ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(81)397
Vol.1981/0122

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COMMISSION OFTHEEUROPEAN COMMUNITIES
REPORTONTHEAPPLICATION OFCOUNCILREGULATION No.
1302/78CONCERNING THEGRANTING OFFINANCIAL SUPPORT
FORPROJECTS TOEXPLOITALTERNATIVE ENERGYSOURCES
REPORTONTHEAPPLICATION OFCOUNCILREGULATION (EEC)
N°1303/78ONTHEGRANTING OFFINANCIAL SUPPORT FOR
DEMONSTRATION PROJECTS INTHEFIELDOFENERGYSAVINGCOM(81)397 final
Brussels/17thJuly1981
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MEMORANDUM
(1)ThepurposeofRegulations 1302/78/EECand1303/78/EEC,onwhichthe
Commission herebypresentstwoseparatereports,istoprovideincentivesfor
industryandcommerceto(a)developenergysourcesenablingoiltobereplaced
and(b)makebetteruseoftheenergyavailable.
Eachreportdealswiththeexperience andproblemsarisingfromimplementation
ofthetwoRegulations,butanumberofcommonpointsshouldbestressed.
Thedemonstration stage,forwhichthesupportprovidedforintheRegulations
isintended,isoftenadifficultobstacletotacklewithnewtechnologies
whichareprovenatR&Dlevel,butnotindustrially established .Thelarge
numberofprojectsputforwardisasuresignoftheneedforincentives which
Communitysupporthelptomeet.Thepotential demandthusrevealedinallof
therelevantsectorsjustifies anincreaseinthefundsallocatedtothis
instrument .
SincetheRegulations havebeeninforceforfractionally morethantwoyears,
itisstillimpossible tomakefirmpronouncements onthetechnicalresults
oftheprojectsreceivingsupport,buttheselectionprocedureappliedwith
theefficientcooperation oftheMemberStates*administrations hasenabled
anumberofprojectspromisingsignificant resultsandwidespreadapplication
tobesingledout.Manyoftheprojectspassedoverbecauseofthelimited
fundsavailable,deservedtobeselected.
Althoughthissupporthasitsownspecificaims,italsoformspartof
wideractivities inboththeenergyandindustrial spheres.Thetechnical
experience andfamiliarity withindustrialpracticegainedbytheCommission
throughimplementation oftheRegulations willenableittodirecttheaction
tobepursuedinthetwospheresmentioned abovemoreeffectively towards
alternative energysourcesandenergysavings.Thetechnical andeconomic
dataacquiredwillenabletheCommissiontoidentifymoretheobstacles
whichinvestment intherelevantsectorscomesupagainstandtoproposea
betterwayofusingtheinstruments throughwhichtheCommunityparticipates
inthefinancingofinvestmentinenergyandrestructuring projects.
O.J.N°L158of16.6.1978
(D

- 2-
Finally ,the reports set out the decisions oninternal procedure which the
Commission will take inorder toimprove and speed upthe conclusion and
management ofproject support contracts .
* * *
Inpursuance ofArticle 9ofRegulation N°1302 /78/EEC and Article 8of
Regulation N°1303 /78/EEC the Commission requests the Council and Parliament
toexpress anopinion onboth ofthe enclosed reports .Itwould also like
tomention that the proposals onthe doubling ofthe budgetary allocations
for these programmes which itmade long ago have been held pending within
the Council and Parliament for several months .Itfervently hopes that the
difficulties surrounding these proposals may beovercome assoon aspossible .

REPORT QUTHE APPLICATION CFCOUNCIL REGULATION No.1302 /78
CONCERNING THE GRANTING OFFINANCIAL SUPPORT FOR PROJECTS
TO EXPLOIT ALTERNATIVE ENERGY SOURCES
 

XVII/168/81-M
REPORT ONTHE APPLICATION OPCOUNCIL RES ULATION go.1^02/78
CONCERNING THE GRANTING OPFINANCIAL SUPPORT FOR PROJECTS
TO EXPLOIT ALTERNATIVE ENERGY SOURCES
Page
I. INTRODUCTION 1
II. IMPLEMENTING THE COMMUNITY SUPPORT MEASURES 2
•Calls forprojects andthe Commission 'sdecisions
•Contracts signed ,appropriations utilized and progress
made
A.Gasification and liquefaction ofsolid fuels 2
B.Geothermal energy 6
C.Solar energy 10
III. REMARKS 14
.Evaluating theinitial results 14
A.Gasification and liquefaction ofsolid fuels 14
B.Geothermal energy 15
C.Solar energy 16
.Disseminating theresults 17
.Procedures 18
IV. CONCLUSIONS 20
.Bysubject 20
A.Gasification andliquefaction ofsolid fuels 20
B.Geothermal energy 21
C.Solar energy 22
.GENERAL 24

-1-
I.INTRODUCTION
1.On12June 1978 the Council oftheEuropean Communities adopted
Regulation (EEC)No.1302/78onthegranting offinancial support for
projects toexploit alternative energy sources .
Onthebasis ofthis Regulation the Council adopted on9April 1979
theRegulation (EEC)No.726/79laying down the maximum amount ofadd
to "begranted infive years ,i.e. 95mEUA.This was "broken down as
follows :
-liquefaction andgasification ofsolid fuels ,50®EUA }
-exploitation ofgeothermal fields ,22.5 mEUA;
-exploitation ofsolar energy ,22.5 mEUA.
2Also adopted were the implementing regulations forthe respective
sectors :
-Regulation (EEC)No.728/79tliquefaction andgasification ofsolid fuel ;
-Regulation (EEC)No729/79*geothermal energy ;
-Regulation (EEC)No,727/79*solar energy .
2.The financial support referred tointhe above Regulations isintended
topromote the execution ofdemonstration projects for exploiting sources
ofenergy other than petroleum products .
This support measure isconsistent with theguidelines approved bythe
Council concerning the Community 'senergy policy objectives for 1990 and
accords with the statements bythe European Council promoting the
substitution ofpetroleum products .
Its aimistopromote technical andtechnological progress insectors
where theprojects present financial andtechnical risks and whose
financing ,asaresult ,cannot besatisfactorily ensured without outside help .
3.Under the above Regulations ,Community support istotake the form ofa
financial contribution upto40$ofthecost oftheproject ,half ofwhich
istoberepaid iftheproject iscommercially exploited .Repayment
(loan plus interest )must bemade within amaximum period ofeight years
commencing with the second year ofcommercial operation .
'OJL158of16June 1978
2)OPL93of12April 1979

-2-
II.IMPLMENTINO THE COMMUNITY SUPPORT MEASURE
A.GASIFICATION' AND LIQUEFACTION OFSOLID FUELS
Calls forprojects andtheCommission 'sdecisions ^"
4.Two cadis forthesubmission ofdemonstration projects have sofar
appeared intheOfficial Journal oftheEuropean Communities .
Thefirst call waspublished on30June 1978 (OJNoC154)}atthe
close ,twelve proposals had "been received ,covering atotal investment
cost of277mEUA .
The support requested amounted to111mEUA .
Theprojects were divided between thedifferent fields asfollows :
No.ofpro.iects EUA
Gasification 7 196.783,000 EUA (total cost )
Underground 3 33.549»000EUA
gasification
Liquéfaction 2 46.487.000 EUA
12 276,829.000 EUA
Each project wasexamined bytheCommission 'sdepartments ;the
Advisory Committee (CCMGP )wasconsulted ,andfour projects were
selected attheendofOctober 1978 ,total Community financial support
amounting to15,825,000 EUA .Oneproject waslater withdrawn bythe
applicant ,aidtheamount <yfassistance granted wasthus reduced to
ll.485 .OOOEUA .
Therelatively small number ofprojects selected wasduetothe
limited amount ofbudgetary resources available .Itwaspossible to
finance only thefirst stages oftheprojects selected .
5.Thesecond call forprojects waspublished on12April I98O (OJNoC91)
By15July ,theclosing date ,twenty-three projects with atotal
investment of724®EUAhadbeen submitted totheCommission ;
assistance requested amounted to271mEUA .Thebreakdown ofprojects
was asfollows z
Oasification 18projects 496,552,000 EUA (total cost )
Underground ]_pr0ject 21,401,000 EUA " "gasification *0
Liquéfaction 4Project s 205»889 .000EUA n
23projects 723.842,000 EUA
(1)Each project selected inoneofthethree fields hasasummary record sheet ,
acopy ofwhich isincluded intheadditional memorandum tothis report .
Thesheet sets outtheproject 'sbasis data ,objective ,progress ,cost ,
theamount ofCommunity support received andaninitial assessment .

-3-
Therequests having been examined "bythe Commission 'sdepartments ,andthe
Advisory Management Committee having been consulted ,the Commission decided
on14November I98O :
-tofinanoe the remaining stages ofthethree projects selected in1978 ,and
-togrant financial support fortheinitial stages ofnine other projects .
Thetotal amount ofassistance relating tothese projects is40»170*200 ECU,
bringing thetotal funds allocated to51,655,200 EUA.
Theresults ofthefirst twocalls forprojects can besummarized asfollows :
Proposals
receivedProposals
selectedSupport granted (EUA)
1st call
2nd call12
233
911,485,000 EUA
40,170,200 EUA
Total 35 12 51,655,200 EUA
6.Incooperation with the CCMGP the Commission based its choice ofprojects
onthetotal appropriation ,thedetails ofthe Regulations andthe
following criteria t
a)General
-the degree oftechnological innovation which theproject represents }
-the number and scope ofthepossibilities forapplying theproject 's
results ;
-therisk ofduplicating other techniques already known orbeing
developed andthepossibility ofcombining theproject with other
projects ;
b)Spécifie
–extending thescope ofsolid –fuel liquefaction /gasification ^
–extending therange ofproducts obtained from solid fuel by
gasification orliquefaction toallow greater degree ofsubstitution
for imported energy ;

