Proposal for a Council Decision adopting a specific research, technological development and demonstration programme in the field of non-nuclear energy 'Technologies for cleaner and more efficient energy production and use' (1994-1998) (94/C 228/11) (Text with EEA relevance) COM(94) 68 final - 94/0089(CNS)

(Submitted by the Commission on 30 March 1994)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 130 i (4) thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas, by Decision . . ./. . ./EC, the Council and the European Parliament adopted a Fourth Framework Programme for Community activities in the field of research, technological development and demonstration (RTD) for the period 1994-1998 specifying inter alia the activities to be carried out in the field of non-nuclear energy; whereas this Decision takes account of the grounds set out in the preamble to that Decision;

Whereas Article 130 i (3) of the Treaty specifies that the Framework Programme shall be implemented through Specific Programmes developed within each activity under the Framework Programme and that each Specific Programme shall define the detailed rules for implementing it, fix its duration and provide for the resources deemed necessary;

Whereas this programme will be carried out mainly through shared-cost activities, concerted activities and preparatory, accompanying and support measures;

Whereas, in accordance with Article 130 i (3), an estimate should be made of the financial resources needed to carry out this Specific Programme; whereas the final amounts will be decided upon by the budgetary authority in accordance with the relative priority assigned to the area covered by this programme within activity I under the Fourth Framework Programme;

Whereas Decision . . ./. . ./EC (Fourth Framework Programme) lays down that the overall maximum amount of the Fourth Framework Programme will be re-examined by 30 June 1996 at the latest with a view to its being increased; whereas, as a consequence of this re-examination, the amount deemed necessary to carry out this programme could increase;

Whereas the promotion of energy technologies, including the demonstration of those technologies and pursued by Regulation (EEC) No 2008/90 (1), ends on 31 December 1994, it is desirable to assure that the demonstration activities continue after this date;

Whereas the objective of the Community's activities in the field of non-nuclear energy must be to design and demonstrate efficient, cleaner and safer technologies to make energy production and use compatible with the balance of nature and with the various aspects of economic development (competitiveness and economic and social cohesion);

Whereas the employment situation in the Community and the competitiveness of the European industry may be substantially improved by the development and by a wider utilization of efficient energy technologies;

Whereas the Council resolution of 16 September 1986 stipulates that one of the horizontal objectives of the energy policy of the Community is continuous and reasonably diversified promotion of technological innovations and appropriate dissemination of the result throughout the Community; whereas, despite the current energy situation, the efforts to diversify the Community's sources of supply and to improve energy efficiency must not be relaxed; whereas RTD helps to achieve these objectives and to provide greater protection for the environment against the impact of energy technologies;

Whereas the Community's 1973, 1977, 1983 and 1987 action programmes on the environment stress the importance of reducing and preventing air pollution; whereas climate change is one of the central issues covered by the 1993 Community programme of policy and action in relation to the environment and sustainable development, which places the accent on the need for action in the relevant branches of the economy to limit emissions of CO2 and other greenhouse gases;

Whereas at its meeting in Dublin in June 1990 the European Council called for the earliest possible adoption of objectives and strategies to limit emissions of greenhouse gases;

Whereas RTD projects to harness the potential indigenous energy resources of individual regions, particularly of the less-developed regions, helps to strengthen the economic and social cohesion of the Community, an objective which, pursuant to Article 130 b of the Treaty, must be taken into account in the implementation of the Community's policies and of the internal market;

Whereas the present programme can contribute significantly to the economic growth, to the re-enforcement of the competitiveness and to the development of employment in the Community as stated in the White Paper 'Growth, Competitiveness, Employment' (2);

Whereas the content of the Fourth Framework Programme for Community RTD activities was established in accordance with the subsidiarity principle; whereas this Specific Programme sets out the content of the activities to be carried out in accordance with this principle in the field of non-nuclear energy;

Whereas Decision . . ./. . ./EC (Fourth Framework Programme) lays down that Community action is justified if inter alia the research helps to reinforce the economic and social cohesion of the Community and to encourage its harmonious development while at the same time meeting the objective of scientific and technical quality; whereas this programme is intended to help meet these objectives;

Whereas this programme will help to strengthen synergy between the RTD activities carried out in the field of non-nuclear energy by research centres, universities and enterprises, in particular small and medium-sized enterprises, in the Member States and between the latter and the corresponding Community RTD activities;

Whereas the rules for the participation of undertakings, research centres (including the JRC) and universities and the rules governing the dissemination of research results specified in the measures provided for in Article 130 j of the Treaty apply to this Specific Programme;

Whereas, in accordance with Article 130 m of the Treaty, it may be appropriate to engage in international cooperation activities with international organizations and third countries other than the countries covered by the EEA Agreement for the purpose of implementing this programme;

Whereas this programme also comprises activities for the dissemination and utilization of RTD results, in particular targeting small and medium-sized enterprises, and in particular those in Member States or regions which participate least in the programme, as well as activities promoting the mobility and training schemes for researchers within this programme to the extent necessary for proper implementation of the programme;

Whereas provision should be made for measures to encourage the involvement of SMEs in this programme, in particular through technology promotion measures;

Whereas basic research in the field of non-nuclear energy must be encouraged because of the particularly long lead time for energy technologies between discovery and characterization of a process or product and technical application of marketing thereof, plus the time to gain acceptance by the public at large and economic circles;

Whereas it is necessary, as the Fourth Framework Programme indicates, to assure the synergy between research and development and the demonstration and that the two phases of the RTD are integrated into the same energy RTD strategy on the Community.

Whereas an effective policy on non-nuclear energy must take account of the various regional dimensions and must be conducted in concertation with the Community policy instruments likely to affect the energy scene, such as the Structural Funds, international cooperation (including the Eureka programme) or regulatory and fiscal measures;

Whereas financial support should be granted, in appropriate cases, to projects to demonstrate advanced energy technologies;

Whereas the JRC may participate in the indirect activities covered by this programme;

Whereas the JRC will also contribute, through its own programme of direct activities, to the attainment of the Community RTD objectives in the areas covered by this programme;

Whereas an assessment should be made of the economic and social impact and any technological risks associated with the activities carried out under this programme;

Whereas progress with this programme should be continuously and systematically monitored with a view to adapting it, where apprpriate, to scientific and technological developments in this area; whereas in due course there should be an independent evaluation of progress with the programme so as to provide all the background information needed in order to determine the objectives of the Fifth RTD Framework Programme; whereas at the end of this programme there should be a final evaluation of the results obtained compared with the objectives set out in this Decision;

Whereas the Scientific and Technical Research Committee (Crest) has been consulted,

HAS ADOPTED THIS DECISION:

Article 1

A specific research, technological development and demonstration programme in the field of non-nuclear energy, as set out in Annex I, is hereby adopted for the period from (date of adoption of this programme) to 31 December 1998.

