Communication from the Commission to the Council, the European Parliament, the European Economic and Social Committee and the Committee of the Regions - Towards a European strategic energy technology plan
Date: 2007-01-10
Institutions: European Commission
Subjects: applied research, competitiveness, energy policy, energy supply, environmental protection, new technology, research and development, sustainable development

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 10.1.2007 
COM(2006) 847 final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Towards a European Strategic Energy Technology Plan 

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COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE 
EUROPEAN PARLIAMENT, THE EUROPEAN ECONOMIC AND SOCIAL 
COMMITTEE AND THE COMMITTEE OF THE REGIONS 

Towards a European Strategic Energy Technology Plan 

(Text with EEA relevance) 

1. 

INTRODUCTION – THE EUROPEAN ENERGY CHALLENGE 

Europe  has  entered  a  new  energy  era,  as  presented  in  the  Energy  Green  Paper  'A  European 
Strategy  for  a  Sustainable,  Competitive,  and  Secure  Energy'1.  Global  demand  for  energy  is 
increasing within a framework of high and unstable energy prices. Emissions of greenhouse 
gases  are  rising.  Reserves  of  oil  and  gas  are  concentrated  in  a  few  countries.  Against  this 
backdrop,  it  is  clear  that  the  European  Union  and  the  rest  of  the  world  have  not  reacted 
quickly enough to increase the use of low-carbon energy technologies or to improve energy 
efficiency. As a consequence, climate change has become a real threat and security of energy 
supply is worsening. EU greenhouse gas emissions will exceed the 1990 level by 2% in 2010 
and by 5% in 20302. EU dependence on imported energy will increase from the current 50% 
to 65% by 2030. 

Given  the  severity  of  the  threats  for  the  European  Union,  the  Commission  in  its 
Communication "An Energy Policy for Europe"3 proposes a strategic energy policy objective: 
by 2020, the EU will reduce its greenhouse gas emissions by at least 20% compared to 1990 
levels  in  a  manner  compatible  with  its  competitiveness  objectives.  In  addition,  according  to 
the Commission Communication  "Limiting  Climate  Change  to  2°C  -  Policy  Options  for  the 
EU and the World for 2020 and Beyond"4, by 2050 global greenhouse gas emissions must be 
reduced by 50% compared to 1990 levels, implying reductions in industrialised countries of 
60 to 80%. 

2. 

A VISION OF EUROPE'S ENERGY FUTURE 

To turn towards security and sustainability, Europe's energy system must rapidly progress on 
four main fronts: 

–  The  efficient  conversion  and  use  of  energy  in  all  sectors  of  the  economy,  coupled  with 

decreasing energy intensity; 

–  The diversification of the energy mix in favour of renewables and low-carbon conversion 

technologies for electricity, heating and cooling; 

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3 
4 

COM(2006) 105, 8.3.2006. 
According  to  the  PRIMES  model  baseline  scenario  which  takes  into  account  approved  policy  and  a 
business as usual scenario 
COM(2007) 1, 10.1.2007. 
COM(2007) 2, 10.1.2007. 

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–  The decarbonisation of the transport system through switching to alternative fuels; 

–  Full liberalisation and interconnection of energy systems, incorporating 'smart' information 
and  communication  technologies  to  provide  a  resilient  and  interactive  (customers/ 
operators) service network. 

The  Annex  to  this  Communication  presents  an  independent  overview5  of  the  energy 
technologies that can contribute to achieving these goals, as well as the vision statements of 
the  European  Technology  Platforms  in  the  energy  field.  Together,  they  enable  a  tentative 
picture to be built up of how the energy technology landscape could evolve: 

–  By 2020 technology advances will enable the 20% renewable market penetration target to 
be met. We will see a sharp increase in the share of lower cost renewables (including the 
roll-out of off-shore wind and 2nd generation biofuels) and clean coal technologies in the 
energy system. Energy efficiency will be taken onto a new level, with the 20% reduction 
potential achieved, and efficient hybrid vehicles will be widespread; 

–  In the 2030 time horizon electricity and heat production should be well down the road to 
decarbonisation,  with  fully  competitive  renewable  energy  technologies,  including  mass-
market  large-scale  offshore  wind,  and  extensive  near-zero  emission  fossil  fuel  power 
plants.  We  should  also  see  widespread  fuel  diversification  in  the  transport  sector,  with 
mass markets for 2nd generation biofuels and the penetration of hydrogen fuel cells; 

–  For 2050 and beyond, a paradigm shift in the way we produce, distribute and use energy 
should  be  completed,  with  an  overall  energy  mix  largely  comprising  renewables, 
sustainable  coal  and  gas,  sustainable  hydrogen,  Generation  IV  fission  power  and  fusion 
energy. 

