CELEX: 51989PC0121
Language: en
Date: 1989-03-22
Title: EUROPEAN TECHNOLOGIES FOR ENERGY MANAGEMENT THERMIE PROGRAMME (Communication from the Commission) Proposal for a COUNCIL REGULATION (EEC) concerning the promotion of energy technology in Europe (presented by the Commission)

ARCHIVES HISTORIQUES
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DOCUMENTS "COM"
COM (89) 121
Vol. 1989/0036
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 ---pagebreak---   COMMISSION OF THE EUROPEAN COMMUN1TIES
                                           COM ( 89 ) 121 final.
                                           Brussels , 22 March 1989
            EUROPEAN TECHNOLOGIES FOR ENERGY MANAGEMENT
                             THERMIE: PROGRAMME
I
                 ( Communication from the Commission )
                                      *
                              Proposal for a
                         COUNCIL REGUL A TION ( EEC )
      concerning the promotion of energy technology in Europe
                     ( presented by the Commission )
                                         M  13
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 ---pagebreak--- Contents
Chapter                                                         Paragraphs
I      Introduction . 1 - 3
II    The Case for a New Initiative . 4 - 27
III   A New Programme for the Promotion of Energy Technologies . . 28 - 47
Annex - Proposai for a Council Régulation
 ---pagebreak---                                          1
                 EUROPEAN TECHNOLOGIES FOR ENERGY MANAGEMENT
                                Programme Therm I e
I.    INTRODUCTION
1 .   The new economic and Industrial context         provided for Europe by the
      Internal market objective will require a strong energy base . The
      Community 's energy situation still suffers from Insecurity ,
      regional disparities and unresolved environmental concerns . The key
      to these problems         Is  to    develop    and   exploit     new  energy
      technologies .
2.    The regulations 1 governing the Community 's Energy Demonstration
      and Hydrocarbon Technology Programmes expire at the end of 1989 .
      The Commission has reviewed the future of these programmes in the
      light of the new economic prospects created by the unification of
      the Internal market , and the need for effective flanking policies .
      The programmes have also been assessed by Independent experts 2 ,
      whose   conclusions   reinforce    the    Commission 's   view   that a  new
      Initiative should be taken In this field . The Community should now
      build on the success of Its energy research and demonstration
      programmes by putting the new technologies to work In a Community
      Energy Technology Programme .
3.    Section   II  of  this   communication     outlines   the   case  for a  new
      Community Energy Technology Initiative aimed at promoting energy
      technologies . Section III describes the main features of such a
      programme and Is followed by a draft Council Regulation .
 II . THE CASE FOR A NEW INITIATIVE
      Internal Market and energy security
4.    The movement towards completing the Internal Market has become
      Irreversible . For Community industry to take full advantage of the
      Internal Market , It must have access to secure and competitive
      supplies of energy . European Industry would otherwise be seriously
      weakened In relation to Its competitors overseas .
5.    The present relaxed state of world energy markets should not be a
      reason for   complacency . The Community 's energy situation remains
      vulnerable . Nearly half of our energy requirements are at present
      Imported . In the case of oil , the Community Is dependent on other
      countries for over 70% of Its needs .
1     Regulations ( EEC ) N°s . 3639/ 3640 / 85 of the Council , 20.12.85
2 - Evaluation of Energy Demonstration Programme :
      - Energy Efficiency and Renewable Energies Projects , November 988 :
        Mr. CAPRIOGLIO and the MARCH Consulting Group ;
      - Solid Fuels , November 1988 : Mr . THURLOW and Mr . KALLENBACH
    - Evaluation of the European Community 's Programme of Support on
      Technological Development In the Hydrocarbons Sector , August 1988 :
      SMITH REA Energy Associates , Ltd .
 ---pagebreak---  6 . Uncertainties still cloud the energy horizon . The future course of
      oil markets will continue to Inject Insecurity into the enerav
      equation as long as so much of the world 's supplies come from
      region where political tension remains endemic . Nuclear power faces
      public opposition in many Member States and coal , one of the other
      major alternatives to oil , will encounter growing environmental
      constraints unless existing technologies can be Improved .
7 . In the past , technology has played a major role In Improving the
      energy situation , In strengthening security of supply and reducing
     energy costs . To Insure against the uncertainty of the future and
      to underpin the achievements of the Internal Market , It Is vital
      that energy technologies continue to play a central role .
8 . The new technologies will help us to develop our Indigenous enernv
      resources , extend their lifetime and ensure they are produced
     economically . Their exploitation will enhance security of supply
      lower energy costs and help the Community 's balance of payments .
9 . Technology Is also the key to Improving energy efficiency . As well
     as bringing economic benefits , this Is essential for the
     environment and will also enhance security of supply by reducing
      the amount of energy we need . It Is particularly Important at the
     present time when energy prices are low to step up efforts In this
     direction , to compensate for the weaker signals coming from the
     market .
