3. 5. 85 Official Journal of the European Communities No C 109/3 
II 
(Preparatory Acts) 
COMMISSION 
Proposal for a Council Regulation on the promotion, by the granting of financial support, of 
demonstration projects relating to the exploitation of alternative energy sources and to energy 
saving and the substitution of hydrocarbons 
COM(85) 29 final 
(Submitted by the Commission to the Council on 25 February 1985) 
(85/C 109/03) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 235 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Par­
liament, 
Having regard to the opinion of the Economic and 
Social Committee, 
Whereas, pursuant to Article 2 of the Treaty, the 
Community has as its task to promote throughout the 
Community a harmonious development of economic 
activities, a continuous and balanced expansion and an 
increase in stability; 
Whereas the more rational use of energy, by energy 
saving and the exploitation of alternatives to hydro­
carbons, should make an effective contribution towards 
the attainment of these objectives; 
Whereas, in its resolution of 9 June 1980 concerning 
Community energy policy objectives for 1990 and 
convergence of the policies of the Member States ('), the 
Council affirmed the need to step up efforts to save 
energy and reduce the Community's oil consumption and 
imports; 
Whereas, in the resolution of 25 July 1983, the Council 
approved the concept of a scientific and technical 
strategy for Europe, and in particular approved the 
objectives for Community research, development and 
demonstration activities as laid down in the Framework 
Programme 1984-1987 (2); Whereas, in its resolution of 15 January 1985 on the 
improvement of the Member States' energy-saving 
programmes (3), the Council took note of the 
Commission's intention to pursue its action in favour of 
the rational use of energy; 
Whereas the development of an energy strategy for the 
Community calls for an adequate level of investment in 
alternatives to oil as an energy source and in the more 
rational use of energy, together with the continuation of 
research, development and demonstration policies at 
Community level; 
Whereas, despite the present energy situation, there must 
be no slackening of efforts to save energy and diversify 
the Community's energy supplies; 
Whereas support for innovatory demonstration projects 
aimed at improving the efficiency with which energy is 
used and making use of alternatives to hydrocarbons as 
energy sources is still an important means of contributing 
to the attainment of the abovementioned objectives; 
Whereas the Community and the Member States have 
adopted research, development and demonstration 
programmes in the fields of energy saving and renewable 
energy sources; whereas a Community programme of 
support for demonstration projects in these fields must 
contribute to the wide dissemination of the results of 
these programmes; 
Whereas demonstration links the research and 
development stage, sometimes tested on pilot plant, and 
the later investment stage; whereas it differs from the 
research and development and pilot stages in the 
industrial scale of projects and the requirement that there 
be prospects of economic viability, and from the 
investment stage in that the inherent risks are still too 
high for entrepreneurs; 
0) OJ No C 149, 18. 6. 1980, p. 1. 
(2) OJNo C 208, 4. 8. 1983, p. 1. (3) OJ No C 20, 22. 1. 1985, p. 1. 