-4-
-inthecaseofunderground gasification ,theexploitation ofgasdeposits,
whichinthepresentstateoftechnology,cannotbeexploitedeconomically .
Signatureofcontracts,utilization ofcreditsandprogressonprojects
7.Althoughcontacthasbeenestablished withsponsorswithaviewto
establishing definitivedossiers,especially inrelationto"workprogrammes",
notallthecontracts haveyetbeenplacedonanofficialbasis,andthe
presentsituationisasfollows:
-contractssignedbybothparties :9
-contracts wheresignatureisawaited:3
12
8.Thetotalamountoffinancialsupportgrantedhasreached51655200ECUand
thereforeexceedstheamountfixedinRegulation (EEC)No726/79(50MECU).
Despitetheexhaustionofthefundsavailable,itwasnotpossiblebecauseof
theveryhightotalcostoftheprojectstolimitfinancetotheinitial
phasesoftheselectedprojects(exceptinthecaseoftwoprojects).
Continuedworkontheseprojectsthereforerequires adecisionontheir
furtherfinancement,thatistosayadoublingoftheindicatedceiling.
Inthecaseofoneprojectithasbeennecessarytosuspendactivity
momentarily attheendofthefirstphasewhileadecisionisawaitedonthe
doublingofthefinancialceiling.Furthermore,alargenumberofworthwhile
projectshavehadtoberejectedthroughlackoffunds.Furtheractionat
Communitylevelwillonlybepossibleifadequatefinancialresourcesaremade
available .
9.Thesituationasregardstheulilization ofbudgetarycreditson30April1981
wasasfollows:
-ceilingforgasification andliquefaction :50000000ECU
-decisions onthefirstandsecondcallsfortenders :51655200ECU
-commitments onthefirstandsecondcallsfortenders:51655200ECU
-paymentsonthefirstandsecondcallsfortenders :9019472ECU
However,thefigureremainswithinthelimitsofflexibility permittedby
§2,alinea2ofthefirstarticleofthisRegulation.?uuuuuuuttu
51655200ECU
51655200ECU
9019472ECU

-5-
The "big gap between commitments and payments isdueprimarily tothe
relatively long duration oftheprojects andtothefact that the most
costly projects under the second call have only just begun )inthree
cases ,indeed ,negotiations arestill being conducted .
10.One ofthe four projects selected under thefirst call has been withdrawn
bythe proposer .The other three arebeing carried outinaccordance
with the agreed schedule .
Asforthesixprojects chosen under the second call andalready the
subject ofacontract ,work has already "begun infive cases ,orwill
"bestarted during 1981 .

-6-
B. GEOTHERMAL ENERGY
Calls for projects and the Commission 'sdecisions
11.Since Regulation No.1302/78wasadopted ,three calls forprojects have
been published inconnection with geothermal energy ,on26June 1978 ,
1December 1979 and 30December I98O respectively .
Thefirst two were followed byCommission decisions togrant financial
2)support (29November 1978 and 24July 1980).Theproposals received
under thethird call arecurrently being evaluated .
Thetable below gives the most important statistics regarding these calls
forprojects .
Call for
projectsProjects submitted Ρro.ιects submitted
Number Total
CostSupport
requested
mEUANumberSupport
Total requested
cost mEUA
1st call
(26June –
30September 197836 140 30 13 70 9.026
2nd call
(lDecember 1979
11April I98O )33 163 54 17 132 IO.O46
3rd call
(20December I98O -
31March I98I )50 241 80.25
Itmust also beremembered that :
-many more projects were submitted than forecast ,especially asregards
thethird call )the promising results ofthefirst projects would appear
tohave encouraged other proposals ;
-the number ofprojects chosen wasrestricted toasignificant degree by
thebudgetary resources available ,especially inthe case ofthefirst call ;
-inmost cases ,thefinancial support granted only covers thefirst stage
oftheproject ,i.e. theborehole(s )}again ,this islargely dueto
budgetary constraints .
12.Incooperation with the CCMGP ,the Commission based its choice ofprojects
onthetotal appropriation ,the contents ofthe Regulations andthe
following criteria :
1)OJNoC153,OJNo.C300,OJNoC339
2)Thefirst decision came into force on9April 1979 »when the Council approved
thefirst series ofprojects .

-7-
Basic criteria
-theprojects must usenewtechniques ortechnologies onasufficientlylarge scale ,or J
-itmust "beaproject inanewgeothermal region ,or "becarried outatdifferent geological horizons inthe same region#
Additional criteria
-thegeothermal reservoir must have asufficiently high theoretical
potential ;
-thetechnical risks involved must besmall (andtheR&D work must have
"been completed );
-theeconomic risks involved must "bemeasurable ,
-thecost/benefit analysis andaneconomic liability study must have been
carried out;
-thetechnical competence ofthedeveloper ;
-thesources offinance must bedisclosed ;
-the amount ofconventional energy replaced ;
-thetechniques /technology must bepromoted intheCommunity ,andthe
project 'sresults must bemade available andwidely distributed .
13.Theprojects selected cover almost allsectors ofgeothermal energy
exploitation .Space heating isbyfarthelargest category (even greater
than electricity generation ). Aconsiderable number ofprojects concern
theagricultural useofgeothermal energy ,inparticular theheating of
glasshouses .
The following table gives the numbers ofprojects andthe amount of
financial support granted (bycategory ofuse)foreach ofthefirst two
calls and,inthe case ofthethird call ,the number ofproposals received
andthe amount offinancial support requested .
mEUA
NumberSpace
heatingElectricity
generationHeating of
glasshouses
and miscellaneous Total
1st call
forprojects13 5-139 2.749 1.139 9.026
2nd call 17 6.984 I.276 1.812 10.07
3rd call
(proposals
received )50 54.036 13.925 12.289 80.25

-8-
Inthejcurrent state oftechnology ,electricity generation ispossible in
Greece and Italy only ;space heating ,onthe other hand,isbased onthe exploi­
tation oflow-temperature geothermal fields ,which aretobefound innearly
all the Member States ofthe Community .
14.Nearly half theprojects were submitted under the aegis oflocal authorities ,
the rest being proposed byprivate and public undertakings andagricultural
organizations .
The Community support scheme aswell assupport for preliminary research ,has
definitely contributed tothe study and formulation ofagreat many projects
which would otherwise have been delayed ornot undertaken atall.
Contracts signed ,appropriations utilized and current status ofthe projects
15.The thirteen contracts for the projects selected under thefirst call have
nowall been concluded ;the 9,026,000 EUA appropriations for these projects
are fully committed .
Ofthe 17projects selected under the second call,on30April 1981,10have
been placed under contract ,and 5.6 million out ofatotal of10,046,000 EUA
have been committed .
Tosum up,theutilization ofappropriations at30April 1981 isasfollows :
mEUA
-Ceiling for geothermal energy (Regulation No726/79): 22.5
-Commission Decisions for the 1st and 2ndcalls forprojects : 9.026 +10.046
-Balance : 3.428
-Commitments under the 1st and 2ndcalls forprojects : 14.626
-Payments under the 1st and 2ndcalls forprojects 4.064
Theprojects received under thethird call are being evaluated ;thefirst
contracts could beconcluded before the end ofthe year .
16.Oftheprojects selected under thefirst call,4are already being exploited
inwhole orinpart,orwill bebythe end ofthe year .Noproject has had
tobeabandoned orre-examined .
Difficulties have been experienced inanother four cases ,however ,following
theresults ofthedrilling stage ;although exploitation isstill possible ,
itwill have totake place inless favourable conditions than expected .

-9-
Other projects are being carried out,buttheinitial results are not yet
avai lable .
Work has begun onfive oftheprojects selected under the second call .In
one case,the borehole results have been very favourable ,but inothers the
drilling process isnot yet complete .Insixfurther cases work isdue to
start during the year .Oneproject has hadtobewithdrawn for administra­
tive reasons ,the applicant having had hisdrilling permit refused bythe
local authority ,which then itself took the project over .
17.Inmost cases .Community support relates tothedrilling stage -the
riskiest ingeothermal energy exploitation projects .The results ofthe
drilling ,moreover ,determine the conditions inwhich the geothermal
reservoir will beexploited .Insome cases ,where thedrilling results are
disappointing ,further techni co-economi cstudies will have tobedone
before the new operating conditions can bedetermined :hence thedelays
totheoriginal schedules .

-10-
C.SOLARENERGY
CallsforprojectsandtheCommission'sdecisions
18.Sofar,threecallsfordemonstration projectstobesubmittedinthefield
ofsolarenergyexploitation havebeenpublished .
i)thefirstcallforprojectsappearedon15July1978(0JN°C170).This
wasofageneralnatureandrelatedtothewholeofthesolarenergysector.
CouncilRegulation N°727/79of9April1979listedtheareaswheresupport
wouldbegranted,inparticular :
-installations fortheheatingofwater,spaceheatingandair-conditioning
ofresidential andindustrialbuildings andpublicpremises;
-installations fortheproduction ofprocessheat,mechanical orelectrical
energyforpurposesofindustrial oragricultural production orprocessing ;
-biomassproduction andapplication forenergypurposes.
Inall,135proposals weresubmitted bytheclosingdate,withatotalinvest­
mentcostof108mEUA.Thesupportrequested amountedto43mEUA.Eachproject
wasreviewedbytheCommission'sdepartments ,and16wereselected,afterthe
CCMGPhadbeenconsulted .
Asecondinstalment wasgrantedto10otherprojectswhichhadbeenaccepted
inthepreviousDecision.
Ofthe135projectsreceivedbytheCommission,therefore,thelatterselected
26forCommunityfinancialsupportamountingto6.35mEUA.
Relatively fewprojectswerechosen,asonlylimitedbudgetresources were
available.
ii)Twocallsforprojectswerepublishedin1980
Likeitspredecessor,thecalIpublishedon30Januaryconcerneddemonstra­
tionprojectsinthegeneralsolarenergyfield.
Inall,105projectswithatotalinvestmentof99mEUAweresubmitted
totheCommission,thefinancialsupportrequestedbeingabout37mEUA.
TheCommission consultedtheCCMGPandselected36projects,13.2mEUA
beingtheamountofassistanceitwaspreparedtogrant.

