ForskEL Call 2016 Published in electronic version only. Doc. no The report can be downloaded at:
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- Daniella Manning
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From this document you will learn the answers to the following questions:
What does the ForskEL program aim to utilise?
What is the goal of the ForskEL program?
Who does the focus areas have to involve?
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1 ForskEL Call 2016
2 ForskEL Call 2016 Published in electronic version only. Doc. no The report can be downloaded at: Photo: Jørgen Schytte 2
3 Contents 1. Purpose and application deadline Energy policy objectives What can be funded? Focus areas Who can apply? How much can be applied for? How to apply? Assessment criteria Assessment of applications If funding is obtained Legislation Other documents Other subsidy schemes Appendix 1: ForskEL focus areas - Call
4 1. Purpose and application deadline The PSO-financed ForskEL programme is administered by Energinet.dk. The purpose of the programme is to grant funding for research, development and demonstration projects needed to utilise environmentally friendly electricity generation technologies, including the development of an environmentally friendly and secure electricity system. In the 2016 call, a financial framework of DKK 130 million is available for the funding of projects. The projects must support the energy policy objectives and Energinet.dk's 'Integration' strategy. The application deadline is Thursday 10 September 2015 at noon. It is not possible to submit applications for this call after this deadline. Decisions on the approval or rejection of applications are expected to be announced in the period December 2015 to January Please note that EUDP and ELFORSK invite applications by the same deadline. 4
5 2. Energy policy objectives The ForskEL programme supports the energy policy objectives of security of supply, climate, environment and cost-efficiency as well as contributing to realising the objective of making Denmark independent of fossil fuels in With the Energy Agreement of 22 March 2012 on the Danish energy policy , the Danish government and a majority in the Danish parliament have agreed on a number of energy policy initiatives and objectives with regard to a more energy-efficient society, a green and sustainable energy supply as well as a number of initiatives aimed at developing the electricity system. Under the plans for the establishment of a European energy union, 'Research and innovation' is one of five dimensions outlined, and which entails plans for a new SET-Plan focusing on the integration of energy systems, and which is harbouring the ambition of being global market leader within renewable energy. These objectives are also supported by the ForskEL programme. 5
6 3. What can be funded? The ForskEL programme can grant funding for projects within the parts of the innovation chain concerned with applied research, development as well as pilot and demonstration projects; however, with primary emphasis on development and pilot projects. On the Technology Readiness Level (TRL) scale, this corresponds to taking technologies from TRL 2 to TRL 9, with the main emphasis on moving from TRL 4 to TRL 7, see the illustration below. Priority is given to projects within the focus areas (see appendix 1) that involve private enterprises or other endusers which can ensure the subsequent application of the results. This factor is also a new assessment criterion (see section 8). Pilot projects are projects undertaking testing of technologies, systems or methods on a larger-thanlaboratory, but not full scale. A pilot plant will typically be 1:10 compared to full-scale. On the TRL scale, these projects take the technology from TRL 6 to TRL 8. Demonstration projects are projects undertaking experimental testing of technologies, systems or methods under realistic conditions with a view to subsequent market introduction or, when dictated by the demonstration results, further development before market introduction. On the TRL scale, these projects take the technology from TRL 8 to TRL 9. Applied research means projects of original character aimed at gaining knowledge and insight targeted at specific practical objectives and uses. On the TRL scale, these projects take the technology from TRL 2 to TRL 4. Development means use of knowledge with a view to producing new or improving existing materials, products, processes, methods, systems or services. On the TRL scale, these projects take the technology from TRL 4 to TRL 6. 6
7 4. Focus areas The ForskEL programme grants funding for projects related to the electricity system. However, emphasis is also on ensuring that the projects funded take an approach that ensures optimisation and integration of the entire energy system and does not result in the development of suboptimal solutions solely for the benefit of the electricity system. as being of special importance to the realisation of the long-term energy policy objective of transforming the Danish energy system into being 100% based on renewable energy. Two of these are relevant for the ForskEL programme, ie: - Smart Grid - Storage of energy. The three main focus areas: Integration of RE generation technologies Energy storage and integration Market and society You can read a more detailed description of the focus areas for the ForskEL programme in appendix 1. In continuation of the Energy Agreement from March 2012, the Supervisory Boards of DSF (now Innovation Fund Denmark), HTF (now Innovation Fund Denmark), EUDP, ForskEL and ELFORSK have jointly identified the following focus areas: - Energy renovation of existing buildings - Smart Grid - Storage of energy 7
