COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 654 final 
Brussels, 23.01.1995 
94/ 0063(CNS) 
Amended proposal for a 
COUNCIL REGULATION (EC) 
CONCERNING A COMMUNITY PROGRAMME PROVIDING FINANCIAL SUPPORT FOR THE PROMOTION OF 
EUROPEAN ENERGY TECHNOLOGY 1995-1998 ("THERMIE II") 
(presented by the Commission pursuant to Article 189 A (2) 
of the EC-Treaty) 
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EXPLANATORY MEMORANDUM | 
PROMOTION OF EUROPEAN ENERGY TECHNOLOGIES 
A COMMUNITY PROGRAMME PROVIDING FINANCIAL SUPPORT FOR THE PROMOTION OF 
EUROPEAN ENERGY TECHNOLOGY 1995-1998 ("THERMIE-II") 
0 INTRODUCTION 
0.1 The Energy situation in the Community as well as the necessity to contribute 
to the achievement of the goals of its economic and political integration as 
laid down in the Treaty establishing the European Union call for public action 
to promote European Energy Technologies on the market. The Community 
programme "THERMIE", decided by the Council of Ministers on 
29June19901 and granting financial support for this expires on 
31 December 1994. 
0.2 The Commission has charged experts to assess the results of the THERMIE 
programme and presents its reports on the implementation of the regulation 
and on the compatibility between national and Community action2. This 
report shows clearly that there is a certain need for specific support on a 
Community level. 
0.3 Since the implementation of the Treaty of the European Union, an important 
part of promoting European Energy Technologies and concerning the 
demonstration of the technical feasibility of projects is covered under the 
provisions of articles 130f and followings. The Commission has therefore 
integrated this part into its proposal for a 4th RDT framework programme3. 
The Commission has specified in annex III of the proposed Council decision 
for a 4th RDT framework programme under action 1 point 5 "Energy"4 as well 
as under action 2 "co-operation with Third Countries"5 and action 3 
"Dissemination and valorisation of results"6 the need for energy technology 
demonstration such as carried out by the THERMIE programme and its 
1 Council Regulation (EEC)n°2008/90, OJ n°L185/1 of 17.07.1990 
2 Ref. "Report on the implementation of Council Regulation n°2008/90 of 29 June 1990 
(THERMIE Programme)" COM(93) 642 final 
3 Ref. proposal of a Council decision doc. COM(93)276 final of 16.06.1993 - p.4 
4 Ref. proposal of a Council decision doc. COM(93)276 final of 16.06.1993 - p.50 
5 Ref. proposal of a Council decision doc. COM(93)276 final of 16.06.1993 - p.60 and 61 
6 Ref. proposal of a Council decision doc. COM(93)276 final of 16.06.1993 - p.63 and 64 
Organisations for the Promotion of Energy Technologies as well as by its 
"Energy Centres" in Central and Eastern Europe. 
0.4 THERMIE is supporting projects on the industrial viability of new technologies 
going beyond the pure technical feasibility. The promotion of European 
Energy Technologies by the demonstration of their economic viability as well 
as the promotion of results of similar projects financed by Member States 
programmes or by the industry alone and assistance to their penetration on 
markets of Third Countries through industrial co-operation cannot be 
included in the 4th framework programme and are therefore subject to the 
present proposal based on art.235 of the Treaty. 
0.5 In the following chapters, the Commission specifies the justification for action 
at Community level, as well as the objectives of this new complementary 
programme ("THERMIE-H") and the orientations and structure of the new 
programme. 
1 JUSTIFICATION FOR ACTION AT COMMUNITY LEVEL 
SUBSIDIARITY 
1.1 What are the objectives of the proposed action in relation to the Community's 
obligations? 
The new Community instrument for providing financial support for the 
demonstration and dissemination of energy technology 1995/98 will take into 
account major energy policy objectives which are of vital importance for 
economic growth and sustainable economic and social development of the 
EU; such as: 
security of long term energy supply of the Community, 
rational management of energy resources, 
clean use of coal and other fossil fuels, 
diversification of energy supply, 
development of regional energy resources. 
Furthermore, the programme will contribute to other major Community's 
policy objectives due to the achievement of the internal market as well as in 
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accordance to priorities laid down in the Treaty of the European Union and 
the 4th Framework Programme concerning increasing the competitiveness of 
European industry, improving living conditions in cities and rural areas, 
strengthening economic and social cohesion, and co-operation with Third 
Countries. 
1.2 Does competence for the planned activity lie solely with the Community or is 
it shared with the Member States ? 
Competence is shared with Member States. 
1.3 What is the Community dimension of the problem (for example, how many 
Member States are involved and what solution has been used up to now) ? 
The key objectives of the proposed programme affect all Member States and 
have pan-European implications - e.g. for the environment, competitivity, 
energy supply and international relations. The evaluation report of THERMIE 
and the appraisal of the Member States support programmes show clearly 
the necessity for Community action in energy technology demonstration and 
dissemination7. European industry is in many cases capable of developing 
innovative technologies and promoting their utilisation on its own , without 
public support. However, as in the USA, Japan and other major industrial 
competitors, industry (and this applies especially to SMEs) is not always in a 
position to succeed without the provision of public support, since technical or 
financial risks may be high, external costs are not included in energy 
production and consumption and market information may not be readily 
available or accessible. There is also a significant need for financial 
assistance in the services, buildings, transport sectors, etc., particularly 
where they are publicly owned. Up to now, Member States support 
programmes have been complemented by a series of Community 
demonstration programmes, the most recent of which is THERMIE. 
1.4 What is the most effective solution taking into account the means available to 
the Community and those of the Member States ? 
7 Ref. "Report on the implementation of Council Regulation n°2008/90 of 29 June 1990 
(THERMIE Programme)" COM(93) 642 final 
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Many Member States have important support programmes of their own, both 
on a national and a regional level, which may focus on specific energy 
sectors, technologies or end uses. These programmes have budgets roughly 
four times greater than the Community's programmes. There is therefore a 
need, before thinking of Community support, to consider making greater use 
of the results which are already available from these programmes. This 
requires improved co-ordination between Community and Member States 
programmes, which the Community can help to provide. In certain Member 
States no programmes exist at all, or they may only cover certain specific 
sectors. Here again, the Community could fill in the gap which exists in some 
areas. There is, of course, some need for re-orientatibn compared with 
previous Community energy technology programmes to ensure that the 
Community only acts insofar as the objectives of the action could not be 
adequately achieved by the Member States themselves and where, by virtue 
of scale or effects, the Community is able to achieve more effective results. 
1.5 What real added value will the activity proposed by the Community provide 
and what would be the cost of inaction ? 
The added value would be to bridge the gap between energy technology 
development by industry and Member States on the one hand and promotion 
of its results for the benefit of the consumers and users (public or private) on 
the other. The cost of inaction could be poorer coordination, an absence of 
dissemination of vital technical information and distortions in technical 
development across the Community to the benefit of richer Member States 
and more powerful industrial interests. 
1.6 What forms of action are available to the Community (recommendation, 
financial support, regulation, mutual recognition, etc.) ? 
