30. 11. 77 Official  Journal  of the  European  Communities No C 287/7 
Paragraph  2.6. 
Delete  the second  sentence  of the  first  subparagraph. 
Voting: 
For:  9, against:  25, abstentions:  14. 
Opinions  on the 
— proposal  for a Council  Regulation  on the  granting  of financial  aids  to demonstration 
projects  in the field  of energy-saving 
and the 
— proposal  for  a Council  Regulation  on the  granting  of financial  support  for  projects 
to exploit  alternative  energy  sources 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of  the 
European  Communities  No  C 138  of 11  June  1977,  page  5. 
On 7 June  1977,  the  Council  referred  the  abovementioned  proposal  to the  Economic 
and Social  Committee  in accordance  with  Article  198  of the  Treaty  establishing  the 
European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 
151st  plenary  session,  held  in Brussels  on 28 and  29 September  1977. 
The full  text  of the opinion  is as follows: A. LEGAL  BASIS  FOR  THE  OPINION 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community  and,  in particular, 
Article  198  thereof, THE  ECONOMIC  AND  SOCIAL  COMMITTEE, Having  regard  to the  discussions  at its 151st  plenary 
session,  held  on 28 and  29 September  1977  (meeting 
of 29 September), 
Having  regard  to the  request  for  an opinion  made  by 
the Council  of the  European  Communities  on 7 June 
1977, 
Having  regard  to the  decision  taken  by its Bureau  on 
21 June  1977,  instructing  the  Section  for  Energy  and 
Nuclear  Questions  to draw  up  an  opinion  and  a 
report  on the  matter, Whereas  by bringing  about  improvements  in energy 
consumption  patterns  (elimination  of waste)  and  in 
the balance  of payments,  as well  as by playing  a 
useful  role  in the  creation  of jobs,  the  Commission's 
recommendations  on the  rational  utilization  of energy 
can help  to reflate  the economy; 
Whereas  the  proposed  measures  must  form  part  of a 
comprehensive,  consistent  energy  policy; 
Having  regard  to the  opinion  issued  by the  Section  at 
its 34th  meeting,  held  on 9 September  1977, Whereas  these  measures  must  be  backed  up  by 
research  and  development  leading  to the  proper 
exploitation  of  all  available  Community  energy 
resources, Having  regard  to  the  report  submitted  by  the 
rapporteur,  Mr Croese, 
No C 287/8 Official  Journal  of the European  Communities 30. 11.77 
HAS  ADOPTED  THE  FOLLOWING  OPINION 
with  no dissenting  votes  and  one  abstention: 
1. Comments  on the proposal  for a Council 
Regulation  on the granting  of financial  aids  to 
demonstration  projects  in the  field  of energy  saving 
1.1. The  Committee  supports  the  objectives 
specified  in the  Commission  proposal.  It recognizes 
that,  after  a study  of  priorities  and  a proper 
investigation  of their  feasibility,  new  techniques  may 
turn out  to be viable.  The  scheme  must  be of real 
benefit  to society  and  individuals. 
1.2. The  Committee  accepts  that  the  Commission 
could  play  a useful  role  by the judicious  allocation  of 
financial  aid  to projects  in unproven  energy-saving 
techniques.  However,  to minimize  financial  wastage, 
the criteria  for  eligibility  for  support  and  the 
conditions  attaching  to that  support  need  to be 
clarified.  This  entails  a thorough  investigation  of all 
submitted  projects. 
1.3. The  Committee  considers  that  the  financial 
data  should  be  embodied  in  the  text  of  the 
Regulation.  It also  considers  that  the  144  million 
European  units  of  account  set  aside  for  the 
programme  should  be allocated  on a priority  basis, 
taking  into  account: 
— the  size  of the probable  energy  savings, 
— the  speed  with  which  the  technique  can  be 
applied, 
— the  number  of consumers  who  might  benefit, 
— the  size  of the  Community's  financial  contri-
bution. 
Furthermore,  the  type  of project  which  receives 
aid must  be consistent  with  a counter-inflationary 
policy,  i. e., the  techniques  involved  must  be 
reasonably  cheap  to apply  so as not  to spark  off 
unjustified  rises  in consumer  prices. 
These  principles  should  be incorporated  in the  body 
of the Regulation. 
1.4. Since  the  amount  of Community  finance  will 
inevitably  be limited,  the Committee  would  prefer  to 
see it spent  on giving  proper  support  to a relatively 
small  number  of promising  projects  from  which  all 
Member  States  could  benefit. 1.5. The  Committee  considers  that  the  aid  should 
be given  by the Commission  to those  applicants  who 
show  they  have  the  technical  and  other  structural 
means  for.  rapidly  implementing  their  projects.  In the 
event  of there  being  several  competing  projects  all 
offering  good  evidence  of this  capacity,  the selection 
should  be  made  with  the  help  of the  Advisory 
Committee  in such  a way  as to ensure  an even  spread 
of projects  throughout  the Community. 