It covers both the research and technological development phase and the demonstration phase of the programme.

Article 2

1. The amount deemed necessary for carrying out the programme is ECU 967 million, including 5,3 % for staff and administrative expenditure.

2. An indicative breakdown of this amount is given in Annex II.

3. The amount deemed necessary for carrying out the programme, as indicated above, could increase as a result of and in accordance with the Decision referred to in Article 1 (3) of Decision . . ./. . ./EC (Fourth Framework Programme).

4. The budgetary authority shall determine the appropriations available for each financial year in accordance with the scientific and technological priorities set in the Fourth Framework Programme.

Article 3

Detailed rules for implementing this programme, in addition to those referred to in Article 5, are set out in Annex III.

Article 4

1. The Commission shall continually and systematically monitor, with appropriate assistance from independent, external experts, the progress within this programme in relation to the objective set out in Annex I. It shall in particular assess whether the objectives, priorities and financial resources are still appropriate. Where appropriate, it shall submit proposals to adapt or supplement this programme depending on the results of this monitoring process.

2. In order to contribute to the overall assessment of Community activity provided for in Article 4 (2) of the Decision adopting the Fourth Framework Programme, the Commission shall, in due course, have an assessment made by independent experts of the activities carried out in the fields directly covered by this programme, and of their management during the five years preceding the assessment.

3. At the end of this programme the Commission shall instruct independent experts to conduct a final evaluation of the results achieved compared with the objectives set out in Annex III to the Fourth Framework Programme and Annex I to this Decision. The final evaluation report shall be forwarded to the Council, the European Parliament and the Economic and Social Committee.

Article 5

1. A work programme shall be drawn up by the Commission in accordance with the objectives set out in Annex I for each one of the two phases of the programme: research and development and demonstration. This programme shall be updated where appropriate. It shall set out the detailed scientific and technological objectives and specify the stages in the implementation of the programme and the corresponding financial arrangements.

The work programme may also, where appropriate, include specific arrangements to improve interaction with the preparatory phases of certain Eureka projects.

2. The Commission shall issue calls for proposals for projects on the basis of the work programme.

Article 6

1. The Commission shall be responsible for the implementation of the programme.

2. In the cases provided for in Article 7 (1) the Commission shall be assisted, regarding the R& D programme, by an advisory committee consisting of representatives of the Member States and chaired by the representative of the Commission.

The representative of the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the Chairman may lay down according to the urgency of the matter, if necessary, by taking a vote.

The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its position recorded in the minutes.

The Commission shall take the utmost account of the opinion delivered by the committee. It shall inform the committee of the manner in which its opinion has been taken into account.

3. Regarding the demonstration part of the programme the Commission shall be assisted by a committee consisting of representatives of the Member States and chaired by the representative of the Commission.

The representative of the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion is by majority vote taken as laid down in Article 148 (2) of the Treaty for the adoption of the Council Decisions when called to take a vote at the request of the Commission. The votes within the committee are weighted according to the weights defined in the article above. The chairman has no vote.

The Commission shall execute the Decisions that can be implemented immediately. However, if they are not in accordance with the opinion expressed by the Committee, the Commission must inform the Council of these measures.

In that event:

The Commission may defer application of the measures which it has decided for a period of not more than one month from the date of such communication.

The Council, acting by a qualified majority, may take a different decision within the time limit referred to in the previous paragraph.

Article 7

1. The procedure laid down in Article 6 (2) shall apply to:

- the conception and setting-up of the R& D work programme referred to in Article 5 (1),

- the evaluation of the R& D projects proposed for funding by the Community and the Community contribution deemed necessary, whenever the cost of the project exceeds 0,5 MECU.

- the measures to be undertaken to evaluate the R& D programme,

- any changes to the indicative breakdown of the amount allocated as in Annex II regarding R& D not provided for by a budgetary decision.

2. The procedure laid down in Article 6 (3) shall apply to:

- the conception and setting-up of the work programme for the demonstration (including dissemination activities) as laid down in Article 5 (1);

- the selection of the demonstration projects proposed for funding by the Community and the Community contribution deemed necessary whenever the costs of the project exceeds 0,5 MECU.

- the measures to be undertaken to evaluate the demonstration part of the programme.

- all adjustments to the indicative breakdown of the amount allocated in Annex II regarding the demonstration programme which is not provided by a budgetary decision.

3. The Commission shall inform the committees, at each of its meetings, of the progress with the implementation of the programme.

In order to ensure synergy between the R& D and the demonstration activities, the two committees stated in Articles 6 (2) and 6 (3) shall meet jointly at the Commission's initiative, at least once a year, to discuss the strategy and common objectives and to ensure coherence in the implementation of the programme.

Article 8

The Commission is authorized to negotiate, in accordance with Article 228 (1), international agreements with European third countries with a view to involving them in all or part of the programme.

Article 9

This Decision is addressed to the Member States.

(1) OJ No L 185, 17. 7. 1990.

(2) Doc. COM(93) 700 final of 5. 12. 1993.

ANNEX I

OBJECTIVES AND SCIENTIFIC AND TECHNICAL CONTENTS

This Specific Programme fully reflects the broad lines of the Fourth Framework Programme, and applies the selection criteria and spells out the scientific and technical objectives set out in that programme. Paragraph 5 of Annex III (first activity) of the framework programme is an integral part of this programme.

BACKGROUND

The proposed agenda for energy RTD is built on the following main considerations:

The use of energy, its supply, its trade and technologies relevant to all these aspects are interacting in a unique and complex manner and are a determinant factor for economic growth, quality of life and the environment in a modern economy. Energy security in the broadest sense, i.e. the one assuring reliable energy services at affordable cost and conditions is the main reason for concern and must provide the principal motivation for supporting RTD at an European level.

The growing concern regarding the environment due to the production and use of energy (contribution to greenhouse effect emissions of polluting gas and other harmful emissions, safety, noise) and the public acceptance are today the main driving force for change.

Finally, technology although it is vital, it is not by itself enough. Therefore an effective RTD policy must consider the complete cycle embracing research, development, demonstration and diffusion of knowledge, the introduction of technologies in the market and the behaviour of the economic operators. It must integrate the different regional dimensions (local emissions, trans-frontier pollution, and global pollution) and must build on concertation with other Community instruments and policies likely to affect the energy scene, such as energy policy, transportation policy, agricultural policy, structural funds, international collaboration (including Eureka) and fiscal measures.

As stressed in the White Paper 'Growth, Competitiveness, Employment', the RTD should also favour the actions leading to the creation of jobs, which would be guaranteed, particularly by the strengthening of the competitiveness of the European industry.