-11-
m)Theother call,published on31January ,wasdevoted specially to
swimming pools .Theaimhere wastoestablish anetwork ofsolar-heated
swimming pools intheMember States .Thescheme wasofparticular interest ,
since solar energy isanideal source oflow-temperature heat (provided
byrelatively simple collectors )forthis sector -normally alarge
consumer ofoil .
TheCommission received 47proposals relating to96swimming pools ,the
total investment value being 17.7 mEUA.
Aworking party ofgovernment experts wasset uptosift theentries ,
andthe Commission ,having consulted the CCMGP ,selected 22proposals
(62swimming pools ).Thefinancial support involved was3.3 mEUA.
19.The results ofthe calls for projects are shown inthe tables below
I.Basic financial data
Call for
projectsProjects submitted Projects selected
Number Total
Cost
mEUASupport
requested
mEUANumber Total
Cost
mEUASupport
requested
mEUA
First
15.7.78 -
30.9.78135 108 43 26 26.582 6.354
Second
30.1.80 -
30.4.80105 99.232 37.586 36 38.406 13.229
Third
31.1.80 -
30.4.8047 29.212 9.144 22 8.742 3.332

-12-
II.Breakdownofappropriations byfieldofsolartechnology
Firstcall
for
projectsThermal Photovoltai c Biomass Total
mEUANoof
projectsmEUANoOf
projectsmEUANoOt
projectsINoot
mEUA
(projects
4,990 190,332 31,032 46,354 26
Secondcall
for
projects4,964 250,086 18,179 1013,229 36
Thirdcall
for
projects
(swimming
pools)3,332 22- - - -3,332 22
Total 13,286 660,418 49,211 1422,915 84
20.Theprojectswereevaluatedinthelightofseveralcriteria,amongwhich
themostimportant were:
-thepotentialindustrial andcommercialviability;
-technological innovation;
-thevalueoftheprojectfromademonstration andmotivationpointof
view;
-theproject'spotentialmarket.
Aswillbeseenfromthetable,mostoftheappropriations -intermsof
thevolumeandnumberofprojects-wereallocatedtothermalsolar
techniques .Disregarding theswimmingpoolsprojects,thethermalsection
stillcomesoffthebest,althoughitdoesonlymarginallybetterthan
thetechniquesforobtainingenergyfrombiomass.

-13-
Contracts signed ,appropriations utilis edandprogress mad*
21.Immediately after theCommission hadreached itsDecision ,theapplicants
were contacted ,with aviewtofinalizing thedossiers ,butnotallthe
contracts haveyetbeen drawn up.Thecurrent situation isasfollows :
contracts signed bybothparties 18
contracts still being negotiated 2
-projects cancelled
o
Total 26
utilization ofappropriations at30April 1981 wasasfollows :
Ceiling forthesolar energy sector
(Regulation No726/79) rmCI1A
<L<L.ï mEUA
Commission Decision under the1stcall forprojects :
-first instalment
-second instalment
-withdrawn :3,251,174 EUA
3,102,033 EUA
1,507,108 EUA
Commission Decision under thesecond andthird call forprojects
(procedure inprogress )
-général : 13,229,474 EUA
-swimming pools : 2,332,863 EUA
BaLance 1,090,564 EUA
Commitments under the1stcall forprojects : 3,800,062 EUA
Payments under the1stcall forprojects : 1,248,786 EUA
23.Among the 18projects which were selected under thefirst call andforwhich
thecontracts have been signed ,those taking relatively little time are
either being started orare attheinitial exploitation stage ;most oftheothers
will start ,inaccordance with their programme ,atalater date .
Intwocases ,negotiations have been extended and have notyetfinished ,
mainly because the economic situation hasgotsignificantly worse and
additional finance ishard toobtain .
Finally ,six oftheproposals originally selected have hadtobeabandoned
subsequently ,and for more orless the same reason .
Awritten procedure wasinitiated on19May 1981 tosecure adecision from
the Commission with regard totheprojects selected under the second and
third calls (36and 22projects respectively ).
(2)

-14-
III .REMARKS
1)Evaluating the initial results
A. GASIFICATION AND LIQUEFACTION OF COAL
24.Asfar asthetechnical and economic results are concerned ,itistrue
that,ofthe nine projects for which contracts have been signed ,five
began only atthe end of1980 orbeginning of1981 and had reached no
more than the planning orconsultant engineer stage .Itisevidently still
tooearly ,therefore ,todiscuss results ,especially asthese projects
(LG01/2/80,LG01/5/80,LG01/10/80,LG02/1/80and LG03/2/80)will
take between four and seven years tocomplete .
Progress onthe other four projects can besummarized asfollows :
i)Asregards the Belgo-German project onunderground gasification
(LG02/1/78),thefirst four boreholes have been completed ,and the
results ofthe permeability trials for the vein tobegasified appear
toindicate that theproject will proceed asplanned .Linking upthe
boreholes ,which isdue tobegin inAugust 1981 ,will becritical ,
however .
ii)The second project inthis field (LG02/2/78)issituated inFrance ;
the linking and retrocombustion carried out inanexisting mine in
the Nord/Pas -de-Calai scoalfield have produced favourable results
which will make itpossible toextend the scale ofoperations ,working
from the surface (LG02/1/80).
iii)As forthe German project onthegasification ofcoal inasteam-iron
reactor (LG01/13/80),tests inan18-tonne capacity reactor have
almost been completed .Theresults ofthe laboratory andmini-pilot
stages have been confirmed ,notably with regard tothe high purity of
thegas produced .Afinal series oftests will beconducted tofind
ways ofusing the clinker .
iv)Theinitial stage ofthe UKproject onthe extraction ofcoal under
supercritical conditions (LG03/1/78)was completed when detailed
papers were drawn upinresponse tothecall forprojects .However ,
theproject has been suspended forthe timebeing until adecision has
been reached onfinancing for the later stages (construction and
operation ).

-15-I
Ifthe demonstration operations prove successful ,the promoters may well
apply ,inview ofthe investment capital required ,for Community financial
assistance tobuild other industrial-scale plants .
B. GEOTHERMAL ENERGY ..
26.Inview ofthe present stage oftheprojects ,itisnotpossible togive
anoverall evaluation ofthe technical and economic results .Onaverage ,
aspace-heating project requires two tothree -and sometimes even four -
years depending onthe types ofproject for developing geothermal technology
which receive backing inthedifferent Member States .Anelectricity
generation project takes longer .However ,initial results have generally
been encouraging ,and inmany cases commercial operation isassured .
Itisnot possible either ,atthis stage ,toquantify the energy replaced
bythe geothermal energy produced byall theprojects selected ,nor to
determine the investment required per toe replaced .This can only bedone
after each project has been incommercial operation for ayear .
27.Itiscertain ,however ,that this original way which the Community has
found ofencouraging geothermal developments has been decisive .Geothermal
exploitation requires heavy initial investment andentails geological
and mining risks which dwindle only after very high drilling investment
has been made .Since Community financial support partly protects against
that risk -although half the money ,admittedly ,isrefundable inthe
event ofcommercial exploitation -itiswell suited tothe purpose and
has been attractive todevelopers .

-16-
28.Inthe Last few years there has been amarked increase intheexploitation
ofgeothermal fields inthe Community .
Italy ,which bydeveloping itsresources inTuscany was among thefirst
countries topromote geothermal energy ,istointensify itsrole byexploiting
high-enthalpy reservoirs inother central and southern regions ,andthefirst
projects toexploit low-enthalpy resources onawide scale will soon
materialize .InFrance ,the number ofprojects ismultiplying sofast that
this country currently has the biggest geothermal space heating programme
inthe world .Several projects have also been devised inthe Federal Republic
ofGermany ,thefirst ofwhich should becompleted soon ;the same applies
inthe other Member States .InGreece ,electricity will,within the next few
years ,beproduced from geothermal energy for thefirst time ,whilst the
feasibility oflow-enthalpy projects is:now assured .
Itisinlow-enthelpy utilization ,andprimarily space-heating ,that the most
significant developments are expected .Urban districts inseveral cities
such asBordeaux ,Munich ,Rome and Southampton ,toname but afew,may well
beheated geothermally inthe next few years .
The great majority ofthese projects were encouraged bythepossibility of
financial support and,inmany cases ,would not have been carried out without
Community intervention .
C. SOLAR ENERGY
29.This section ofthe report must beregarded asprovisional ,since the five-
year programme isonly half completed .The time ithas taken tonegotiate
contracts has meant that most projects have not yet reached the operational
stage .
30.Since solar energy can beused for many different purposes (*), agreat
many projects will have hadtoreach theoperational stage before even a
quantitative assessment can bemade ofthe results .
(*) See point 49below .

-17-
2)Disseminating the results
31.The Commission intends toseethat theresults ofthe demonstration projects
aredistributed aswidely aspossible .Acomplete and up-to-date record is
being kept,inthe various fields ,oftheprojects' results andprogress .
Itisplanned todistribute theresults inthe following ways :
a)aregular technical-economic record sheet for each project ;
b)asix-monthly review ofthe programme inthe form ofanewsletter ;
c)seminars ormeetings for thedifferent contractors working onsimilar
projects ;
d)European conferences where national and Community experience can be
discussed .
The Commission 'sdepartments are also intouch with the more important bodies
interested inthe development ofalternative energy sources ,and asteady
two-way flow ofinformation ismaintained .
The Commission also intends todistribute the result ^tothe extent possible ,
inthe developing countries and inthose countries that have applied for
Community membership .
32.Geothermal energy isthesector where theinitial results arealready
available ,andthe Commission has sent outthe record sheets toallinterested
parties such aspublic andprivate industry ,research organizations ,
consultant engineering offices andthe specialized press .
Some ofthe meetings referred toatc)above have already been held .A
Belgian delegation ,forinstance ,which ispromoting ageothermal project
forheating glasshouses ,hasvisited asimilar project inFrance ,andthe
two teams arekeeping each other informed oftheir respective progress .
Astoconferences ,somuch information isrequired that thefirst will
not beheld before 1982 or1983 .