10 . Technology   can   contribute  significantly  to diversifying energy
     supp lies by facilitating the development and use of alternatives to
     oil , the exploitation of Indigenous resources , Including renewable
     sources , the clean use of coal and the production of energy from
     waste materials or waste heat . And In the oil sector Itself ,
      Improved technologies can widen the range of supply sources .
      Internai Market and Communlty I ndust ry
11 . The Single European Act explicitly states the need to strengthen
     the technological basis of European Industry . In Article 130 It
     emphasises the Community 's   r6le In encouraging undertakings to co¬
     operate with one another and enabling them to exploit the Internal
     Market to the full . These requirements are as essential In the
     energy technology field as In other technology areas .
12 . As the global market becomes Increasingly accessible , and Industry
     becomes more and more International In outlook and organisation , It
     Is appropriate that energy technology takes on an Increasingly
     International aspect . This Is especially so In the context of a
     single , Integrated Community market . Co-operation at a European
     level can help to allocate available funds more efficiently , avoid
     undesirable duplication and support access to new technologies by
     lower Income countries . The development of new technologies ,
     together with effective diffusion of knowledge and experience , can
     promote the transfer of technology within the Community , facilitate
     Industrial Integration and create a sense of Community Identity In
     the sectors concerned .
 ---pagebreak---                                                3
io .           t.,:hno logy   will    also   contribute      to    the  establishment    of
     • ; .. islstu.vt norms and standards of performance and quality , thereby
     helping        to   remove    trade    barriers     and    to   facilitate    European
      Integral ion .
14 . The new Community energy technology                  Initiative will     specifically
     encourage Joint ventures between undertakings from more than one
     Member State . Particular emphasis will also be given to support for
     small and medium-sized undertakings as well as to ways and means of
     strengthening dissemination of technology Information throughout
     the Community .
15 . The new Initiative will take Into account energy technology schemes
     at national and regional levels , as well as other Community
     programmes ( see point 38 ), to ensure effective coordination .
     Technology transfer
16 . Turning to the developing countries , the challenge consists of the
      transfer       of  technology     to our   Third World       trading   partners . New
     energy        technologies     developed      In   the    Community    will   have  an
       Important role to play In helping to solve the massive energy and
     environmental problems In the Third World . Greater participation by
     Community Industry will also Increase Interdependence between
      Europe and the developing nations , bringing economic benefits to
      all concerned and enhancing the Community 's security of energy
      supp I y .
      Research and Technology
17 . As shown by the first report on the state of science and technology
       In Europe , adopted by the Commission on 15 November 19883 *, a
      considerable        effort    has   been made      to   Improve   the   situation   In
      Europe .        This lies Just behind the main competing blocks of the
      United States and Japan , but Is also threatened by the Initiatives
     of the new scientific and technological powers represented by the
      newly Industrialised countries .                This effort must therefore be
      reinforced .            It     Is    In     this      context      that    the    new
      Commun I ty In 1 1 lat I ve Is situated , which , leading on from the
      technology R&D Community framework programme , will allow the
      Community a greater ability , with the necessary continuity , to
      follow Its technological choices .
      Env I ronment
18 . There Is Increasing and world-wide concern about damage to the
      environment . Environmental Issues such as acid rain , the ozone
       layer , the dumping of toxic waste and the warming of the world 's
      climate ( the " greenhouse effect ") are high on the political agenda .
     The Single Act recognises the Importance of environmental Issues
      and states that environmental protection requirements must be a
      component of the Community 's other policies .
19 . The production , transportation and use of energy make significant
     demands upon the environment . There Is growing recognition that
     constraints are necessary , and regulations have been Introduced at
3.   COM ( 88 ) 647 Final
 ---pagebreak---                                        4
     national and Community levels , for example on emission levels and
     the sulphur and lead content of particular oil products . It Is
     clear , however , that much more needs to be done to ensure that
     energy production and use Is compatible with rising environmental
     standards .
20 . Energy technology has a key role to plav in meeting the
     environment challenge by making It possible to reduce energy
     consumption , by developing new and renewable sources and by
     ensuring the clean use of coal . Major efforts In all these areas
     will be needed to face up to the threat of climatic change , in
     addition , Improvements to health and safety standards , for example
     In the field of hydrocarbon production , should also feature In an
     energy technology programme .
21 . The Community 's energy objectives for 19954 call for balanced
     solutions as regards energy and the environment , by making use of
     the best available and economically Justified technologies and by
     improving energy efficiency . The new     energy technology Initiative
     will be central to achieving this objective .
     Economie and social cohésion
22 . The Single Act requires the need for economic and social cohesion
     to be taken Into account when defining common policies . The new
     Community Initiative In technology will bring Important benefits to
     the least-favoured regions of the Community .