It is considered that a regulation is the most effective means of achieving the 
objectives of the proposal by ensuring that all Member States adopt the same 
approach within the same structure, secure in the knowledge that a budget 
has been agreed for a pre-defined period of time. A directive or 
recommendation would clearly be inadequate in achieving this framework of 
action. 
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1.7 Is it necessary to have a uniform regulation or is a directive setting out the 
general objectives sufficient, leaving implementation at the level of the 
Member States ? 
A regulation actually makes it easier to run a consistent and fair programme 
and in this case does not affect Member States' powers to develop their own 
national programmes. 
COHERENCE WITH OTHER COMMUNITY ACTIONS 
1.8 It is recognised that, in order to be effective, there should be complementarity 
and coherence with other Community instruments, in particular with 
Community programmes financed within the 4th RDT framework programme, 
the structural funds or external aid programmes. Clearly, the energy-policy 
related programmes for technology demonstration will operate downstream 
from RDT programmes; so, technology development would have to be fully 
completed and any risks would be limited to those related to the 
demonstration of economic viability or wider market penetration. 
1.9 A Community programme which bridges the gap between energy technology 
development by industry and Member States on the one hand, and promotion 
of its results for the benefit of the consumers and users (public or private) on 
the other hand, must take into account advice from all interested institutions, 
industry, other companies, customers etc. This can be achieved by means of 
an Advisory Committee of Member State representatives, and also through 
advisory groups to the Commission representing professional associations, 
industry, the tertiary sector and any other relevant decision makers or 
customers. This would be important for both the decisions on the granting of 
financial support and for the implementation of support activities. 
1.10 An important role in this context would be taken by the European network of 
Organisations for the Promotion of Energy Technology ("OPET-network") set 
up by the THERMIE Regulation, which brings together a large number of 
public and private organisations experienced in technology assessments, 
market penetration and dissemination activities. The role and structure of the 
network could easily be adapted in order to play an important role in a new 
"THERMIE" programme. Not only are most of the necessary skills available 
within this network, but it also respects the principle of subsidiarity, since 
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these organisations are operating at regional, national and Community level. 
The network would be supported by informal groups of professional and 
consumer associations, or regional or national agencies which would bring 
closer involvement with other relevant actions and would assist the 
Community in orienting the programme. 
2 OBJECTIVES 
2.1 Security of long term energy supply, the rational use of energy, the clean use 
of fossil fuels, the diversification of energy supply and the development of 
regional energy resources are key objectives of Community policy and it is 
vital for achieving economic growth. These goals will however only be 
achieved if European industry continues to develop innovative and efficient 
technologies for both energy production/transformation and for final 
consumption. But experience has shown that these technologies, once they 
have been developed, do not always succeed in penetrating the market 
without some public support; energy efficiency improvements in buildings, 
solar photovoltaics and IGCC are examples of this. These objectives 
therefore lie at the heart of the proposed instrument. 
2.2 A major challenge for overcoming unemployment and for ensuring economic 
growth in the EU is maintaining the competitiveness of European industry. 
This will not be possible unless full use is made of innovative and efficient 
energy technologies. The position of European industry appears not at all as 
favourable as that of the USA and Japan; as pointed out in COM report 
(92)2000, the proportion of advanced technologies in European exports is 
actually decreasing, now being only at the level of 17%, compared with 27% 
for Japan and 31 % for the USA. It is recognised that the developing markets 
in Asia are large and would benefit from implementing European energy 
technology. Furthermore, European technologies could even increase their 
penetration of the USA and Japanese markets. An energy technology 
promotion programme would therefore be of valuable support for the 
European initiative in terms of economic growth. 
2.3 The preservation of energy resources goes in hand with the protection of our 
environment. In fact, there is no way in which environmental goals will be 
achieved without widespread implementation of appropriate energy 
technologies. In the coming decade, technology development and utilisation 
can reduce energy consumption significantly, in some cases by more than 
50% per unit of output, with a corresponding reduction in pollutant emissions 
such as C02, SO2, NOx. This is of vital importance, not only for the EU 
(meeting the CO2 stabilisation target), but also for its neighbours in Central 
and Eastern Europe, and even more for the developing countries who are in 
the process of dramatically increasing their economic growth. 
2.4 Clearly the internal market offers significant new opportunities for Member 
State businesses. However, it also requires companies to be more 
competitive, and one important means of enhancing competitiveness is the 
implementation of better, more efficient energy technologies. Technologies 
successfully developed by companies, often with public support at national or 
regional level, would be taken up more easily and widely if economic and 
technical uncertainties and the lack of market transparency could be 
overcome by Community promotional support; this would in turn add value to 
the programmes administered by the Member States. 
2.5 Community policy objectives to strengthen social and economic cohesion and 
agricultural policy are also met by energy technology promotion. The living 
conditions of European citizens, in particular in the less favoured regions, 
can be improved by the utilisation of efficient energy technologies. 
Improvements in public transport systems, private cars, heating and lighting 
systems can be achieved through more efficient energy use or through new 
means; although energy must always be realistically priced, efficient 
technologies can make energy available at more reasonable price levels to 
the less favoured regions and thus ensure that they are not excluded from 
access to these vital services. In fact, energy technology will have a 
significant impact on societal development and will be an important 
instrument for strengthening economic and social cohesion in the 
Community. There are similar considerations which apply to the increased 
use of modern energy technology in rural areas. Also, the recent reforms of 
the Common Agricultural Policy could be eased by associated measures, 
such as the utilisation of land for bio-fuel plantations (bio-methanol, rape-
seed, wood, etc.), to provide fuels for use in the transport and buildings 
sector. Technologies are available now, but, if Europe's rural areas are not 
to be left out, they need a vigorous push for them to be taken up in the 
various sectors concerned. 
2.6 Finally, another major Community policy, external relations, would also 
benefit from a programme of energy technology promotion. In fact, the 
international dimension of energy is greater than for any other commodity. 
Not only initiatives such as the EC-Energy Centres, but also international 
activity to decrease CO2 emissions (follow-up to the Rio conference) and 
help for developing countries to gain access to adequate and clean supplies 
of energy, would be greatly facilitated by the promotion of European energy 
technologies. Furthermore, the neighbouring countries of the EU are either 
significant energy suppliers (Russia, Poland, Norway, Algeria, Gulf etc.), or 
they have great potential for the utilisation of efficient technologies for energy 
consumption, transformation and production. The prospect of a number of 
Central and Northern European Countries joining the Community, and of 
association agreements with others (Mediterranean countries), increases the 
necessity for considering them as partners in the new Community 
programme. THERMIE-II could contribute to successful co-operation in 
particular through its dissemination action implemented by its OPET-network. 
2.7 These gualitative obiectives could be illustrated by some Quantitative targets 
which THERMIE-II would seek to achieve. For example: a decrease of 2% in 
the Community's energy imports, thus increasing the security of energy 
supply, a further increase in energy savings of 20Mt/y, a reduction of 2% in 
Community CO2 emissions, etc. These objectives would need to be defined 
in more detail and measurement criteria must be developed in parallel with 
the implementation of this new programme. 