This  is  a  vision  of  a  European  Union  with  a  thriving  and  sustainable  economy,  with  world 
leadership in a diverse portfolio of clean, efficient and low-carbon energy technologies as a 
motor  for  prosperity  and  a  key  contributor  to  growth  and  jobs.  A  European  Union  that  has 
grasped the opportunities lying behind the threats of climate change and globalisation and that 
it is ready to contribute to the global energy challenge, including increasing access to modern 
energy services in the developing world. 

3. 

THE VITAL ROLE OF ENERGY TECHNOLOGY 

Innovation  in  energy  technology  shapes  society.  The  steam  engine  triggered  the  industrial 
revolution.  The  internal  combustion  engine  made  mass  transport  possible.  Gas  turbines  in 
aviation have shrunk the world. But the explosion in demand brought about by the success of 
energy  technology  has  a  price.  Energy  underpins  the  social  and  economic  fabric  of  society, 
rendering  it  vulnerable  to  disruptions  in  supply.  It  is  also  damaging  the  planet.  Climate 
change,  driven  by  energy-related  greenhouse  gas  emissions,  is  widely  regarded  as  "the 
greatest  and  widest-ranging  market  failure  ever  seen"6  and  a  major  threat  to  the  global 
economy. 

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6 

From the Sixth framework programme's Advisory Group on Energy (AGE). 
Stern  Review  on  the  Economics  of  Climate  Change  –  UK  HM  Treasury:  http://www.hm-
treasury.gov.uk/independent_reviews/stern_review_economics_climate_change/sternreview_index.cfm 

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In  the  21st  century  technology  has  a  vital  role  to  play  in  breaking  once  and  for  all  the  link 
between economic development and environmental degradation, by ensuring sufficient clean, 
secure and affordable energy. Strong policies to enhance energy efficiency and incentives for 
the  introduction  of  low-carbon  technologies,  combined  with  a  stable  market  for  carbon 
emissions, can set the direction, but it is technology, allied to behavioural changes, that will 
have to deliver. 

Technological progress can create new opportunities to harness the vast but largely untapped 
renewable  energy  sources.  It  will  increase  energy  efficiency  throughout  the  energy  system, 
from source to user, progressively decarbonise transport and the conversion of fossil fuels and 
deliver  advanced  options  for  nuclear  energy.  Information  and  communication  technologies 
will contribute to demand reduction and allow the smart interconnection of European energy 
networks. 

Investing  more  and  better  in  new  energy  technologies  must  be  a  strategic  priority  for  the 
European  Union.  The  global  nature  of  the  energy  challenge  and  the  massive  investments 
required world-wide represent an opportunity in terms of growth and jobs. The International 
Energy  Agency  estimates  that  16  trillion  Euros  will  have  to  be  invested  in  energy-supply 
infrastructure worldwide in the period up to 20307. Most of this represents export potential for 
European businesses. The European Union must be in the vanguard of this global effort. 

4. 

WHAT HAS BEEN ACHIEVED TO DATE 

Energy research has been carried out at EU level since the 1960s, initially under the European 
Coal  and  Steel  Community  and  Euratom  treaties  and  continuing  under  successive  research 
Framework Programmes. These Community actions have a proven European added value in 
terms of building critical mass, strengthening excellence and exercising a catalytic effect on 
national activities. In combination with national programmes, working at European level with 
an  adequate  combination  of  innovation  and  regulatory  measures  has  produced  substantial 
results,  for  instance  in  the  fields  of  clean  and  efficient  coal,  renewables,  energy  efficiency, 
cogeneration and nuclear energy. This can be illustrated through some examples: 

–  Wind energy8: technological progress has enabled a 100-fold increase in the power of wind 
turbines, from 50 kW to 5 MW units, in 20 years and reduced costs by more than 50%. In 
consequence, the installed capacity has increased 24 times in the last ten years to reach 40 
GW in Europe, which represents 75% of global capacity. 