1.6. The  Committee  considers  that  the  Advisory 
Committee  should  contain,  besides  representatives  of 
the member  governments,  representatives  of the 
economic  interest  groups  concerned. 
1.7. Finally,  the Committee  considers  that  the  text 
of the Regulation  should  specify  the conditions  under 
which  the  Community  grants  would  be repayable 
and indicate  the  use  to  which  the  monies  so 
recovered  would  be put. 
2. Comments  on the proposal  for a Council 
Regulation  on the granting  of financial  support  for 
projects  to exploit  alternative  energy  sources 
2.1. The  Committee  considers  that  it is vitally 
important  to  develop  new  techniques  of energy 
production  and  additional  alternative  energy  sources 
such  as geothermal  energy  and  the  conversion  of 
solid  fuels  into  hydrocarbons  (gasification  and 
liquefaction  of coal). 
2.2. The  proposal  is to be  seen  as part  of a 
package  of Community  measures  to promote  and 
develop  secure  energy  production  capacities  up to the 
level  necessary  for  the  economy  of each  Member 
State.  The  Committee  is uncertain  about  the meaning 
of the  term  'alternative  energy  sources'.  Such 
alternative  sources  should  be regarded  as back-ups  to 
existing  sources  with  a view  to  their  possible 
replacement.  The  Commission's  document  should 
have  contained  a brief  evaluation  of the  prospects  of 
the different  alternative  energy  sources  giving  reasons 
why geothermal  energy  and  the  conversion  of solid 
fuels  to hydrocarbons  were  singled  out  in this 
instance. 
2.3. The  Committee,  nevertheless,  endorses  the 
proposed  scheme  for  giving  financial  support  to the 
development  of geothermal  fields  and  the  conversion 
of solid  fuels  into  hydrocarbons.  It  deplores, 
however,  the  fact  that  the  financial  data  are  merely 
appended  to the  Commission  proposal  and  are  not 
incorporated  in the Regulation  proper.  It considers  it 
30.11.  77 Official  Journal  of the  European  Communities No C 287/9 
is vital  to provide  the  resources  to enable  full 
evaluation  of the  degree  of success  of the  supported 
projects. 
2.4. The  Committee  notes  that  the  Commission  is 
proposing  Community  finance  for  projects  'which 
have  as their  basis  the exploitation  of energy  sources 
using  new  techniques  or technologies  capable  of 
providing  a reference  and  encouragement  for  other 
installations  of the  same  type'.  It recognizes  that 
given  careful  and  forceful  management,  such  a 
scheme  would  facilitate  the  transition  of  new 
technologies  from  the  R&D  stage  to that  of 
commercial  application. 2.5. Community  aid  for  projects  should 
complement  national  support  and  not  replace  it. 
2.6. The  Committee  wonders  why  no  limit  has 
been  set on the  percentage  of Community  assistance 
for projects  on the  conversion  of solid  fuels  into 
hydrocarbons. 
2.7. The  Committee  considers  that  the  Advisory 
Committees  on  the  Management  of  Reference 
Projects  should  contain,  besides  representatives  of the 
member  governments,  representatives  of  the 
economic  interest  groups  concerned. 
Done  at Brussels,  29 September  1977. 
The Chairman 
of the Economic  and  Social  Committee 
Basil  de FERRANTI 
Opinion  on the  communication  from  the  Commission  to the  Council  concerning  the 
Community  action  programme  for  rational  use  of energy  (RUE)  — second  series  of 
legislative  proposals 
The text  referred  to the  Committee  has  been  published  in Official  Journal  of  the 
European  Communities  No  C 138  of 11 June  1977,  page  2. 
A. LEGAL  BASIS  FOR  THE  OPINION 
On 8 June  1977,  the  Council  referred  the  abovementioned  communication  to the 
Economic  and  Social  Committee  in accordance  with  Article  198  of the  Treaty 
establishing  the European  Economic  Community. 
B. OPINION  OF  THE  ECONOMIC  AND  SOCIAL  COMMITTEE 
The Economic  and  Social  Committee  prepared  its opinion  on the  above  matter  at its 
151st  plenary  session,  held  in Brussels  on 28 and  29 September  1977. 
The full  text  of the opinion  is as follows: 
THE  ECONOMIC  AND  SOCIAL  COMMITTEE, 
Having  regard  to  the  Treaty  establishing  the 
European  Economic  Community,  and  in particular 
Article  198  thereof, Having  regard  to the request  for an opinion  made  by 
the Council  of the  European  Communities  on 8 June 
1977, 
Having  regard  to the decision  taken  by its Bureau  on 
21 June  1977,  instructing  the Section  for  Energy  and