l^oCtO^ COfficial journal of the European Communities 3.^.^ 
whereas financial support should he granted^ after the 
research and development staged for suitahle 
demonstration projects^ in ^ie^of the considerahlerisks 
and investment ^hich the application of innovatory 
techniques might entails 
whereas support for such projects ^ill help to strengthen 
confidence in their execution and ^dll encourage 
^ replication of such projects within the Community^ 
whereas the execution of theseprojects couldresult in 
the development in the Community of industries 
possessing the relevant skills ^dth potential markets of 
some importance outside the Community^ 
whereas the granting hy the Community of the 
advantages envisaged must not adversely affect the 
conditions of competition inamannerincompatihle^ith 
the principles emhodiedinthe relevant provisions of the 
Treaty^ 
whereas those henefiting should undertake ohligations 
towards the Community in return for the advantages 
they are to he granted^ 
whereas the Community has already undertaken a 
Community demonstration programme in the fields of 
energy sa^ing^ alternative energy sources and suhstitution 
pursuant to Council Regulations ^EEC^ot^O^B^e^ 
t^EEC^ l^o t30^B^ ^ and ^EEC^ ^o l^^B^ t^ 
concerning the granting of financial support for projects 
to exploit alternative energy source and for 
demonstration projects in the field of energy saving 
respecti^ely^^hereas Regulation ^EEC^ l^lo l^^B^ is 
applicahleuntil^tPOecemhert^^^ 
whereas theCommissionhase^aluatedthisprogramme 
in reports ^hich it has suhmitted to the Council and the 
European RarliamentontheapplicationofthoseRegu 
lations^ whereas this evaluation should he continued and 
adapted^ taking account of the experience gained^ 
whereas a Regulation on the granting of financial 
support for demonstration projects relating to the 
exploitationof alternative energy sources^energy saving 
and thesuhstitution of hydrocarhons^ and a Regulation 
on thegrantingoffinancialsupportfor pilot industrial 
projectsanddemonstrationprojectsrelatinghothtothe 
liquefaction and gasification of solid fuels are hoth 
equally necessary andurgent toxoid an interruption in 
theprogrammes^hich^dllcontrihute^ in amultiannual 
context^to the implementation of the energy strategy of 
the Community^ 
^hereas^ hecause of technical differences het^een the 
projects concerned^theprogrammesmust he co^eredhy 
t^o separate Regulations^ 
whereas the freaty does not provide the powers 
necessary for this purposed 
^eoj^oLt^t^^ t^^DD ^^5A^eorr^or^^^^OLAr^^ 
Under theconditions laid do^n inthis Regulations the 
Community may grant financial support for 
demonstration projects relating to the exploitation of 
alternative energy sources andtoenergy saving andthe 
suhstitution of hydrocarhons^ as defined in Articled. 
t. Eor the purposes of this Regulations projects 
relating totheexploitationof alternative energy sources 
means projects to exploit any potential source of energy^ 
^dth the exception of nuclear energy. 
Eorthepurposesof thisRegulation^projectsrelatingto 
energy saving means projects ^hichin^ol^easignificant 
improvement in the efficiency ^ith^hich energy is used. 
Eorthepurposesof thisRegulation^projectsrelatingto 
the suhstitution of hydrocarhons means projects 
exploitingenergy processes ^hich replace hydrocarhons 
hased processes. 
^. Alist of the fields of application of this Regulation 
is gi^en in Annexlas regards exploitation of alternative 
energy sources^ in Annex 11 as regards energy saving and 
in Annex 111 as regards the suhstitution of hydrocarhons. 
The Commission may propose to the Council additions 
to the suhheadings in this list.The Council shall act hya 
qualified majority. 
1. All demonstration projects within the meaning of 
Articlesland^must satisfy the following conditions^ 
— they must relate to the creation of fulPsi^e instaP 
lations enahling alternative energy sources to he 
exploited or energy to he sa^ed or hydrocarhons to 
he suhstituted in significant quantities^ 
— they must exploit innovatory techniques^ processes or 
products or a ne^ application of techniques^ 
processes or products ^hich are already kno^n^ 
— they must he hased on completed research and 
development ^ork^ 
— they must offer promising prospects of industrial and 
commercial ^iahility^ 
— they must he such as to encourage the commercial 
development of the techniques process or products 
and they must envisage actions and means for 
replicating the same type of projects 
3.5.85 Official Journal of the European Communities No C 109/5 
— they should, as a general rule, be submitted by the 
persons or undertakings which produce the 
abovementioned techniques, processes or products; 
projects proposed by persons or undertakings which 
use these techniques, processes or products shall be 
taken into consideration only if such persons or 
undertakings enter into partnership with the persons 
or undertakings which produce the techniques, 
processes or products in question, 
— they must present difficulties with regard to finance 
because of the considerable technical and economic 
risks involved, to the extent that they would very 
probably not be carried out without public, national 
and/or Community financial support, and must be 
accompanied by a finance plan, 
— they should, in principle, be carried out within the 
territory of the Community. However, in so far as it 
is apparent that the execution (complete or partial) of 
a project in a third country, for example in a 
developing country, is consonant with Community 
interest, particularly on account of its special char­
acteristics, financial support may also be granted to 
such a project. 