3 ORIENTATIONS - STRUCTURE OF THE PROGRAMME 
3.1 In order to successfully meet the above objectives and to complete the 
demonstration action undertaken within the 4th RDT framework programme, 
the programme has to be adequately structured and to concentrate on 
priorities; furthermore it should be defined to face the problems relating to the 
utilisation of energy technologies, rather than simply the problems of 
particular individual energy sectors or technologies. Thus the traditional 
sectoral approach 
• Rational use of energy 
• Renewable Energy Sources 
• Fossil Fuels (Solid Fuels and Hydrocarbons) 
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will be completed by one related to the use of a technology in order to match 
with energy policy related problems of the market. 
The specific content of the sectors of application will concentrate only on a 
limited number and follow closely the results of the evaluation of the previous 
and ongoing Community energy technology support programmes as well as 
the demonstration of technical feasibility undertaken within the 4th framework 
programme. The organisation will take into account the basic principle of 
common action in partnership with industry and Member States 
administrations. A draft programme for the 3 sectors is attached. 
3.2 The content of the programme would work across sectors and would promote 
technologies by demonstration and dissemination for a specific end-use. 
Actions eligible for support would be located in one or more of the following 
areas: 
industry (RUE and final consumption of fuels or energy sources, for 
heat, power, lighting, etc.); 
energy industry (production/transformation of fuels or energy sources, 
including exploration and demand-side management action on efficient 
electricity production and utilisation); 
tertiary sector : buildings and domestic sector (including services and 
administration: RUE, solar thermal, electricity, etc.), transport sector 
(RUE, bio-fuels, electricity, solar PV, etc.), urban energy systems (CHP, 
district heating, traditional energy sources combined with new ones -
geothermal, biomass, wind, clean use of coal, gas, etc.); 
rural energy systems (biomass plantations), isolated areas (islands, 
mountains and peripheral regions: Renewable Energy Sources). 
Targeted projects and programmes with a Community-wide dimension would 
be a suitable instrument to assess economic viability and allow for major 
breakthroughs in the utilisation of advanced and efficient European energy 
technologies. Likewise, THERMIE-II has to allow continuing support to 
SMEs, and would support small projects with good replication potential in the 
Community. 
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3.3 The type of support would be granted accordingly to the need for public 
action: 
Support for demonstration projects: - to cover the risk of economic 
viability for the demonstration of a first commercial size project in a 
country or region or of a technology which has not yet been introduced 
on the market in the same economic conditions; dissemination through 
projects promoting energy technologies with a view to their broader 
utilisation-
Measures for energy technology promotion (dissemination, technology 
transfer, market assessment, information, advice, etc.) in particular of 
results of Community or Member States' support programmes or of 
similar technologies developed by industry without public support and 
on the same state of insufficient market penetration. 
Energy technology transfer and industrial co-operation with Third 
Countries and international organisations. 
Horizontal support measures: Co-ordination of policies, evaluation of 
programmes and administrative support. 
The proportion of expenditure for these various types of support will be 
defined in consultation with the advisory committee and according to the 
annual budget provisions. 
3.4 Projects should generally involve several companies from several Member 
States (except for certain specific cases, to be defined). 
3.5 The amount of proiect support should be limited as in the past to 35% of the 
eligible costs. For Measures and co-operation with Third Countries, it would 
be between 50% and 100%. Costs for horizontal measures should be fully 
covered (100%). 
3.6 Financial resources: the duration of the programme should be 4 years to be 
in line with the demonstration activity of the 4th framework programme and to 
allow time for results to come through, for a good and efficient organisation 
and for the programme's objectives to be achieved. The level of finance 
foreseen for 1995 in the context of funds available under Heading 3, other 
than those allocated to the 4th Framework Programme RTD is 30 MECU. 
The level of finance for 1996-98 will be decided, outside the resources 
11 
allocated to the 4th Framework Programme RTD, in the light of the revision of 
the budget estimates and defined in the framework of the annual budgetary 
procedure to an adequate extent to ensure that the programme is carried out 
in a coherent manner until its conclusion. The geographical coverage of the 
THERMIE-II programme would thus be focused on the Community's internal 
market, but would allow for a limited action to be implemented in 
neighbouring regions (Central and Eastern Europe, Northern Europe, 
candidate countries for EU membership, Southern Europe and the 
Mediterranean, as well as some specific actions for important Third Country 
markets). 
3.7 Eligibility criteria for projects would be: 
existence of financial risks in demonstrating viability of a energy 
technology; 
no possibility of Member State sufficient financing and support; 
increase in security of long term energy supply of the Community; 
preservation of energy resources and of the environment; 
improved competitiveness of European industry. 
Additional criteria would be as in the existing THERMIE programme the 
"Community dimension" (several proposers from different countries), the size 
of undertakings (SMEs) and projects from regions whose development is 
lagging behind. Every year priorities would be defined by the Commission 
(assisted by the advisory groups) and in agreement with the Advisory 
Committee of Member State representatives. 
3.8 If the programme is to be effectively organised and implemented and the 
objectives achieved, then there must be a careful examination of the 
complementarity of THERMIE-II with other Community financial instruments: 
those "upstream", for R&D and energy programming; those "downstream", for 
energy policy (SAVE, ALTENER), regional policy, external policy and co­
operation (PHARE/TACIS, Co-operation agreements and EDF) and finally 
those of the European Investment Bank, other financial institutions (e.g. 
EBRD), other international organisations or instruments such as the 
European Energy Charter. Co-ordination with Member State programmes will 
be most effectively ensured, as up to now, through an Advisory Committee. 
12 
3.9 Organisational aspects. The projects will be selected following an annual call 
for proposals to be published in the Official Journal. Practicable procedures 
will be developed with assistance of Member States through the THERMIE 
Committee. 
3.10 In order to facilitate the administration of the programme and to respect as far 
as possible the principle of subsidiarity, the Commission would continue to 
have recourse to public or private organisations involved in energy 
technology promotion in the Member States (OPET). The OPET-network 
would also play an increasing role in the organisation, preparation and 
management of promotional measures and as far as possible in projects. 
Professional associations would also be involved in these aspects on an 
informal basis and at low cost. All interested services of the Commission 
should assist in the decision-making process, depending on their interest and 
competencies. The potential involvement of the European Investment Bank in 
this programme should also be examined. 
4 BUDGET - PROVISIONS 
4.1 The budget will be determined by the budgetary authority in the light of 
available resources in the framework of Heading 3 of the budget. 
The indicative allocation of the amount between the different mechanisms of 
support as defined under point 3.3 will be 
project support in the EU 
promotional measures in the EU 
co-operation with Third Countries 
horizontal support measures 
This indicative allocation is based on the findings of the THERMIE evaluation 
report showing the need for wider replication of results of existing technology 
programmes as well as due to the fact that the closeness to the market of 
demonstration of economic viability calls for intensive promotional measures. 
4.2 The annual allocation for the different fields and area of application will be 
fixed annually accordingly to the potential of proposals and in consultation 
with the Advisory Committee. 
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COUNCIL REGULATION (EC) No.../.. 
OF../../.... 
