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Download (93.574 Kb EUROPEAN COMMISSION MEMO Brussels, 18 December 2012 Questions and Answers on the outcome of the first call for proposals under the NER300 programme Results of the first call for proposals 1. What is the outcome of the first call for proposals? The Commission has awarded over €1.2 billion to 23 innovative renewable energy technology (RES) projects. The projects cover a wide range of renewable energy technologies - from bioenergy (including advanced biofuels), concentrated solar power and geothermal power to wind power, ocean energy and distributed renewable management (smart grids). The projects will be hosted in 16 EU Member States: Austria, Belgium, Cyprus, Finland, France, Germany, Greece, Hungary, Ireland, Italy, the Netherlands, Poland, Portugal, Spain, Sweden and the United Kingdom. The projects awarded funding are listed in the Annex to this document, grouped in alphabetic order by technology category. 2. How were projects selected for funding? The projects awarded funding demonstrated that they represent the most cost-effective use of NER300 public funding, that they are financially and technically robust and that they fulfil strict eligibility criteria. This includes how innovative the technology is and the potential for it to be scaled up and replicated, as well as the reasonable expectation of the project being up and running by the end of 2016, the deadline for entry into operation. The projects were chosen following a rigorous selection process. After an initial eligibility test carried out by Member States, applications were submitted to the European Investment Bank (EIB) which performed an in-depth technical and financial assessment of the project proposals. The EIB provided an initial ranking for the projects, based on the cost-per-unit performance - a measure of how much public funding is needed per unit of CO2 stored (for carbon capture and storage projects), or of clean energy produced (in the case of renewable energy sources). In July 2012, interim results of the NER300 programme were published in a Progress Report (SWD(2012)224 final), presenting a preliminary lists of candidate (top-ranked) and reserve projects in both CCS and RES groups. In October, Member States were asked to confirm their candidate and reserve projects, as well as the relevant funding package. On the basis of the final list of confirmed projects, the funding proportion between the CCS and the RES groups was established and the final list of projects for award was established. The funding decision was adopted by the European Commission following a positive vote in the Climate Change Committee on 13 December. MEMO/12/999 3. Why were no CCS projects awarded funding? Most CCS projects put forward were not confirmed by the Member States concerned, and could therefore not be considered for funding awards. Member States were unable to confirm the projects for various reasons: in some cases there were funding gaps, while in others the projects were not sufficiently advanced to allow for confirmation within the timeframe of the first call for proposals. 4. How were the funds for the first call for proposals raised? The funds were raised from the sale of 200 million allowances from the new entrants' reserve (NER) of the EU Emissions Trading System. The sales were carried out by the European Investment Bank between early December 2011 and early October 2012. For more details, see http://www.eib.org/products/ner-300/reports.htm 5. What will happen to unused funds from the first call for proposals? Unused funds remain available for further projects under the NER300 programme in the second call. Project Implementation 6. When will the projects enter into operation/start generating renewable energy? One of the conditions of the NER300 programme is that projects must enter into operation/start generating renewable energy within four years of the funding award. The date of entry into operation of individual projects will take place between 2013 and 2016, with two thirds of projects scheduled to be operational before the end of 2015. 7. When and under what conditions will projects receive the funding? Projects will receive funding on an annual basis, based on proven performance. For the RES projects, this will depend on the amount of clean energy produced each year for the first five years following entry into operation. In recognition of the risks associated with such first-of-a-kind projects, only 75% of the targeted performance has to be achieved to receive full funding under the award decision. Annual funding payments are also conditional on specific knowledge sharing requirements (see question 10). 8. How will the funding be paid to the project sponsors? Annual payments will be transferred from the European Investment Bank to the Member States, which will in turn distribute the money to project sponsors. 