8 5. Who can apply? Public or private enterprises and knowledge institutions, including universities and Approved Technological Service Providers (GTS institutes), registered in the Central Business Register in Denmark (CVR) can apply for funding from the ForskEL programme. Foreign project participants can also apply for funding; however, emphasis is on the results promoting the development of the Danish electricity system, and subject always to the main applicant being registered with a Danish Business Register Number (CVR no.). 8
9 6. How much can be applied for? Every project participant must state in its budget how the project activities are expected to be financed through funding, self-financing and other financing, as applicable. The ForskEL programme cannot grant funding to enterprises that have failed to comply with a demand for repayment of funding which the European Commission, in a previous decision, has declared illegal and incompatible with the internal market. Funding amount No minimum or maximum has been defined as regards the amount of funding applied for. Previously, projects have been granted funding of DKK million per project. Funding intensity There is no fixed funding intensity for all projects. The funding intensity is determined by ForskEL for each participant within the framework of the EU state aid rules. Moreover, the funding intensity is based on the commercial aspects, the technical and financial risks involved as well as an assessment of the incentive effect (see section 8). Projects covered by the EU state aid rules may thus obtain funding up to the allowed level under these rules. As a general rule, public financing of research and development activities conducted by higher education institutions or public research bodies not working for profit, and basic research carried out independently of these, are not covered by the EU's framework conditions for state aid for research, development and innovation. Such activities can obtain funding of up to 90%. For development and demonstration projects, a minimum degree of self-financing of 50% must be aimed for. Please note that all public support funds for projects must be included. 9
10 7. How to apply? The application is submitted electronically through the application portal Here, you will also find an application guideline (see section 12). On the application portal, the applicant must create a user profile, and a data sheet for applicants and three documents must be filled in and uploaded: 1. Project description (text template) 2. Budget form 3. Time schedule (Gantt diagram). Furthermore, a minimum one-page CV for the project manager must be attached. Research-based content As regards projects with research-based content, a research-based description, including an outline of research staff and a research plan, must be submitted for the purpose of a research-based assessment. CVs of all key participants must be attached. The application guideline provides a more detailed description of these rules. be stressed that applications which do not include research activities are not disqualified. Business potential For projects involving a significant degree of demonstration, an extended description of the business potential must be submitted. This is described in detail in the application guideline and must be described in greater detail in the application. Language Applications for funding of or in excess of DKK 3 million must be submitted in English, in order to facilitate the use of foreign specialists in connection with the evaluation. Applications for less than DKK 3 million in total project funding may be submitted in English or Danish. Information about previous projects Information about previous and ongoing publicly funded projects is, for example, available at Only applications with research-based content will be evaluated with specific reference to this criterion. It must 10
11 8. Assessment criteria When assessing the applications submitted, the following assessment criteria are emphasised: 1. Description of purpose 2. Schedule and project structure A clear description of the purpose of the project and the state of the technology, including the maturity and risk of the project. Organisation of the project in work packages and specification of milestones. 3. Relevance Potential relevance of the project relative to the purpose of the ForskEL programme and the energy policy objectives. 4. Communication and application of results How will the results of the project be communicated and applied with a view to maximum value creation? 5. Organisation Description of participating persons and their competences, including project management competences, brief description of participating enterprises, grounds for applying for funding for foreign participants, if applicable. 