CONCERNING A COMMUNITY PROGRAMME PROVIDING FINANCIAL SUPPORT FOR THE 
PROMOTION OF EUROPEAN ENERGY TECHNOLOGY 1995-1998 ("THERMIE-H") 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 235 thereof, 
Having regard to the proposal from the Commission^), 
Having regard to the opinion of the European Parliament^2), 
Having regard to the opinion of the Economic and Social Committee(3), 
Whereas pursuant to Article 3(t) of the Treaty the activity of the Community shall 
include measures in the spheres of energy, 
Whereas in its resolution of 16 September 1986 concerning new Community energy 
policy objectives for 1995 and convergence of the policies of the Member StatesW 
the Council stated that, possible short-term fluctuations on the energy market apart, 
efforts made must be maintained and, if necessary, reinforced between now and 
1995 and beyond that date in order to reduce to a minimum the risk of tension at a 
later date on the market; 
Whereas that same resolution states that one of the horizontal objectives of 
Community energy policy is to encourage continuous and reasonably diversified 
promotion of technological innovations and appropriate dissemination of the results 
throughout the Community; whereas in spite of the present energy situation there 
should be no relaxation of efforts to diversify the Community's energy supply and 
improve energy efficiency; whereas the promotion of new technologies will help to 
achieve these objectives and to ensure better protection of the environment from the 
impact of energy technologies; 
(1) COM(93) 642 def., of 9 December 1993. 
(2) 
(3) 
(4) O J No C 24* ,25.09.1986, p. 1. 
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Whereas it is important to dovetail these efforts with the Community strategy for 
science and technology and with the specific programmes in particular the activity 
concerning demonstration of clean and efficient energy technologies defined in the 
4th framework programme for Community activities in the field of research and 
technological development, both in terms of programme execution and in terms of 
the financial status of the programme in the financial perspective; 
Whereas the resolution of 16 September 1986 also states that the Community 
should search for balanced solutions as regards energy and the environment by 
making use of the best available economically justified technologies; 
whereas under Article 130r of the Treaty environmental protection requirements are 
to be a component of the Community's other policies and action by the Community 
relating to the environment must be designed to ensure a prudent and rational 
utilisation of natural resources; whereas energy technology has a key role to play in 
meeting the ecological challenge by increasing energy efficiency, developing new 
and renewable sources and ensuring the clean use of solid fuels: whereas major 
efforts in all these areas will be needed to face up to the threat of climatic change; 
Whereas the promotion of projects for exploiting the indigenous energy potential of 
the regions, particularly less-developed regions, will help to strengthen the 
economic and social cohesion of the Community, an objective which, according to 
Article 130b of the Treaty, should be taken into account when implementing common 
policies and the internal market; 
Whereas support for the promotion of energy technologies will benefit economic and 
social cohesion; 
Whereas action to promote innovative technologies taken at Community level will 
avoid the dissipation of resources and increase effectiveness; 
Whereas this action should be co-ordinated with action being taken by the 
Community within the framework of other specific programmes and which includes 
the activities of demonstration of technical feasibility of projects, of the promotion of 
co-operation with Third Countries and of dissemination and optimisation of results of 
activities in Community RTD; 
Whereas financial support should be granted in appropriate cases to projects for the 
promotion of advanced technology in the field of energy; 
15 
Whereas it is appropriate to promote the market penetration of projects likely to be 
rapidly absorbed by the market but also of projects - particularly in the field of 
renewable energy - which, although they might have less rapid access to the market, 
are of great interest in the long term in terms of energy supply, environmental 
protection and employment; 
Whereas, when selecting projects, equal preference should be given to projects 
involving the association of independent undertakings established in different 
Member States, in projects proposed by small and medium-sized enterprises and in 
dissemination projects; whereas these projects, if selected, must benefit from 
increased Community support; 
Whereas the Commission must pursue its efforts to simplify and expedite tendering 
and selection procedures and to make them more transparent, with a view to 
furthering the implementation of the programme and easing the steps that must be 
taken by undertakings, particularly SMEs, to participate in projects for the promotion 
of energy technologies; 
Whereas for reasons of effectiveness it is necessary to make provision for a 
programme of four years duration with appropriate overall funding; 
Whereas it is necessary to estimate the Community finance needed to implement 
this programme; whereas that amount must be covered by the financial perspectives 
defined by inter institutional agreements; whereas the appropriations actually 
available will be determined under the budgetary procedure in compliance with the 
said agreements; 
Whereas the overall level of Community effort in the field of non-nuclear energies, 
including measures falling within the scope of the fourth framework programme, 
cannot be lower in real terms than it has been over the previous corresponding 
period; 
Whereas, notwithstanding the new' impetus that the promotion of innovative energy 
technologies requires, the continuity of measure undertaken under promotional 
schemes and demonstration projects and industrial pilot projects in the energy field 
referred to by Regulation (EEC) No 2008/90(5), 3640/85 and the programme of 
(5) OJ No L 185,17.07.1990, p.1 
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support for technological development in the hydrocarbons sector referred to in 
Regulation (EEC) No 3639/85 must be ensured in accordance with this Regulation; 
whereas such continuity must be achieved on the one hand through the pursuit of 
measures to promote and disseminate technologies that have received Community 
support under such Regulations; whereas it may also be achieved through support 
for the later stages of projects that have already received partial support under the 
same Regulations; whereas it must be possible in certain cases to support projects 
of the same sort as those covered by these Regulations provided they also fulfil the 
requirements of this Regulation; 
Whereas co-operation between undertakings in various Member States in the field 
of energy technology must be maintained and encouraged; 
Whereas technology transfer in the energy sector could contribute significantly to 
more efficient energy production and the reduction of pollutant emissions in the less 
favoured areas of the Community and in Third Countries; 
Whereas such technology transfers should therefore be encouraged both within the 
framework of existing Community programmes and by any other appropriate means; 
Whereas the grant of Community support must not affect conditions of competition in 
such way as to be incompatible with the competition provisions of the Treaty; 
Whereas the present programme must be subjected to a mid-term review and a final 
evaluation, to be conducted by independent experts; 
Whereas this regulation is based on Article 235 of the Treaty; 
Having regard to the Community's commitment under the International Convention 
on Climate Change to participation in an international action to reduce the risks 
attached to emissions of pollutants, particularly CO2; 
Whereas, in order to meet these objectives, the Community must embark on a 
vigorous plan of action involving co-operation with developing countries which lack 
access to modern production and rational use of energy technologies; 
Whereas, of these countries, it is now inter alia in those in the Pacific Rim and Latin 
American countries that a rise in emissions will be inevitable unless preventive 
action is taken; 
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HAS ADOPTED THIS REGULATION: 
Article 1 
The Community may, under the conditions laid down in this Regulation, grant 
financial support for projects for the promotion of energy technology (THERMIE 
1995-1998) in the fields of application referred to in Article 3 and undertake the 
promotional activities referred to in Article 4. 
Article 2 
1. For the purposes of this Regulation, 'projects for the promotion of energy 
technology', hereinafter referred to as 'projects', means projects which are not 
eligible for the specific programmes of the 4th Framework Programme and which 
are designed to advance, implement and/or promote innovative technologies in 
the field of energy, implementation of which entails a large element of economic 
risk, such that those projects would in all likelihood not be executed without 
Community financial support. 
2. Community financial support may be granted for projects designed to promote 
with a view to their broader utilisation, either under different economic or 
geographical conditions or with technical modifications, innovatory techniques, 
processes or products which have already been applied once but, owing to 
residual risk, have not yet penetrated the market. 
