHIP project. METU-GUNAM’s only laboratory related to SHIP is the Concentrating Solar Thermal Research Laboratory ODAK (which means focus in Turkish). ODAK is being established as part of the GUNAM-2 research infrastructure project funded by the Turkish Ministry of Development (Grant 2015K121200). The explicit mission for ODAK includes catalysing, coordinating and leading Concentrating Solar Thermal (CST) research in Turkey, and linking Turkish CST research networks with EU and global CST networks. METU-GUNAM is contributing to the INSHIP project by Leading (L) or Participating (P) in the following Research Tasks

· SHIP Technologies for low temperature SHIP (P) · SHIP applications in drying processes (L) · Solar metals production for the metallurgical industry (L) · Solar lime production for the cement industry (L) · Process integration and storage management (P) · Emerging process technologies (process intensification) (P) · Industrial parks and heat distribution networks (P) · 100% Renewable Energy System (RES) branch concepts (P).

METU GUNAM is also participating in a bi-lateral project with The Research and Technology Center of Energy (CRTEn, www.crten.rnrt.tn) of Tunisia to develop solar-driven technologies to dry sludge. Turkish funding for this research is provided by the Scientific and Technological Research Council of Turkey (TÜBİTAK / Grant 217M062). In this project METU GUNAM is specifically focusing on the drying of sludge produced during olive processing and the potential to use the dried product as a biomass source.

In terms of Research Infrastructures (RI), ODAK is currently installing a 12 kWe high-flux solar simulator and a 12 kWth solar thermal collector simulator that will allow lower TRL SHIP research to be carried out in a controlled indoor laboratory environment. The high-flux solar simulator is appropriate for research that requires high radiative fluxes, such as for point focus technologies. The solar thermal collector simulator will simulate the time varying thermal output of a solar thermal collector, and can be used to research and develop SHIP end-use technologies such as solar-driven drying technologies.

Ege University’s Solar Energy Institute (EU-SEI, www.eusolar.ege.edu.tr) was established in 1978 and is Turkey’s oldest and only solar energy institute. This institute has solar thermal and heat pump laboratories to support SHIP research. EU-SEI is located in Izmir, which is Turkey’s third largest city and

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 227 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes is on Turkey’s Aegean coast in a region characterized by large solar resources and large agro-food and textile industries.

Harron University’s Southeastern Anatolia Project Renewable Energy and Energy Efficiency Center (GAPYENEV, www.gapyenev.harran.edu.tr) has an accredited Solar Energy Technology Testing and Certification Laboratory for non-concentrating solar thermal collectors to support domestic manufacturing of these collectors. GAPYENEV is located in the Southeastern part of Turkey in a region also characterized by large solar resources and large agro-food and textile industries.

A significant number of additional ongoing and completed small-scale SHIP related research projects are expected to be found at universities throughout Turkey, especially research on SHIP technologies supporting Turkey’s large agro-food sector. However, Turkey lacks a strong SHIP research network that makes collecting this information difficult.

In conclusion, Turkey does not have mature SHIP research infrastructures or strongly coordinated SHIP research activities. The development of the Turkish Solar Thermal National Stakeholder Group that reflects and leverages best practices at European Level while reflecting unique Turkish needs and opportunities as part of the INSHIP project is one concrete action to strengthen Turkish SHIP research activities.

2.1.3 Incentives for market deployment As of 2015, Turkey is one of the few countries with a large solar thermal market that does not use subsidies [3]. The existence of a large informal solar thermal market identified in Section 0 is consistent with this lack of incentives, as effective incentives would push transactions into the formal market to benefit from these incentives.

2.1.4 Regulatory framework The primary energy policy objectives of Turkey are to diversify energy sources, maximize domestic energy resource usage, increase efficient generation and consumption of electricity and to create an environment-friendly power system. These objectives include increasing the share of renewable energy sources in total electricity generation. While Turkey has significant experience with solar hot water technologies, there is limited awareness of SHIP technologies. Turkey has a general Law on Utilization of Renewable Energy Sources for the Purpose of Generating Electrical Energy [5], but as the title suggests, there is no consideration of SHIP. Consistent with the content in the previous sections, Turkey does not have any specific legislation or regulatory framework to support solar thermal energy in general or SHIP specifically.