6. Budget and financing 7. Incentive effect and feasibility Is the project fair and are assumptions specified? Have the parties confirmed their participation? Has it been rendered probable that the project will not be carried out in the version applied for if funding is not obtained? Has it been rendered probable that the project is feasible? 8. Market potential Description of competitive situation, expected market (where, when, how large), marketing plans. 9. Added value of project 10. Research-based content 11. Participation of enterprises or other end-users Description of the ultimate target group and the added value of the project (economy, comfort, functionality etc.). Projects with research content are assessed based on the quality of this. In the assessment, emphasis is placed on participation by private enterprises or other end-users which can ensure the subsequent application of results. 11
12 9. Assessment of applications The applications for the ForskEL programme will be processed in accordance with the schedule on the next page. Applications will be rejected, if: the project does not contribute to fulfilling the purpose of the programme to a sufficient extent the application or budget form has not been filled in according to the requirements set out in the guideline other applications within the same focus area are better qualified and more worthy of funding the application has not been submitted within the deadline with the required appendices. Announcement of funded projects The contents of the applications are treated confidentially within the framework of the Danish Act on Public Access to Documents in Administrative Files (Lov om offentlighed i forvaltningen). A list of all projects receiving funding is published at In this list, a brief description of the purpose of the project is included, based on the information provided in the application. Descriptions of the projects funded including information about participants and budgets are also shown at 12
13 Schedule November Plan for implementation at Supervisory Board meeting December Plan for implementation to Danish Energy Agency and publication of plan Distribution of acceptance and rejection letters January Theme day on focus areas with external stakeholders Start-up of contracting of new projects Projectadministration hjæ lpef igu r February Preparation of first call draft March Initial consideration of call text at Executive Board meeting October Evaluation of order of priority April Coordination with other programmes Involvement of internal stakeholders September Application deadline May Final consideration of call text at Supervisory Board meeting August July June Approval of call text by the minister Publication of the call 13
14 10. If funding is obtained If a promise of funding for a project has been received, a number of requirements must be met in connection with the implementation of the project. The disbursement of funding is subject to a set of general rules. Among other things, the following applies: Coordination, reporting and accountability The commitment holder (the enterprise/institution responsible for the project) is responsible for the progress and economy of the project, and has the contact to Energinet.dk. This includes, among other things, gathering information from other project partners as well as forwarding funding disbursed to these parties. Communication and use of results achieved as well as rights Project results must be made available to the public; however, exemptions may be made in connection with patent applications. In special cases, the Danish Energy Agency may grant permission for results not to be published. Upon the completion of the project, a report suitable for publication is prepared. Information on all projects receiving funding is published on the web portal: Disbursement of funding Funding will be disbursed based on a calculation of all paid expenses eligible for funding and the funding percentages determined for each grantee. In connection with the disbursement of funding, the status of the project's scientific progress must be reported on. In principle, the disbursement takes place twice a year, but it is possible to agree on more than two disbursements a year. It is a condition for funding that the activity is not commenced before a promise of funding has been obtained, and that an agreement on the distribution of rights has been made. The full description of commitments can be seen in the rules on the programmes (see section 12). In the course of the project, the project manager will be asked to supply pictures of project activities and products for use on the web portals. 14
15 11. Legislation The ForskEL programme is regulated by: Section 29 of the Danish Electricity Supply Act (Consolidation Act no of 25 November 2013 (Elforsyningsloven)) Part 7 of the Executive Order on transmission system operation and the use of the electricity transmission grid, etc. (Executive Order no. 891 of 17 August 2011 (Systemansvarsbekendtgørelsen)). Notification of the ForskEL programme has been provided in accordance with Commission Regulation (EU) no. 651/2014. The EU state aid rules therefore determine the framework for the maximum amount of funding which can be expected for any one project. 15