Article 3 
The fields of application of this Regulation are selected areas of: 
- rational use of energy, 
- renewable energy sources, 
- clean combustion of solid fuels, 
- hydrocarbons. 
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Annex I lists the sectors of application covered by each of these fields. The 
contents of this Annex may be amended to keep pace with technological 
developments in accordance with the procedure defined in Article 9 paragraph 1, the 
European Parliament and the Council being kept informed. 
Article 4 
The Commission might undertake promotional actions, such as those defined in 
Annex II, designed to encourage the application and market penetration of energy 
technologies. To that end the Community may provide technical and financial 
support for bodies that promote innovative technologies in the Member States. A list 
of these measures appears in Annex II, the contents of which may be amended in 
accordance with the procedure defined in Article 9 paragraph 1. 
These promotional actions may be carried out in Third Countries in so far as such 
extension is in keeping with the objectives of this Regulation. 
Article 5 
1. Any project within the meaning of Article 2 must meet the following conditions: 
(a) it must use, with a view to their implementation and propagation, innovatory 
techniques, processes or products, or a new application of established 
techniques, processes or products; 
(b) it must offer economically viable prospects of subsequent commercial 
exploitation of the relevant technology; 
(c) it must offer appropriate solutions compatible with safety and environmental 
protection requirements; 
(d) it must be difficult to finance because of major economic risks; 
(e) it must be proposed by natural or legal persons capable, in the case of the 
techniques, processes or products referred to in (a), of implementing and 
applying them, and of contributing to or assisting in the dissemination thereof; 
-19-
(f) in the case of any project of a total cost of ECU 2 million or more, it must be 
submitted by at least two independent promoters established in different 
Member States. 
However, exceptions may be agreed for projects submitted by a single 
promoter if their implementation would be of particular interest to the 
Community; 
(g) it must be carried our within the Community unless it is essential to the 
interests of the Community to have all or part of it carried out in an area 
outside the Community, in particular because of the special characteristics of 
the project. 
(h) it must be carried out outside the Community if such an action is necessary to 
meet the Community's commitments under the International Convention on 
Climate Change. 
2. Additional conditions specific to the sectors of application are given in Annexes I 
and II. 
3. When selecting projects, as an adjunct to the criteria laid down in paragraphs 1 
and 2, it shall take account of a preference to be given to projects with the 
following characteristics: 
(a) projects, other than those referred to in paragraph 1 (f), involving an 
association of a least two independent undertakings established in different 
Member States, provided that it is established that each undertaking can 
make an effective and significant contribution to canning out the project; 
(b) projects proposed by small and medium-sized undertakings or by an 
association of such undertakings; 
(c) projects which are to be implemented in regions whose development is 
lagging behind as defined by Article 8 of Regulation (EEC) No 2052/88(6). 
(6) OJ No L 185,15.07.1988, p.9. 
-20-
Article 6 
1. Support for a project shall take the form of a financial contribution by the 
Community granted in accordance with the conditions set out in the paragraphs 
below and in Articles 7, 11 and 14. 
2. Financial support may be granted for an entire project or for different stages of a 
project. In the latter case, without prejudice to the responsibilities conferred 
upon the budgetary authority of the European Communities, financial support 
may continue to be granted for later stages of the same project provided that the 
eligibility criteria continue to be met and that the Commission is satisfied with the 
progress of the project. 
3. Financial support may not exceed 35% of the eligible cost of the projects referred 
to in Article 2. 
4. The amount of financial support shall be determined separately for each project. 
When determining the amount, one takes account of the element or proportion of 
the risk which will have to be borne directly by those responsible for the project 
and of other support received or expected, in such a way that the total amount of 
public support does not exceed 49% of the total cost of the project. To this end, 
the person responsible for the project shall be obliged to inform the Commission 
of any public aid expected or received. 
5. Whenever specifically required, a decision could be made to set up other 
appropriate financial mechanisms according to the procedure referred to in 
Article 9 paragraph 1. 
Article 7 
1. Projects shall be submitted by natural or legal persons established within the 
Community, whether individually or in the form of associations, following the 
publication of an invitation to submit projects in one or more of the fields of 
application referred to in Article 3 in the Official Journal of the European 
Communities, in accordance with this Regulation. This invitation could be 
preceded by an invitation from the Commission encouraging or coordinating the 
launch of specific projects, called "targetted projects", whenever a technological 
gap exists in a specific area or significant progress could be achieved through 
-21 -
cooperation between individuals, companies or other bodies established in at 
least two different Member States. 
2. In the invitations to submit projects, the Commission shall specify those sectors 
to be given priority when projects are selected; this list of priorities shall be 
drawn up in accordance with the procedure defined in Article 9 paragraph 1. The 
Commission shall also specify the information applicants will be required to 
supply for the purposes of the selection of projects. 
Article 8 
1. The Commission shall be responsible for applying this Regulation. 
2. The procedure referred to in Article 9 paragraph 1 applies to: 
(a) the amendment of the contents of Annexes I and II; 
(b) the establishment of priorities for invitations to submit projects; 
(c) the selection of projects, including the fixing of the rate of financial support, 
for every project or promotional action with a total cost exceeding 
ECU 500,000; 
(d) any institution of financing mechanisms in the sense of Article 6 paragraph 5. 
3. The procedure referred to in Article 9 paragraph 2 applies to the selection of 
projects and promotional actions, and to the fixing of the rate of financial support 
for every project or promotional action, with a total cost exceeding ECU 100,000 
but not exceeding ECU 500,000. 
Article 9 
1. In carrying out the tasks referred to in Article 8 paragraph 2, the Commission 
shall be assisted by a committee composed of the representatives of the Member 
States and chaired by the representative of the Commission. 
- 22 -
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 shall be delivered by the majority laid down in Article 148(2) 
of the Treaty in the case of decisions which the Council is required to adopt on a 
proposalfrom the Commission. The votes of the representatives of the Member 
States within the committee shall be weighted in the manner set out in that 
Article. The chairman shall not vote. 
The Commission shall adopt measures which shall apply immediately. However, 
if these measures are not in accordance with the opinion of the committee, they 
shall be communicated by the Commission to the Council forthwith. 
In the event, the Commission shall defer application of the measures which it has 
decided for a period of one month from the date of communication. 
The Council, acting by a qualified majority, may take a different decision within 
the time limit referred to in the previous paragraph. 
In carrying out the tasks referred to in Article 8 paragraph 3, the Commission 
shall be assisted by a committee composed of the 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. 
-23-
Article 10 
1, In the application of the current Regulation, the Commission ensures co­
ordination with programmes implemented by the Community in the framework of 
other specific programmes and should include demonstration of the technical 
viability of projects, the promotion of co-operation with Third Countries, relevant 
activities of the EIB and EBRD as well as dissemination and optimisation of the 
results of activities in field of Community RTD. 
2. In addition, it shall ensure closer co-ordination with national schemes in order to 
avoid duplication of similar projects. 
Article 11 
1. The contractor responsible for carrying out a project receiving financial support 
from the Community shall undertake to use the successful technique, process or 
product or to facilitate its use, and to allow dissemination of the results obtained. 
2. The Commission shall, in co-operation with the bodies responsible in the 
Member States, endeavour to ensure the dissemination and application of 
projects supported in accordance with this Regulation and to promote their 
exploitation. It shall take appropriate steps to achieve this objective in 
connection with the promotional actions referred to in Article 4. 