2.1.5 Funding opportunities for SHIP research at National, EU and International levels At the national level, Turkey does not have any research funding mechanisms specific to SHIP, but SHIP related research can be supported through a variety of funding mechanisms. The Scientific and Technological Research Council of Turkey (TÜBİTAK, www.tubitak.gov.tr/en) is the main scientific research funding agency for Turkey. The two primary TÜBİTAK funding mechanisms for universities are as follows:

TÜBİTAK 1001 Scientific and Technological Research Projects Funding Program is the primary funding mechanism for research at lower TRLs and is open to universities, public research institutes, industry and Small and Medium Enterprises (SMEs). There is no inherent budget limit for this mechanism but a budget limit is set for each call. Currently this budget limit is 360 000 TRY (~ 73 000 Euro) for equipment, consumables, travel, and student scholarships. Not included in this D 7.2 Co-funded by the Horizon 2020 GA No. 731287 228 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

360 000 TL are overhead costs and personnel costs in addition to student scholarships such as for faculty members at universities. Currently this call is opened twice per year and is completely open, and therefore is open to SHIP related proposals.

TÜBİTAK 1003 Primary Subjects R&D Funding Program generally addresses higher TRLs than the TÜBİTAK 1001 program and calls are only opened in specific areas. As for the TÜBİTAK 1001 program, there is no inherent budget limit but representative budgets are 2.5 Million TRY (~500 000 Euro) for a large-scale project, 1 Million TRY (~ 200 000 Euro) for a medium-scale project, and 500 000 TRY (~100 000 Euro) for a small-scale project. Recently TÜBİTAK 1003 calls related to Concentrating Solar Thermal in general but not SHIP specifically have been opened.

TÜBİTAK also has a wide range of funding mechanisms for Business and Industry, but these mechanisms are general and not targeted to SHIP specifically. These Programmes are given below.

1509 - TÜBİTAK International Industrial R&D Projects Grant Programme: The objective of this program is to create market focused R&D Projects between European countries and to increase cooperation between Europe wide firms, universities and research institutions, by using cooperation webs such as EUREKA. The Programme is open to all the R&D topics including SHIP. The call is open to SMEs and large companies settled in Turkey. Eligible costs include personnel, travel, equipment/tool/software, R&D services from domestic RTOs, consultancy/other services, material costs. The program funds applied research and experimental development. There is no budget limit of the Programme but a limit is determined per call. Moreover, there is no budget limit per project.

1511 - Research & Technology Development and Innovation Program with Priority Fields support and coordinate result-oriented, observable, national R&D and Innovation projects that are well- matched with the priority fields determined within the scope of the National Science Technology and Innovation Strategy. 1511 is similar to the 1003 Programme except that an industrial organization/SME must be included. SHIP technologies have been supported under this Programme. The budget limit is specified according individual calls.

At the EU level, Turkey participates in the Horizon 2020 (H2020) program. The Horizon 2020 Work Programme 2018-2020 10. Secure, clean and efficient energy [6] contains the following SHIP call:

LC-SC3-RES-7-2019: Solar Energy in Industrial Processes

This work programme also contains the following call that aligns strongly with SHIP research:

LC-SC3-RES-8-2019: Combining Renewable Technologies for a Renewable District Heating and/or Cooling System

The work programme also contains many other more general calls that may include SHIP research.

At the International level, Turkey is a regular participant in energy-related bi-lateral, ERANET, and EUREKA Co-Fund programs. Often TÜBİTAK uses the TÜBİTAK 1001 and 1509 funding instruments to fund accepted bi-lateral, EUREKA and ERANET projects with only slight budget modifications to account for the international nature of the project, such as increases in the maximum travel budget allowed. As a specific SHIP example, using the TÜBİTAK 1001 instrument TÜBİTAK funded a bilateral project starting on March 1, 2018 with The Research and Technology Center of Energy (CRTEn) of Tunisia on Development of Solar Drying Technologies for the Valorization of Sludge.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 229 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

3 Future trends at national level Based on the preceding content, Turkey has large domestic markets and strong industrial capacities for domestic solar thermal hot water technologies, but Turkish SHIP markets and industrial capacities are almost non-existent. This gap in market-uptake between domestic solar thermal and SHIP is likely the result of gaps related to technology push and technology pull as follows:

The above situation suggests that low-temperature SHIP technologies can be brought into the Turkish market more quickly than medium and high temperature SHIP technologies. Therefore as a roadmap, the focus in the near term should be on adopting and adapting Turkey’s low- temperature solar thermal capacities to enable market uptake of low-temperature SHIP technologies and the focus in the medium term should be on developing the medium- and high-temperature SHIP capacities and technologies to enable market uptake.