2. Subject to the conditions set out in paragraph 1, the 
Commission may give favourable consideration to 
projects which 
— are the subject of cooperation between persons or 
undertakings from two or more Member States, or 
— offer particularly appropriate solutions with regard to 
protection of the environment. 
Article 4 
1. Financial support may be granted for a project as a 
whole or for the various stages of a project. 
Exceptionally and in duly justified cases where there are 
no feasibility studies known and available for similar 
projects, the feasibility study phase may, after the 
Advisory Committee referred to in Article 5 (3) has been 
consulted, also receive financial support. 
2. Support shall not exceed 49 °/o of the eligible cost 
of the project. The level of support shall be determined 
for each project individually, in accordance with the 
procedure laid down in Article 5. In determining the 
level of support, the Commission shall take account of 
other aid received or expected, so that the sum total of 
Community support and national support does not as a 
general rule exceed 49 % of the total cost of the project, 
and of the share of the risk which should be borne 
directly by those responsible for the project. Article 5 
1. Projects shall be submitted by persons or under­
takings or groups thereof within the Community 
following an invitation to submit projects published in 
the Official Journal of the European Communities in 
accordance with this Regulation. 
Projects may also be submitted by bodies involved, 
within the Member States, in the promotion of 
technological innovation in small or medium-sized 
undertakings. 
2. On the basis of the information provided by 
applicants in response to the invitation referred to in 
paragraph 1, the Commission shall assess projects in the 
light of the provisions of Article 3. 
The Commission shall first of all eliminate projects 
which do not satisfy the conditions set out in Article 
3(1). 
The Commission shall examine the content of the 
projects in relation to other Community programmes and 
shall avoid all duplication. 
3. The Commission shall decide whether to grant 
support for projects after consulting the Advisory 
Committee on the Management of Demonstration 
Projects, made up of representatives from the Member 
States. 
The Committee, which shall be chaired by a represen­
tative of the Commission, shall draw up its rules of 
procedure; the tasks of the Committee are set out in 
Annex IV. The Commission's decision shall be 
communicated to the Council and the Member States 
and to the European Parliament, for information. 
Article 6 
1. The person or persons responsible for the execution 
of a project in receipt of support from the Community 
shall undertake to exploit, or cause to be exploited, the 
successfully-demonstrated technique, process or product 
and to have the results disseminated. 
2. The Commission shall take appropriate measures 
with regard to the dissemination of the results so as to 
assist the person or persons responsible for the execution 
of a project in the commercial development of the succ­
essfully demonstrated technique, process or product and 
to encourage replication thereof. 
3. The Commission may require repayment of all or 
part of the financial support granted if the person (or 
persons) responsible for the execution of the project does 
not (do not) secure in appropriate fashion the 
commercial development of the successfully 
demonstrated technique, process or product. 
No C 109/6 Official Journal of the European Communities 3.5.85 
Article 7 Article 9 
1. The Commission shall negotiate and conclude the 
contracts necessary for the execution of projects selected 
pursuant to Article 5. To that end, it shall draw up a 
model contract available on request setting forth the 
rights and obligations of each party, any repayment of 
financial support granted and the procedures for access 
to and dissemination of information. 
2. The person or persons responsible for executing a 
project in receipt of Community support shall send the 
Commission, every six months or at its request, a report 
on the fulfilment of contractual obligations towards the 
Commission and, in particular, on the progress of work 
on the project and the expenditure incurred in carrying it 
out. 
3. The Commission shall have access at all times to 
the accounts relating to the project. It may have checks 
carried out on-the-spot and the basis of documents 
enabling it to follow the performance of the contract 
and, in particular, the progress made on projects and the 
execution thereof. 
4. Where the extent of Community financial support 
and the size of the project so warrant, the Commission 
may participate as an observer in meetings of the bodies 
responsible for the management of projects. 
Article 8 
All projects shall be the responsibility of a natural person 
or a legal person subject to the laws of the Member 
States. 
