Energy Efficiency Heating and Cooling, Industry and Products

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1 Energy Efficiency Heating and Cooling, Industry and Products 8 th November 2013 Helen Fairclough & Kerry Young EU Energy Focus

2 Overview Horizon 2020 Overview Simplification of financial and legal arrangements Energy Challenge Work Programme and Calls for Proposals Horizon 2020 opportunities outside the Energy Challenge EU Energy Focus Support services

3 EU Energy Focus Funded by the Department of Energy and Climate Change Provide support for UK organisations on European energy programmes Part of European National Contact Point network

4 Horizon 2020 What s new? Horizon 2020 is the EU s new Research and Innovation framework A single programme bringing together three separate programmes/initiatives* Coupling research to innovation from research to retail, all forms of innovation Focus on societal challenges facing EU society, e.g. health, clean energy and transport Simplified access, for all companies, universities, institutes in all EU countries and beyond * The 7th Research Framework Programme (FP7), innovation aspects of Competitiveness and Innovation Framework Programme (CIP), EU contribution to the European Institute of Innovation and Technology (EIT)

5 Key aspects of Horizon 2020 Research, innovation and market transformation Collaborative in majority of cases Cost sharing (no profit) Commission defined priorities Innovative at European level European impact

6 Horizon priorities 1. Excellent science 2. Industrial leadership 3. Societal challenges

7 Proposed funding (B ) Societal challenges: Health, demographic change and wellbeing 8.0 Food security, sustainable agriculture, marine and maritime research & the bioeconomy 4.2 Secure, clean and efficient energy* 5.6 ** Smart, green and integrated transport 6.8 Climate action, resource efficiency and raw materials 3.2 Inclusive, innovative and secure societies 3.8 * Additional 1788m for nuclear safety and security from the Euratom Treaty activities ( ). Does not include ITER. ** Figure to be finalised.

8 Energy in H2020 opportunities & challenges Increased energy budget approx 6 bn over 7 years* Challenge driven increased emphasis on impact Integration of RDD, innovation and market transformation within restructured Work Programme coherent picture for all market actors Energy programme allows longer lead in time to 2015 calls * from Energy Challenge and cross-cutting themes

9 Simplification in Horizon 2020 Single set of simpler and more coherent participation rules New balance between trust and control Moving from several funding rates for different beneficiaries and activities to just two Replacing the four methods to calculate indirect costs with a single flat rate Major simplification under the forthcoming financial regulation Successful applicants to get working more quickly: reduction of average time to grant by 100 days (current average of around 350 days under FP7)

10 H2020 simplification: implications for Energy Funding Actions: Research and Innovation Actions, Innovation Actions, Coordination and Support Actions Eligibility to participate likely to mirror FP7 Two basic funding rates: 100% of total eligible costs and 70% of total eligible costs One flat rate overhead rate 25% of eligible direct costs excluding subcontracting and 3 rd party resources Restructured Work Programme covers research, innovation, demonstration and market uptake and transformation New participant portal one access point. Will cover ongoing actions under FP7 and IEE and expert opportunities

11 Funding Actions eligibility and funding rates Research and Innovation Actions (RIA): Includes basic and applied research, technology development and integration, testing and validation on a small scale prototype or simulated environment 3 independent legal entities from different Member States or Associated Countries Funding rate: maximum 100% Innovation Actions (IA): Includes demonstration or pilot to validate technical and economic viability of a new or improved technology, product, process, service or solution Also market replication i.e. support for the first application or deployment in the market of an already demonstrated innovation 3 independent legal entities from different Member States or Associated Countries Funding rate: maximum 70% (except for non-profit legal entities where a maximum of 100% applies check precise definition)

12 Funding Actions eligibility and funding rates Coordination and Support Actions (CSA): Including improving market conditions and aiding market transformation e.g. standardisation, fostering dialogue, capacity building (similar to FP7 CSA and IEE activities) 1 legal entity from different Member States or Associated Countries * Funding rate: maximum 100% * however EU collaboration may be favoured for some topics