–  Photovoltaics9:  in  2005,  the  world  production  of  photovoltaic  modules  was  1760  MW 
compared  to  90  MW  in  1996.  Over  the  same  period,  the  average  module  price  has 
decreased from about €5/W to about €3/W. In Europe, the installed capacity has increased 
35-fold in 10 years to reach 1800MW in 2005 and the average annual growth rate of about 
35% in the past decade makes photovoltaics one of the fastest growing energy industries. 

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IEA World Energy Investment Outlook 2003. 
European Wind Energy Technology Platform (http://www.windplatform.eu/). 
European Photovoltaic Technology Platform  
http://ec.europa.eu/research/energy/nn/nn_rt/nn_rt_pv/article_1933_en.htm) 

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–  Clean  coal10:  coal-fired  power  stations  have  already  benefited  from  a  one-third 
improvement in efficiency over the last 30 years. Modern installations are now capable of 
running at 40-45% efficiency, yet there is still plenty of scope for further development in 
this area. A broad reduction in “classic” emissions (SO2, NOx and dust) has already been 
completely implemented in many EU Member States. 

–  The European fusion research programme through its cutting-edge project, ITER, provides 
an exemplary model for large-scale international cooperation in research and development 
involving seven partner countries representing more than half of the world's population. 

The  EU  Research  Framework  Programmes  will  continue  to  form  a  key  piece  of  the  energy 
technology  development  jigsaw.  The  Seventh  Framework  Programmes  will  support  both 
technological  research  and  demonstration,  not  only  within  the  Energy  theme  and  Euratom 
programme,  but  also  as  a  cross-thematic  element  that  is  supported  by  most  of  the  other 
themes, in particular information and communication technologies, biotechnologies, materials 
and  transport.  The  programmes  will  also  fund  socio-economic  and  policy  research  on  the 
necessary changes at systemic level that are required for a transition to a 'low carbon economy 
and  society'  in  the  European  Union  and  beyond,  while  the  Joint  Research  Centre  provides 
scientific and technical support to energy policy making. The Competitiveness and Innovation 
Programme,  and  specifically  its  Intelligent  Energy-Europe  pillar,  will  complement  this 
activity  by  addressing  non-technological  barriers  and  providing  support  to  accelerate 
investment and stimulate the market uptake of innovative technologies across the Community. 

In recent years, the European technology platforms (ETPs) established in the energy field (see 
annex)  have  demonstrated  the  readiness  of  the  research  community  and  industry,  together 
with other important stakeholders, such as civil society organisations, to develop a common 
vision and establish specific roadmaps to achieve it. These technology platforms are already 
having  an  influence  on  European  and  national  programmes,  but  this  in  itself  does  not 
overcome the problem of fragmentation and overlapping activities. The platforms themselves 
are  calling  for  action  at  European  level  and  a  framework  for  the  elaboration  of  large-scale 
integrated  initiatives  needs  to  be  developed  for  this  to  happen.  A  clear  strategy  for  energy 
technology would help these platforms work together more closely, rather than competing for 
scarce investment resources. 

5. 

THE INSUFFICIENT SCALE OF THE CURRENT EFFORT 

'Business  as  usual'  is  not  an  option.  The  current  trends  and  their  projections  into  the  future 
demonstrate  that  we  are  simply  not  doing  enough.  To  put  the  European  Union  and  global 
energy systems onto a sustainable path, to benefit from the consequent market opportunities 
and  to  achieve  the  ambitious  vision  outlined  above,  will  require  a  sea-change  in  European 
energy technology innovation, from basic research right through to market take-up. 

The energy technology innovation process demonstrates structural weaknesses that can only 
be overcome by concerted action, simultaneously on many different fronts. The complexity of 
the innovation process is characterised by long lead times to mass market (often decades) due 
to  the  inertia  inherent  in  existing  energy  systems,  locked-in  infrastructure  investments, 

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Euracoal (http://euracoal.be/newsite/overview.php) 

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dominant, often natural monopoly, actors, diverse market incentives and network connection 
challenges. 

This  is  compounded  by  the  disappointing  progress  towards  a  European  Research  and 
Innovation Area and historically declining research budgets in the energy sector. For reasons 
mainly related to the specificities of the sector, energy research budgets (public and private) in 
OECD countries have halved in real terms since the 1980s11 and it is paramount that this trend 
be  decisively  reversed,  certainly  in  the  European  Union.  Given  the  uncertainties  and  risks 
inherent  in  low-carbon  technology  innovation,  increased  public  investment  and  a  stable, 
predictable policy framework will play a vital role in leveraging increased private investment, 
which should be the main driver of change. 