If the creation of a legal entity with the legal capacity to 
carry out a project involves additional costs for the parti­
cipating undertakings, the project may be carried out 
simply on the basis of cooperation between natural or 
legal persons. In that case, such persons shall be jointly 
and severally liable for the obligations resulting from 
Community support. The advantages granted by the Community must not 
adversely affect the conditions of competition in a 
manner incompatible with the principles embodied in the 
relevant provisions of the Treaty. 
Article 10 
A report shall be made by the Commission to the 
Council and the European Parliament on the application 
of this Regulation and on consistency between national 
and Community measures, to enable a better assessment 
to be made of the results. 
Article 11 
The amounts to be granted under this Regulation shall 
be entered each year in the general budget of the 
European Communities. 
The amount of appropriations estimated necessary to be 
granted under this Regulation totals 545 million ECU. 
That amount shall cover the financial support to be 
granted to the projects selected and the expenditure 
relating to the implementation of this Regulation. 
Article 12 
Regulation (EEC) No 1972/83 is hereby repealed. 
However, that Regulation shall continue to apply in 
respect of projects submitted in accordance with 
invitations to submit projects published pursuant thereto. 
Article 13 
This Regulation shall enter into force on the day 
following its publication in the Official Journal of the 
European Communities. 
It shall apply until 31 December 1990. 
This Regulation shall be binding in its entirety and 
directly applicable in all Member States. 
3.5.85 Official Journal of the European Communities No C 109/7 
ANNEX I 
EXPLOITATION OF ALTERNATIVE ENERGY SOURCES 
List of fields of application eligible under this Regulation 
The order of this list does not imply any priority. 
1. Biomass and energy from waste 
For the purposes of this Regulation 'demonstration projects relating to biomass and energy from 
waste' means projects which make it possible to derive energy directly or indirectly from any form of 
plant, animal, urban or industrial waste ('), or projects which in justified cases use plants specially 
grown for energy purposes. 
Projects in this sector must fall into one of the following two categories: 
Category 1: Projects making an innovative direct use of plant, animal, urban or industrial (') waste; 
or of plants specially grown for energy purposes. 
Category 2: Projects demonstrating innovative techniques for converting biomass and waste into 
derived fuels or chemical or biochemical products, and projects involving an innovative 
use of such derived products. 
2. Wind energy 
For the purposes of this Regulation 'demonstration projects relating to wind energy' means projects 
involving the centralized generation of electricity for supplying grids and decentralized applications 
for direct supply to users. 
Several identical wind energy plants cannot in general be supported within the framework of one 
project. 
Apart from the innovative nature of the projects, account will be taken, when assessing them, of the 
technical solutions chosen with a view to: 
— substantially reducing the investment costs, 
— exploiting to the full the available wind resources. 
In addition, special attention will be paid to environmental and institutional aspects (building auth­
orization, connection to the grid etc.). 
Fields of application 
2.1. Electricity generation 
2.2. Other applications. 
3. Geothermal energy 
For the purposes of this Regulation 'demonstration projects relating to geothermalenergy' means 
projects to exploit energy extracted in the form of heat from underground strata by means of 
drilling. Projects involving geothermal exploitation where the temperature of the geothermal water is 
below 30 ° C are normally excluded. Projects to exploit geothermal reservoirs about which little is 
known and projects using now techniques or technologies for underground operations and surface 
equipment are regarded as having priority. 
(') Excluding the types of waste covered in Annex III (solid fuels). 
No C 109/8 Official Journal of the European Communities 3.5.85 
Fields of application: 
3.1. Space-heating in new or existing residential, public or industrial premises and production of 
domestic hot water. 
3.2. Heating of greenhouses and agricultural premises; and in pisciculture and aquaculture. 
3.3. Use of heat for industrial operations, e.g. heating and preheating, drying, dehydration, 
concentration, heat treatment and other processes. 