In this sense, Community action of energy RTD could become an important driving force for economic development in general.

Indeed, there is an increasing awareness that economic development is no longer a matter of only single enterprises or sectors, but rather a set of global projects of society as a whole.

One of them is to assure sustainable energy supply for all compatible with environment and with the operation of society. This is a global challenge that must be supported if conflict is to be avoided.

The Community RTD action addresses the following distinct areas:

- improved conversion and use of energy;

- introduction of renewable energies into Europe's energy systems;

- safety of nuclear energy;

- pursuit of thermonuclear fusion as a long-term option.

Regarding the demonstration phase, the first area will specifically distinguish between the rational use of energy from the conversion and production of fossil-fuel energies.

The present programme proposal addresses the first two areas, together with a specific research activity which supports Community action in the inter-disciplinary areas of energy-environment-economy. Strategic analyses will tackle medium and long-term issues from the technological and socio-economic aspects viewpoint; they will consider energy and environmental specificities of EC countries and regions, but also of other regions of the world (developing countries and, in particular, central european countries).

The other two lines of action on nuclear fission safety and on nuclear fusion are covered by separated specific programmes.

THE PROPOSED RTD ACTIVITIES

A RTD Community strategy will be set up in order to assure the integration and coherence of all activities with the energy RTD programme. The proposed RTD activities will be deployed along two distinct phases: The R& D phase and the demonstration one. They are presented below following this structure. An activity to support the strategy effort will complete the two phases.

In order to support the technological action, specific activities for the definition and implementation of a global strategy for energy RTD will be developed within the frame of the programme. This requires the introduction of social-economic research, connected with the utilization of energy as well as the development and application of new models for the analysis of scenarios consistent with the evolution of the energy scene in the medium to long term; such initiatives will allow the improvement of our knowledge on the interactions between energy, environment and economical growth and the analysis of the impacts of the energy RTD strategy. The projects adopted along these research lines will be designed in a manner as to harmonize results across the Community and to enable international comparisons. Furthermore, care will be taken to ensure the extension of their applicability (given the appropriate adaptations) to less developed countries, eastern Europe and the CIS.

Networks of experts will be maintained or established in all Community Member States and close links with international organizations and third countries will be instigated in order to ensure the coherence of methods and approaches.Furthermore, additional efforts would include additional support and accompanying measures, among others:

- studies concerning the behaviour of economic agents in order to achieve a better understanding of the reasons which favour or hinder market penetration of a large number of cost-effective energy technologies; these studies will be completed by market analyses and technological studies in order to facilitate the penetration of new energy technologies into the market;

- evaluation of technologies, in the more general context of political and economic instruments, accelerating their diffusion into the market; in this connection, 'social' cost-benefit analysis, associated with the elaboration of various forms of energy, (possibly) forming a part of an European 'green accounting' framework) would help to improve the definition of such instruments; the development of RTD policy instruments capable of influencing the evolution of the use and supply of energy, including the public acceptance for innovative technologies, would originate from such an action.

Further these efforts will aim at the dissemination of knowledge, in terms of RTD, and of these technologies as well as to the industrial cooperation with Third World Countries.

In addition, in these areas of competence complementary actions will be carried out by the JRC, especially in section 1.7: Energy savings in industry and buildings, section 2.2: Solar photovoltaic electricity and section 2.3: Buildings here stated (1).

RTD activities will include both research and development, demonstration and dissemination actions. The work planned in either categories will of course depend on several criteria, which will be weighted differently depending on whether one adopts the R& D or the demonstration viewpoint.

In this sense, research and development actions will be highly selective. Therefore, projects with a high potential for playing a true catalytic role at an European level in the fields considered as strategic for the energy security, with environment as the main driving force, will be favoured.

Demonstration actions are closer to the market and, so, they will be more diversified: they are the extension of the RTD efforts carried out by the private sector or the public sector at the Community level in the Member States. They aim at supporting more directly the different aspects of the energy policy (particularly those of the security of supply). They will be formulated such that the whole RTD substantially contributes to the re-enforcement of the competitiveness of the European industry (SME included) and to the economic and social cohesion. This will be achieved through the development of regional and local resources.

Different technologies (particularly the combustion, the gasification, the storage) have a generic character useful for both fossil fuel and renewable energies. So, it is crucial to ensure the joint development of these technologies to be used for all the energetic sources and sectors.

These will enable the establishment of pilot or demonstration plants of common interest (e.g. advanced integrated gasification processes, which are usable for as well the combustion as the solid fossil fuel or biomass . . .); and it will help the introduction of renewable energies into the energy system.

This joint development action will enable an efficient mobilization of the entire programme ressources in obtaining the global allocation of the amount, indicated in Annex II (60 % towards renewables, 40 % for the other activities of RTD).

A. RESEARCH AND DEVELOPMENT

1. Improved conversion and use of energy

The world energy economy is predominantly fossil-fuel based and it is likely to remain so for a long time. This is particularly true for coal where worldwide reserves will guarantee several hundred years of supply. Natural gas is continuing its penetration in the energy market, but its transport from distant places (i.e. North Africa, North Sea, Siberia) in gas form makes it a severe handicap to its utilization.

A major problem for fossil-fuels use is the emission of CO2 and other pollutants. So, the Community action should, as a matter of priority, provide guidance and incentives to reduce pollution emission and to increase the efficiency of energy conversion and use.

R& D in this section addresses the improvement of coal and hydrocarbon-based energy conversion systems, the development of new energy systems, energy savings in the demand sectors, energy storage and the more efficient exploration of indigenous resources of hydrocarbons.

In addition to these specific activities of R& D, an integrated approach will be sought for the application of clean and efficient energy technologies in the relevant sectors, such as in building, industry and transport. Since transport is the energy sector where energy demand has shown strongest growth, the energy-transport system will receive particular attention and it is envisaged that it will include an integrated project on urban transport.

1.1. Clean coal technologies

The main objective is to make coal-fired power production cleaner by reducing CO2 and other greenhouse gas emissions and, in doing so, reducing harmful gaseous emissions into the atmosphere, rendering the solid residues more neutral and consuming less coal for the same amount of electricity through improved efficiency or partially replacing coal by 'CO2-neutral' fuels (biomass and wastes) at acceptable costs.

Work will be carried out on processes intended to penetrate the market in the short, medium and long term. The short-term option aims at improving conventional power plants to efficiencies above 40 % with reduction of all pollutants, even with coal/biomass/waste blends. The medium-term option aims primarily at IGCC (integrated gasification combined cycles) processes with efficiencies above 45 % and further reduction of pollutants. The long-term option aims at the development of the after 'IGCC generation' processes (efficiency higher than 50 %).