The  increased  budgets  of  the  Seventh  Framework  Programmes  of  the  European  Union,  as 
well  as  the  Intelligent  Energy-Europe  Programme,  are  a  step  in  the  right  direction.  In  the 
former,  the  average  annual  budget  dedicated  to  energy  research  (EC  and  Euratom)  will  be 
€886m, as compared to the €574m of the previous programme. Nevertheless, the contrast with 
the  planned  sharp  increases  in  the  centrally  managed  research  programmes  of  global 
competitors  is  still  stark.  For  example,  the  2005  US  Energy  Bill  proposes  in  the  Federal 
budget $4.4 billion for energy research in 2007, $5.3 billion in 2008 and $5.3 in 2009, sharply 
up from the $3.6 billion dedicated in 2005. 

In order to be able to compete in global markets, the European Union and its Member States 
have both to increase their investment, public and private, and to mobilise all these resources 
much more effectively to address the mismatch between the sheer magnitude of the challenge 
and the underlying research and innovation effort. All Member States have their own research 
programmes on energy, mostly with similar objectives and targeting the same technologies. In 
addition, public and private research centres, universities and dedicated agencies complete a 
picture of scattered, fragmented and sub-critical capacities. Working together will benefit all, 
exploiting the federating role that the European Union can play in the field of energy. 

The  potential  of  enhanced  international  cooperation  must  also  be  harnessed  in  a  more 
effective way. Energy security and climate change are global issues with solutions that can be 
deployed  globally,  giving  rise  to  huge  markets  but  also  to  severe  competition.  Finding  the 
right balance between cooperation and competition is vital. ITER and fusion have provided a 
model for large-scale international cooperation in research to meet global challenges and such 
an approach may have potential in other areas. The European Union and many of its Member 
States  also  participate  in  multi-lateral  co-operation  initiatives,  such  as  the  International 
Partnership for the Hydrogen Economy (IPHE), the Carbon Sequestration Leadership Forum 
(CSLF) and the Generation IV International Forum (GIF), whose potential has still to be fully 
realised.  Synergies  in  the  development  of  efficient  and  low  carbon  technologies  should  be 
further enhanced by closer and result-oriented cooperation with international partners, e.g. the 
United States.  

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OECD Round Table on Sustainable Development, 30 June 2006. 

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6. 

TRANSFORMING  ENERGY  TECHNOLOGY  INNOVATION:  A  EUROPEAN  STRATEGIC 
ENERGY TECHNOLOGY PLAN (SET-PLAN) 

The  European  Union  must  act  jointly  and  urgently.  It  will  take  decades  to  progressively 
transform  the  energy  system,  but  we  must  start  now.  It  is  a  process  that  requires  strategic 
action  at  European  level,  pro-active  planning  and  a  comprehensive  policy  framework.  To 
meet the challenge, we must develop a world-class portfolio of affordable, competitive, clean, 
efficient  and  low-carbon  technologies  and  create  stable  and  predictable  conditions  for 
industry,  particularly  SMEs,  to  ensure  their  widespread  deployment  in  all  sectors  of  the 
economy. 

that  can  be  deployed 

The broad technology  portfolio  approach spreads risk and avoids  locking-in to  technologies 
that  may  not  provide  the  best  solution  in  the  long  run.  The  portfolio  includes  existing 
technologies 
incremental 
improvements  are  needed,  technologies  where  breakthroughs  are  required,  transition 
technologies and technologies which necessitate major changes to existing infrastructures and 
supply chains. All of these technologies face different challenges and barriers and are likely to 
be brought to commercialisation within different time horizons. 

technologies  where 

immediately, 

Creating the framework conditions and incentives for the development and take-up of energy 
technologies  is  a  matter  of  public  policy.  A  whole  range  of  instruments  is  available  at 
European and national level to help accelerate technology development (technology push) and 
the market introduction process (demand pull). The following is a non-exhaustive inventory 
of such instruments: 

–  Technology  push  instruments:  EU  Research  Framework  Programme  and  associated 
initiatives (e.g. European Research Area Networks scheme, Risk Sharing Finance Facility 
of the European Investment Bank, Infrastructures for research, Joint Technology Initiatives 
and other possibilities under Articles 168, 169 and 171 of the EC Treaty and Title II of the 
Euratom  Treaty),  European  Coal  and  Steel  Research  Fund,  national  research  and 
innovation programmes, venture capital and innovative financing mechanisms12, European 
innovation,  COST,  EUREKA,  European 
Investment  Bank,  Structural  Funds  for 
Technology Platforms. 