-18-
3)Procedures
33.Article 2ofRegulation N°1302 /78states that the Regulation may beapplied
toother fields than those discussed inthis report ,such aswave ,tidal and
wind power .However ,the manpower currently available for managing the demons­
tration programme inthe alternative energy sector isnotsufficient for calls
forprojects tobeissued inrespect ofthese other fields ;aseparate proposal
for aregulation will have tobedrawn upwhen this becomes feasible .
34.Throughout the demonstration programme ,coordination has been satisfactorily
maintained with the corresponding Community R&D programme .
Community support for several projects intheir demonstration stage has been
anatural extension tothe research stage financed under the aforesaid R&D
programme .Similarly ,the relations between the programmes foralternative
sources and energy savings have been equally constructive .When itcomes to
thegasification and liquefaction ofsolid fuels ,ECSC coal research efforts ,
notably with regard tothe upgrading ofcoal,will not beduplicated ,since
the same department runs both programmes .
35.The Commission can besatisfied with the constructive way inwhich coordination
with national measures todevelop the exploitation ofalternative sources has
been pursued within the CCMGP inconnection with the demonstration projects
referred toinRegulation N°1302 /78,especially asregards the selection
ofCommunity demonstration projects .
However ,steps must betaken toimprove the exchange ofinformation atCommu­
nity level and between the Member States onthe implementation ofnational
measures todevelop the exploitation ofalternative sources (e.g. programmes ,
objectives ,methods andresults ).The exchange ofsuch information could be
ensured bythe Commission .
Through their experience oftheir special subject andthe functions they
perform fortheir governments ,the members ofthe CCMGP were ofgreat help
tothe Commission indetermining which projects toselect .
Inaddition tothe Committee meetings ,the Commission 'sdepartments are in
almost constant touch with the national authorities concerned .

-19-
36. iniih6 Comnmnx'ty schem© forsupporting
projects toexploit alternative sources arei)delays innegotiating
contracts ,which have often resulted inprojects "being withdrawn }andii)
staff shortage tocope with contract negotiation andfinancial andtechnical
control .Geothennal energy isanarea where thelack ofstaff is
particularly pronounced .
37•Ne^oti^ioM^on^he^contra^t ^have "been impaired bythe–often considerable –
time taken bytheproposers either tosupply theinformation required for
drafting the contracts ,ortoreturn the contracts sent them for
signature tothe Commission .
These delays were generally duetosuspension ofstudies and work for
lack offinance ,ortocost increases ,estimating errors ,failure toobtain
local authorization ,etc.
Thesolar energy sector has been particularly affected bydelays ofthis
kind ,owing tothe great variety andthenovelty ofthe techniques used ,
the range ofpossible applications andthe number ofdifferent users .
38.Projects have been withdrawn ,especially inthesolar sector ,when
difficulties ofthis kind became sogreat astodestroy any hope that
these projects would ever becompleted .Intwo cases ,the proposers *
intentions were soshrouded inmystery that the Commission hadfinally
todisregard their projects .
39*Astothe time lag between thepublication ofcalls forprojects andthe
decision listing successful projects ,the Commission has found that certain
cumulative delays maydisrupt the management ofthe programme .Hitherto ,
calls forprojects have been published atfairly long intervals (from
12to16months ,depending onthefield )soastoensure that theprogramme
wasstarted intheproper conditions .Nowthat thelatter hasreached
its"cruising speed 1*,asitwere ,theCommission thinks itwill beable
tomake itsaction more effective ?byadopting acontinuous procedure for

-20-
the submission ofprojects ,notably forgeothermal andsolar energy .
Infuture ,proposals can "bereceived atanytime during theyear without
being subject tothedeadlines ofperiodic calls forprojects .
Detailed information about the programme will bepublished every year
intheOfficial Journal ofthe European Communities .The proposals
received will beexamined every six months .
This procedure will reduce the time lag between the submission ofa
project andthe Commission 'sdecision from anaverage ofeight months
atpresent tofour orfive ,andwill come into force from 1982 ;asimilar
procedure isfollowed bymost ofthe Member States andisused for other
Community programmes .
Itwill not benecesssary toadopt this procedure ,however ,inrespect
ofthegasification andliquefaction ofsolid fuels ,inview ofthe scope
ofthe projects andtheir limited number .
40.Generally speaking ,inrespect ofsolar energy ,solid fuels and geothermal
energy ,the arrangements governing repayment laid down inthe implementing
Regulations 728/79and 729/79andinthecontracts have proved suitable
forthe Community 'ssupport action .
Asregards financing theprojects ,the Commission believes that ,unlike
theenergy saving projects (Regulation No.1303/78),projects relating
tothe exploitation ofalternative sources should beable toreceive combined
official support (i.e. from both the Community andthe Member State ),and
that this may amount tomore than 50 This iswarranted bytheoften
considerable economic risk attached toexploiting these sources .
IV.CONCLUSIONS
Conclusions relating toeach ofthefields inquestion
A.GASIFICATION AND LIQUEFACTION OPSOLID FUELS
41.The support action forthegasification andliquefaction ofsolid fuels
hasbeen delayed byatleast ayear forbudgetary reasons (appropriations
for commitment were limited in1979 »andthe I98O Budget wasblocked ).
In1979 itwaspossible toback theinitial stages ofnomore than three
projects .The second stage -which ismuch bigger -could only start at
the endofI98O ,beginning of1981 .

-21-
Forallthese reasons ,itisprobably toosoontotryandevaluate the
sul ofalltheprojects .However ,thethree projects begun in1978/79
havealready produced promising technical results (seepage 14).
42.Inviewofthehigh costs ofthedemonstration projects inthisfield
(1000mEDAforthe35projects submitted )andtheceiling onfinancial
support (50mEtJA),itwas-except intwocases-possible tofinance
onlythemxtial stages ofthethirteen projects selected .Valid projects ,
moreover ,have hadtoberejected .Asaresult ,thecontinuation ofthe
projects will depend entirely onwhatisdecided with regard tofuture
financing .
44
43.Theresults ofthetwocalls forprojects reveal thatindustry shows a
considerable interest infinancial support bytheCommunity .
B.GSOTHEKHAL ENERGY
44.Theincreasing interest shown overthelast fewyears bypublic andprivate
investors ingeothermal exploitation projects isconvincing evidence that
theCommunity 'saction inthis field isworthwhile .Thepublication of
thecalls forprojects ,i.e. theCommunity 'sinitiatory role ,hasstimulated
several projects inthe Member States andhascreated theproper conditions
forothers which hadtemporarily been shelved .
45.Itistheavailability ofbudgetary resources ,andnotthequality ofthe
projects ,that hasbeen thereason whyonly alimited number ofprojects
hasreceived Community support .Thetotal support requested under thefirst
twocalls alone (104 mEUA)ismuch greater than the sumprovided forin
Regulation No726/79(22.5 mEUA).Most projects have accordingly received
support fortheinitial stage only ,when some ofthe more deserving ones
from atechnical -economic point ofview -with agreater element of
demonstration value -might have obtained financial support foralltheir
stages .

-22-
46.Concluding contracts hasnotgiven rise toanyspecial problems ,exoept in
some cases where delays have "been investigated ,orarebeing investigated
atthemoment ,asisthecase with contracts intheprocess ofnegotiation ,
because ofthetime taken tofinalize thework programme .
47•Anoverall technical-economic evaluation hasnotyetbeen possible since
each project usually takes from twotofive years tocomplete ,depending
onthetype .
Progress generally hasbeen satisfactory ,although some projects have
been delayed ,parimarily because theresults oftheinitial drilling have
necessitated revision oftheplans .Other projects ,however ,areoperational ,
orwill become soduring theyear .
48.Thecompletion ofthese projects will also contribute tothedevelopment
ofageothennal industry intheCommunity which mayfind considerable outlets
outside theTen ,asaccelerated research anddrilling programmes emerge
inother parts oftheworld .Asfax astheexploitation ofgeothermal
fields isconcerned ,theCommunity isbecoming aworld leader .Financial
support bytheCommunity hasbeen ,andcontinues tobe,decisive inthe
attainment ofthat position .
C.SOLAR MERGY
49.Theexploitation ofsolar energy isvery different insome ways from the
exploitation oftheother alternative sources forwhich Regulation
No1302/78wasoriginally derived .Themain distinctive features areas
follows s
a)thevery varied implementing techniques (which canbesubdivided into
virtually separate groups :thermal ,thermodynamic ,photovoltaic ,
biomass ,etc.)have achieved different status andhold outdifferent
prospects ofdevelopment ;
b)there areagreat many sectors ofpotential applications ofsolar energy ,
notleast outside theCommunity ;
c)there isawide range ofpotential customers -andequipment manufacturers -
from theprivate individual andthesmall family business tolarge
industries :47.
48.

-23-
(d)ofallthealternative sources ,solar energy isthe only one which
isgeographically "dispersed "(*) (although admittedly itsdistribu­
tion isnot uniform ).
Aspointed out above ,the combination ofsome ofthese characteristics
partly explains thedifficulties encountered inthe application ofRegu­
lations Nos 1302 /78and 727/79;these will become less important intime,
however ,and,once theoperational results are known ,the Community action
will start tosnowball -which itcan hardly dotoday .
50.Inorder toreinforce this effect ,and bearing inmind the above
characteristics ,aneffort must bemade todistribute information more
widely inrespect ofeach implementation technique ,utilization sector
and type ofcustomer .(**) The dispersed nature ofsolar energy ,which
isthought tobeanadvantage insome respects ,could impede its
development incertain circumstances .The best way ofovercoming this
difficulty isprobably toensure greater harmony between thedifferent
levels ofaction ,i.e. Community ,national ,regional ,local and
occupational .
The Commission plans todiscuss this subject indetail within the CCMGP
(solar-energy demonstration projects )andconsiders that theaction
taken concerning swimming pools isafirst step towards achieving that
harmony .
(*) This also applies towind power ,which isoneofthedirect manifestations
ofsolar energy .
(**) Unlike solar energy ,geothermal energy andtheliquefaction /gasification
ofcoal areactivities which can becarried outonly byalimited number
oforganizations andspecialized firms ,even ifthefinal user rents a
small flat ordrives alight vehicle .

