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EN erDf – promotion of renewable energy sources in a model for other european regions 0. contents

1. Description of the location – burgenland...... 3

2. s ummary: burgenland, renewable energy sources and eu financial support...... 5

3. project description...... 7

1) Biomass: From remote heating systems to a biomass energy cluster in Southern Burgenland...... 7

2) Moving into photovoltaic...... 9

3) Using wind power on the Parndorfer Platte (Plain)...... 11

4) Support for education and training at the Burgenland College of Higher Education in and the Centre for Renewable Energy in Güssing...... 12

4. strategic considerations...... 14

5. role of the erdf in strategic implementation...... 16

6. t ransferability to other : creation of a 'burgenland' cluster in ?...... 17

7. w hy is all of this so relevant to the current debate about the future of european Cohesion Policy?...... 18

Manuscript completed in October 2009. © , 2009 Reproduction is authorised provided the source is acknowledged. DOI: 10.2776/16235 Photos: © EC Editor: Raphaël Goulet, European Commission Directorate-General for Regional Policy. This brochure is printed in English and German. The opinions expressed in this publication are those of the author and do not necessarily reflect the views of the European Commission. 1. Description of the location – Burgenland

Burgenland lies in the east of , and has borders with the Slovak was mainly perceptible in Northern Burgenland. Other parts of the Republic to the north-east, to the east and Slovenia in the region developed in a rather lacklustre fashion, and the population south-east. Burgenland's area of 3 965 km² makes it the third-smallest was stagnant or in decline. Compared with 1991, the 2001 census Land in the Austrian federation, but in terms of population (2006: reported a 2.5% population increase for the Land as a whole, which 280 082) it is the smallest Land. Its north-south elongation (160 km) on is below the comparative figure for Austria. The positive population the one hand and the consequences of the re-drawing of borders after growth in the last two decades is attributable to net immigration. The the collapse of the Austro-Hungarian empire and the associated loss of population balance is still negative and Burgenland still has one of the functional markets, particularly the loss of all developed urban centres, lowest fertility rates in Austria. have had a serious impact on the development of the region. Despite the economic catching-up process, which has picked up In 1921, Burgenland was separated from the former Western Hungary, speed in the last ten years, Burgenland is still the least economically and became the ninth Land of the Austrian federation. The former developed Land in Austria. The situation is exacerbated by a pronounced regional urban centres such as (pop. 60 000) or (pop. North-South divide. 80 000) remained in Hungary. Even today, Burgenland is predominantly made up of small towns and villages, with the regional capital of The economic strength of Burgenland – measured in gross regional with its population of 12 366 (2006) having the highest product per capita – is well below the Austrian average and comparative population. Topographically, Burgenland is largely in the periphery of values for Europe. In 2002, the Land as a whole only reached 82% of the the Hungarian lowlands. European average level, and this was subject to pronounced regional disparities. Northern Burgenland almost reached the European average While Northern Burgenland, particularly the area around Eisenstadt and (EU-25), while other areas of the region lagged well behind. In the can be considered central in terms of accessibility from the national comparison, the whole Land was among the stragglers, only federal capital and attractiveness as a location, most of Central achieving 67% of national levels. and Southern Burgenland can be classified as extremely peripheral. Radical structural change began to occur as Burgenland's economy During the 1920s, the region developed culturally, economically and grew during the mid-1990s, not least as a result of the implementation with regard to transport facilities (mainly East-West routes) around of the Objective 1 programme. Nevertheless, the regional economic the urban centres of the time: Sopron, Szombathely and Köszeg or infrastructure differs greatly from that of any other Land in Austria. towards Vienna. Only in the early 1960s was there any steady expansion of the transport infrastructure within the region, reflecting the new The technology offensive in Burgenland, and the associated geopolitical circumstances. establishment of technology centres laid the foundations for future development in forward-looking fields of the secondary sector of Due to the opening of the borders to neighbouring countries in the economy, or in service industries (regional strengths). This kind of the early 1990s, and their EU accession, the geopolitical situation of forward-looking sector, which the technology centres are expected Burgenland has recently changed once more. Now the Land is part of the to address, includes: '' region (with Vienna, , Györ and Brno as its urban centres), the Future Region South-East (, , Burgenland, • wind power, controls, materials, logistics, biotechnology in Northern Hungary, Slovenia, ) as well as the EuRegio West/Nyugat Burgenland; (Burgenland, Györ-Moson-Sopron, Zala and Vas). • green technologies in Central Burgenland; • energy and green technologies (Güssing), optoelectronics The peripheral situation and the lack of urban amenities made (). Burgenland a classic emigration region for decades. For years, Burgenland had negative population growth. Population statistics lagged well behind the comparative statistics for Austria up until the 1980s. Only in the late 1980s was there a catching-up process, which

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4 2. Summary: Burgenland, renewable energy sources and EU financial support