–  Demand  pull  instruments:  EU  directives  setting  targets  and  minimum  requirements, 
performance  regulations,  pricing  policies  (Emissions  Trading  Scheme  and  fiscal 
instruments  such  as  energy  taxation),  energy  labelling,  standards  policy,  voluntary 
agreements  of  industry,  feed-in  tariffs,  quotas,  obligations,  green  and  white  certificates, 
planning/building  regulations,  grants  for  early  adopters,  fiscal  incentives,  competition 
policy, public procurement policies, trade agreements. 

–  Integrated innovation instruments: The proposed new European Institute of Technology 
(EIT)  will  play  an  important  role  in  enhancing  the  relations  and  synergies  between 
innovation,  research  and  education.  The  creation  of  an  energy-related  Knowledge  and 
Innovation  Community  may  be  envisaged  by  its  autonomous  Governing  Board.  The 
Community  Competitiveness  and  Innovation  Programme  (in  particular  the  Intelligent 
Energy-Europe  programme)  seeks  to  remove  non-technological  barriers  that  prevent 
market take-up. In addition, the lead market approach announced in the recent innovation 

12 

For example, the EU Global Energy Efficiency and Renewable Energy Fund (GEEREF). 

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strategy13  could  lend  itself  well  to  the  launching  of  large-scale  strategic  actions  aimed  at 
facilitating the creation of new knowledge-intensive energy markets. 

The essence of the European Strategic Energy Technology Plan (SET-Plan) will be to match 
the  most  appropriate  set  of  policy  instruments  to  the  needs  of  different  technologies  at 
different  stages  of  the  development  and  deployment  cycle.  The  SET-Plan  must  therefore 
embrace all aspects of technological innovation, as well as the policy framework required to 
encourage business and the financial community to deliver and support the efficient and low-
the 
carbon 
Communication  "An  Energy  Policy  for  Europe"14,  the  SET-Plan  will  address  different  time 
horizons  and  important  milestones  that  have  to  be  met  to  put  our  energy  system  on  a 
sustainable  path.  The  socio-economic  dimension,  including  behavioural  changes  and  social 
attitudes with an impact on energy use will also be taken into account. 

that  will  shape  our  common  future.  In  coherence  with 

technologies 

The SET-Plan must stem from a shared and inclusive European vision, involving all relevant 
actors: industry, the research community, the financial community, public bodies, users, civil 
society,  citizens,  unions.  It  must  be  ambitious  in  setting  targets,  but  realistic  and  pragmatic 
regarding  resources.  While  avoiding  being  perceived  as  a  European  level  'picking  winners' 
approach,  the  SET-Plan  will  have  to  be  selective  –  'different  horses  for  different  courses'  –
ensuring that the right portfolio of technologies is brought forward to enable Member States 
to  pick  and  choose  the  appropriate  combination  for  their  preferred  energy  mix,  indigenous 
resource base and exploitation potential. 

The strategic element of the plan will be to identify those technologies for which it is essential 
that  the  European  Union  as  a  whole  finds  a  more  powerful  way  of  mobilising  resources  in 
ambitious result-oriented actions to accelerate development and deployment. Technologies on 
which we should work in strong coalitions or partnerships, identifying precise and measurable 
objectives  and  then  pursuing  these  in  a  focused  and  coordinated  manner,  sharing  risks  and 
leveraging  sufficient  resources  from  a  wide  variety  of  sources.  Possible  examples  of  such 
large-scale  initiatives,  which  are  beyond  the  capacity  of  any  single  country,  could  be 
biorefineries, sustainable coal and gas technologies, fuel cells and hydrogen and Generation 
IV nuclear fission. 

The  SET-Plan  will  not  be  an  isolated  initiative,  but  will  build  on  and  complement  existing 
initiatives,  such  as  national  energy  strategies  and  reviews,  as  well  as  the  Environmental 
Technologies  Action  Plan  (ETAP)  and  the  planned  flagship  initiative  on  Information  and 
Communication  Technologies  for  Sustainable  Growth,  where  there  is  potential  to  optimise 
synergies. 