13 Funding Actions eligibility and funding rates SME Instrument 1 for-profit SME from Member State or Associated Country No concurrent submission or implementation with another phase 1 or phase 2 project Phase 1-50,000 lump sum Phase 2 maximum 100% or 70% depending on relevant topic Phase 3 mentoring, no funding ERANET Co-fund Public-public partnerships only including joint programming initiatives between Member States Specific funding arrangements

14 Indirect costs Flat rate 25% of total direct eligible costs excluding direct eligible costs for subcontracting and the costs of resources made available by third parties which are not used on the premises of the beneficiaries, as well as financial support to third parties Possible derogations where indirect costs declared in form of lump sum or unit costs where provided for in work programme or work plan

15 Energy Challenge WP /2015 Work Programmecovers both 2014 and 2015 call topics/priorities 3 call areas: Energy Efficiency Competitive Low Carbon Energy Smart Cities and Communities 2014 call launch expected 11 th December call launch expected June/July 2014 (to be confirmed)

16 Energy Efficiency Call overview (1 of 2) B. Heating and Cooling EE /2015: Technology for district heating and cooling (IA) EE /2015: Removing market barriers to the uptake of efficient heating and cooling solutions (CSA)

17 Energy Efficiency Call overview (2 of 2) C. Industry and Products EE /2015: Ensuring effective implementation of EU product efficiency legislation (CSA) EE /2015: Organisational innovation to increase energy efficiency in industry (CSA) EE : Driving energy innovation through large buyer groups (CSA) EE /2015: New technologies for utilization of heat recovery in large industrial systems, considering the whole energy cycle from heat production to the transformation, delivery and end use (IA) SME SIE1 2014/2015: Stimulating the innovation potential of SMEs for a low carbon and efficient energy system (SME instrument 70% funding)* * Previously EE17

18 B. Heating and Cooling (1) Topic EE /2015: Technology for district heating and cooling (IA) Scope Proposals to address 1 or more of the following -Develop, demonstrate and employ new generation of highly efficient intelligent district heating and cooling systems; reduction in heat distribution losses; development of tools to modify consumption behaviour; new solutions for low temperature heat recovery and recirculation. Impact Reduction in space and water heating energy consumption by 30-50%. Contribution to wider use of intelligent district heating and cooling systems and integration of renewables, waste and storage. EU contribution (M ) 1.5 to 2 EE /2015: Removing market barriers to the uptake of efficient heating and cooling solutions (CSA) Scope Proposals to focus on 1 or more of the following: - Innovative measures to accelerate replacement of inefficient individual heating and cooling systems; - Support for implementation of inspection of heating and cooling systems (See EPBD); -Industrial heating/cooling actions e.g.. integration of supply and demand; deployment of renewable heating and cooling solutions etc; - New markets for efficient energy supply systems, potentially including solar cooling systems; -District heating/cooling industry actions to improve market transparency and consumer trust (e.g. good practice, licensing criteria, efficiency benchmarks, consumer protection codes). Impact Improved market conditions and opening of new markets. Reduction of 25GWh/year of fossil fuels for heating and cooling per M EU support. Increased sustainable energy investments. 1.5 to 2

19 C. Industry and Products (1) Topic EE /2015: Ensuring effective implementation of EU product efficiency legislation (CSA) Scope Focus on building up the monitoring, verification and enforcement of the EU s energy related products policy, in particular those products with highest energy saving potential e.g. electric motors, lighting. Must go beyond product testing activities. Involve relevant market surveillance authorities and consumer associations. Impact Market surveillance projects must generate savings of at least 15GWh/year of energy losses avoided from non-compliance per M of EU support. Increased confidence among purchasers, manufacturers and retailers. EE /2015: Organisational innovation to increase energy efficiency in industry (CSA) Scope Addressing market barriers of lack of expertise and information in energy management. Focus on increasing uptake of energy efficient electric motor driven systems and steam/hot water generation due to high potential savings. Energy-intensive industries should be prioritised. Impact Capacity building projects must result in the increase in skills of hundreds of people working in the sector, resulting in savings of at least 25GWh/year per M of support. EE : Driving energy innovation through large buyer groups (CSA) Open in 2015 call EU contribution (M ) 1.5 to to to 2