Focusing on opportunities for specific SHIP technologies, a broad synthesis of the ideas presented herein with those of the larger INSHIP project suggest that large near-term market opportunities may exist for solar-driven dryers. Specifically, Turkey has large agro-food and textile sectors that have large drying demands, and it may be possible to adopt or adapt existing Turkish low- temperature solar thermal capacities to these drying applications. In addition, there may be other low-temperature SHIP applications not yet identified that can readily be driven using low- temperature collectors. In the medium-term, GUNAM-ODAK is currently developing fundamental capacities in the use of particle technologies for Concentrating Solar Thermal. Potential applications include drying of particles, and use in any medium or high temperature industrial

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 230 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes processes. The use of particles in medium and high-temperature CST technologies aligns with the CST central receiver technology developed by the Turkish company Greenway CSP

(www.greenwaycsp.com), which has a 5 MWth central receiver demonstration facility in Turkey.

4 Stakeholders The creation of the Turkish Solar Thermal National Stakeholder Group (TSTNSG) is a direct outcome of the INSHIP project. This is in contrast to many other INSHIP partner countries that had existing solar thermal NSGs created for other purposes (e.g. the EU STAGE-STE project) that were than adapted to the INSHIP project. The TSTNST was carefully constructed to include a limited number of key players from universities and research institutions, industry, funding agencies and government ministries that can catalyse and lead SHIP R&I activities in Turkey. The founding members of the TSTNST are listed below in alphabetical order based on affiliation.

Bilkent University (BU): Ass't Prof. Dr. Luca Biancofiore is in the Department of Mechanical Engineering at BU and his research is focused on Computational Fluid Dynamics (CFD). He has previously held research positions at Imperial College London and KTH Royal Institute of Technology in Sweden. Ass’t Prof. Dr. Biancofiore is one of the TSTNSG members representing the Turkish academic and research communities.

Greenway CSP: Serdar Erturan is the Managing Director and Founder of Greenway CSP, is a Research Scholar at the Energy Institute at the City University of New York (CUNY), and has extensive experience in EU and US CST research projects. Greenway developed a

demonstration 5 MWth central receiver facility in Turkey using predominately Turkish technology. Mr. Erturan is one of the TSTNSG members representing the Turkish solar thermal industry.

Harron University’s Southeastern Anatolia Project Renewable Energy and Energy Efficiency Center (GAPYENEV). Prof. Dr. Bülent YEŞİLATA is the Founding Director of GAPYENEV and is also active in the Turkish section of the International Solar Energy Society (GUNDER). Prof. Dr. Yeşilata has extensive experience in solar energy at both the national and EU levels. Prof. Dr. Yeşilata is one of the TSTNSG members representing the Turkish academic and research communities.

Istanbul Technical University Energy Institute (ITU EI): Prof. Dr. Üner Çolak is the Head of ITU EI’s Renewable Energy Division and has broad expertise in thermal energy conversion technologies and specific expertise in CST. Prof. Dr. Üner Çolak is one of the TSTNSG members representing the Turkish academic and research communities.

Middle East Technology University-Technology Transfer Office (METU-TTO): Aytülü Sert works on Industry Cooperation and Commercialization Program Management at the METU-TTO and represents the innovation sector linking Turkish research and industrial sectors.

Özyeğin University (ÖU): Prof. Dr. M. Pınar MENGÜÇ is Head of the Department of Mechanical Engineering Department and Director of the Center for Energy, Environment and Economy (CEEE). Prof. Dr. Mengüç’s research is focused on radiative heat transfer and energy conversion, and he is the Editor-in-Chief of the Journal of Quantitative Spectroscopy & Radiative Transfer. Before joining ÖU, Prof. Dr. Mengüç was a Professor at The University of

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 231 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

Kentucky from 1985 to 2009. Prof. Dr. Mengüç is one of the TSTNSG members representing the Turkish academic and research communities.

The Scientific and Technological Research Council of Turkey (TÜBİTAK): As described above, TÜBİTAK is the main funding agency for scientific research in Turkey. İlknur YILMAZ is TÜBİTAK’s H2020 Energy Contact for Turkey, and both represents TÜBİTAK on the TSTNSG and represents the TSTNSG to INSHIP.