The current programme 'coal' consists of all the solid fuels, linked to coal, such as oil, lignite, peat, orimulsion and other heavy fuels produced by the refineries. These fuels can be used in separately or in combination with biomass, urban, industrial or agricultural waste, on the condition that the missions remain at the same level and that the main component remains a solid fuel. Furthermore, synergies between solid fuels and natural gas processes will be considered.

The research and development projects will include:

- development of integrated gasification combined-cycles and advanced (pressurized) and atmospheric combustion processes (supercritical-steam cycles or combined-cycles) for higher efficiencies and increased abatement of pollutants (either at the source or in flue gases) including hot-gas cleaning and novel processes;

- development of processes for the combined gasification (or combustion) of coal with biomass, industrial, municipal or agricultural waste, which could entail a 10-20 % reduction in CO2 emissions, this action would be linked to those mentioned in section 2.5; careful control of all emissions and residues. The development and evaluation of methods for CO2 capture and disposal will be carried out in collaboration with IEA's Greenhouse Gas R& D Programme.

- research for the integration of high temperature materials into advanced systems (rather than on the materials themselves).

- integration of fuel cells using a gas from solid fuels in combined cycles (demonstration on existing fuel cells in the framework of RTD as mentioned in section 1.3);

R& D will be implemented through integrated or targetted projects. The main objective will be to set up an European network of excellence to ensure an efficient application and utilization of the best available coal technologies. In the course of the programme, cooperaton activities will be established in particular with eastern Europe and China.

1.2. Combustion

A generic research action on combustion will be introduced to bring about significant advances in energy efficiency and pollution abatement of combustion processes. The research work will address fundamental and generic research such as: basic research to identify causes of pollutant formation, modelling of combustion processes and systems, diagnostic equipment, improvement of systems, and treatment of exhaust gases, etc.

The technologies to cover, by means of a generic approach, include internal combustion engines, including the use of alternative fuels, gas turbines, combustion and gasification of coal and biomass and combustors for stationary applications in buildings and industry.

This action will be carried out as a cooperation between major European manufacturers, oil companies utilities and uses with a view to ensure technology transfer from the research community to the users. This action will take into account the EPEFE (European Programme on Engines, Fuels and Emissions) project - mentioned in paragraph 1.5 - launched by the Community in collaboration with European oil and car manufacturer associations.

1.3. Fuel cells

The work on fuel cells (FC) will focus on complete systems and pilot plants for different applications (electricity production, co-generation, road traction, ships and trains) by addressing the following topics:

- stationary applications (particularly co-generation in buildings and industry): development of 200-400 kW systems with solid oxide (SOFC) and molten carbonate fuel cells aiming at 55-60 % efficiencies, 1 500 ECU/kW long-term costs and 10-100 times emission reduction of No compared to gas turbines and diesel engines. For cogeneration in buildings, SPFC systems will be developed. The phosphoric-acid, solid polymer and molten carbonates technologies will be subject to pilot plants in connection with demonstration, with a view to open the market for stationary applications.

- road traction (electric): development of the solid polymer fuel cell (SPFC) for electric vehicles. The goal is a fuel cell with an efficiency of 45-50 %, a cost of 100-200 ECU/kW in the long-term and 100-1000 times less pollutant than conventional systems. This development will be closely linked to R& D on the production of fuels, such as hydrogen or methanol. Road transport and in particular buses, (where cost-effectiveness can be shown) and co-generation in buildings and industry, will be subject to pilot plants, in connection with demonstration.

A support activity is also planned to develop clean and efficient fuel processors to transform natural gas, methanol and heavy oils (reformers) or coal (coal gasifiers) into hydrogen. The key issues will be their integration with the fuel cell, optimization of energy efficiency and pollutant emission for the whole system and extraction of remaining pollutants with different separation methods. The extension of fuel cell research to electrolyzers should lead to the clean and economical production of hydrogen (an electrolyzer is the inverse of a fuel cell and basic research is similar). SOFC technology may lead to high temperature electrolyzers producing electricity with 30-40 % savings over conventional electrolyzers. As a spin-off, the work planned for SPFC could enable us to obtain the solid-polymer electrolyzers also very economically.

1.4. Energy storage

Energy storage is a common requisite to many fields including transport, load levelling, renewable energy, electronic equipment, etc. The present programme will focus on electricity storage by giving priority to transport (also in support of the activities foreseen by section 1.6). Emphasis will put on the more promising batteries such as those based on lithium polymer or those based on nickel metal hydrides in order to substitute NiCd batteries which contain toxic substances. The standardization of battery test procedures will be investigated within a network of battery and car manufacturers. Other forms of energy storage such as flywheels, super-capacitors and heat storage will also be explored.

1.5. Hydrocarbons and new fuels in transport

In this area, emphasis will be on the development of clean transport fuels by improving the efficiency of fuel reformulating processes. The work will concentrate on the catalytic conversion of natural gas into liquid fuels (and fuel additives) which have a higher added value and can be more easily transported. In this context, we will consider the global socio-economic impacts and the security of supply, related to the utilization of alternative fuels such as the methane.

Given the increased need for light products and the subsequent reduction in the demand of heavy oils, R& D efforts may be pursued on the catalytic conversion of heavy oil fractions. The utilization of alternative fuels including hydrogen and mixes will also be investigated. Work will continue on the establishment of the relationships between fuel quality, engine technology and emission of pollutants and this mainly within the framework of the EPEFE project, previously mentioned in paragraph 1.2.

1.6. Energy optimization in urban transport

Sections 1.2 and 1.5 address a range of themes related to transport. These activities together with others arising in other lines will be integrated into a coherent urban transport action in close collaboration with the activities of integration developed within the specific programme 'Research for a European transport policy'. In the context of sustainable mobility under the best environmental, energy efficient and social conditions this will help provide technical solutions to specific transport problems and support the rationale on which to base urban transport policy decisions.

Research and development will address the integration of systems for energy strorage, conversion, transmission, and management for guided and unguided vehicles. This will include consideration of chemical, kinetic and electrical energy storage systems; energy converters such as multi-fuel internal combustion engines, fuel cells and hybrid energy converter concepts.

From an energy viewpoint, the investigation of a broad range of generic technologies such as, combustion modelling and simulation, computer controlled energy management systems, development of alternative battery technologies, improved transmission and regenerative braking systems and energy consumption and local consumption atmospheric pollution models will be crucial to enable progress in many of these research areas.

Optimizing available capacities will also require the application of state of the art telematics to traffic management and control, and transport information systems. The results of the feasibility studies will enable the application areas to be identified for which the different propulsion systems are best adapted, and to define the strategy to pursue the research, either to demonstrate proof of concept, or in the case of more mature technologies, the definition of full-scale demonstration projects in connection with the demonstration activity.