3.4. Electricity generation. 
4. Hydro-electric power 
For the purposes of this Regulation 'demonstration projects relating to hydro-electric power' means 
projects exploiting low-power (below 3 000 kW) and generally low-head, hydro-electric resources in 
order to generate electricity for either the public supply grid or direct users in industry or agri­
culture. Such projects must be particularly innovative, involving, for example: 
on the technological side: 
— simplification and standardization for mass production, 
— use of new materials (moulded materials, resins, etc.), 
— improvement of turbine-speed regulation systems and/or alternator regulation systems; 
on the operating side: 
— application of control and management techniques (remote control, telemetry, micro-processors, 
etc.), 
— optimized exploitation of resources, e.g. through centralized management and multi-purpose 
projects (electricity generation, irrigation etc.), 
When assessing proposals in this sector, account will also be taken of how the projects match the 
environmental and institutional aspects (project authorization and the generation and transmission of 
electricity, etc.). 
5. Solar energy 
For the purposes of this Regulation, 'demonstration projects relating to solar energy' means projects 
in which solar energy is converted for thermal end-use by way of active or passive processes or 
technology or is converted by way of photovoltaic processes. 
Special attention must be paid to the environmental aspects of the installation and arrangement of 
solar collectors and photovoltaic modules. 
Combinations of different processes and storage devices may be envisaged for the same projects. 
Fields of application 
5.1. Thermal, active and passive 
Space heating, production of domestic hot water, air conditioning, and process heat for 
5.1.1. Buildings, 
5.1.2. Industry, 
5.1.3. Agriculture. 
In the case of active solar energy, preference will be given to advanced solar collectors, e.g. 
evacuated tube collectors. 
Solar-heated swimming pools are excluded. Where houses are for one-family occupation, the 
demonstration must be for groups of not less than five houses. 
The production of domestic hot water is accepted only in combination with the heating and/or air 
conditioning of buildings. 
3.5.85 Official Journal of the European Communities No C 109/9 
5.2. Photovoltaics 
Electricity generation to supply 
5.2.1. isolated applications, e.g. for houses, groups of houses, small villages, means of telecommunication, 
signalling devices, alarms, 
5.2.2. water pumping, desalination and other suitable industrial applications. 
ANNEX II 
ENERGY SAVINGS 
List of fields of application under this Regulation 
The order of this list does not imply any priority. 
1. Buildings 
1.1. Simple and economic technologies for upgrading the energy performance of existing buildings by 
demonstrating more efficient methods of heating/air conditioning for premises, production of 
domestic hot water, heat regulation, control and metering; techniques for improving the thermal 
characteristics of buildings (insulation, airtightness), techniques for recovering heat from extracted air. 
1.2. Demonstration of new processes or products for new buildings with a heated volume of 2 000 m3 or 
more, taking into account problems concerning condensation, ventilation, thermal inertia, and fire 
and safety regulations. 
2. Industry 
2.1. Technologies designed to alter the manufacturing process significantly with a view to reducing sub­
stantially energy consumption per unit of production under acceptable economic conditions. 
2.2. Projects using innovative technologies or new equipment with a view to: 
— reducing energy consumption by rationalizing an existing manufacturing process, 
— recycling residual heat, in particular by means of heat pumps. 
2.3. Project based on proven techniques where the combination of several such techniques constitutes an 
innovation and/or a new application of one or more known technologies presents particular risks. 
3. Energy industry 
3.1. More efficient methods of producing heat and/or electricity for collective use; methods exploiting 
residual heat in district heating concepts; demonstration of very large heat pumps. 
3.2. More efficient gas-distribution methods, e.g. by recovering expansion energy. 
4. Transports 
The projects, in all transport sectors, should enable appreciable energy savings to be achieved, and 
offer good prospects of replication, under acceptable economic conditions. 
No C 109/10 Official Journal of the European Communities 3.5.85 
ANNEX III 
SUBSTITUTION OF HYDROCARBONS 
List of fields of application eligible under this Regulation 
The order of this list does not imply any priority. 
For the purposes of this Regulation 'demonstration projects relating to the substitution of hydrocarbons' 
means projects which involve the use of non-renewable sources instead of liquid or gaseous hydrocarbons, 
without leading to a significant increase in primary energy consumption. 
1. Solid fuels 
The projects under this heading relate to new or improved technologies for the handling, transpor­
tation, combustion, treatment and storage of coal, lignite and peat and their waste products, taking 
into account environmental problems. 