7. 

PROCESS TO ARRIVE AT THE SET-PLAN 

The Commission intends to put forward  a first European Strategic Energy Technology Plan 
for endorsement by the 2008 Spring Council. 

To arrive at a shared European vision on the role that technology can play in the context of a 
European  energy  policy  and  produce  a  credible  and  widely  supported  SET-Plan  requires 
widespread consultation and the active involvement of all relevant stakeholders. It must be a 

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COM(2006) 502, 13.9.2006. 
COM(2007) 1. 

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broad,  participative,  consensus-building  initiative,  based  on  a  thorough  analysis  of  the 
strengths and weaknesses of the current innovation system and an objective assessment of the 
realistic potential of technologies to contribute to energy policy goals. 

A two-stage approach is envisaged. In an initial phase, up to May 2007, the Commission will 
consult with established advisory and stakeholder groups, such as the High Level Group on 
Competitiveness,  Energy  and  Environment,  the  FP7  Advisory  Groups,  relevant  European 
Technology  Platforms  and  Member  State  groups.  A  series  of  expert  workshops  will  be 
convened and, possibly, a high-level European conference organised in the first half of 2007. 

In a second phase, around July 2007, a public consultation on a preliminary draft SET-Plan 
will be conducted. The input from the consultation will then be incorporated into the plan and 
a  final  round  of  validation  with  experts  and  advisory  groups  carried  out  to  ensure  its 
robustness. 

The delivery of the first SET-Plan by the end of 2007 will not be a one-off exercise, but the 
start of a dynamic process that will be regularly reviewed and adjusted to changing needs and 
priorities.  To  this  end,  the  plan  will  also  propose  a  monitoring  and  evaluation  scheme, 
including  technology  watch  and  assessment  and  an  extension  of  the  'EU  Industrial  R&D 
Investment Scoreboard'15 to include energy research. 

8. 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

CONCLUSIONS 

The  world  has  entered  a  new  energy  era.  The  European  Union  should  lead  the  way 
towards a paradigm shift in the way energy is produced, distributed and used. 

Energy technology has a vital role to play in breaking once and for all the link between 
economic development and environmental degradation. 

In  combination  with  national  activities,  working  at  European  level  with  an  adequate 
combination of innovation and regulatory measures has produced substantial results. 

However,  the  continuation  of  'business  as  usual'  is  no  longer  an  option.  The  current 
trends and their projections into the future demonstrate that we are simply not doing 
enough to respond to the energy challenge. 

The  Commission's  view  is  that  the  increased  budgets  of  the  Seventh  Framework 
Programmes  (50%,  from  €574M/year  to  €886M/year),  as  well  as  the  Intelligent 
Energy-Europe Programme (100%, from €50M/year to €100M/year), are a step in the 
right direction that Member States and industry should at least match.  

The  European  Union  must  act  jointly  and  urgently,  agreeing  and  implementing  a 
European Strategic Energy Technology Plan (SET-Plan) in 2007 embracing the whole 
innovation process, from basic research to market take-up and facilitating research and 
development cooperation with international partners. 

(7) 

The SET-Plan must stem from a shared and inclusive European vision, involving all 
relevant  actors.  It  must  be  ambitious  in  setting  targets,  but  realistic  and  pragmatic 

15 

Published annually by the European Commission: http://iri.jrc.es/do/home/portal/inicio 

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regarding  resources.  The  strategic  element  of  the  SET-Plan  will  be  to  identify  those 
technologies for which it is essential that the European Union as a whole finds a more 
powerful way of mobilising resources in ambitious result-oriented actions to accelerate 
their pathway to the market. 

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ANNEX 

Overview of key low-carbon technologies at different stages of innovation and their 
prospects for market penetration 

1. The analysis of the FP6 Advisory Group on Energy 

The  report  'Transition  to  a  sustainable  energy  system  for  Europe:  The  R&D  perspective' 
(2006, EUR 22394) by the FP6 Advisory Group on Energy identifies key future technology 
options. Their analysis, which provides a useful reference point, is summarised below. 