The diffusion of the technologies tested in selected locations in the Community should also be extended to cover the entire European market.

1.7. Energy saving in industry and buildings

The mechanisms aimed at improving the economics of energy in the industrial and building sectors are not limited to technology alone, but are also dependent on a series of obstacles and distorsions of social, economical and legal character or on the behaviour of consumers, which should be better understood. Moreover, the technological research indicated below will be followed by socio-economic research, in the same line of action of the Energy RTD strategy. These actions may take the form of integrated projects in a wider sense, i.e. including the concrete experimentation of economic instruments together with the introduction of new technologies.

In industry, R& D will focus on a limited number of generic technologies that are of major importance for energy, environment and possibly water resources, for example process integration and new process routes, heat exchangers (e.g. fouling), separation processes, such as membrane, extraction, crystallization and absorption, stationary combustion equipment (as in paragraph 1.2) integrating solar energy. Projects on more efficient use of electricity would also be considered. Agricultural related engineering will also be examined with regard to energy efficiency and pollution aspects. The participation of industry will be strongly encouraged.

Within the building sector, priority will be given to 'system' approaches and these will be carried out closely to the ones regarding renewable energies in buildings indicated in section 2.3. In terms of R& D, these approaches will aim at a rational and efficient use of fossil fuels and electricity. They will include research on the 'smart' buildings, on heat pump systems, etc. Pre-normative type of work will also be considered.

In addition, RTD will focus on the development of integrated energy concepts for both industry, buildings and agriculture, in particular cogeneration (including small CHP units of G 10 KWe) and other systems (equipment systems including turbines, fuel cells, Diesel engines, heat pumps, batteries, etc.).

Particular attention will be given to the more efficient end use of electricity in both buildings and industry, including better transportation, distribution and storage of energy. R& D will be targeted to integrated projects using advanced technologies; more conventional technologies will be taken into account in the demonstration phase. Technical and non-technical barriers for decentralized energy production will also be investigated.

These actions could be adapted having in mind their application in the developing countries, PECO's and CIS. In addition, this would also include results obtained in other programmes, related to RTD.

1.8. Exploration and production of hydrocarbons

R& D actions will address medium to long-term issues with the aim of improving the exploitation of hydrocarbon fields and underpinning the European industrial technology base.

The research will focus on:

- development of efficient technologies leading to improved reservoir characterization and management and to more accurate prediction of reservoir production;

- sedimentary basin analysis and three-dimensional modelling to give a better description of basin formation and geo-historical evolution;

- identification of both smaller and more complex deep structures using advanced geophysical and geochemical exploration methods;

Furthermore, it is planned to follow concerted research action on Earth Science. This action will provide not only the information needed for the exploration of hydrocarbons, but it would also improve considerably the scientific knowledge base of other research programmes such as the one of geothermal energy in dry rock, storage of radioactive waste, raw materials or on the exploitation of marine resources.

2. Renewable energies

Renewable energies, in their new and modern form which go beyond the classical usages of hydraulic power and wood for heating, are far from having realized their full potential because they lack development. Nevertheless, these clean and indigenous energy sources appear as the best adapted to combat the greenhouse effect and to contribute to long-term energy security. As sources of technological innovation, they could be instigators of new industrial activity and employment at all levels, especially in the less-favoured regions of Europe. In addition, because of their decentralized nature, they are much more accessible to the layman. In the framework of international cooperation, the renewables will also have an important role to play in ensuring that the Third World, which will become the largest energy consumer, does not also become the greatest polluter. Considering the association between quality of life and social impact, they are probably the only sources which will in future allow a sustainable increase in energy consumption, based on total economic growth, while respecting the environment.

The activities of this chapter will be carried out in close conjunction with those of the chapter on 'Improved conversion and use of energy' (in particular combustion, storage, fuel cells, energy savings in buildings) which have a direct interest in obtaining the technical and economical objectives regarding the introduction and utilization of renewable energies.

The current programme foresees a new dimension for the renewable energies which will permit the introduction of new resources on a significant scale into the European energy system. With this aim, an appropriate strategy will be adopted in order to concentrate for the short to medium term the effort on an ambitious but realistic objectives.

In this line of action, the accent will be put on state-of-the-art R& D, except in a few cases, still far from the market. Research and Development activities will be undertaken in order to obtain priority goals with scientific, technological and industrial character. A link will be established with non-technologic instruments in order to reduce legal and administrative obstacles. More emphasis will be devoted to investigation of those policy instruments which will be required for the introduction of renewable energy including socio-economic research, planning and training (in the framework of support actions to the RTD Energy Strategy).

The financial efforts should be concentrated on the following priority areas:

2.1. Development of technological integration of renewable energies

This new initiative will be aimed at easing the integration of renewable energies from the technological point of view by taking into account economic and social aspects.

In many ways, the renewable energies involve activities across all sectors of society. Multidisciplinary activities will be initiated among the professions concerned, researchers, industrial groups and future users, to ensure accelerated deployment on as large a scale as possible. Special emphasis will be put on the integration of renewable energies into future energy systems as well as into the rural setting and large-scale integrated projects such as the development of electricity production from renewable energies. The impact of renewable energies will be studied in depth, especially in the areas where they will be developed, such as regions and towns, agriculture and industry, distribution networks; the impact on society and other dimensions will also be analyzed. Development agreements and specific and sectorial programme actions will be arranged by means of networks, several of which will be linked in a 'major network for the development of renewable energies'. It will include among others thematic sub-networks, major European electric utilities, leading architects and building engineers, specialized research centres, pilot towns, regions and islands.

Integration with the Third World and with eastern Europe will equally require a specific effort to adapt the technologies, prepare their transfer and support European industry for future export markets.

2.2. Solar photovoltaic electricity

The accent will be put on a 'three stage' vertical approach which will consist first on the continuation of research into crystalline or thin film solar cells, drawing together industry with university and para-university research laboratories.

Other efforts will be devoted to accelerated industrialization of cells and modules. This is a new Community initiative to support RTD in industry, especially SMEs, relative to the aspects of precompetitive development engineering, flexible industrial processes and very large volumes.

Finally, the development and demonstration of pilot photovoltaic systems will be accelerated, in order to reduce costs and improve performances and the reliability of equipments. The testing and calibration of the new photovoltaic modules and systems will take place at the JRC in order to enable the elaboration of European norms and specifications regarding their utilization by producers and users. Complementary actions will be carried out by the JRC in close collaboration with the national laboratories.

2.3. Buildings

The best approach in this sector is also vertical and as far as R& D is concerned, it will consist in the pursuing the efforts on components and integration procedures for active and passive solar, natural lighting and others. The research will be pre-normative but oriented towards the possibilities of standardization.