-24-
GENERAL CONCLUSIONS
51.Thereisconsiderable potentialintheCommunityforexploitingthe
alternative energysourcesdiscussedinthispaper.Theinvestmentrisks
inthesefieldsareoftensuchastopreventordelaytheimplementation
oftheprojects.Theencouragement providedbytheCommunitysupport
actionhasbeenmuchwelcomed,andtheexploitation ofthesesourceshas
startedor,insomecases,beenaccelerated .
52.IftheprojectswhichhavereceivedCommunitysupportarecommercially
successful,themultipliereffectresultingfromtheirindustrialappli­
cationwillcertainlyalleviatetheCommunity'senergysupplysituation.
Largecoalreserves (426thousandmilliontoe)willmeanthatunderground
gasification willbeabletomeetmuchofthedemandforgas.Asfor
geothermal energy,amilliondwellingscouldbeheatedbythismeansfrom
1990,thussavingseveralmilliontonnesofoil.
53.Asmostprojectsarestillbeingcarriedout,itisnotyetpossible
fullytoevaluatetheirtechnical andeconomicresults.Thepreliminary
resultsofthemoreadvancedprojectsareencouraging,however,andin
manycasescommercial operationisassured.
54.Atthisstage,thegoodresponsetothecallsforprojectsclearly
indicatestheinterestaroused,inboththepublicandprivatesector,
bytheCommunity'sfinancialsupportfortheexploitation ofalternative
energysources.
55.Thenumberofprojectsreceiving Communitysupporthasbeenlimitedby
thebudgetaryresourcesavailable andnotbythequalityoftheprojects
themselves .Insomecases,moreover,supportwasconfinedtotheinitial
stagesoftheprojectsonaccountofthehighcosts;whethersuchprojects
willcontinuedependsonfurtherfinancebeingmadeavailable .

-25-
56.This applies inparticular tothegasification and liquefaction
ofsolid fuels -where projects are large-scale ,expensive and time-
consuming -and,toalesser extent ,togeothermal energy .
57.Inthe light ofthe foregoing ,the Commission considers that
increasing the overall financial provision (see C0MC80 )567 )is
warranted .

REPORTONTHEAPPLICATION OFCOUNCILREGULATION
(EEC)N°1303/78ONTHEGRANTING OFFINANCIAL SUPPORT FORDEMONSTRA­
TIONPROJECTS INTHEFIELDOFENERGYSAVING

INDEX
I.INTRODUCTION
II.IMPLEMENTATION 1
III.USEOFFINANCIALAPPROPRIATIONS 3
IV.COMMENTS
A.Criteriagoverningprojectselection -
B.Distribution oftheprojects 1
C
C.Examples
D.Procedures 1
V.CONCLUSIONS 1'Page
1
11

1.
I.INTRODUCTION
1.On12June1978,theCounciloftheEuropeanCommunities adoptedRegula­
tion(EEC)N°1303/78onthegrantingoffinancialsupportfordemonstra­
tionprojectsinthefieldofenergysaving.Applicableforfouryears,
thisRegulation cameintoforceon9April1979followingtheCouncil's
approvalofRegulationn°725/79fixingthebudgetaryallocationfor
theprogrammeat55millionEUA.
2.ThefinancialsupportprovidedforbytheseRegulations isintendedto
promotetheuseofnewequipment,processesorproductsenablingsigni­
ficantquantitiesofenergytobesaved.Mostareasofeconomicactivity
areaffectedbythisprogrammeofaction,inparticularbuildings and
urbanheatingsystems,transport,thecombinedproductionofheatand
power,heatpumps,variousindustrial processes,schemestoobtainenergy
fromwastes,agriculture andbiomass,andtheproductionofenergyitself.
II.IMPLEMENTATION
3.SinceRegulationn°1303/78cameintoforce,threecalls
fortenders havebeenpublished,i.e.4July1978,26September
1979and15January1981respectively .Thecorresponding financingde­
cisionsweretakenon29November1978,6March1979and29July1980.
Thedecisionsrelateto113projects-involvinganinvestmentof165mil­
lionEUA-towhichaCommunitycontribution of45millionEUAismade,
equivalenttoanaveragelevelofsupportof27%.
4.ItshouldbeborneinmindthattheinvestmentfigureusedbytheCom­
missiontocalculatetheamountofCommunitysupportisnotalwaysthe
totalcostoftheproject,butincertaininstancestheextracostinre­
lationtoaconventional plant^orthecostoftheinnovativepartofthe
sameproject.
./.
(3)

5.Theprocedure adopted bythe Commission toimplement the Regulation ,is
shown diagrammatically inAnnex 1.There areessentially three stages ,
namely :
.call fortenders ,
.evaluation ofapplications for support (inconjunction with the Advisory
Committee onProgramme Management ),and the Commission 'sdecision onthe
amount ofsupport tobegiven ,
.conclusion and administration ofcontracts .
Thetimetable forthefirst twoseries ofprojects issummarized inAnnex 2
6.On29November 1978 and 6March 1979,the Commission decided togrant fi­
nancial support toaninitial series of53energy-saving demonstration pro­
jects selected from 326proposals ,received inresponse tothecall for
proposals published on4July 1978 .Thetotal amount offinancial support
was 21.6 million EUA,out ofcorresponding investment amounting tosome
.80million EUA .
7.Contracts between the Commission and the contractor were signed inrespect
of39ofthese projects .The 14others were withdrawn bythe proposers (1);
the funds which had been earmarked forthe latter projects (4.4.million
EUA )were re-used for the second call for tenders .
8.On29July 1980,the Commission took adecision onthe second series of
projects qualifying forfinancial support .Atotal of60demonstration
projects are involved ,selected from the 304 proposals received inresponse
tothe call fortenders published on26September 1979 ;this series also
includes anamendment toone oftheprojects accepted under thefirst call
for tenders .
9.Thetotal amount ofCommunity support was 27.1 million EUA,inrelation to
acorresponding investment amounting toapproximately 88.5 million EUA.
10.Asofthe 15April 1981,the Commission had signed 24contracts ;sixpro­
jects were withdrawn bytheproposers (2)andnegotiations were inprogress
concerning the others . /mf m
(1)EE/013/79;EE/020/79;EE/042/79;EE/062/79;EE/070/79;EE/189/79;EE/200/79
EE/221/79;EE/233/79;EE/270/79;EE/006/79;EE/050/79;EE/087/79;EE/219/79
(2)EE/033/80;EE/114/80;EE/128/80;EE/212/80;EE/240/80;EE/249/80.

3.
11.Aninformation note circulated with this report summarizes thestatus of
thecontracts inrespect ofthe93projects inprogress .Itgives the
project number ,title ,name andaddress oftheproposer ,theamount of
investment andtheproportion ofCommunity support ,andthestage the
contract hasreached .Itisestimated that 25projects will becompleted
before the endof1982 .Theresults of15others will beknown atthe end
of1983 .
III.USE OF FINANCIAL APPROPRIATIONS
12.The maximum amount ofaidtobegranted under Regulation n°1303/78has
been fixed at55million EUA (Council Regulation (EEC)n°725/79).
13.Theprojects already approved bythe Commission require afinancial contri­
bution of45million EUA.The remaining 10million EUAavailable before
theceiling isreached have been included inthe 24million EUAappropria­
tions for commitment entered inthe 1981 budget .
14.The Commission has committed atotal of30.4 million EUA inrespect ofthe
63project contracts signed todate .Itisexpected that the remaining ap­
propriations will becommitted before the end ofthis year .
15.Astoappropriations for payments ,the Commission has sofardisbursed
8million EUA;itisexpected that approximately 16million EUAwill be
disbursed during 1981 .
Thetime-lag between commitment and payment isduetothe time required
forprojects tobecarried out (twotofour years onaverage ),andtothe
fact that payments ofsubsidy bythe Community are made instages ,i.e. 30%
atthebeginning oftheproject ,50X astheproject progresses and 20% once
thefinal reports have been approved .
16.Atable summarizing theuseoffinancial appropriations ,asdescribed above ,
isgiven atAnnex 3.
IV.COMMENTS
A.Criteria governing project select ion
17.Theprojects areassessed onthebasis ofanumber ofcriteria ,amongst which
should benoted inparticular :

4.
-the value ofthe project asatechnological innovation ;
-the technical soundness ;
-the risks associated with the execution ofthe project ;
-the prospects ofindustrial and commercial viability ;
-the demonstration value ;
-the potential market and scope forpublicizing the results .
B. Distribution ofthe projects
18.Annex 4gives information onthedistribution -bysector ,country ,size
and type ofapplicant -ofthe proposals received andtheprojects selected
inresponse tothefirst twocalls fortender .
19.Asfar asthe number ofselected projects isconcerned ,the figures show
the importance ofthe "industrial processes "sector ;itisalso this sector
which received the Largest share ofCommunity funds (37.5% );this points to
the higher quality ofthe proposals emanating from this sector .The same
comment may bemade for the "heat pumps "sector .Onthe other hand,only
12% ofthe projects selected (20% ofthe proposals received )related tothe
"building "sector .This sector isfollowed inimportance bythe sectors re­
lating to"combined heat and power generation anddistrict heating "and
"fluidized bed and waste heat recovery ";itshould bepointed outthat the
projects inthese sectors are onamuch larger scale than those inthe other
sectors ;this reflects the substantial investment required inthis sector .
20.Although afew major projects have taken upalarge proportion ofthe Com­
munity aid,the majority ofprojects selected are small inscale .Over 80%
ofthe projects selected require investment ofless than 2.2.million EUA.
21.Over half theprojects selected were put forward bylarge undertakings or
multinational groups (42%ofthe requests for support )whereas only 15%of
theprojects originated from small and medium-sized undertakings .The Com­
mission wilt endeavour toprovide fuller information forthe small and
medium-sized undertakings with aview toincreasing their participation in
the programme .