Burgenland is seeking long-term energy self-sufficiency through European regional funding has been used particularly effectively the exploitation of renewable energy. This should already be in the field of renewable energy in Burgenland, and in a highly achieved in 2013 as regards electricity. The prospects for this look interactive and innovative environment, was able to have a healthy. This is one of the key themes contained in the draft of multiplier effect, which leveraged the total funding from the Burgenland's development model 2006. ERDF in the Burgenland energy sector despite a relatively low volume of funding (as shown in the table below). The topography and agricultural production conditions in Burgenland are highly favourable for the production of energy Project visits and interviews with various persons in positions and bio-materials from renewable sources. The region has of responsibility convinced the authors of this study that the considerable production potential in agriculture and forestry. following success factors should be emphasised in this best practice study: Wind energy could make a substantial contribution to the target of achieving energy self-sufficiency in Burgenland. Up to the • the contribution of resources from the structural funds at an early year 2005, 531 wind power systems were installed with total stage in the development of renewable energy sources, such capacity of 818.9 MW. These wind farms will supply approximately as wind power prototypes on the Parndorfer Platte, investment 2.3% of total electricity consumption in Austria (incl. pumped in the biomass power station in Güssing, including combined storage) or electricity for approximately 470 000 households (15% heat and power, polygeneration and industrial development or of all Austrian households). With well over one-third of these production of photovoltaic cells guarantee high leveraging of facilities (206 facilities, 39%), Burgenland is the second-largest the resources employed; wind power generator behind . Burgenland's wind • a sound, focused partnership between local, regional, national and power plants have a capacity of about 45% of total Austrian wind European authorities enables competitive investment advantages power capacity (369.2 MW). However, Burgenland is only home identified locally to be exploited efficiently; to about 3% of Austria's population, and generates less than 2% • training initiatives by academic bodies and small businesses, such of Austrian gross domestic product. as the solar installer training course in Güssing and environmental technology courses at the College of Higher Education in Pinkafeld Furthermore, in the recent past, Burgenland was able to build provide the accelerated investment process with a continuous up know-how – such as at the European Centre for Renewable supply of human resources; Energy in Güssing, and participate in relevant research and • a holistic approach is seeking complementary activities within development networks. The European Centre for Renewable the promotion of renewable energy sources, such as promotion Energy in Güssing (referred to in German as EEE) was set up of training and research, expansion of ecotourism, industrial in 1996. The EEE's services include energy management and policy stimulus of SMEs and financial support for photovoltaic consultancy, project management and training in the field high-tech; of renewable energy sources. Research and Development in • readiness to co-operate by various stakeholder groups connection with pilot systems are also an important driver for (conservationists, businesses and energy producers around Lake the labour market and regional development. A substantial part Neusiedler) has been harnessed through timely coordination of the work is carried out by regional, national and international related to their interests and allows relatively conflict-free co-operative projects. Besides the EEE, there are many different mobilisation of natural resources; systems using renewable fuels (e.g. wood, rapeseed) and solar • an efficient, decentralised implementation strategy for the energy. The Güssing model is now recognised internationally as exploitation of decentralised available energy resources uses an energy or biomass centre. Starting out with wood as a raw existing local utility systems in sewage and waste disposal. In material, goals such as regional development, job creation and particular, this concerns the resources of biomass and sunlight research and development can all be achieved. (photovoltaic), where public financial support plays a decisive role in channelling local co-operation;

5 • the continual development of practical applications together of innovative projects. We wish particularly to acknowledge the with industrial partners, both in the field of biomass and contributions of our interview partners, of the town of photovoltaic, is giving a boost to local players, who are Güssing Mr. Peter Vadasz, Dr. Günter Clauss of Austrian Wind launching highly innovative projects outside of large cities Power GmbH, Prof. Dr. Arne Ragoßnig of the College of Higher and complex conurbations. In this regard, peripheral areas Education in Pinkafeld, Mr. Johann Binder, Chairman of the serve as a test laboratory for economic centres. Burgenland Energy Agency (BEA), Mr. Reinhard Koch, Manager of the European Centre for Renewable Energy, and Mrs. Katharina The objective of the study is to compile the strategic elements Kaitan, Manager of the ERDF Management Authority in Eisenstadt, that have contributed to the sustainable expansion of use for her active support in enabling the writing of this study. of renewable energy sources in Burgenland, and have been decisively boosted by actions under the European Cohesion Policy. The classification follows a guide written in June 2008 on behalf of the Regional Policy Directorate-General for case studies

Renewable energy sources, Burgenland (1995-99, 2000-06)

Amounts in €

Aid programme Number of projects Eligible costs EU National

Objective 1 1995-99 4 15 735 299 2 865 890 4 412 469 (ERDF)

Objective 1 2000-06 15 95 900 644 17 741 507 9 607 864 (ERDF)

Additionality 2000-06 20 43 214 981 0 11 861 321 (ERDF)

INTERREG IIA 10 674 439 222 164 241 937

INTERREG IIIA 4 922 646 461 323 276 879

LEADER+ 10 1 954 736 892 045 250 292

Objective 1 2000-06 190 21 994 684 6 339 824 2 113 274 (EAGGF)