Article 12 
Contracts signed between the Community and the persons referred to in Article 14 
for the implementation of the projects and promotional actions adopted under this 
Regulation, shall govern the rights and obligations of each party, including the 
methods of dissemination, protection exploitation of the results of the projects and 
complete or partial repayment of the financial support in the event of non­
compliance with contractual obligations. 
-24-
Article 13 
Subject to Article 11, the information obtained by the Commission under this 
Regulation shall remain confidential. 
Article 14 
Responsibility for any project shall lie with a physical or legal person constituted in 
accordance with the law applicable in the Member States, or with an association of 
such persons, within they are jointly and severally liable, in so far as the law 
applicable in the Member State permits. 
Article 15 
Financial support granted by the Community must not affect conditions of 
competition in such a way as to be incompatible with the relevant provisions of the 
Treaty. 
Article 16 
Two years after the entry into force of this Regulation and also upon expiry thereof, 
the Commission shall submit a report on the implementation of this Regulation, in 
particular on the compatibility between national and Community action, to the 
European Parliament and to the Council for the purposes of assessing the results 
obtained, together with the external evaluation by independent experts on which it 
will be based. 
Article 17 
The appropriations necessary to the implementation of this Regulation shall be 
entered each year in the general budget of the European Communities. 
The appropriations shall cover the financial support to be granted to projects 
referred to in Article 2, the financing of the actions referred to in Article 4 and other 
expenditure necessary to the implementation of this Regulation. 
- 25 -
Article 18 
Regulation 2008/90 shall continue to apply to projects and measures which support 
has been granted pursuant to those Regulations. 
Article 19 
The Regulation shall enter into force on 1 January 1995. 
It shall apply until 31 December 1998. 
This Regulation shall be binding in its entirely and directly applicable in all Member 
States. 
Done at..., 
For the Council 
The President 
- 26 -
ANNEX I 
LIST OF SECTORS OF APPLICATION 
The fields of application in Article 3 cover the sectors listed below. 
1. RATIONAL USE OF ENERGY 
Financial support will focus on the following sectors of application: 
Transport; 
Building; 
Industry; 
Energy Industry. 
1.1 TRANSPORT 
Projects must lead to a substantial improvement on the overall efficiency as 
well as a reduction on emissions, CO2 and other atmospheric pollutants, 
through technical improvements on traffic conditions and vehicles. 
Preferences are given to fleets of vehicles for public transportation, including 
urban freight delivery vehicles. 
Two areas of projects can be considered: 
a) RUE applications: 
- Projects related to the promotion of innovative fleets of vehicles. (New 
designs, new fuels: CNG, LPG, biofuels, diesel-electric...) 
b) Energy substitution applications: 
- Projects related to the promotion of new fuels infrastructure and 
distribution systems. (Rapid and slow charging units, O+M special 
requirements) 
- Projects related to the technical adaptation of vehicles to new fuels. 
-27-
1.2 BUILDINGS 
Projects must lead to a substantial reduction in energy consumption 
according to standards and substantial reduction of emissions and pollutants 
in building stocks through integrated technical and economic improvements. 
Preference will be given to projects with clear integration of design, materials 
and equipments with loads control and management. 
a) RUE applications: 
- Projects related to the promotion of rehabilitation of buildings. 
- Projects related to the promotion of new integrated designs for new 
buildings. 
- Projects related to the promotion of new cooling systems (without 
CFCs). 
- Projects related to technologies outwith of combined production of heat 
and electrical power, for example fuel cells. 
1.3 INDUSTRY 
Heat recovery using new heat exchanger concepts for high polluted 
exhausting gases or new kiln designs for a best use of heat in the 
chamber(s). Combustion of exhausting gases with later use of heat 
produced can be also considered as well as CHP schemes improving the 
reliability of the equipment or incorporating new approaches for the use of 
the flue combustion gases. 
Technologies for the recovery of energy form industrial wastes through 
the production of by-products to be used as derivated fuel or direct 
energy production. Solutions to eliminate possible negative 
environmental impact have to be incorporated. 
Improvements of industrial processes reducing specific energy 
consumption, where this has an important weight in the total benefits of 
the project. 
- Technical solutions for a best use of the electricity, especially in the peak 
load periods. Automation of process could be also considered, using 
-28-
standard and modular solutions easily replicable or new approaches, 
such as predictable and adaptable systems. 
1.4 ENERGY INDUSTRY 
Advanced combustion burners, integrating solutions to save energy and 
reduce the environmental impact, as well as efficient cooling towers with 
lesser maintenance costs and reduced environmental impact. These 
solutions should be mainly addressed to the re-powering of existing plants. 
Advanced systems to transport the heat produced in the District Heating 
schemes either to reduce the cost of the installation or to decrease the energy 
losses in the distribution or through the heat exchangers. 
Fuel cell stacks to provide electricity more efficiently and with less 
environmental damage. 
Technical solutions to reduce the electricity consumption in power plants, that 
could be also used to get a most flexible operation in hydro pump/turbine 
schemes. Reduction of losses and increase of quality in the transport and 
distribution of electricity should be also considered. 
2. RENEWABLE ENERGY SOURCES 
Financial support will focus on the following sectors of application-
Energy from biomass and waste; 
Solar energy; 
Wind energy; 
Hydroelectric energy; 
Geothermal. 
2.1 ENERGY FROM BIOMASS AND WASTE 
a) Projects aiming at improving competitivity of biomass as fuel : 
- Activities aiming at improving the productivity of energy crops and 
harvesting and transformation technologies ; 
-29-
- activities aiming at improving and upgrading biomass conversion 
technologies for energy production and use (production and use of 
liquid, solid and gaseous fuels, production of heat and/or electricity) ; 
-, activities aiming at reducing the costs for providing the energy 
produced from biomass (reduction of specific investment costs, 
rationalisation of production technologies...). 
b) Projects aiming at the energy use of vegetal, animal, urban and industrial 
waste: 
- activities for the upgrading of waste which have a significant impact on 
the production, substitution of energies or on energy savings aiming at 
the reduction of the costs of the energy produced. 
Projects must comply with the guidelines of community environment 
and agricultural policies. 
2.2 SOLAR ENERGY 
a) Photovoltaics 
Objectives: 
Dissemination of photovoltaics processes to supply electricity for : 
- groups of houses, villages ; 
- buildings, with architectural integration of PV modules into roofs and/or 
facades ; 
- means of telecommunication, warning, signalling, water pumping, water 
purification, desalination, etc... ; 
- distribution from PV central power stations. 
b) Thermal applications 
Objectives: 
Dissemination of techniques which relate to optimal technical and 
economic integration of active solar energy systems with efficient 
conventional systems, with guaranteed results for an overall improved 
reliability, used for : 
-30-
- production of large quantities of hot water (or other fluids) for heating 
and/or cooling applications ; 
- production of large quantities of hot air for ventilation or drying 
applications. 
2.3 WIND ENERGY 
Objectives: 
Dissemination of the results obtained from previous R&D programmes, in 
order to assist market penetration, encourage European industry, and 
promote the transfer and broader use of advanced technology, 
particularly in the less developed countries of Europe. 