5.
C. Examples
22.The following examples ofprojects adopted -andfor which contracts have
been signed -aresignificant both from thepoint ofview ofactual orpo­
tential energy savings andtheir commercial orsocial impact :
-Project EE/074/80,proposed byUSINOR ,involves the recovery ofgas from
converters atthe Dunkirk steelworks .This gas-recovery system -already
used inJapan -will result inanenergy saving of90.000 toe/year .
-Project EE/001/80,proposed byGebruder Lohlein K.G.,concerns the con­
version ofanoil-fired brick kiln toburn oncoal .Itwill mean anenergy
saving of60% (or1.300 toe/year )andthe substitution ofcoal for fuel oil.
-Project EE/235/79,proposed byBatchelor &Robinson ,the contract for which
has been taken over byFoster Wheeler ,involves the building ofaplant for
the pyrolysis ofold tyres toproduce fuel oil.The estimated energy savings
from theproject are 30.000 toe/year .
-Project EE/231/80,proposed byOfficine Termotecniche BREDA ,involves the
installation of700 ofanew type high-efficiency (over 91%)"Blueflam 91"
boilers ofdifferent sizes ,inanumber ofItalian towns .This type ofboi­
lerisbeing successfully marketed inItaly andtherest ofEurope ;accor­
ding toinformation supplied bythe contractor ,large numbers ofthese
boilers have already been installed ,particularly inBelgium .
-Project EE/121/79,proposed bythe town ofSvendborg (Denmark )concerns
district heating for some 600 households from aplant fortheincineration
ofstraw which isdelivered tothe plant bythe farmers themselves ;output
is9MWandthe energy saving approximately 6.000 toe/year .Another town,
Silkberg ,has already decided tointroduce the same system .
(4)

6.
-Project EE/043/80,proposed bySpach &Co,isimportant inthat itde­
monstrates the potential ofsmall firms .Itconcerns the installation of
asmall hydro-electric plant harnessing awaterfall with a3metres drop
which drives the heat pump toheat anhotel .
Therating oftheplant is60kWanditsaves approximately 50toe/year
inenergy .
D. Procédures
23.Coordination with the corresponding Community RSDProgramme has been
satisfactorily maintained throughout the demonstration programme .Itshould
bepointed out inthis connection that anumber ofprojects supported by
the Community atdemonstration stage were the logical extension ofare­
search stage financed under the abovementioned R&D programme (1).
24.The same degree ofconstructive coordination has been apparent between the
"energy saving "and "alternative sources "demonstration programmes .
25.Similar national programmes are inbeing inFrance ,Germany ,the Netherlands
andthe United Kingdom .Inother Member States ,demonstration projects have
been funded byaid for innovation .
Generally speaking ,the Member States are maintaining orstepping uptheir
national programmes ofaid fordemonstration and innovation .
The Commission believes that conditions offered under nationi programmes
are sometimes more attractive than those ofthe Community programme .
(1)EE/035/79;EE/049/79;EE/068/79;EE/174/79.

7.
Some Member States areconcentrating their funding efforts inspecific areas
such asthe recovery ofprocess heat orthe development ofadvanced boilers
fordomestic heating ;inthese cases ,the Community programme isavaluable
additional source ofsupport .
26.The Commission isgenerally satisfied with the coordination between these
programmes andthe Community programme .
However ,itdoes think that greater efforts should bemade toensure amore
rapid and systematic exchange ofinformation ,ascalled for inthe Council
Resolution of9June 1980 (1).
Such information should cover inparticular ,
-the results achieved byeach national programme ;the Commission will then
disseminate this information inthe other Member States ;
-any changes proposed ormade tothe objectives ,criteria and internal
management ofthenational programmes ,and the adoption ofnew programmes ;
-the financing -from national sources -ofprojects inreceipt ofCommis­
sion aid (2).
27.Onthe question ofrelationships with the EIB,coordination has been main­
tained throughout the programme .Following each financing decision ,the Com­
mission hassupplied the EIB with details oftheprojects suitable forfi­
nancing orco-financing bythe Bank .Itisunderstood that insome cases there
has been direct contact between theproposer andthe EIB with aview tothe
possible conclusion ofaloan contract .
(1)0J C149 of18.6.1980
(2)EE/120/79;EE/121/79;EE/193/79;EE/217/79;EE/043/80.

8.
.28.Asindicated inparagraphs II.7and 11.10 ,20projects have sofarbeen with­
drawn bythe proposers .
There are avariety ofreasons why these projects have been withdrawn .In
most cases ,there were difficulties infinancing the
the investment ;inother cases ,the repayment clause hadnot been fully
understood when theproject proposals were being put forward ;other contrac­
tors have made substantial modifications totheir projects rendering them
ineligible for Commission support .
29.The Commission has examined thepossibility ofallocating the funds available
under this programme onasector -by-sector basis .Asectoral allocation of
funds would ensure that thedistribution oftheprojects accepted reflected
more faithfully theobjectives ofthe programme interms ofthe importance
tobeattached tothedifferent sectors .Butthis would have the disadvantages
ofremoving flexibility from the project evaluation andselection process ,
andof making itmore complex .The Commission believes that,atthis stage ,
itwould not beappropriate topropose such amodification but reserves the
right toreconsider this point inthe light offurther experience .
30.Asregards the time-lag between thepublication ofcalls fortenders and
the decision onthe projects ,the Commission has found that cumulative de­
lays were likely tooccur .Todate ithas published three calls for proposals
atfairly long intervals (14to16months )toallow the programme toget un­
derway properly .Nowthat the programme isrunning smoothly ,the Commission
has been investigating various ways inwhich itcould improve theeffective­
ness ofits action .
31.From amongst these options ,the Commission has decided tointroduce aconti­
nuous procedure forthe submission ofprojects .Henceforward ,acall forten­
ders will bepublished atthe beginning ofthe year,which will make it
clear that proposals may besubmitted throughout theyear andthat their
evaluation will beundertaken from the date ofreceipt .Proposals received will
bedecided upon bythe Commission every four months .
This procedure will cut down the delays between the time theproject isre­
ceived and the time the Commission decision isreached ,from the current 8
months to4or5months .This procedure ,whichhas the support ofthe majority
ofthe Member States and has been adopted byother Community programmes ,
will come into force with effect from 1982 .

9.
32.The repayment clause hasoften been the subject ofarguments with prospective
proposers orrepresentatives ofMember States .Furthermore ,different conditions
apply depending onwhether Regulation n°1302 /78(alternative energy sources )
orRegulation n°1303 /78(energy saving )isinquestion .
Inanattempt toovercome the major difficulties ,the Commission does not
require repayment -asfar asenergy saving projects are concerned -unless
theproject isasuccess ;inaddition ,norepayment isrequired forthat
part ofthe aid covering the costs ofthe measurement programme .Nevertheless ,
this solution isstill notsatisfactory ,andgives rise todifferent inter­
pretations .The Commission takes the view that the basic criteria laid down
inRegulation n°1303 /78onthis point arestill valid ,i.e. theoverall
level ofpublic support should not bemore than 50% and repayment ofpart of
the Community contribution should berequired inorder toguarantee the
quality ofthe proposals .The repayment conditions should nevertheless be
made more flexible byaligning them onthose laid down for the implementation
ofRegulation n°1302 /78and onthepractice adopted inmost Member States .
33.Therefore the Commission recently decided that ,where aproject was success­
ful,allthat would have toberepaid would be50% ofthe financial support
granted ;but where the costs ofthe measurement programme exceeded the non-
refundable component ,the Commission would meet these additional costs ,so
that thetotal amount ofthe non-refundable component did not exceed 75%
ofthe financial support granted (1).
Regulation n°1303/78states that Community support will cover between 25%
and 49%ofthetotal investment cost ofaproject ,andwill take into account
anynational orCommunity aidrequested orgranted .Thecall forthe sub­
mission ofproposals stipulates that this percentage range of25%to49%shall
include allnational and Community aid.Itisvery difficult inpractice to
verify that theterms ofthis clause arebeing met.The Commission would
now like toensure that this isso.The only time such acheck can bemade
iswhen the contract issigned .
Only aidgranted under national programmes onenergy saving will betaken
into consideration .Henceforward ,thecall forthesubmission ofproposals
will specify that the amount ofallaidgranted shall notexceed 49>£ofthe
total cost ofinvestment ,andthat compliance with this clause will be
checked when thecontract issigned .This clause will beincluded inthe
contract tobesigned bythe contractor .
(1)Therules currently inforce will continue toapply toalltheprojects
accepted inresponse tothefirst three calls tosubmit proposals .

10.
34.The Commission 'sdepartments have been overloaded bythe management ofthe
programme ,during the stages concerned with the administration ofcalls for
tenders ,but above all asaresult ofthe on-the-spot checks including fi­
nancial control ;inorder toreduce this burden andtomanage theproposals
andcontracts more efficiently ,the Commission has launched apilot study
onthe introduction ofacomputerized management system .Ifthe results are
satisfactory ,the system will become fully operat
other demonstration programmes .
35.Since the demonstration programme has now reached maturity ,the Commission
istoincrease itsefforts tomake theresults more widely known .Accordingly ,
itwill compile and regularly update afull set ofinformation onthe pro­
gress ofthe programme and theresults achieved .This package will include :
-technical data sheets oneach project (aspecimen isgiven atAnnex 5);
-athree-mont newsletter ,with up-to-date information onthe programme ;
-one-day seminars ,bringing together the various contractors working in
the same field ;
-European conferences ,atwhich national and Community experiences may
becompared .
The Commission plans toorganize thefirst such conference in1982 .The
documentation described above will serve the two-fold purpose ofmaking
known theresults obtained ,andproviding adequate publicity forthe pro­
gramme .
36.Theinterests ofdeveloping countries will betaken into consideration ,
andthey will beinformed ,asfar aspossible ,ofresults which areof
interest tothem .