Total 253 180 397 429 28 522 753 28 764 038

6 3. project description

The long-term strategy of achieving energy self-sufficiency in was the decline in the local agriculture, and the need to start up Burgenland based on renewable energy sources relies mainly on new activities for the region, in order to curtail emigration. the four action areas of biomass, wind power, photovoltaic and related research which will be presented briefly below. Meanwhile, Southern Burgenland has harnessed almost all the available technical options for converting biomass into energy in actual energy production, or at least mobilised the players to 1) Biomass: From remote heating systems set up pilot applications. Wood residues are converted through to a biomass energy cluster in incineration as well as with the assistance of Pyroforce into gas, Southern Burgenland and then converted into electricity using a gas engine. Sawdust The small town of Güssing in Southern Burgenland is known for its as a waste product from local flooring factories or other wood pioneering role in the use of residues from agriculture and forestry processing firms was converted using biomass incineration into as well as timber processing for the production of energy from steam, and then via steam turbines into electricity. Logging waste biomass. is converted into gas via thermal gasification, and then via a gas engine or a fuel cell either into electricity or via methanisation into This started in the mid-1990s when local politicians at the time natural gas or the Fischer-Tropsch process into liquid fuel. Rapeseed identified the Objective 1 support from the ERDF as an ideal oil and waste cooking oil are converted in the conventional way via opportunity to plug the gaping whole in the funding of prototypes ester interchange into fuel (see graphic). for remote heating from biomass at local level. The incentive for this

Resources Technologies Energy Forms

Photovoltaic Sun Solar thermal Heat/cold

Grass, maize, Biogas clover Electricity Biomass incineration Residual wood Biomass gasi cation Gas engine Natural gas Sawdust Biomass incineration Steam turbine

Incineration Fuels Logging waste Gas engine Thermal gasi cation Fuel cell Methanisation FT synthesis

7 With ERDF resources and financing from state aid and local authority Overall, the ERDF aid in Güssing is considerable for a target population loan subsidies, the first remote heating system prototype was of a maximum of 30 000 people. €33 million of funded project costs developed, and then another seven stages of scaling-up developed related to the biomass field alone. The ERDF aid is a pump-priming (the last of these in 2006). investment and is filling a funding gap.

With remote heating production, the building of the remote heating The operational exploitation of the results achieved at the pilot network in Güssing was carried out. Local residents then had the plants in Güssing is of strategic importance. A biomass combined opportunity to connect to this distance heating network. About heat and power plant newly built in 2004 in Oberwart, where ERDF 98% of residents in the local authority area of Güssing took up this funds also contributed to increasing the efficiency, is based on offer. A second heating plant was set up in 2002. Due to the growing crucial findings of the work in Güssing. Güssing can be regarded demand for heat and new fuels (parquet flooring industry), it was in the biomass field as a technological development centre for necessary to install a second heating plant in Güssing. the whole surrounding area, and that includes Styria and adjacent regions in Hungary and Slovenia. So besides the agricultural co-operatives, the wood-processing industry was able to be brought into the resource procurement Project example I: 'Energy Oberwart' circuit. Final beneficiary: Repotec - Renewable Power Technologies Umwelttechnik But there was no intention to stop at producing heat: a whole series Ges.M.b.H. of pilot plants were set up for research purposes, first of all the http://www.repotec.increase/ biomass power station in Güssing, a type of power station enabling cms/index.php?id=1 production of heat, electricity, gaseous and liquid energy in small, Project duration: 01.09.2004 – 28.02.2006 decentralised units. Energy is produced here by a completely new, technically mature combined heat and power system based on Project description: Increasing efficiency of the biomass gasification. In a special process, all residues of the process gasification plant are recycled or prepared in order to avoid effluent and waste. Other EU Objective 1 (ERDF) € 89 300 systems are biodiesel, biogas and pyrothermal plants in Güssing. National funds € 19 403

More recently, since 2006, polygeneration, combined generation Private funds € 248 697 from several biomass sources has been operating in one plant. Total project costs € 357 400 Thermal gasification is a key feature here. The aim of polygeneration is the development of an energy plant for regional demand (local authority area or a of a town, etc.) which is able to produce heat, electricity, gaseous and/or liquid energy from various energy- rich organic raw or waste materials. How much of which type is produced depends on demand and the size of the region concerned. The product gas derived – unlike solid biomass – allows versatile use for production of heat and electricity as well as synthetic products such as synthetic natural gas or synthetic high-efficiency fuels.

The manufacture of liquid fuel through the thermal gasification of logging waste (waste wood or fast-growing species (short cycle)) creates an ideal mobile energy source, which can be stored like gas and does not require immediate consumption like electricity or heat, in order to be used optimally. In addition, unlike gas, it can be used simply to substitute the usual liquid fuels for existing means of transport. This energy source would enable transport components to be brought into the Burgenland energy concept relatively quickly, in a CO2-neutral way. Güssing – Polygeneration pilot plant The energy value that can be extracted from biomass products increases as the technology advances. Nowadays, 5 kg of wood can produce about a litre of synthetic fuel (BioFIT - Diesel). A hectare of forest can produce an average of 1 500 litres of synthetic fuel and a hectare of arable land, which is planted with fast-growing crops can produce 4 000 litres of synthetic fuel per year.