20 C. Industry and Products (2) Topic EE /2015: New technologies for utilization of heat recovery in large industrial systems, considering the whole energy cycle from heat production to the transformation, delivery and end use (IA) Scope Research and demonstration on technologies, technical and operational approaches to recover waste heat from industrial processes, from material flows originating in industrial processes (e.g. waste streams, by-products, intermediates) or plant perimeters and to transform it into useful energy forms. Complete validation in real production conditions with demo sites where pilot systems will be tested in industrial facilities. Proposals should show large replication potential. Impact Design development and demonstration of economically viable solutions and technologies allowing recovering 15% of process heat and/or saving at least 15% of the plant energy use, compared to current practices. Also reduction in perceived technical and business risks resulting in widespread uptake and high impact in several industrial sectors. EU contribution (M ) 3 to 4

21 SME (1) Topic SIE1 2014/2015: Stimulating the innovation potential of SMEs for a low carbon and efficient energy system (SME instrument 70% funding) Phase 1 Feasibility study to verify the technological/practical as well as economic viability of an innovation idea/concept with considerable novelty. Including new products, processes, services and technologies or new market applications of existing technologies. Output is an elaborated business plan. Lump sum funding of 50,000. Duration 6 months. Phase 2 Activities should focus on innovation activities such as demonstration, testing, prototyping, piloting, scaling-up, miniaturisation, design, market replication and the like aiming to bring an innovation idea (product, process, service etc) to industrial readiness and maturity for market introduction, but may also include some research. Proposals based on elaborated business plan produced through Phase 1 or another means. EU contribution of between 0.5 and 2.5 M. Duration 12 to 24 months. Phase 3 Mentoring. No funding. EU contribution (M ) Estimated 34 M For indicative size individual proposal see description of each phase

22 Energy Work programme: Other opportunities Smart Cities and Communities (SCC) Call SCC1SCC solutions integrating energy, transport, ICT sectors through lighthouse (large scale demonstration first of the kind) projects. Includes cost-effective retrofitting of buildings to create NZ or low energy districts to increase energy efficiency of districts and of cities (IA) SCC2Developing a framework for common, transparent data collection and performance measurement to allow comparability and replication between solutions and best-practice identification (CSA) Other Actions Support to policy development and implementation of EPBD and EED Public procurement: studies, technical & legal assistance through Framework contracts and open call for tenders Concerted Action EPBD IV support for EPBD implementation

23 Other H2020 Opportunities Energy related activities overview document (once call launched) Possible cross-cutting themes in Societal Challenges e.g. Climate action, resource efficiency and raw materials Leadership in enabling and industrial technologies (LEIT) Nanotechnologies, Advanced Materials and Advanced Manufacturing and Processing (NMP) - Factories of The Future - Energy-efficient Buildings - Sustainable Process Industries (SPIRE) - Nanotechnology and Advanced Materials for low carbon energy technologies and Energy Efficiency Information and Communication Technologies (possible) - Energy Efficiency - Factories of The Future

24 Indicative Timeline Draft Energy Work Programme Nov/Dec 2013 European Information Day 5 th December webstreamed Calls th December 2013 Calls 2015 June/July 2014 (to be confirmed) EU Energy Focus support - Webinar programme Nov Support services on going basis - Factsheets e.g. partner searching, impact - Draft proposal review March 2014 Deadline for 2014 Calls expected Mar and June 2014 depending on type of action. June/Oct for SME instrument depending on phase. Dates tbc for topics under PPP.

25 EU Energy Focus Support Services Telephone and helpline 9am to 5.30pm Monthly bulletins and alerts to new information Website Factsheets Webinar sessions on H2020, Work Programme and proposal development Proposal clinics in person or conference call Proposal review service

26 EU Energy Focus Contact details

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