At the second level, the work on development of pilot buildings will be followed up, with the essential criterion of energetic aesthetic and architectural success. A new aspect in this context will be the development of bio-climatic habitat and the energy renovation of existing buildings.

Finally, a modern urbanization scheme will be developed in harmony with the specific needs of energy, architecture and social organization with a new integration of work, life and leisure in the town. This development should promote new pilot clean urban districts with minimum emissions. This last level of activities will best be implemented as a concertation with the networks of towns, regions, experts in solar urbanization and architects.

These actions will take place in a complementary and coherent way to the ones regarding the rational use of energy in buildings as stated in section 1.7.

2.4. Wind

The activities will be vertically integrated as follows: first, new materials and components will be developed, particularly blades in advanced composities. Then, after completing the development programme for the current generation of wind turbines, a programme will begin on the development of a new more powerful generation exceeding 1-2 MW and using new ultra-light blades and other novel components. Highly innovative wind turbines of smaller sizes could also be considered.

Finally, the programme will aim to promote alternative installation sites, especially 'off-shore' in complex terrain and those with lower wind regimes.

2.5. Biomass

This sector is particularly important for R& D actions and for their links with the environment and the regional and rural development. An integrated biomass-bioenergy approach is necessary to assure the coherence and the pertinence of the Community R& D activities regarding the whole bioenergy chain in its technical and non-technical dimensions. Those included are, for instance, the aspects of energy balance, the cost-efficiency factor, the impact of national policies, etc., the combined production and treatment of basic agricultural products, utilization and conversion of these materials for the production of energy.

This strategic action will be implemented in conjunction with the AIR and TEPE programmes. The agro-industrial programme will concentrate on the production of basic materials, the know-how and their treatment, while the energy programme will focus on the conversion and utilization of solid biomass, in particular, on the utilization of new fast growing forestry, agricultural products or waste which will provide the basis for a second activity, leading to thermal conversion to liquid, gaseous and solid fuels or directly to heat. Urban, agricultural and industrial waste and waste from woodlands will be considered in connection with activities described in section 1.1.

Furthermore, pilot projects will be developed, notably for decentralized production of electricity using high performance generators (engines and turbines).

In addition, the production of pyrolytic oils will also be pursued, together with their conversion to marketable fuels.

2.6. Geothermal energy

The remaining element of geothermal energy R& D which merits continuing support on a European scale is hot dry rock. Work will be focused on the support of a single European pilot plant that could provide the basis for a demonstration prototype at a later stage. The activities linked to the conventional geothermal energy will be treated in the demonstration phase.

2.7. Other options

Some concerted actions could be undertaken on different families of renewable energies which are at different stages of development. These could cover wave and tidal energies, micro-hydro, solar thermodynamics, clean production and use of hydrogen and others. Technologies associated with renewables will also be considered, notably storage of thermal or electrical energy.

B. DEMONSTRATION (including dissemination and valorization)

Demonstration activities including dissemination and valorization, will concern three areas: rational use of energy, renewable energy sources and fossil fuels.

1. Rational use of energy

Rational use of energy covers action on energy efficiency on the demand side of the energy sector. Reducing energy consumption and stimulating market penetration of innovative efficient and clean technologies is vital in reducing dependency on external supply of energy products, and improving the impact of the use of energy in the environment.

As well as specific demonstration activities, an integrated approach will be followed for the application of clean and efficient technologies in such sectors as buildings, industry and transport. Transport is the sector whose energy demand is growing the most, therefore the energy-transport system will receive particular attention.

Community activities in this area will cover the following four areas:

Energy efficiency in buildings;

Energy efficiency in industry;

Energy industry, electricity and heat;

Transport and urban infrastructure.

1.1. Energy efficiency in buildings

The objective is a substantial reduction in both energy consumption and CO2 and other atmospheric pollutant emissions in new large building stocks in the residential, commercial or public sectors through technical and economic improvements and efficient management and control systems.

Activities will include low energy design, optimized materials and components, integrated load management for heating, cooling and electric consumption and optimized electric and HVAC equipment with efficient integration of renewable energy systems where possible.

Activities will also cover retro-fitting of large commercial or public buildings and residential building stocks. Preference will be given to standardized and modular components and special consideration will be given to architectural integration systems.

1.2. Energy efficiency in industry

The objective is to reduce the specific energy consumption per unit of production or to increase the productivity at equal energy consumption in order to increase the competitiveness of European industries or lead to new products.

Actions will cover demonstration of innovative technologies to improve or replace the manufacturing processes leading to a substantial reduction in the energy consumption of the product; to an improved exploitation of residuals or waste heat, to restrict or prevent an increase in energy consumption as a result of the implementation of environmental protection.

1.3. Energy industry, electricity and heat

The objective is to increase the efficiency in the transformation of primary energy into heat and/or electricity as well as the transport and distribution of useful energy.

Activities will cover demonstration of new production cycles, more energy-efficient methods of managing the networks for the transport, distribution and storage of energy and improvement of condensation systems.

1.4. Transport and urban infrastructure

The objective is a substantial improvement in the overall energy efficiency of public transport systems, a more coherent transport management and an increased awareness of public transport.

Actions will include traffic management and control techniques; including advanced information systems for users, improved modal interchange infrastructure, efficient public transport vehicle fleets in urban areas and complementary measures to promote a shift from private to public transport. Activities will also cover energy efficiency improvements on new type of traction systems for vehicle using alternative or conventional fuels.

2. Renewable energies

Renewable energies, in their new and modern forms which go beyond the classical usages of hydraulic power and wood for heating, are far from having realised their full potential because of lack of development.

Nevertheless, these clean and indigenous energy sources appear to be best adapted to combat the greenhouse effect and to contribute to long-term energy security. As sources of technological innovation, they could be instigators of new industrial activity and employment at all levels, especially in the less-favoured regions of Europe. In addition, because of their decentralized nature, they are much more accessible to the layman. In the framework of international cooperation, the renewables will also have an important role to play in ensuring that the Third World, which will become the largest energy consumer, does not also become the greatest polluter. Considering the association between quality of life and social impact, they are probably the only sources which will in future allow a sustainable increase in energy consumption, based on total economic growth, while respecting the environment.

The present programme foresees a new dimension for the renewable energies which will permit the introduction of new sources on a significant scale into the European energy system. With this aim, an appropriate strategy will be adopted in order to concentrate the effort on ambitious but realistic objectives for the short to medium term.

In this line of action, the emphasis will be on targeted demonstration ventures in order to achieve in the short and mid term significant energy objectives.

Integration with the Third World and with eastern Europe will equally require a specific effort to adapt the technologies, prepare their transfer and support European industry for future export markets.