8 The multiplier effect in the intangible area is certainly much and small businesses in a promising sector worldwide to move greater, especially as one final beneficiary, the European Centre for into the area. Renewable Energy (EEE) in Southern Burgenland has long been an internationally-renowned research facility, which has carved out a 2) Decentralised supply of surplus energy from various households key role in the European research community, particularly in the to the regional grid: the regional energy utility company, direct application of research results. Burgenländischen Elektrizitätswerke (BEWAG) has been brought on board. Particularly if technical advances can boost the efficiency of The investment in remote heating systems in the early 1990s has roof panels, this creation of an efficiently functioning decentralised definitely been an important catalyst. Although it is now regarded sales network could open up a very profitable line of business for by energy experts as a relatively inefficient use of biomass, because BEWAG, particularly if it acts as a maintenance firm for solar and only a limited proportion of the energy from the biomass is used, photovoltaic equipment as a diversified field of its business. it has nevertheless opened the way for use of biomass as part of energy policy, and made a decisive contribution to making effective 3) Location of research and production facilities for photovoltaic use of this energy source a reality. generation in joint ventures with global market leaders in this field: A constraint on the expansion of biomass is the availability of building land, as well as the competition that can be created between this In , the world's largest photovoltaic market, according kind of energy crop and growing food for human consumption. to the national association for renewable energy, Bundesverband Those responsible for energy policy in Burgenland are aware of this, Erneuerbarer Energy e.V. (BEE), photovoltaic contributed and this is why they pursed the expansion of solar energy. 4.3 billion kWh to German electricity generation in 2008, which was

European Centre for Renewable Energy

2) Moving into photovoltaic up 40% on the previous year. The massive price incentives available Since the late 1990s, people in Burgenland have been attempting in Germany for photovoltaic electricity are not, as such, part of the to increase the presence of photovoltaic in their energy concept. Austrian energy concept as this is too expensive. Indeed the cost At the European Centre for Renewable Energy (EEE) in Güssing, of the German subsidy system can only be justified by addressing photovoltaic is developing into a second pillar of R&D activity. not only energy policy impact, but also the effects on industrial policy, since it allowed German firms to carve out a leading position The photovoltaic strategy in Burgenland consists of three main in the global market, with a 'demand-pull' effect, which will not be components: available to the same extent to new market entrants.

1) Expansion of individual self-sufficiency through photovoltaic Therefore, joint ventures are being offered to bring advanced systems: installation of systems on private buildings will be technology to the region, and there are subsidies for individual incentivised. This can improve the individual energy-efficiency of installations, local authority grants are being stepped up, and the buildings and cut the use of alternative fossil fuels. An additional increased environmental awareness of the region's population and requirement for training installers and advisers will be covered by the many private roofs are considered the most appropriate means the solar installer school in Güssing. This kind of policy not only has of boosting individual solar energy production. an effect on energy policy, but also encourages specialised SMEs

9 Project example II: 'Setting-up a production plant to manufacture solar cells' Final beneficiary: Blue Chip Energy GmbH http://www.bluechipenergy.at/

Project duration: 01.12.2006 – 30.11.2008

Project description: Setting up a production plant for highly efficient solar cells to generate electricity

EU Objective 1 (ERDF) € 12 100 000

National funds € 1 832 780

Private funds € 32 509 820

Total project costs € 46 442 600 Photovoltaic has not taken on an international leading role in Burgenland, as has been the case with biomass, but due to the enormous future potential, it is an essential component of a linked This pilot project was visited by the former Commissioner in charge alternative energy strategy. The situation on the supply side has been of Regional Policy, Danuta Hübner, as part of her visit to Burgenland accepted, and instead co-operation with German suppliers has been in October 2008. sought, rather than trying to champion local producers. Like wind energy, photovoltaic has fluctuating output. The electricity The location of a major production facility by Blue Chip Energy produced can only be stored to a limited extent and the availability GmbH in Güssing is playing a key role in this strategy. Once again, of wind and sunlight is dependent on the weather conditions and considerable ERDF funds (€12 million) opened the 'door to the sun' only offers limited reliability of supply. Energy recovery of biomass is and persuaded this highly innovative global solar cell manufacturer therefore a classic component of the ideal mix of renewable energy to set up business in Burgenland. This private company is bringing sources, as this combustible energy source can be converted into high-quality research and technical know-how to Southern gaseous or liquid form for easier storage. Burgenland and setting up, in co-operation with the Pinkafeld College of Higher Education, the technical universities in and Vienna, the solar installer college and the research department at the European Centre for Renewable Energy (EEE), a 'solar energy' cluster which can participate in technological progress in this energy sector of the future.

The production of 'Blue Chips', highly-effective monocrystalline solar cells at the Güssing site was launched in 2006 and now employs a highly skilled workforce of 140 people.