11.
V . CONCLUSIONS
37.According tothe information given inthecontracts andinterim reports ,
theenergy savings Likely toresult from the implementation ofRegulation
(EEC)n°1303 /78,inrespect oftheprojects sofar adopted ,may beesti­
mated at470.000 toe/year ,which -when compared with approximately 45mil­
lion EUAinaidgranted -represents anaverage level ofsupport of95 EUA
per toe/year saved .
Projects inthebuilding andtransport sectors require relatively higher
levels ofinvestment compared with the energy savings obtained .These pro­
jects incur very high measurement costs and involve units with alow-energy
consumption (buildings ,motor vehicles ).Nevertheless ,they are representa­
tive ofavery important stock ofbuildings andfleet ofvehicles and should
permit aparticularly wide diffusion ofproven technology .
38.The above estimates will bereviewed periodi cial ly,totake account ofthe
results ofcompleted projects and new commitments .The energy savings ob­
tained asaresult ofthe programme will begreater than the above estimate
owing tothe spread ofthe techniques demonstrated and promoted bythe pro­
jects .This isthemultiplier effect which characterizes alldemonstration
programmes .
39.There has been avery high level ofparticipation inthe programme .Taking
thefirst twocalls forproposals together ,the Commission received some
650applications for support forprojects requiring atotal investment of
about 1.500 million EUA.Thethird call fortenders was widely publicized in
thepress ofthe Member States .Bythe endofMay 1981,the Commission had
already received some 350applications .
40.Theprojects accepted cover the whole spectrum ofsectors where substantial
energy savings arepossible ;theresponse from industry hasbeen particular­
lystrong .Ontheother hand,theresponse from local authorities ,research
centres andcooperative ventures hasbeen more modest onaccount ofthe
better conditions offinancing generally offered intheir respective countries ,

12.
and ofthe requirement torepay the Community support iftheproject is
acommercial success .There has been little response from the small and
medium-sized undertakings because information about the Community programme
islate inreaching them ,andtheir technical resources are inadequate .How­
ever ,participation from this sector increased significantly with the
second call for the submission ofproposals .
41.Anevaluation ofaprogramme should normally contain ananalysis ofthe
technical and economic results oftheprojects for which financial sup­
port has been granted .Since the period ofapplication ofthe Regulation
has been shorter than the time needed tocarry out most oftheprojects ,
itisstill impossible tomake anyoverall assessment .Only one project
has been completed sofar (1)anditmust bepointed out that ithas been
acommercial success .Consequently ,the outcome ofthe programme can,for the
time being bejudged only ontheparticipation offirms andorganizations in
the Member States and onthe interest the programme has aroused .Nor isthe
Commission yet able tomake any specific assessment ofthe market penetra­
tion ofnew technologies ;itintends tocarry out appropriate studies based
onresults already obtained byprogrammes run incertain Member States .
42.Onthe basis ofthe last twoyears' experience inrunning the demonstration
programme ,the high level ofparticipation and the interest aroused inboth
the public andprivate sector ,the Commission concludes that :
-there isgreat potential for new ideas onenergy saving inthe Community ;
the work ofdeveloping and demonstrating newenergy-efficient technologies
orequipment isfairly widespread ,even ifthe investment risks often
prevent such technologies from realising their true market potential .
(1)Project EE/002/79 :Fluidised bed combustion ofacid tar wastes andthe
production ofsteam bynew type ofboiler (Deborah Fluidised Bed).

-the Community dimension ofthe programme has proved very attractive ,on
account ofthe wider market opportunities open tothe proposers tomake
known their technologies andproducts ,and open upmarkets .
Accordingly ,the Commission considers that adoubling ofthe budgetary
allocation (C0MC80 )567 final )isjustified .

Initial rejection I IAdvisoryofproposals non-I Committee on L
confomied to I Programme
I calls I jManagement |
l ||
Call fortproposals I,Proposals to,Other DG's JInformal discus - j IInteraervlcelenders leccivod boreviewed Ispra ,etc. 'Jslons tocomplete U–JGroup I
1 JIdétail I1 \/|Information I|Comroissiorf
T I / J Irating A,fe,C
i i i -
Proposals I /from DG12 I 1  
j| I/ IDG17
^I7 j.–.i....... IMprepare 1-page IPcviow team I jproposal j
Isummaries 1
ij
Outsido I
Consultants (I
I
I
!
S | ^
Advisory IIDG17choose !I IJ20working ! 1 II
Commi ttee LJ *lnal \JCommissioni ,days waiting 1Jfinal LJcontract -
meeting . jprojects , Tdecision |time for | decision ^tn9Rating of 3elect level jpossible !
proposals I|of"Inanclal I '|appeal ! 1 "||support I t „ j
lDG17
0 |Inform
I Ilosers
Transfer
to DG 12or
Solar Program
>2
ZZ.
mx

10781979
J JA SO N D J F M AM J J A
REGULATION 1303/78
PREPARING THE CALLS
PUBLICATION OP CAU^S
RECEIPT OF PROPOSALS
PROPOSAL EV ALUATION BY DG 17
ACPM MEETINGS
COMMISSION FINAL DECISION
20 DAY RI:VOKE PERIOD
APPEAL
CÎNTRACTING
MONITORINGIST CALL0
-0
▲ ÂiA A
Θ
■ REGULATION 1303/76
(A) PUBLICATION orCALLS
® CLOSING DATES
▲ A.C.P.M MEETINGS
(T^ FINAL DECISION
Q APPKAL1980
0 N D J PM AM JJ AS ON DJ
* ! U 1 1 1
0
tø
A ▲
Θ
...V .?.?.Î:5 111UNDER NÉGOCIÂT ION

ANNEX 3
UTILIZATION OF APPROPRIATIONS
Budgetary ceiling (Regulation (EEC)n°725/79 55mil .EUA
Commission Decision (First call ) 21,6 mil.EUA
Projects withdrawn bythe proposers 4,4 mil.EUA
Commission Decision (second call ) 27,2 mil.EUA
Costs ofassessment ,re-assessment ofcommit -
ments and other costs 0,8 mil.EUA
Total -First and second Decision
■45mil.EUA
Balance 10 miI. EUA
Appropriations committed inrespect of
1st call 17,0 mil.EUA
Appropriations committed inrespect of
2nd call 13,4 mil.EUA
Total commitments 30,4 mil.EUA
Total still available for commitment 19,6 mil.EUA
Payments made pursuant tothe 1st and
2nd call 8 mil .EUA
I

Distribution ofproposals received and ANNEX 4a)
projects selected bysector
First call
SectorProposals received Projects selected
No % No %
Building
Heat Pumps
Combined he<it and power generation
anddistrict heating
Industrial procosscs
Fluidmcd hvd and waste heat
recovery
Kloctrlc power
Hiogaz
Agriculture
Transportation
Oi-hors49
28
47
102
29
10
8
16
2915.4
8.8
14.8
32.1
9.1
3.1
2.5
5.0
9.18
8
9
18
4
3
1
1
115.1
15.1
17.0
34.0
7.5
5.7
1.9
1.9
1.9
TOTAL 318 100 « 53 100 %
Second call
Sector Proposa IsrecoivtO Projects r.elerti *!
No ι \
INo ι
1
»uiIding
Heat Pumps
Calibi nal heat and power generation
■inridistrict ,heating
Industrial processo »
I'luidisod bod and waste heat
r--ο «νory
Mi-et r11.·power
Iti ι«ja
Λ·)riiMi 1turo
Tr .nispor tat-ion
Otlx-rs77 ' 25.5
23 , 7.6
29 ¡ 9.6
61 ι 20.2
I
34 ! 11.3
12 ' 4.0
12 ¡ 4.0
13 ι 4.3
20 ¡ 9.3
14 ι 4.5
ι1
(> ' 10.0
β ¡ 13.3
ι
8 ¡ 13.3
20 ι 33.3
ι
7 ! 11.7
2 t 3.1
2 ¡ 3.i
1 ! 1.7
4 ' C.7
2 ! 3.3
ι
TOTAL 303 ¡ 100 's60 1 100 ¿
ι
First and second calls .
SectorProposals
Noreceived
I %Projects
Noselected
t
Combined heat and power generation
anddistrict heating
Industrial processes
riuidiscd bed atui waste heat
Kli.-ctric power
Hiogaz
Agriculture
Transportation
Others .126
51
76
163
63
22
20
29
57
14Ì20.3
¡ 8.2
j12.2
¡ 26.2
j 10.1
! 3.6
! 3.2
! 4·7
¡ 9.2
! 2·314
16
17
38
11
5
3
2
5
212.4
14.2
15.0
33.6
1.7
4.4
2.7
1.8
4.4
1.8
TOTAL 621 J100 % 113 100 %

ANNEX Ub)
Distribution ofproposals received andprojects
selected bycountry
First call
CountryProposals received Projects selected
No% No*
Belgium 15 4.7 4 7.5
Denmark 20 6.3 3 5.7
France 89 28.0 12 22.6
Germany 35 11.0 6 11.3
United Kingdom56 17.6 9 17.0
Ireland 7 2.2 2 3.8
Italy 55 17.3 8 15.1
Luxembourg 8 2.5 1 1.9
Netherlands 33 10.4 8 15.1
TOTAL 318 100 % 53
.100 %
Second call
CountryProposals received Projects selected
NoI
¡ % No %
Belgium 121
! 4.0 3 5.0
Denmark 19 ! 6.3 4 6.7
France 31 ! 10.2 7 11.7
Germany 55 ! 18.1 9 15.0
United Kingdom64 ί 21.1 15 25.0
Ireland 6¡ 2.02 3.3
Italy 86 ι 28.4 14 2Τ.3
Luxembourg 7 ! 2.3 0 -
Netherlands 23 ! 7.6
ι
ι
ι6 10.0
TOTAL 303 ι 100 «
ι
ι60 100 »
First and second calls
CountryProposals received Projects selected
No ! \ No %
Holnium 27 ! 4.3 7 6.2
Oentn.irk 39 ¡ 6.3 7 6.2
France 120 ! 19.3 89 16.8
Germany90 ¡ 14.5 15 13.3
United Kingdom120 ! 19.3 24 21.2
Ireland 13 ! 2.1 4 3.5
Jtaly 141 ! 22.7 22 19.5
I.uxcnibourg15 ί 2.4 1 0.9
Netherlands 56 ! 9.0
ι
ι14 '12.4
TOTAL 621 ¡loo %
ι113 100 «