Dissemination and popularisation of the use of wind energy conversion 
systems tailored to the specific nature of the markets in the different 
Member States by wind turbines of a wide range of nominal capacity. 
Dissemination of techniques with minimum effect to the environment, 
namely reduced noise, minimum land use and improved aesthetic impact 
that will lead to an increased public acceptability. 
2.4 HYDROELECTRIC ENERGY 
Objective: 
Dissemination of techniques aimed at the production of electricity for a public 
network or for private use in low-power plants. 
Fields of application : 
Projects (targeted) aimed to bring together industrial partners to carry out 
high quality, reliable and competitive standard equipment in order to 
promote the creation of, or the penetration into new markets. 
Projects (targeted) aimed to perfect simple, reliable and cheap techniques 
or technology, especially those adapted to the markets and needs of 
countries whose development is lagging behind. 
Rehabilitation or modernisation 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 (best quality/price). 
- 31 -
All projects must take into consideration existing and foreseen environmental 
protection measures. 
2.5 GEOTHERMAL 
Objective: 
To promote, through dissemination actions, the utilisation of already located 
important geothermal resources, not yet exploited, bearing in mind economic 
and environmental aspects, and security of supply. 
Fields of application: 
techniques in the drilling sector, wellhead equipment, corrosion, scaling, 
automation and the treatment systems for brine waters ; 
exploitation of geothermal fields where the resources are proven, in order 
to reduce the mining risk; 
Development of geothermal applications in agriculture, aquaculture and 
water desalination, thus helping the regions affected by the modifications 
of the common agricultural policy. 
3. CLEAN COMBUSTION OF SOLID FUELS 
All type of Fluidised Bed Combustion (FBC) should be now spread around in the 
Community: small and large FBC are now reaching the industrial maturity and it 
will be effective to use them more and more. They have not to be limited to a type 
of fuel. But on the contrary, their ability to use a wide range of fuel should be 
taken into account in order to disseminate this technology. Therefore, use of 
bituminous coal, lignite, peat, rest coals, wastes, biomass, RDF, and all type of 
carbonaceous materials should be encouraged - alone or in mixture - to be 
burned in FBC. 
FBC should be promoted to produce electricity, and also to be used in CHP 
generation. 
- 32 -
4. HYDROCARBONS 
Objectives: 
The programme should strengthen the industry capability to answer the short and 
long term requirements for the availability of efficient technologies in the field of 
oil and natural gas. The Community effort is therefore aiming at : 
the dissemination of technologies for assisting market penetration/Special 
attention (including co-operation projects) will be given to market penetration 
in the PECOs and CIS. 
Beneficiaries would be mainly oil and gas related companies which are 
developing and promoting innovative and effective technologies to improve the 
exploration, production, transportation and use of hydrocarbons, preference being 
given in the selection of projects to those proposed by SMEs. 
The fields of application in the upstream sector will be the dissemination of : 
tools and methods for enhancing exploration capability, particularly towards 
difficult and complex targets as the North Sea and for maximising recovery 
rate ; 
new technologies for marginal fields exploitation, notably for gas fields 
resulting in increased production from those reservoirs characterised by 
difficult economic conditions ; 
safety and the environmental protection systems in exploration and 
production, particularly for the Offshore sector ; 
new and efficient LNG production and transport systems in view to diversify 
the supply. 
-33-
ANNEX II 
PROMOTIONAL ACTIONS FOR ENERGY TECHNOLOGIES 
1. OBJECTIVES 
Encouraging the application and market penetration of energy technologies as 
referred to in Article 4 requires the undertaking of actions by the Community. 
Such actions are to be undertaken only in so far as market conditions require it 
and as they are in keeping with the objectives of this Regulation. 
Community support for actions may therefore be granted in order to meet 
energy policy and other related objectives set out by the Treaty on 
European Union, in particular concerning: 
• Increased utilisation of the industrial potential of energy technology 
development and improving the technological base of European industry, in 
particular for SMEs; 
• Encouraging European industry to become more competitive by exploiting 
technology development and market potential to the full; 
• Protecting and improving the quality of the environment by the rational use 
of energy resources, the use of renewable energy sources and clean 
energy technologies and reducing harmful emissions; 
• Technology transfer into less developed regions h Europe and exploitation 
of the local energy potential; 
• Improved working conditions and employment opportunities by the use of 
innovative and efficient energy technologies developed and supplied within 
the Community; 
• International cooperation facilitating economic and social development of 
developing countries 
-34-
2. TYPE OF ACTIONS 
The actions referred to in Article 4 jnclude: 
2.1 COORDINATION with national schemes and other Community programmes 
related to energy technology in order to avoid duplication of similar actions 
and to ensure fully the application of the principle of subsidiarity for 
Community action, and in particular through: 
a. Systematic exchange of information about national support schemes; 
b. Programme evaluation activities carried out jointly; 
c. Definition of objectives and implementation of strategies for energy 
technology promotion; 
d. Monitoring the achievement of objectives. 
2.2 INSTRUMENTS of Community action: 
a. Analysis of the features and evaluation of the potential of the market 
for the application of energy technologies and their market penetration 
(including technologies for demand side management, sectoral 
diagnosis, feasibility studies). 
b. The dissemination of information on European energy technologies, 
their further promotion and the dissemination of the results of public 
funded projects by the organisation of events (technical workshops, 
seminars, conferences, project site visits, exhibitions), participation in 
technical fairs, the production of documentary material etc., as far as 
the undertakings' contractual obligations do not provide for it or the 
undertakings concerned are not able to carry them out by themselves. 
c. Advice and promotional activities to guide the development of actions 
undertaken, ensure the wider penetration of efficient energy 
technologies and address barriers in the market. 
d. Training of staff involved in management or technical applications of 
innovative energy technologies. 
-35-
e. Development of appropriate financial mechanisms. 
The instruments detailed above will be structured in synergy with the 
corresponding instruments foreseen in the 'non-nuclear energy' programme 
of the fourth framework programme of research, technological development 
and demonstration, in the context of 'PLANS TO FACILITATE MARKET 
ACCESS' for the various technologies covered by the present programme. 
2.3 Recourse to public or private Organisations cooperating in the above 
activities for the Promotion of Energy Technologies ("OPET") in particular 
by using the OPET Network. 
2.4 Recourse to the above activities with a view to industrial cooperation with 
third countries, providing guidance for Community aid programmes and 
achieving optimal use of energy technologies inside and outside of the 
Community. 
IMPLEMENTATION 
As referred to in Article 9 of the Regulation, the implementation of the measures 
will be carried out in close cooperation with Member States by the Committee 
which will assist the Commission in the definition of the programme, the 
establishment of the priorities for action, the decision of granting financial 
support and the evaluation of results. 