Regional President Niessl and former Commissioner Hübner at Blue Chip Energy in Güssing during the Commissioner's visit to Burgenland on 14 October 2008

10 Former Commissioner Hübner visiting the clean room facility at the heart of the Blue Chip production plant.

3) Using wind power on the Parndorfer This was done by careful designation of business zones around Platte (Plain) Parndorf, and special ornithological reserves. A process of this The Parndorfer Platte is one of the windiest places in , kind creates trust on the part of the relevant NGOs and enables and is largely to be found in Burgenland. The latest measurements symbiosis between exploitation of the energy resource and wildlife show wind speeds at 100 metres above ground level averaging up conservation. Any resistance that might be caused by the occupation to 9 m/s. These values are unusually high for an easily accessible of potentially profitable business sites close to the Austrian capital area on level ground, and are the result of the corridor between Vienna by wind turbines was factored in by the local authorities the foothills of the Alps and the first ridges of the Carpathian when designating the Parndorf business zone. mountains. This area was identified at an early stage as one of the windiest regions of the European interior. Since there was only Since then, some 190 wind turbines have been installed on the limited experience with use of wind power in the interior in the designated area of the Parndorfer Platte, representing an investment early 1990s, the investment risk was too great to expect a massive of about €500 million. Besides the 190 wind turbines on the commitment from vulnerable start-up companies specialising in Parndorfer Platte, there are another 16 wind turbines in Central wind power. Furthermore, the essential prerequisite of designated Burgenland. Wind energy covers some 50% of Burgenland's energy operating areas was missing. Distances from built-up areas, airports, requirements (approx. 800 million kWh), and is one of the factors traffic routes and conservation areas must be respected, as must underpinning an above-average percentage of renewable energy birds' migration routes, as there is considerable diversity of species sources in the total energy consumption in Burgenland. particularly around Lake Neusiedler. It is noticeable that energy demand is relatively low in comparison In these circumstances, access to ERDF funds during the mid- with more heavily industrialised regions of Austria, or regions with 1990s was beneficial for installing the first prototypes for electricity a greater focus on winter sports tourism. generation from wind power on the Parndorfer Platte, and for making the location attractive to later investors on the strength of detailed Wind energy could be expanded through the enlargement of knowledge about the wind conditions and energy potential. At the the areas that are allowed to be exploited, or by re-powering, i.e. same time, based on detailed study of bird life, possible areas for upgrading of the wind turbines by more recent, more efficient operation were designated. prototypes, which is possible if larger turbines and more modern rotors are used. An increase of 2 Megawatt Hours (MWh) to 6 MWh

11 is possible, if the current wind turbines weighing 60 tonnes are Even if the ERDF financial support for the setting-up of the current replaced by turbines of a later generation weighing 300 tonnes. wind farm on the Parndorfer Platte provided little or no financial However, this would require dismantling of the whole wind turbine, support, it nevertheless acted as a catalyst and contributed to and reconstruction of the foundations and load-bearing structures. speeding up the investment process. Further energy gains could be achieved by making the wind turbines taller. Raising the wind turbines from 80 to 130 metres would allow energy to increase by a power of 3. 4) Support for education and training at the Burgenland College of Higher Moreover, there is considerable potential for expansion by extending Education in Pinkafeld and the Centre the areas that can be used for wind farms. Public subsidy no longer for Renewable Energy in Güssing takes the form of direct investment, but support for the electricity Since the mid-1990s, specific education and training opportunities customers, which rules out further investment grants on the grounds have been created in the energy field in Burgenland, at the same time of regulations relating to state aid. ERDF support switched relatively as initial investments in the use of renewable energy sources. early after the prototype phase out of direct subsidies for wind energy, and is now only committed to complementary development The first demand and future-oriented courses were introduced activities (see below). by the Burgenland College of Higher Education a year before EU accession. The College has two sites (Pinkafeld and Eisenstadt) and Project example III: 'Wind farm' (Windpark currently offers 16 courses in four 'competencies'. Worthy of special Parndorfer Platte) mention is the core competency in Energy and Environmental Final beneficiary: Oekostrom Management, introduced in 2001, which not only offers students Energieproduktions- und a comprehensive technical and work-oriented education, but also Beteiligungs GmbH emphasises the economic and legal management aspects in the http://www.windpark.increase/ area of the environment. Within this field of competence, the College de/c)_geo/geo_016.htm of Higher Education offers Bachelor and Master courses in Energy Project duration: 01.01.2002–30.09.2005 and Environmental Management, Building Technology and Building Management and Sustainable Energy Systems. The College of Higher Project description: Test series of 8 prototype wind Education is becoming even more important in the context of energy turbines (2 MW each), 100 m tall, policy strategies, as the introduction of innovative courses gives the rotor diameter: 80 m region advantages as a business location and improves the labour EU Objective 1 (ERDF) € 58 458 market. A clear strategic choice was made at an early stage to orient and open up courses to Central and Eastern Europe. National funds € 68 474

Private funds € 262 790 Immediately beside the College of Higher Education in Pinkafeld, Total project costs € 389 722 Southern Burgenland, is the Pinkafeld Technology Centre, which was enlarged and saw its laboratory built with ERDF funds. Once again, this is a targeted use of financial support where emphasis was placed on tapping into regional strengths and strategies for the long-term, and in parallel, synergies were created between education, research and practical application:

Project IV: 'Expansion of Pinkafeld Technology Centre' Project coordinator: Burgenland

Project description: Enlargement of the existing laboratory area to increase the research and development capacity