Demonstration actions in the field of renewable energies will cover all renewable energy sources, where appropriate in association with other community actions, in order to stimulate the market and to achieve agreed energy objectives.

To this effect, the activities of this chapter will be carried out in close conjunction with those of the chapter on 'Rational use of energy' and 'Fossil Fuels' (in particular co-combustion, production of electricity and heat, storage, fuel cells, energy savings in buildings) which have a direct interest in obtaining the technical and economical objectives regarding the introduction and utilization of renewable energies.

Financial support will focus on the following priority areas:

Energy from biomass and waste;

Solar energy;

Wind energy;

Hydroelectric energy;

Geothermal.

2.1. Energy from biomass and waste

The objective will be to reduce harmful emissions and the costs of electricity generation, improve realibility, promote the broader use of known technologies, improve their application and integration, increase their competitiveness and reduce their cost.

Demonstration activities will concentrate on energy production from solid biomass as a fuel, production, substitution and/or energy savings from municipal, industrial, agricultural, animal and forestry wastes, and the reduction of costs for providing the energy produced from biomass.

2.2. Solar energy

2.2.1. Photovoltaics

Activities will cover in particular the large scale commercialization of remote stand-alone PV-applications and grid connected PV-systems, and will involve electricity utilities and other key players.

2.2.2. Thermal applications

Activities will cover the production of large quantities of hot water (or other fluids) for heating and/or cooling applications and the production of large quantities of hot air for ventilation or drying applications.

2.3. Wind energy

Activities will concentrate on the demonstration of technologies which will improve performance, efficiency, reliability and achieve cost reductions. The maximum exploitation of wind potential will be achieved by the largest application of medium sized wind turbines, offshore wind farms, especially design machines for low wind potential, new application in individual installations or in wind farms of larger sized machines (> 1 MW).

2.4. Hydroelectric power

Activities will cover design and construction, materials or methods of operation and control of new technologies. Industrial initiatives to produce high quality, reliable and competitive standard equipment and to perfect simple, reliable and cheap techniques or technology will also be promoted, espacially those adapted to the markets and needs of countries whose development is lagging behind. The rehabilitation or modernization of abandoned sites or those which are approaching the end of their technical or administrative lives, by the use of high performance of state-of-the-art technologies, will also be covered.

2.5. Geothermal

Activities will cover improvement of the techniques in the drilling sector, well-head equipment, corrosion, scaling, automation and the treatment systems for brine waters, the exploitation of geothermal fields where the resources are proven, and the development of geothermal applications in agriculture and aquaculture.

3. Fossil fuels

The use of fossil fuels dominates the world economy of energy.

Also, in the Member States of the European Union, the consumption of fossil fuels, as coal, petroleum and natural gas, represents, at present, 82 % of the global consumption. This part will grow regularly in the coming decades, with some variations among the different sources of energy.

The natural gas, for example, will continue its penetration into the European market, even if its transportation over long distances (Africa, Siberia, North Sea) under liquid form (LNG) or as gas, has a number of technical and economic constraints.

The petroleum share, on the other hand, will grow very slowly but constantly over the coming years. This increase will take place, essentially in the transport sector. As for coal, for which the world-wide reserves are sufficient for some centuries, its contribution will be maintained over the years in spite of the environmental constraints linked to its utilization.

One of the critical problems related to the use of fossil fuels is the CO2 emissions and other pollutants. From this fact, the Community actions to demonstrate the technical and economic viability of new technologies should, in priority, lead to a reduction of the pollutant emissions and to the increase of the conversion and of the utilization efficiencies of fossil fuels.

3.1. Solid fuels

According to the current regulation, the term 'solid fuels' includes coal, lignite, peat, orimulsion and other heavy fuels produced by the refining of petroleum. These fuels can be used separately or mixed with urban or industrial waste, or biomass providing that the emissions are of the same level and that the main part of the energy is produced by the solid fuels.

The objective will be the reduction of the emissions produced by the utilization of solid fuels, in particular the sulphur oxides, combined nitrogen oxides and the CO2 through the improvement of production and of gasification processes and by the elimination of urban, industrial or other waste, when combined.

The priorities of the demonstration activities, dissemination and valorization will be in the sector of electricity and heat production by solid fuels, the valorization of by-products and the production of raw materials. The synergies with natural gas will be investigated.

3.1.1. Electricity and heat production

The activities in this sector will include circular atmospheric fluidized bed combustion; fluidized bed combustion under pressure, stationary or circular; primary measures for the reduction of emissions and the treatment of the flue gases. In this activity, integrated gasification combined cycle and topping cycle, treatment of gas at high temperature and fuel cells utilizing gases from solid fuels, will also be financed.

3.1.2. Valorization of by-products

The activities in this sector will include the valorization, the treatment or the enrichment of gaseous, liquid of solid waste produced by the utilization of solid fuels.

3.1.3. Production of raw materials

The activities in this sector will be concentrated on the liquefaction of solid fuels, namely to investigate the synergies between this technique and the refining of oil and of the new processes of pyrolysis.

3.2. Hydrocarbons

The objective of activities in this area will be to strengthen the industry's capability to answer the short and long-term requirements for the availability and implementation of efficient technologies in the field of oil and natural gas. Particular attention will be paid to the PECO's and CIS markets.

Demonstration, dissemination and optimization activities are particularly important in this area to assist market penetration of new technologies in the industry together with important strategic implications for the Union's economy, competitiveness and energy supply.

Beneficiaries will be mainly oil and gas-related companies which are developing innovative and effective technologies to improve the exploration, production and use of hydrocarbons.

Activities will cover both 'upstream' and 'downstream' sectors:

- in the upstream sector, activities will cover methods for enhancing exploration capability, new technologies for marginal fields exploitation, safety and environmental protection; they will embrace both exploration and production and seek cost reduction. Special attention will be paid to the North Sea and those reserves where economic conditions are difficult.

- in the downstream sector, activities will focus on the uses of natural gas, for example, gas conversion and gas use in the transport sector or in the improvement of industrial processes.

3.3. Fuel cells

The objective will be the creation of the necessary conditions that will enable the users to develop the necessary confidence for the market introduction of fuel cells for electricity and heat production, as well as for the transport sector. The actions will concentrate on the demonstration of sulphuric acid, solid polymer and molten carbonate fuel cells. The progress in the 'Balance of the Plant' and the technology transfer will get special attention.

MODES OF IMPLEMENTATION FOR THE PROGRAMME

The programme will be implemented through both cost-shared and concerted actions, specific measures, preparatory, support, accompanying actions and activities towards the diffusion and valorization of the results as stated in Annex III of the programme.