16 12. Other documents Guideline and rules Application guideline for ForskEL 2016 Rules for ForskEL Other inspiration Joint website of all Danish energy research programmes with project reports, national technology strategies, focus areas as well as figures and statistics on Danish energy research. Agency's website: Technology data (In Danish) Applicants are encouraged to familiarise themselves with the below background documents published on as inspiration and guidance: Company strategy for Energinet.dk 'Integration' (In Danish) RD&D strategy for Energinet.dk %20dokumenter/Forskning/FUD%20strategi% pdf (In Danish) Technological and scientific documents prepared by the Danish Energy Agency in cooperation with Energinet.dk. The documents are published on the Danish Energy 16
17 13. Other subsidy schemes There are a number of subsidy schemes supporting energy technology research, development, demonstration and/or market maturation. Applicants should consider which subsidy scheme is the most relevant. A non-exhaustive list of existing energy technology subsidy schemes is shown below: Guide to Growth (Vækstguiden) (In Danish) Horizon2020 (EU) Energy research portal (EUDP, Innovation Fund Denmark, ELFORSK and ForskEL) 17
18 Energinet.dk Tonne Kjærsvej 65 DK-7000 Fredericia Tel CVR no
19 Appendix 1 ForskEL focus areas Call 2016
20 Appendix 1, ForskEL focus areas Call 2016 Published in electronic version only. Doc. no The report can be downloaded at: Photo: Jørgen Schytte 2
21 Contents Introduction... 4 New focus areas... 5 Project requirement... 6 Focus areas... 7 References
22 Introduction The ForskEL focus areas for 2016 are structured differently to recent calls, with added focus on the development of the actual electricity system. The ForskEL programme plays an important role in the conversion of the total energy supply to renewable energy, as this is the only programme specifically designed to ensure the development of the very electricity system which will be key to handling the large volumes of renewable energy. achieving the national and European climate and energy targets. Entitled 'Integration', Energinet.dk's Strategy Plan 2014 gives priority to the transition of the energy system, a healthy investment climate and security of supply as well as assuming increased involvement of the world around us (ref. 1). The strategy has led to the preparation of a new strategy for research, development and demonstration (RD&D) in Energinet.dk (ref. 2), including a redefinition of the ForskEL programme which now, to a higher degree, targets funding at areas that support an efficient green transition of the energy system. The new strategic direction of the ForskEL programme has been determined in close dialogue with the stakeholders that need the solutions from the programme and are able to bring them into use. Through workshops and interviews, our stakeholders have actively contributed knowledge and needs. The focus areas of the programme have thus been qualified and robustly tailored to addressing the needs for RD&D in society with a view to 4
23 New focus areas The new focus areas are: Integration of RE generation technologies Energy storage and integration Market and society Some of the previous focus areas can be found under the initiatives 'Integration of RE production technologies' and 'Energy storage and integration'. However, the major difference is now that funding is no longer granted for projects aimed solely at developing RE production technologies. The objective of projects that include RE production technologies must be the integration of the technologies. The focus area 'Market and society' is a new area which opens up for applying for funding for, among other things, the development of business and data communication models, market design, data security and public acceptance of the electricity infrastructure. The term 'Smart Grid' no longer forms part of the focus areas. This does not mean that funding is no longer granted to this area, on the contrary; but the term is very broad, and there is no general agreement on what it actually covers. It has therefore been decided to include the relevant part elements separately. The individual focus areas are further described in the section 'Focus areas'. The initiatives have a clear reference to Energinet.dk's strategic commitments in Strategy Plan 2014, and 'Integration of RE generation technologies' thus supports 'Economically viable transition', 'Energy storage and integration' supports 'High level of security of supply' and 'Market and society' supports 'Healthy investment climate'. 5