Time to widespread 
deployment 
Immediate/Short-
term 

Transport technology 

Reduction in demand (e.g. smaller 
engines) 

Advanced high-efficiency ICEs 

Improved hybrid electric designs with 
petrol, diesel, biodiesel 

Bio-diesel; bio-ethanol 

Co-processing of biomass with fossil 
fuels 

Synthetic fuels from gas/coal-Fischer-
Tropsch 

Biofuels from ligno-cellulosic 
feedstocks 

Electric vehicles (EVs) with advanced 
battery electricity storage 

Electricity/heat conversion 
technology 
Low/medium temperature solar 
thermal applications for hot water, 
heating, cooling, industrial processes 

Combined Cycle Gas Turbine 
(CCGT) 

Nuclear fission (Gen III/III+) 

Wind energy (including offshore/deep 
offshore) 

System integration (grid issues) 

Solid biomass 

Fuel cells (SOFC, MCFC) 

Geothermal energy (including deep 
geothermal – HDR/HFR) 

Carbon capture and storage (CCS) 

Cleaner use of coal (steam/gas 
turbine, combined cycle) with CCS 

Advanced fossil fuel plants 
(super/ultra-supercritical steam; 
Integrated Gasification CC (IGCC), 
with CCS 

Solar photovoltaic (PV) 

Solar thermal power plants 

Hydrogen with fuel cells 

Ocean energy (wave, sea current) 

Nuclear fission – Generation IV 

Longer term 

Air transport: hydrogen/gas turbine 

Nuclear fusion 

End-use  energy  efficiency  technologies  are  also  analysed  in  the  report,  but  the  range  is  so 
extensive  that  a  concise  summary,  as  above,  is  not  possible.  The  full  report  can  be 
downloaded from: http://ec.europa.eu/research/energy/gp/gp_pu/article_1100_en.htm  

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2. 

Prospects for market penetration  – the vision statements of  European technology 
platforms in the energy field 

According  to  the  zero  emission  fossil  fuel  power  plants  ETP16,  by  2020,  fossil  fuel  power 
plants will either be capable of capturing almost all their CO2 emissions in an economically 
viable  manner,  or  will  be  able  to  include  CO2  capture  systems  (“capture-ready”).  Between 
now and 2050, this would equate to a progressive diminution of 60% in CO2 emissions from 
power generation and demonstrate the importance of zero-emission fossil fuel energy. 

The  biofuels  ETP17  considers  that  up  to  one  quarter  of  EU  road  transport  fuel  needs  can  be 
met by clean and CO2 efficient biofuels by 2030. 

The photovoltaic ETP18 confirms that the 3 GW target for 2010 can be achieved. Furthermore, 
by 2030 the cost of photovoltaic generation will be competitive in most parts of the electricity 
market. The installed capacity may increase to 200 GW in the EU and 1000 GW worldwide, 
giving access to electricity to more than 100 million families, particularly in rural areas. 

The wind energy ETP19 projections for 2030 suggest that 23% of European electricity could 
be provided by wind farms, with 300 GW installed capacity (supplying 965 TWh, up from 83 
TWh in 2005). 

The  hydrogen  and  fuel  cell  ETP20  foresees  in  its  2020  snap-shot  that  fuel  cells  for  portable 
devices  and  portable  power  generation  will  be  established  markets.  Regarding  stationary 
combined heat and power applications, the installed capacity could be up to 16 GW, and in 
the  road  transport  sector,  again  by  2020,  the  start  of  a  mass-market  roll-out  of  hydrogen 
powered vehicles could represent annual sales of up to 1.8 million vehicles. 

The  solar  thermal  ETP21  considers  that  this  technology  will  cover  up  to  50%  of  all  heating 
applications  requiring  temperatures  up  to  250°C  by  2030.  The  total  installed  capacity  could 
reach 200 GW(thermal). 

The  smartgrids  ETP22  looks  at  the  future  electricity  networks  needed  to  enable  the  energy 
system  to  meet  the  needs  of  Europe's  future.  Taking  advantage  of  advanced  ICT,  networks 
must become flexible, accessible, reliable and economic, embracing the latest technologies to 
ensure success, whilst retaining the flexibility to adapt to changing needs. 

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http://www.zero-emissionplatform.eu/website/ 
http://ec.europa.eu/research/energy/pdf/draft_vision_report_en.pdf 
http://ec.europa.eu/research/energy/nn/nn_rt/nn_rt_pv/article_1933_en.htm 
http://www.windplatform.eu/ 
https://www.hfpeurope.org/ 
http://www.esttp.org/cms/front_content.php 
http://www.smartgrids.eu 

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