First callDistribution ofinvestment requirements bysector forproposals received andprojects selectedANNEX 4c)
SectorProposals received Projects selected
1000 EUAt 1000 EUA [ %
building
Heat Pumps
Combined heat and power generation
anddistrict heating
Industrial processes
Kluidised bed and waste heat
recovery
Klectric power
(Uoqaz
Agriculture
Transportation
Others36.890
27.175
427.332
290.894
113.653
19.470
4.378
24.180
32.7843.8
2.8
43.8
29.8
11.6
2.0
0.4
2.5
3.42.595 J 3.3
5.223 ¡ 6.6
ι
36.283 j45.9
17.056 ¡ 21.6
ι
9.002 j 11.4
7.393 J 9.4
90 J 0.1
430 j 0.5
892 ; 1.1
I
I
1
TOTAL 976.756 100 % 78.960 ¡100 *
Second c-all . ..
Sector Proposals received Projects selected
1000 EUA! % 1000 EUA 1 «
1
Building
Heat Pumps
Çcmbined heat and power generation
anddistrict heating
Industrial processes
Pluidised bed and waste heat
recovery
Electric power
Biogas
Agriculture
Transportation
Othere63.307
9.066
45.363
134.309
141.718
53.836
8.258
8.385
32.071
6.395!12.6
¡ 1.8
I 9.0
¡26.7
!28.2
110.7
1 1.6
I 1-7
¡ 6.4
! 1,35.235 J 5.9
1.918 ι 2.2
1
12.845 !14.5
43.342 ι49.1
14.949 S16.9
3.006 ! 3.4
2.230 I 2.5
241 0.3
2.058 ι 2.3
2.489 , 2.8
1
TOTAL 502.704j 100 %88.300 ί100 %
1
■
First and second calls
SectorProposals received Projects selected
1000 EUAr
« 1000 EUA ¡ %
Uuilding
CoiTibined heat and power generation
anddistrict heating
Industrial processes
tliiidiscd bud and waste heat
recovery
Electric power
Uiocjaz
Agriculture
Transportation
Others100.197
36.241
472.695
425.203
255.371
73.306
12.636
32.565
64.855
6.3956.8
2.4
32.0
28.7
17.3
5.0
0.9
2.2
4.4
0.47.830 j 4.7
7.141 ¡ 4.3
ι
49.128 j29.4
60.398 ¡ 35.9
ι
23.951 j14.3
10.399 J 6.2
2.320 ¡ 1.4
671 ¡ 0.4
2.950 ¡ 1.8
2.489 ¡ 1.5
I
TOTAL 1.479.460 100 « 167.260 ¡100 *
1

Distribution ofinvestment requirements by
country forproposals received andprojects selectedANNEX Ad)
First call
CountryProposals received Projects selected
1000 EUA \ 1000 EUA ')>
Belgium 23.480 2.4 6.S32 8.3
Denmark 76.751 7.9 3.600 4.6
Franco 270.370 27.7 20.661 26.2
Germany200.475 20.5 24.988 31.6
United 'Kingdom106.841 10.9 9.697 12.3
Ireland 2.833 0.3 365 0.5
Italy180.872 18.5 8.379 10.6
Luxenibourg18.047 1.8 264 0.3
Nether lands 97.087 9.9 4.477 5.7
TOTAL 976.756 100 « 78.960 100 *
Second call
CountryProposals received Projects selected
1000 EUA % 1000 EUA %
Belgian 11.187 2.2 4.370 4.9
Denmark 86.573 17.2 1.870 2.1
France ». 38.728 7.7 16.820 19.0
Germany 91.967 18.3 16.026 18.1
United Kingdom 135.537 27.0 18.550 21.0
Ireland 4.740 0.9 2.028 2.3
Italy 117.664 23.4 23.309 26.5
Luxembourg 1.528 0.3 0 -
Netherlands 14.771 2.9 5.260 6.0
TOTAL 502.704 100 « 88.300 100 «
First and second calls
Proposels received Project ?;selecte· !
Country
1000 EUA J % 1000 EUA t.
IWgium 34.667 ¡ 2.3 10.902 6.5
Denmark 163.324 j 11.0 5.470 3.3
France 309.098 ¡ 20.9 37.481 22.4
Germany 292.442 j 19.8 41.014 24.5
United Kingdom 242.378 ! 16.4 28.245 16.9
Irolund 7.581 i .0.5 2.393 1.4
Italy 298.536 ¡ 20.2 31.768 19.0
Lux· -»ibuurg 19.575 i 1.3 365 0.2
Netherlands 111.858 !
I
17.6 9.737 5.8
TOTAL 1.479.460 ¡
I100 » 167.260 100 %

Distribution ofproposals received and ANNEX 4e)
projects selected bytype andsize ofproposers
First call
Type andsize ofproposersProposals received Projects selected
NoΤ
%No%
Small business 31 9.5 0
Medium business 38 11.7 5 9.4
Large business and international
groups 152 46.6 28 52.8
/Utilities 26 8.0 4 7.5
Municipalities 28 8.6 9 17.1
Cooperatives 2 0.6 1 1.9
Associations fordevelopment 4 1.2 _
Universities ,research centers ,
public institutions 45 13.8 6 11.3
TOTAL 326 100 « 53 100 %
Second call
Proposals received Projects selected
Type and size ofproposers
No % No *
Small business 58 19.0 7 12.0
Medium business 29 9.6 5 8.0
Large business and international
groups 116 38.3 31 52.0
Utilities 12 4.0 3 5.0
Municipalities 22 7.3 2 3.0
Cooperatives 10 3.3 2 3.0
Associations fordevelopment .... 9 3.0 3 5.0
Universities ,research centers .
public institutions 47 15.5 7 12.0
TOTAL 303 100 « 60 100 %
First and second calls
Proposals received Projects selected
IS -n _ 1 I alype ana size ΟΣproposers
No « No %
Small business 89 14.1 7 6.2
Medium business 67 10.7 10 8.8
Large business and International
groups 268 42.7 59 52.2
Utilities 38 6.0 7 6.2
Municipalities 50 7.9 11 9.7
Cooperatives 12 1.9 3 2.7
Associations forDevelopment .... 13 2.1 3 2.7
Universities ,research centers ,
public institutions 92 14.6 13 11.5
/
TOTAL 629 100 « 113 100 «
*Asmall business hasbeen defined asabusiness with annual sales less than 3,5million EUA;
amedium business with annual sales more than 3,5million EUAand less than 35million EUA .

Distribution ofproposals received
andprojects selected bytype andsize ofproposersANNEX Af)
First call
Type ofproposersProposals received Proietta fsrlcct«.·· !
No % No Y
Users
Manufacturers299
2792
847
669
11
TOTAL 326 100 % 53 100 %
Second call
*
Type ofproposersProposals received Projectr .selected
No ¡ %
1Γ –
NO ¡ \
I
Users
Manufacturers1
1
279 J92
24 ¡ 8
I
11
1
52 J87
8 !13
1
1
TOTAL 303 ¡100 « 60 ;loo «
First and second calls
Type ofproposersProposals received Pro ioctarjolc.-ctod
NO I No *
Users
Manufacturers578
5192
899
1488
12
TOTAL629 100 « 113 100 %
*Users 1includes engineering firms

Distribution offinancial support ANNEX 4g)
bysector forselected projects
First call
Financial support
Sector
1000 EUA%
Building 946,6 4.4
Heat Pumps 1.530,1 7.1
Combined heat and power generation
anddistrict heating 7.153,3 33.4
Industrial processes 6.066,2 28.3
lluidisod bed and waste heat
recovery 2.634,2 13.2
Electric power 2.330,1 10.9
Uio<pz 35,9 0.2
Agriculture 172,2 0.8
Transportation 356,9 1.7
Others
TOTAL· 21.425 100 %
Second call
Financial support
Sector
1000 EUA «
Building 1.702 6.3
Heat Pumps 767 2.8
Combined heat and power generation
anddistrict heating 3.848 14.2
Industrial processes 12.155 44.8
Fluidised bed and waste heat
recovery 4.948 18.2
Electric power 1.081 4.0
Biogas 834 !3.3
Agriculture 96 ι 0.4
Transportation 760 2.8
Others 875 i.'.3.2
TOTAL 27.130ι
!'loo »
l-, π
First and second calls
SectorFinancial support .
1000 EUA»
Building
Heat Pumps2.649
2.2975·5.
4.7
Combined heat and power generation11.001
18.22122.7
37.5anddistrict heating
Industrial processes
Fluidincd bed and waste heat
recovery
Electric power
Biojaz7.782
344
93016.0
7.0
1.9
Agriculture
Trans{>ortation
Others268
1.117
8750.6
2.3
1.8
TOTAL 48.551 100 «

Distribution offinancial support bycountry
First call
CountryFinancial support
1000 EUA\
Hel^tua
Demerit
Trance
Criuny
United Kingdom
Ireland
Italy
Luxembourg
ttetherlwls2.207,8
1.096,0
4.930,8
5.047,2
3.175,7
169,9
2.973,2
105,6 '
1.669,510.3
5.1
23.2
23.6
14.8
0.8
13.9
0.5
7.8
TOTAL 21.425 100 *
Second call
Finane la Support
Country1000 EUA «
Belglun ' 1.555 5.7
Ocnurk 748 2.8
France 5.394 19.9
Cernany 5.146 19.0
Onlted Kingdom 5.9Θ 6 22.1
Ireland 747 2.8
Italy 5.604 20.7
tuxmbcurg- -
Nether land s 1.945 7.2
T0TM . 27.130 100 «
calls
Financial support
Country
y"IC:0 EUA %
Belilufi 3.7G3 7.8
Dennuk 1.844 3.θ
Prence 10.375 21.4
Orr-jny10.193 21.0
United Klngdoa 9.162 18.9
Ireland 917 1.9
Italy8.577 17.7
LuxtmiTurq106 0.2
Netherlands 3.614 7.4
TOTAL 48.se 1 ICO %

ANNEX -5
COMMISSION
OFTHEEUROPEAN COMMUNITIES
Energy-saving Demonstration Projects
Title:
j
4
1
1ProjectNo.:
ι
»
Contractor : Telephone No.:
Address: Telex:
Technicaldirector(orpersontocontactfor
furtherinformation):
•
Measurement programme endson:
Planneddurationofproject:
Energysavings:
Catprojectlevel)
(intoe)
TOTALCOST
OFPROJECTNationalcurrency
Currency
code(1)
Construction
Measurement .
Total
Construction
Measurement .
TotalAmount
EECAID
(1)Germany:DM
Belgium:BFR
Denmark:DKRFrance:FF
Greece:DRA
Ireland:IRLItaly: LIT
Netherlands :HFL
UnitedKingdom:UKLLuxembourg :LFR

TECHNICAL DESCRIPTION OFPROJECT
(aim;description ;progress)