EU proportion (ERDF) € 247 859

Regional funds € 46 597

Private funds € 687 066

Total project costs € 981 522

12 The high-tech test laboratory, with an area of approx. 1 000m² direct contribution to professional implementation of renewable allows focused research in the energy field, and promotes active energy technologies, thus driving forward not only ecology but co-operation between businesses and science, since it works mainly also the economy. So, for example, the existence of the Solarteur on direct research assignments for companies. Students at the school in Güssing is a decisive factor for the above-mentioned college use the technology centre in the context of their practical move to the area of a solar cell manufacturing plant run by Blue training and come into contact early on with companies, produce Chip Energy GmbH. analyses on individual topics for SMEs, and so prepare their future in the world of work. The majority of students stay in Burgenland and find, for example, a job as an Energy and Environment Officer in Project example V: 'Solarteur - Solar school in the waste disposal sector, working for energy utilities or in planning Güssing' offices. This prevents further emigration from Burgenland and gives Project coordinator: Europäisches Zentrum für them good prospects for earning a living. Erneuerbare Energie Güssing GmbH

Project duration: 01.03.2006 – 31.03.2008

ERDF proportion € 55 000

National funds € 52 500

Private funds € 2 500

Total project costs € 110 000

In the context of Burgenland's success story, the guarantee of higher and technical education is an important strategic component which creates a sizeable potential for technical and innovative know-how, and opens up exciting prospects for the future.

Interior, laboratory at Pinkafeld Technology Centre

Besides academic training opportunities, active technician training is also encouraged in Burgenland, with the SOLARTEUR® training course deserving particular mention. The Solarteur (solar installer) was originally launched in Vienna in 1993, and the course was soon implemented at the European Centre for Renewable Energies in Güssing, since practical work on pilot projects and laboratory work could be carried out. The aim of the training is to connect the principles of electrical and heating technology with new applications in heat and electricity generation. In practice, this means it is not necessary to call in a number of different tradesmen (roofer, installer, electrician), to have a solar or heat pump system installed, but rather a Solarteur-trained technician, who provides a one-stop shop service. The Solarteur training relies on a balanced relationship between theory and practice and the content includes the specialist areas of solar thermal energy, photovoltaic, wind power and biomass. Furthermore, the training imparts aspects of ecological marketing and management as well as know-how in multiple trades, so that students completing the course can approach the customer's energy problem in a holistic way, and carry out individually tailored planning and installation. Solarteur training offers an important

13 4. strategic considerations

Long-term objectives of political open arms here, and used for energy policy and ecological DECISION MAKERS goals. Austria, with 23% of its national energy needs covered using renewable energy sources, is one of the leading EU countries The skilful coordination of designation of ornithological reserves behind Sweden, and the Austrian Länder are striving to increase and areas to be exploited for wind power and business zones that figure still further. proved very helpful in overcoming tensions in the public consultation process. Burgenland started at a disadvantage compared with other Austrian Länder in the race to achieve the highest percentage of energy from renewable sources, as very little conventional Bottom-up and small steps policy hydro-electricity was used in the area. Mainly by making effective Although there was already great awareness about the renewable use of the wind power on the Parndorfer Platte, Burgenland has energies issue in Burgenland a long time ago, it is mainly local raced into the lead in Austria, now covering 60% of its needs using commitment and a small steps policy which puts an energy policy renewable sources. Of course, this is partly due to the fact that strategy into practice. It was mainly remote heat production from there are large nature reserves here, whose use in this sparsely biomass that opened up the new prospects, even though for populated region along the Hungarian border with economic sparsely populated Burgenland, today it is no longer considered disadvantages enabled it to gain ground rapidly. Nevertheless, as particularly energy-efficient. it is hard to deny that continuous, strong political commitment based on high environmental awareness among the population Production of remote heat from biomass has a major public led to additional efforts by energy companies and significant relations impact among the general public, and establishes the research results. The energy policy commitment starts from the all-important resource supply. Back in 1996, supply contracts top down, from the Regional President down to local were signed with local forestry and agricultural co-operatives, and town councils, and is firmly rooted in a long-term attitude. and a few years later, the parquet flooring industry was added. At the same time, a location for further pilot projects for research purposes was created, which ultimately underpinned the energy Getting the timing right efficiency of biomass as an energy source in the context of Austria's EU accession and the designation of a relatively small combined heat and power systems. region as a special Objective 1 development area was seized as a clear 'window of opportunity'. The boost that can be achieved The same applies to wind power, where prototypes highlighted by concentrating funds at regional level in specific sectors came the attractiveness of the Parndorfer Platte, and got local about quickly. Within the last two aid periods, there has been a stakeholders around the table to designate areas where wind particular focus on the tourism and renewable energy sectors, turbines could be used. and a number of measures link these very different points of emphasis (see ecotourism in Southern Burgenland, or the A number of local authorities, particularly in Southern Burgenland, symbiosis between wind energy and bird conservation at Lake signed up to policy criteria during the 1990s which are increasingly Neusiedler). being incorporated into regional climate programmes, and are based mainly on four strategic factors: The opportunity to link the expansion of renewable energies to technical advances, or vice versa, to boost research activities • exploitation of individual energy-saving potential, particularly through practical applications, can be realised with the creation by improving buildings (improving insulation, incorporation of of the first technical college in Eisenstadt and Pinkafeld. Austria's heat pumps, solar systems, etc.), by expanding the availability decision to institutionalise practice-oriented academic education of information and advice, and through research activities; by setting up colleges of higher education was welcomed with