TYT Energy: Cihan ÖZALEVLİ is the founding CEO of TYT Energy, which is a relatively new SME focused on clean energy technologies. Mr. Özalevli has extensive experience in the solar energy projects including a project to demonstrate the hybridization of a geothermal power plant with CST using parabolic trough collectors. Mr. Ozelevli is one of the TSTNSG members representing the Turkish solar industry.

Turkish Ministry of Development. This ministry is the main funding body for research infrastructure investments in Turkey and is currently funding the creation of GUNAM’s new Concentrating Solar Thermal Research Laboratory ODAK. İbrahim Emre İlyas (Head of Department), Aycan Yüksel (Planning Expert) and Emre Elgün (Assistant Expert) are representing this Ministry on the TSTNSG.

5 Needs assessment Turkey has both strengths and weaknesses relative to Western European countries such as Germany and Austria in terms of SHIP capacities and markets. As a strength, Turkey has much larger solar resources and large and vibrant domestic solar thermal industries and markets that exist without any subsidies or incentives, which demonstrates the cost-effectiveness of solar thermal in Turkey. As a weakness, Turkey lacks sophisticated national SHIP capacities defined as relatively mature research, innovation, industrial, funding and policy capacities working in a coordinated and symbiotic manner to support the development and commercialization of SHIP technologies. Therefore developing SHIP capacities and markets in Turkey is expected to require coordinated efforts to simultaneously develop all these capacities. In this respect, Turkey can benefit from its involvement in INSHIP by studying best-practices from partner countries in these areas, and then adapting appropriate best-practices to Turkey. Importantly, due to significant differences in solar resources and levels of economic development, the blind adoption of best-practices from countries such as Germany to Turkey is not expected to result in successful outcomes, and therefore the critical assessment of these best-practices within the context of Turkey is important.

The Mission, Goal and Short-Term Objectives for Turkey resulting from the development of this SHIP National Concept Note are as follows:

Mission: Have Turkey benefit from the growth of national SHIP industries and markets.

Goal: Develop Turkey’s SHIP related research, innovation, industrial, funding and policy capacities in a symbiotic manner.

Short-Term Objectives:

1. Have the TSTNSG and METU GUNAM develop a model for collaboration that encourages members to engage with one another and as appropriate to exchange D 7.2 Co-funded by the Horizon 2020 GA No. 731287 232 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

experiences, ideas and opportunities, and through this engagement to develop a common vision for SHIP in Turkey. 2. Develop a larger Turkish Solar Thermal R&I Group (TSTRIG). While the TSTNSG consists only of a limited number of key stakeholders (or equivalently leading actors) and is designed to encourage two-way communication among members, the TSTRIG is envisioned to include all actors interested in solar thermal R&I in Turkey and would use regular one- way communication to disseminate information such as events and opportunities to all TSTRIG members supplemented with less frequent events such as workshops using the Open Innovation model that fosters two-way communication.

As described in Section 0, funding opportunities from national, EU and international mechanisms to support SHIP research in Turkey are all seen in the near future. To write winning proposals will require at least strong ideas aligned with the call, and for EU and international calls a strong partner / consortium. The active engagement among the TSTNSG members and METU GUNAM and the TSTRIG more generally is expected to develop these ideas and networks and therefore result in more winning proposals.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 233 Framework Programme of the European Union INSHIP D7.2 Report containing all national concept notes

6 References [1] REN21, “Renewables 2017 Global Status Report,” Paris, France, 2017.

[2] OME, “Solar Thermal in the Mediterranean Region: Market Assessment Report,” Nanterre, France, 2012.

[3] “IEA SHC || Country Report - Turkey.” [Online]. Available: http://www.iea-shc.org/country- report-turkey. [Accessed: 04-Apr-2018].

[4] B. Epp and M. Oropeza, “Solar Heat for Industry,” 2017.

[5] YENİLENEBİLİR ENERJİ KAYNAKLARININ ELEKTRİK ENERJİSİ ÜRETİMİ AMAÇLI KULLANIMINA İLİŞKİN KANUN. http://www.resmigazete.gov.tr, 2015.

[6] E. Commission, “Horizon 2020 Work Programme 2018-2020 10. Secure, clean and efficient energy,” 2017.

D 7.2 Co-funded by the Horizon 2020 GA No. 731287 234 Framework Programme of the European Union