Projects relating to the large-scale gasification and liquefaction of solid fuels with a view to the 
decentralized use of derived fuels fall under the term Regulation (EEC) No 1971/83 ('). 
1.1. New processes for solid fuel utilization: 
— fluidized beds under pressure or at atmospheric pressure, including those applied to small 
industrial installations, 
— mixtures of solid fuels with liquids, 
— processes integrated into the end-use cycle. 
1.2. Treatment, upgrading, disposal or use of gaseous, liquid and solid wastes produced during mining, 
handling and use of solid fuels. 
2. Use of electric power 
The projects in this field relate to new techniques for using electric power generated mainly from 
energy sources other than hydrocarbons. 
2.1. Demonstration, by manufacturers of industrial equipment, of new techniques using electrical energy 
for thermal, electrochemical and electromechanical applications. 
2.2. New types of accumulators. 
2.3. Demonstration of new methods of electricity demand management. 
3. Heat transmission, distribution and storage 
The projects in this field relate to the demonstration of new techniques for the transmission, distri­
bution and storage of heat produced mainly from energy sources other than hydrocarbons. 
3.1. Heat transmission over medium and long distances in industry and district heating systems. 
3.2. More efficient and more economic heat-distribution techniques. 
3.3. New heat-storage techniques (daily, weekly and seasonal accumulators) in industry and district-
heating systems. 
3.4. Demonstration of new demand-management methods in district heating systems. 
(l) O] No L 195, 19. 7. 1983, p. 1. 
3. 5. 85 Official Journal of the European Communities No C 109/11 
ANNEX IV 
Tasks for the Advisory Committee on the Management of Demonstration Projects (ACMDP) 
1. The ACMDP, comprising two representatives of each Member State, will meet in an advisory capacity 
to examine the projects for selection. The ACMDP will: 
(a) assist the Commission in the selection of projects on the basis of an opinion being given on each 
project submitted; 
(b) collaborate with the Commission to help ensure consistency between Community demonstration 
programmes and provide the necessary information on similar measures implemented nationally; 
(c) assist the Commission with a view to the periodic evaluation of Community demonstration 
programmes and provide the necesary information on similar measures implemented nationally; 
(d) cooperate with the Commission in helping to ensure an appropriate flow of information to those 
concerned with the demonstration programmes of both the Community and its Member States and 
the optimum dissemination of the results of these programmes. 
2. Furthermore, the ACMDP will be asked to meet at least once a year, so that it can discuss and issue an 
opinion. 
(a) annually, on the priorities and corresponding criteria to be determined for calls for tenders in the 
various energy demonstration sectors for the following year; 
(b) on measures to ensure the dissemination of information in order to achieve better consistency 
between Community and national demonstration programmes. 
(c) on the optimum dissemination of the results of these programmes. 
(d) on the periodic evaluation of Community and national programmes which has to be submitted, 
approximately every two years, to the Council and European Parliament. 
Proposal for a Council Regulation on the promotion, by the granting of financial support, of 
pilot industrial projects and demonstration projects relating to the liquefaction and gasification 
of solid fuels 
COM(85) 29 final 
(submitted by the Commission to the Council on 25 February 1985) 
(85/C 109/04) 
THE COUNCIL OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European 
Economic Community, and in particular Article 235 
thereof, 
Having regard to the proposal from the Commission, 
Having regard to the opinion of the European Parlia­
ment, Whereas, pursuant to Article 2 of the Treaty, the 
Community has as its task to promote throughout the 
Community a harmonious development of economic 
activities, a continuous and balanced expansion and an 
increase in stability; 
Whereas the Council resolution of 9 June 1980 (') 
defined the new energy policy objectives for the 
Community, which amount to an effort to reduce 
dependence on oil by reducing its consumption to a level 
of 40 % of gross primary energy consumption as a result 
of a more rational use of energy and greater diversi­
fication of supplies; 
Having regard to the opinion of the Economic and 
Social Committee, (') OJ No C 149, 18. 6. 1980, p. 1.