14 • increasing energy production from renewable, regionally Membership of the Renewable Energy Network Austria, or RENET, accessible energy sources, i.e. particularly wind, sun and is absolutely essential for Güssing and Burgenland and ensures biomass; they are linked into the national and international exchange • expansion of existing local authority supply and decision- of know-how. The Energy from Biomass competence network making structures, to mobilise local energy resources; was founded in 1999, making it the first industrial competence • increased research activity in practical and theoretical fields network in Austria, in which businesses and organisations with of application, and substantial expansion of research facilities a lot of experience in the biomass field co-operate, including and prototypes of viable energy production facilities as part of companies connected with Güssing, such as Güssinger Fernwärme very close co-operation between the authorities and private GmbH, Repotec Umwelttechnik, or Institut für Verfahrenstechnik, operators. Umwelttechnik und technische Biowissenschaft, the Vienna University of Technology and Energie Versorgung Niederösterreich (EVN), etc. Networking and marketing The public relations drive is impressive and demonstrates A particular feature of this partnership is the setting-up of particular creativity. Güssing has become a trademark for competence clusters, in which new processes can be tested renewable energies in specialist circles. The EEE (European in pilot systems, in co-operation with research and marketing Centre for Renewable Energies) offers courses, information firms. In Güssing, RENET has set up pilot plants for fluidised bed events that even include holidays and recreational activities on a gasification while in Wiener Neustadt in Lower Austria, it has renewable energy theme. A specific ecotourism sector has been launched a pilot plant for fixed-bed gasification. In the context created, and a network built up with cultural and sports events of new research fields, as in biogas energy recovery, the network organisers. Cycle tourists can cycle a specifically designed cycle added further public and private partners as well as competence route, in the same way as for visiting wine producers elsewhere clusters in 2004. With regard to thermal gasification and potential in Burgenland, but in this case visiting sites for renewable energy applications and marketing models, further pilot projects are production. being developed within the competence network.

15 5. role of the ERDF in strategic implementation

The four key elements, as set out since 1988 in the European Cohesion The open call for tenders also makes it easier to apply again within the Policy, are found once again in the implementation of Burgenland's programme period, if an additional requirement is identified in the same energy strategy. aid field, or in synergistic projects.

These concern the concentration of the funds employed, long-term Furthermore, there is no pressure to apply for financial support at a programme planning, intensive partnership between local, regional, particular time, even if the project is not yet complete. national and last but not least, European level, and the additionality of European funding, which enable funding gaps to be overcome for strategic investment at decisive moments. c) Partnership The local and regional commitment at scientific, economic, and above all, political level is ultimately the actual breeding ground for successful a) Concentration of the funds employed implementation of the programmes. From this viewpoint, the partnership The role of co-operation in Austrian spatial planning at Länder level with element is the most important of all. With centralised allocation of funds federal strategy decisions about Austrian Regional Policy, which is a from Vienna or even , it would have been far more difficult to responsibility of the Federal Chancellery, should not be underestimated. understand the energy policy potential of the region, motivate key people Regional development structures already exist and the designation of for the implementation at scientific and local policy level, and convince Burgenland as an Objective 1 region, which entails aid mechanisms with the wider population about the strategic importance. a more concentrated effect, has fallen on fertile ground. The intended multiplier effect has indeed been very pronounced. Besides the public resources available at regional level (policy prioritisation), private funds are d) Additionality contributing considerably as a result of state price support for expanding The proportion of ERDF financial support in the total investment in the use of existing energy resources through applications, pilot plants and renewable energy sources in Burgenland is low, but it becomes more basic research. However, it is important that in relation to the potential important due to the strategic application of the funds. users, a critical mass of additional public funds is available that can be used in case of need. ERDF support helps to plug gaps in financing, partly due to private contributions and partly due to the mobilisation of national or regional co-financing. The leverage of these funds is greater, the smaller the b) Long-term programme planning and financial shortfall. ensuring sustainability The long-term programme planning, which is determined by the multi- If these funds are allocated to a development process, they can have annual aid periods, creates investment certainty, negotiations with higher further multiplier effects, since overcoming the financing shortfall authorities, precise principles for argumentation and a strategic orientation. can allow long-term development potential in further leading-edge Particularly for innovative projects with longer implementation periods, technologies to be unleashed. as exist in Burgenland in the biomass or photovoltaic fields, the certainty of access to public funds over a programme period is an advantage. In this regard, the ERDF aid has proven highly efficient in the take-off of renewable energy use in Burgenland. The current practice of working with guidelines and open calls for tenders, where selection criteria are already established at the start of an aid period The time is right; the use of wind, biomass and solar energy took shape and maintained for the duration of the programme period, have also as an alternative energy source in the early 1990s, but is still in the proved helpful in this context. Large projects can be started relatively project phase and is waiting for applications. Burgenland sees this as quickly since less time is spent waiting for all the participants in a tender an opportunity. The biomass resource is abundant due to the decline to be evaluated. in agriculture, the human factor and well-trained technicians too, but there is a threat from emigration, and there is a lack of a clear overarching structure to link the state-of-the-art with practical applications.

16 6. Transferability to other regions of Europe: Creation of a 'Burgenland' cluster in Slovenia?