24 Project requirement Integration based on the electricity system The statutory purpose of the ForskEL programme is to grant funding for RD&D activities which are necessary for exploiting environmentally friendly electricity generation technologies, including the development of an environmentally friendly and secure electricity system. All projects funded by ForskEL must therefore relate to the electricity system. However, emphasis is also on ensuring that the activities funded take an approach that ensures optimisation and integration of the entire energy system and which does not result in the development of suboptimal solutions solely for the benefit of the electricity system. 'Technology Readiness Level' (TRL) The ForskEL programme grants funding for projects that move technology or solutions from TRL 2 towards TRL 9, with the main emphasis on TRL 4 to TRL 7. See section 3 of the main document for further explanation. ensure the subsequent application of the results. This is now an assessment criterion, see section 8 of the main document. International cooperation The ForskEL programme contributes to strengthening international cooperation. It is therefore possible to apply for co-financing for participation in EU projects and also to involve foreign partners in the projects applied for. In this context, it is important to note, however, that the results still have to benefit Danish society and that the knowledge produced must primarily be anchored in Denmark. The ForskEL programme supports international cooperation by working with other European support programmes (eg ERA-NET). This provides a chance for Danish partners to cooperate with foreign partners on small and more focused projects than projects under the EU's 'Horizon2020' support programme. Self-financing and partners It is a high priority that all project partners contribute funding for the project, and that the project itself has a significant element of private self-financing. The projects typically have a high risk profile and high ambitions. It is prioritised that projects within the focus areas involve private enterprises or other end-users which can 6
25 Focus areas Integration of RE generation technologies An energy system based on renewable energy sources means that focus must be on how the RE-based electricity generation is best integrated into the electricity system. This requires intelligent and innovative solutions that can handle the issues and the challenges inherent in fluctuating and non-dispatchable generation, such that the operational reliability of the electricity system can be maintained at the same high level as today. The integration of RE generation technologies covers the intelligent control and regulation of the electricity system, ancillary services required to maintain electricity system stability as well as maintenance of operational reliability in a volatile energy system. The actual development of RE-based generation technologies is covered only to the extent that it is relevant for the incorporation of the relevant technology in the electricity system. Intelligent electricity systems Intelligent electricity systems means measurement as well as automated control and regulation. In this context, focus will be on grid connection and the interaction between RE-based generation technologies, a constant balance in the electricity system as well as electricity consumption which supports the exploitation of the fluctuating generation of electricity. Ancillary services To maintain electricity system stability, ancillary services such as short-circuit power/inertia, voltage control/reactive power, fluctuations and congestion management are required to ensure the operation of the electricity system. Here, focus will be on solutions that support the physical operations and system security, including how the ancillary services required to maintain electricity system stability inherent in grid-connected renewable energy technologies can be accessed and utilised. Secure operation of the electricity system The operation of the electricity system is based on a high degree of protection against system failures. In future, the electricity system will remain key to the integration of the energy systems. Maintaining a high level of security of supply and, not least, reliable access to and adequacy of flexible consumption will therefore come to play an even more crucial role. Focus here will be on a more situation-dependent approach to analysis and operational planning due to the new generation and consumption patterns. Simulation models There is a need for new simulation models to be developed for, eg, solar and wave forecasts, to ensure more reliable generation forecasts. 7
26 Energy storage and integration An increasing share of the electricity production is based on fluctuating sources such as solar and wind power, and a balance does not always exist between the electricity generated and consumption at any given time. We therefore need to use an increasing volume of electricity from RE sources for new purposes and in other sectors, where it can replace fossil fuels. Similarly, there is a need for flexible electricity generation to meet peak-load demands at times when the fluctuating sources are inadequate. By converting electricity into other forms of energy, the energy can be stored, and this energy can subsequently be used for different purposes, such as heating, transport, industrial processes or reconversion into electricity. The important thing is not that the energy should necessarily be converted back into electricity, but that it should be used where it provides maximum value at the given time. We therefore need processes that can convert and store electricity as other forms of energy, and this requires a high degree of integration of the electricity, gas, heating and transport sectors. Electricity to gas (P2G) Converting electricity into gas (P2G Power to Gas) through electrolysis can contribute to a large