Cost-shared projects will receive EC financial support at different rates according to the nature of the project, the domain and the readiness for commercialization of the results, i.e. according to the technical field and to the economic and technical risk involved. In absolute terms, the size of the projects would be such as to allow for substantial innovation and technological breakthroughs, in the spirit of concentration of efforts. Whenever appropriate, projects will be grouped into clusters so that better synergy of resources and results can be achieved. Furthermore, special consideration will be given to integrated projects which would tackle social, economic or purely technical problems with a multi-disciplinary approach and/or address issues taking into consideration the path from research to demonstration and to market development. Integrated projects could be carried out in fields such as integrated applications of renewable energies, combustion and urban transport.

These projects will be completed by concerted actions restricted to those fields where a simple coordination of the activities of Member States and of relevant industries would render those actions more effective at EC level. Stimulation actions based on CRAFT activities and feasibility awards will be implemented in order to facilitate the participation of SME's.

Cooperation activities in many fields of energy technologies will be established whenever appropriate both at international level (e.g. Intenational Energy Agency, United Nations) and at national and regional level (e.g. eastern and central Europe, Mediterranean, developing countries) in conjunction with other Community policies.

In order to assure consistency and favour the synergies between RTD and the market, a reinforced action of dissemination will be followed. Such an action aims at spreading, at large, the information on the technologies emerging from RTD and to promote them on the market. The instruments that can speed up the deployment of the technologies on the market will be studied and taken advantage of. Use of the OPET network (Offices for the Promotion of Energy Technologies) established not only in Europe, but also in eastern Europe, the CIS and the developing countries will be given priority by this action. Other instruments may be tested and deployed depending on their efficiency. Opportunities for training and mobility of researchers will be created in the course of the programme through financial grants and research secondment schemes at major RTD projects.

(1) A more detailed description of these research activities of the JRC defined in a separate Council Decision, will be repeated for information in Annex IV, in order to ensure transparence regarding their complementarity with the correspondent indirect actions.

ANNEX II

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ANNEX III

DETAILED RULES FOR IMPLEMENTING THE PROGRAMME

1. The detailed rules for the Community's financial contribution are laid down in Annex IV to the Decision on the Fourth Framework Programme.

The detailed rules for the participation of undertakings, research centres and universities and for the dissemination of results will be laid down in the measures provided for by Article 130j of the Treaty.

However, for the purpose of implementing this programme, the following exceptions shall apply:

1.1. Participation in this programme is open, with financial support from the Community:

(a) to all legal entities, established and regularly carrying out RTD activities

- in the Community, or

- in a third country associated, wholly or in part, with the implementation of the relevant programme through an agreement concluded between the Community and the said third country.

(b) to the Joint Research Centre.

1.2. Participation in this programme is open, without financial support from the Community, and on condition that their participation is in the interests of Community policies:

(a) to legal entities established in a country which has concluded a scientific and technical cooperation agreement with the Community relating to activities covered by the programme, provided that participation accords with the terms of the agreement,

(b) to legal entities established in a European country,

(c) to international research organizations.

1.3. The participation of European international organizations may be financed on the same basis as that for Community organizations in duly specified cases.

2. This programme will be carried out in the form of:

2.1. Financial participation by the Community in RTD activities carried out by third parties or by JRC Institutes in association with third parties:

(a) Shared-cost activities:

- RTD projects carried out by undertakings, research centres and universities, including consortia for integrated projects with a common theme;

- demonstration projects jointly financed with other sources in the public and/or private sector and, usually, at least one operator to guarantee continuity may qualify for a Community contribution up to a maximum of 40 % (normally 25 %) of the eligible cost of the project, the rate decreasing for projects closer to the market;

- technology stimulation to encourage and facilitate participation by SMEs in the form of an award to cover the exploratory phase, including the research effort of the partners, of an RTD activity and of joint research. These awards will be granted after selecting outline proposals which may be submitted at any time;

- support for financing the infrastructure or installations necessary for coordinated action (closer coordination).

(b) Concerted action, which consists of coordinating, particularly with the aid of concertation networks, RTD projects already funded by public authorities or private bodies. Concerted action can also include the requisite coordination of thematic networks bringing together manufacturers, users, universities and research centres to work on the same technological or industrial objective under shared-cost RTD activities (cf. first paragraph of Section 2.1 (a)).

(c) Specific measures such as action to promote standardization and measures to provide general tools to research centres, universities and undertakings. The Community's contribution covers up to 100 % of the cost of the measures.

2.2. Preparatory, accompanying and support measures:

- studies in support of this programme and in preparation for future activities;

- conferences, seminars, workshops or other scientific or technical meetings, including intersectoral or multidisciplinary coordination meetings;

- use of external expertise, including access to scientific databases;

- scientific publications, including the dissemination, promotion and utilization of the results (in coordination with the activities conducted under the third area of activity);

- studies to assess the socio-economic consequences and any technological risks associated with all the projects under this programme;

- training activities related to research covered by this programme, excluding training grants;

- independent evaluation (including studies) of programme administration and of the implementation of the activities;

- participation in the activities carried out under agreements with the international organizations working in the energy field (International Energy Agency, United Nations, etc.);

- measures in support of the operation of networks to provide information and decentralized assistance to SMEs in coordination with the Euromanagement auditing activity of RTD.

The activities relating to the dissemination and utilization of results carried out under this programme will complement those carried out under the third area of activity and will be implemented in close coordination with the latter. The partners in RTD projects are excellent vehicles for the dissemination and utilization of results. Back-up will be provided via publications, conferences, promotion of results, studies of technical and economic potential, etc. To ensure optimum exploitation, factors liable to encourage the subsequent utilization of results should be taken into account from the outset and throughout the RTD projects.

ANNEX IV

DESCRIPTION OF THE JOINT RESEARCH CENTRE'S (JRC) RESEARCH ACTIVITIES CORRESPONDING TO THE AREAS COVERED BY THIS SPECIFIC PROGRAMME AND THE SUBJECT OF THE PROPOSAL FOR A COUNCIL DECISION FOR THE JRC PROGRAMME (COM(94) 68 final - 94/0095 (CNS))

The JRC will contribute to the development of technologies for cleaner and more efficient use of energy through prenormative research, with the emphasis on environmental aspects, in the following sectors and in close cooperation with the corresponding shared cost action programme:

- photovoltaic energy: the activities will include component tests and studies on the design and control of large-capacity systems. The research will be based on the use of the ESTI ('European Solar Testing Installation') of the JRC and on networks with partners in the Member States. Basic scientific research into energy savings will be continued;

- materials for clean technologies: research will cover the development of materials for clean technologies such as long-lived catalyst supports for emission control, nanoporous ceramic membrances for advanced ceramic filters, ceramic alloys and composite materials for high-temperature applications (turbines and heat exchangers).