Theoretically, Burgenland's overall concept of targeted use of European operating life of the Krško nuclear power station, and examine the need for Structural Funds in the field of renewable energy sources is perfectly transferable accelerated construction of a second block. Against such a backdrop, it is to other regions of Europe, particularly neighbouring regions to the East and questionable whether sufficient incentives can be created for the development South. During the programme period 2007-13, these regions have access of alternative (and more expensive) energy sources, at least in the immediate not only to the ERDF but also to the Cohesion Fund, which particularly funds future. By securing 100% of its energy supply at national level, local players projects for sustainable development that are clearly good for the environment, could fail to adopt local alternative sources that are good for the environment such as energy efficiency and renewable energies. and sustainable at the appropriate time.

In practice, such comprehensive implementation and aid will only be considered The small steps policy should be put into action at local level in Slovenia. for the programme period after 2013, and will only be able to be repeated if a number of key criteria are met. What would be decisive for devising and Particularly at local level, individual components, such as the solar school, successfully implementing a comparable concept would be sufficient financial biomass plants, etc. could be implemented very successfully in Slovenia. In resources (particularly co-financing potential), and willingness and ability for the biomass field, there are already the first initiatives in local energy policy individual local authorities to engage in a long-term change in energy supply, development strategies, based on existing potential and location-related which is not without risk politically and economically. 'tailor-made' concepts.

Although, for example, the use of renewable energy sources in Slovenia has As already stated, it comes down to devising the right strategy with the right become more important in recent years, energy self-sufficiency at a local mix of components for the region concerned, with the right players at the level, comparable to that seen in Güssing, has yet to be achieved. It is true that right time. Slovenia is going for an expansion of alternative forms of energy, but according to the draft of the Green Paper on the new national energy programme (April The co-operation potential of Burgenland and its neighbours is enormous and 2009), it does not wish to abandon the use of nuclear energy altogether. ranges from knowledge transfer, data interchange, project development to the development and implementation of pilot projects. In the following tables, the Atomic energy appears to remain an important source for a stable energy transferability potential and necessary measures are explained briefly. supply in Slovenia, and therefore it plans to invest in an extension of the

Transferability potential Necessary measures Slovenia has the natural and renewable resources necessary There need to be trade-offs for NGOs (e.g. conservation areas) for expanding renewable energy (particularly photovoltaic and which can drive forward the consultation process. biomass, as well as wind). This potential should not be neglected. Local players must take on a more central role in the exploitation Existing management structures at local level need to be of decentralised existing energy potential. incorporated into the planning of energy self-sufficiency.

The general direction of the country's strategy must be towards Nuclear power as a transitional technology or stable back-up energy increased use of renewable energy and greater energy efficiency. source, but not necessarily as the main source of energy supply.

Limitation of the risk for local authorities if research, start-up Long-term strategic planning and concentration of the EU aid. phases and the provision of the basic infrastructure are aided by Stimulation of the private sector through research policy the EU funds. Possibility of leaving further development to the co-operation. private sector.

Positive public opinion on the part of the population with regard Price support mechanisms for 'green energy'

to aiding greater environmental conservation, reduction of CO2 emissions, etc.

17 7. why is all of this so relevant to the current debate about the future of European Cohesion Policy?

Promoting renewable energy sources combines like almost no It is worth mentioning the importance of a holistic approach other theme the central Gothenburg and objectives to aid policy for the successful implementation of Burgenland's (‘sustainable development’ and ‘growth and employment’ energy strategy. Regional Policy is not intended to be rigidly respectively). The development and use of renewable energy sector-specific, but is always seeking synergy between different sources requires labour-intensive research and development. fields of investment. Only a locally-determined aid policy enabled It builds a bridge between peripheral regions and European a soundly based energy cluster to be established in Southern economic centres, between energy resources available in a Burgenland. The driving force of 'renewable energies' will push decentralised way, and their converters and purchasers of the end forward with it tourism, the wood-processing industry, forestry product 'energy and research results' in the economic centres. and farming and many other areas of business by increasing As the Growth Report of 2008 called for a plus from European indirect income. This is definitely an example of local aid policy Cohesion Policy, here local available capacities are being providing arguments for the strategic debate on future aid discovered and exploited. They are primarily aimed at optimal mechanisms. exploitation of the comparative advantages of the regions. The aid policy offers further reasons for the continuation of Promotion of renewable energy resources is also a policy that elements of the existing aid geography, particularly with regard cuts across national borders. Resource procurement, supply to the value-added generated, multiplier effects and with regard logistics, technology transfer and transfer of implementation to the signposting function that the use of EU aid can have in structures could be greatly improved by close transnational advanced regions in terms of development policy. Use of EU aid co-operation. Promotion of renewable energy sources is ideal for Burgenland's objective of achieving energy self-sufficiency terrain for developing more intensive transnational co-operation through renewable local energy sources provides ample – a relatively uncontroversial fundament of future European arguments for not limiting future aid geography to temporary Cohesion Policy. cohesion target regions.

18

Kn-31-09-204-en-c ISBN 978-92-79-13941-3 y http://ec.europa.eu/regional_polic For further please consult: information, For European Commission, Directorate-General Regional Policy Commission, for European countries third and relations with information - communication, unit b.1 41, b-1040 brussels tervuren de avenue (32-2) 29-66003 fax: u e-mail: [email protected]