-36-
ANNEX H (bis) 
Without prejudice to the provisions of Article 3, the various sectors concerned will be 
given support in the following proportions: 
rational energy use 45 % 
renewable energy sources 35% 
dean combustion of solid fuels 13 % 
hydrocarbons 7 % 
-37-
FINANCIAL STATEMENT 
1. Title of operation Promotion of European Energy Technologies ("THERMIE-II") 
2. Budget heading involved B.4.1000 
3. Legal basis Council Regulation to be adopted in 1994 
4. Description of operation 
4.1 General objectives: Financial support for promotional projects and measures for 
larger market penetration of energy technologies 
4.2 Period covered: 4 years, 01.01.1995 to 31.12.1998 (in parallel to the 4th 
Framework Programme) 
5. Classification of expenditure or revenue 
5.1 Compulsory/Non-compulsory expenditure 
5.2 Differentiated/Non differentiated appropriations 
5.3 Type of revenue involved: No 
6. Type of expenditure or revenue 
• 100% subsidy: for some associated measures to be carried out by independent 
experts (consultant firms) 
Subsidy for joint financing with other sources in the public and/or private sector: 
for all projects and most of the associated measures, in particular for those carried 
out in co-operation with Member States Agencies 
• Interest subsidy: subject to further discussion in energy working group 
• Other: some service contracts (in particular for some associated measures) 
• Should the operation prove an economic success, is there provision for all or part 
of the Community contribution to be reimbursed?: No 
• Will the proposed operation cause any change in the level of revenue? 
If so, what sort of change and what type of revenue is involved? No 
7. Financial impact 
7.1 Method of calculating total cost of operation (definition of unit costs) 
The amount of 30 MECU for 1995 covers financial support for demonstration of 
economic risks of promotion of energy technologies as defined in art. 2 b) of 
Council regulation 2008/90 ("dissemination projects") as well as in its art. 5 
("associated measures"). As this type of projects is closer to the market and 
subject of different economic or geographical conditions, it is in particular relevant 
for the sector of rational use of energy. The level of finance appropriate for 1996-
1998 will be decided in the light of available funds in Heading 3 of the budget. 
38-
The experience made today through the THERMIE Programme shows that there is 
a need for support in the sectors in the following proportions: 
Rational Use of Energy 
Renewable Energy Sources 
Clean use of Solid Fuels 
Hydrocarbons 45% 
35% 
13% 
7% 
Again, as experience made with the THERMIE regulation shows, not only project 
support is required. In fact, many efficient technologies have been developed by 
the industry, whether with EC or MS support or not, and the aims of larger market 
penetration can most effectively be achieved by dissemination measures. 
Finally, around 13% of funding is necessary for economic analysis, evaluation of 
projects and support programmes, including those of the Member States in order 
to orientate the Community activity and to ensure subsidiarity of action, as well as 
for administrative support. 
7.2 Itemised breakdown of costs 
Breakdown Budget 
year 95 
Projects 11 
Dissemination 15 
measures 
Strategy, Evaluation, 4 
Administrative 
Support 
TOTAL I 30 
7.3 Indicative schedule of appropriations 
7.3.1 Schedule for proposed new operation 
Commitment 
appropriations 1995 
30 1996 
p.m.* 1997 
p.m.* 1998 
p.m.* TOTAL 
p.m.* 
f * pro memoria) 
The level of finance foreseen for 1995 in the context of funds available under 
Heading 3, other than those allocated to the 4th Framework Programme RTD is 
30 MECU. The level of finance for 1996-98 will be decided, outside the resources 
allocated to the 4th Framework Programme RTD, in the light of the revision of the 
budget estimates and defined in the framework of the annual budgetary procedure to 
an adequate extent to ensure that the programme is earned out in a coherent manner 
until its conclusion. 
8. Fraud prevention measures; results of measures taken 
9. Elements of cost-effectiveness analysis 
9.1 Specific and quantifiable objectives; target population 
- Specific objectives: links with general objective: Energy Policy, increase of 
Energy Supply Security and improved Energy Efficiency. 
-39-
Support of about 150 projects and 300 associated measures per year which, 
following the recent experience with the ongoing THERMIE Programme would 
produce the following results for each ECU spent on a project: 
• 425 kg of oil equivalent saved or substituted 
• 1650 kg avoided CC_ emissions 
• 12 kg avoided SO2 emissions 
• 4 ECU increase of the Community GDP 
(See also attachment). 
- Target population: distinguish as applicable for each objective; indicate the end-
beneficiaries of the Community's financial contribution and the intermediaries 
involved: industry and other SMEs. 
9.2 Grounds for the operation 
- Need for Community financial aid: many significant technology break through 
would not happen in the EC; some Member States have no similar programme. 
- Choice of ways and means 
• advantages over possible alternatives (comparative advantages): more 
immediate effect than regulatory measures, better effect than R&D measures. 
• explanatory reference to similar Community or national operations: THERMIE 
1990/94, UK Best Practice Programme, FR and DE Demonstration 
Programmes. 
• spin-off and multiplier effects expected: 
• Generation of potential investment of about 1,000 MECU in total, based on 
results of Cost Benefit Analysis of THERMIE 1990-1992. 
• Job creation potential of tens of thousands of jobs, depending on success of 
replication. 
• Promotion of European technologies on third country markets. 
- Main factors of uncertainty which could affect the specific results of the 
operation: the successful projects are generally replicated several times by 
industry or Member States Institutions. The associated measures contribute to a 
larger use by industry of technologies developed by industry or Member States 
programmes and which otherwise would not sufficiently penetrate the market. 
9.3 Monitoring and evaluation of the operation 
- Performance indicators selected: achievement of technology improvements (e.g. 
tonnes of oil equivalent saved or substituted, tonnes of CO2 avoided, number of 
projects generated, etc.) 
- Details and frequency of planned evaluations: Yearly 
- Assessment of the results obtained: The Regulation foresees 2 exercises by 
independent evaluations examining project files, making project visits, controlling 
replications and assessing complementarity with Member State programmes, 
one two years after the entry into force, the other on expiry of the Regulation. 
The Commission will submit these reports to the European Parliament and the 
Council. 
9.4 Coherence with financial programming 
- Is the operation incorporated in the DG's financial programming for the relevant 
years?: Yes, within Heading 3 Internal policies. 
- To which broader objective defined in the DG's financial prognamming does the 
objective of the proposed operation correspond?: Energy policy, increase of 
energy supply security and improved energy efficiency. 
-40-
10. Administrative expenditure (part A of the budget) 
This section of the financial statement must be sent to DGs IX and XIX; DG IX will then 
forward it to DG XIX with its opinion. 
10.1 Will the proposed operation involve an increase in the number of Commission 
staff? If so, how many? No. 
10.2 Indicate the amount of administrative expenditure involved in the proposed 
operation. Explain the method of calculation: 
The amount of administrative expenditure necessary to carry out the programme 
will be in the order of 150,000 ecus for 1995. It is broken down as follows: 
- MEETING COST: 
Advisory committee of Member State representatives; 
three meetings per year with two delegates per 
Member State (one meeting of one day, two meetings 
of two days), based on the average of 658 ECU (only 
travel cost) - budget heading A251 48,000 
Expert committee of Member State representatives; 
two meetings per year with two delegates for one or 
several days, based on the average of 658 ECU (only 
travel cost) - budget heading A250 32,000 
- MISSIONS OF COMMISSION STAFF: 70,000 
TOTAL PER YEAR: ECU 150,000 
ISSN 0254-1475 
COM (94) 654 final 
DOCUMENTS 
EN 12 oi 
Catalogue number : CB-CO-94-672-EN-C 
ISBN 92-77-83961-9 
Office for Official Publications of the European Commuxuties 
L-2985 Luxembourg