9. How will the projects be monitored? The Member States play a central role in monitoring the projects. From the adoption of the Award Decision, Member States have to report on an annual basis to the European Commission on the progress made by the projects in their country, as well as on any problems with project implementation, and recommended solutions. Performance reporting following the project's entry into operation is one of the two conditions of funding (see question 7 above). 2 10. What knowledge sharing requirements need to be respected? Under NER300, project sponsors who receive financing from the programme must report and share information on technical set-up and performance, costs, project management, environmental impact and any potential health and safety issues related to the project. The European Commission will check that information provided is complete and adequate. 11. How does the NER300 programme contribute to boosting innovation, green growth, and jobs in the EU? The selected projects will bridge a critical gap in the innovation chain by specifically tackling some of the key obstacles that often hamper the large-scale deployment of technologies that have successfully been piloted. The funding awarded will help to lower costs, manage risks and tackle knowledge barriers. The €1.2 billion allocated to projects under the first call for proposals is already being matched by pledges of €2billion from private investors to cover the additional costs. In the short term the projects will add 10 TWh to the EU's annual renewable energy production. This corresponds to approximately the annual fuel consumption of more than a million passenger cars. Crucially, however, these projects are intended to spur new investment in the sector, leading to substantial increases in production capacity from renewable sources in the mid-term. Collectively, the demonstration projects will create several thousand jobs during the construction phase (over the next 3-4 years). Once operational, about 1000 full- time workers will be needed to keep the demonstration projects running over their lifetime. Positive growth and employment effects are also intended along the supply chain feeding the sector. Next Steps in the Implementation of the NER300 programme 12. When will the second call for proposals be launched? The European Commission intends to proceed swiftly with the launch and implementation of the second call for proposals, covering the revenues of the remaining 100 million allowances as well as any unused funds from the first call for proposals (see question 5 above). Prior to the launch, the Commission and Member States will take stock of the experience gained from the implementation of the first call in the Climate Change Committee. References and further reading For more information on the NER300 Programme, visit: http://ec.europa.eu/clima/policies/lowcarbon/ner300/index_en.htm See also IP/12/1385 3 ANNEX PROJECTS AWARDED FUNDING Maximum Member RES Category Project NER300 State funding (MEUR) Bioenergy Ajos BTL Finland 88.5 (advanced biofuels) Bioenergy BEST Italy 28.4 (advanced biofuels) Bioenergy CEG Plant Goswinowice Poland 30.9 (advanced biofuels) Bioenergy UPM Stracel BTL France 170.0 (advanced biofuels Bioenergy Woodspirit Netherlands 199.0 (advanced biofuels) Bioenergy Gobigas phase 2 Sweden 58.8 Bioenergy Pyrogrot Sweden 31.4 Bioenergy Verbiostraw Germany 22.3 Concentrated HeliosPower Cyprus 46.6 Solar Power Concentrated Maximus Greece 44.6 Solar Power Concentrated Minos Greece 42.1 Solar Power Concentrated PTC50-Alvarado Spain 70.0 Solar Power Distributed SLim Belgium 8.2 Renewable Management (smart grids) Geothermal South Hungarian Enhanced Hungary 39.3 Geothermal System (EGS) Demonstration 4 Maximum Member RES Category Project NER300 State funding (MEUR) Ocean Kyle Rhea Tidal Turbine Array United 18.4 Kingdom Ocean Sound of Islay United 20.7 Kingdom Ocean Westwave Ireland 19.8 Wind Innogy Germany 70.0 Wind Veja Mate Germany 112.6 Wind Vertimed France 34.3 Wind Windfloat Portugal 30.0 Wind Windpark Blaiken Sweden 15.0 Wind Windpark Handalm Austria 11.3 SHORT DESCRIPTION OF PROJECTS Finland Bioenergy Ajos BTL A biofuel-to-liquid plant in northern Finland will produce biodiesel and bionaphta in the Baltic Sea area for sale to a market primarily of diesel and petrol retailers. The plant will use some 950,000 tonnes/year (t/y) of woody feedstock and 31,000 t/y of tall oil to deliver an annual output of 115,000 t/y of biofuel. The innovative project will include biomass pre-treatment, a gasification island and gas-to-liquid conversion. Italy Bioenergy BEST Selected energy crops will be turned into second generation biofuels at a demonstration plant in Crescentino, near Turin in Italy. The highly innovative integrated biofuels plant will use giant cane, a new fast growing and drought-resistant energy crop, as well as wheat straw to produce ethanol. The plant will have an annual production capacity of 51 million litres per year. Poland Bioenergy CEG Plant Goswinowice Agricultural residues such as wheat straw and corn stover will become the basis for producing 60m litres/year of second generation bioethanol.
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