electricity offtake at times with high levels of RE electricity generation. Gas can be stored in large volumes (TWh) over a long period of time (months) and can be sold to highvalue markets or reconverted into electricity. Focus will be on the development and demonstration of systems using P2G with a view to converting electricity into a storable medium, and to a lesser extent for the purpose of developing the actual electrolysis technology. Electricity to electricity Today, several technologies are available for storing electricity in other forms and then converting it back into electricity. Here, focus will be on the development and demonstration of flexible high-efficiency, low-cost systems. Electricity to heat and transport Electricity can be converted into heat in either individual or large heat pumps, and electricity can also be used directly in the transport sector. Focus will be on the demonstration of flexible solutions in connection with new consumption patterns and the 8
27 integration of electricity in the heating and transport sectors. Flexible generation Flexible generation processes can produce several products (polygeneration) and quickly switch to and from electricity generation as required. In this context, particular focus is on processes and systems capable of delivering peak-load electricity generation at times when the fluctuating sources cannot generate adequate volumes. Due to a low number of operating hours, focus should here be on systems where the investment expense associated with the electricity generation element is low (low CAPEX), but which may involve relatively high operating expenses (OPEX). Market and society In the conventional electricity system, social patterns dictate when electricity must be generated. But the electricity consumption does not necessarily have to follow norms and habits. Perhaps we do not need our hot water tanks to run at full capacity 24 hours a day, and perhaps our electric vehicles do not necessarily need to start charging as soon as they are plugged in. The production curves reflect the dynamics of modern society; they show when the working day starts and ends, when meals are prepared etc. But hidden from view is the actual demand for, eg, lighting, hot water, a heated home and clean clothes. To ensure optimum utilisation of the fluctuating electricity generation, there is an increased need for developing new market designs which promote flexible consumption and new consumption patterns. By shifting electricity consumption from one period to another, it is possible to ensure system balance in the electricity system and reduce the need for expansion and reinforcement of the electricity grid. The purpose of the focus area 'Market and society' is to support the development of the right organisational framework and mechanisms for the future energy system: The development of the market and business models which are to provide financial incentives for plant owners, electricity traders, BRPs, aggregators and endusers to act in this market, and thus exploit the technical possibilities for supporting the entire energy system. Funding is also granted for the development of secure and correct data communication, as this is a precondition for the complex energy system to function. Market design and flexible consumption The electricity system can be optimised through improved market-related control and regulation of all generation units in relation to the electricity generation. 9
28 Business models must also be developed for new retail markets which focus on activation of customers with flexible electricity consumption via price signals or through the establishment of new flexibility products. IEC standards Where relevant, emphasis is placed on the communication complying with agreed IECstandards (see ref. 3). ICT (information and communications technology) IT systems must be developed for communication, control and regulation of distributed energy systems. These may also include VPP solutions, involving the aggregation of small units or market integration of electricitygenerating RE facilities, including demonstration and actual implementation of specific standards. Data security Maintaining a high level of data security in the energy system is becoming increasingly important, and there is therefore a need for projects which aim at making the future IT-based energy system secure. Sociological relations There is a need for investigating and mapping factors of importance to the involvement of all types of customers, including identification of barriers and development of contracts between supplier and customer. In addition, there is a need for mapping sociological barriers to the introduction of RE technology, and how these can be overcome. 10
29 References 1. Energinet.dk's Strategy Plan 2014 'Integration' ts/engelske%20dokumenter/om%20os/uk- StrategiPlan-2014.pdf 2. Research, development and demonstration (RD&D) in Energinet.dk nske%20dokumenter/forskning/fud%20strategi % pdf 3. Recommended communication and IT security standards for ForskEl nske%20dokumenter/forskning/anbefalede%20 kommunikations-%20og%20itsikkerhedsstandarder%20til%20forskel.pdf 11
30 Energinet.dk Tonne Kjærsvej 65 DK-7000 Fredericia Tel CVR no
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