23 . As a general rule , the less prosperous regions of the Community
     tend also to be the least-favoured from an energy point of view .
     The large , economical I y-recover able reserves of coal , oil and gas
     are generally to be found In the more prosperous northern Member
     States . The least well-endowed regions In the south and on the
     periphery of the Community also tend to have less we I l-deve loped
     energy Infrastructure connections to the rest of the Community or
     to outside energy suppliers . In consequence such disadvantaged
     regions generally exhibit a high dependence on Imported oil and
     high energy costs .
24 . The new technology     Initiative will    help to reduce this energy
      Imbalance within the Community by transferring technology to the
     d I gadvantaged regions .  The poorer   regions will  benefit  directly
     from Community support and from sharing the technological knowledge
     and experience developed elsewhere In the Community . Energy
     technology projects in these regions will , moreover , act as a
     catalyst for growth In the local economy , bringing also a climate
     of increased confidence to the areas concerned .
25 . The application of these technologies will Improve the energy
     situation In the less developed regions , Increasing the efficiency
     of energy use and making It feasible to exploit local fossil and
     renewable energies . Such sources as wind and solar energies or
     small hydro very often offer considerable potential at a regional
     or local level , In addition to Improving the local environment .
4    Council Resolution , 16.9.86 , OJ N° . C241 / 1
 ---pagebreak---                                              5
20 . Y;w             l benefits to bft derived from the use of new energy
       technologies should also be substantial . Employment opportun 1 1 1 os
      17 1 i 1 be created as the sectors concerned expand . It has been
      estimated by an Independent Institute that Increased efforts to
      save energy and use waste heat or renewable energy sources could
       lead to the creation of as many as 530,000 Jobs by the year ? 0005 .
      Energy conservation also provides social benefits In terms of
      reduced fuel bills for those most In need - lower Income groups ,
      the unemployed , pensioners and so forth .
27 . It       should   also  be  kept   In mind   that there  are  still  Isolated
       localities In the Community , not connected to electricity or gas
      networks , where the population lacks the normal access to energy
      supplies . Innovative technologies , particularly In the field of
      renewable energies , can make a significant contribution In
      alleviating this type of problem .
I I I A NEW PROGRAMME FOR THE PROMOTION OF ENERGY TECHNOLOGIES
28 . The needs Identified In the first part of this paper can only be
      met by promoting the widespread use of new technologies to Improve
      both energy supply and energy use in the Community .
29 . The       latest   Independent   evaluations confirm that    the Community 's
      existing demonstration and hydrocarbon technology programmes have
      been successful In bringing a range of new energy technologies to
      the stage of commercial viability . They have provided a vital link
      In the technology chain , building on the Community 's non-nuclear
      energy research and development programme by demonstrating the use
      of the new technologies on a commercial scale . The evaluations
      identify a continued need for this support for innovation .
30 . A new Initiative Is necessary , however , to go beyond demonstration
      and ensure a substantial              Impact on the Community 's energy
      situation . The experience gained In the existing programmes ,
      reinforced by the conclusions of the Independent evaluation
      reports .       Indicates that this can only be achieved If new
      Initiatives are taken to bridge the present " Inertia gap” that
      exists       between , successful    demonstration  and   the  use   of  new
      technologies In the market place . This aim must be the basis of the
      new Programme for the Promotion of Community Energy Technologies .
      The Commission agrees therefore with the views expressed In the
       Independent evaluation report on the demonstration programme® :
       'Hardware      demonstration    on  Its  own   .              Is  therefore
      unlikely to be sufficient to ensure a suitable and effective link
      with the marketplace.'
      and
      the characteristics of the energy market are such that a very
5     " Employment Aspects of Energy Conservation Investments             In E.C.
      Countries , Fraunhofer Institute ( ISI )", November 1984 .
6     See note 2 , p. 1 .
 ---pagebreak---                                           6
     deliberate    emphasis      needs    to   be  focused    on    consolidation
     andpromot Iona 1 activities , If the vast body of knowledge stemming
     from  current    R  &   D  and   demonstration   efforts   Is   to  make  the
     required Impact.'
31 . The new Community Initiative must therefore provide support both
     for Innovation and for the dlssemlnat Ion of effective technologies .
     It will thus give added substance to the 1995 energy objective
     which requires continuous and diversified promotion of energy
     related technological Innovations through R , D and D and rapid
     dissemination of the results throughout the Community .              This new
     Initiative   will     also    complete    and  reinforce     the   activities
     undertaken In the Strategic Programme for Innovation and Technology
     Transfer ( SPRINT ).
32 . In the new Programme , therefore , more emphasis should be placed on
     dlssemlnat Ion , both by encouraging investments In successfully
     demonstrated technologies In other regions of the Community and by
     publicising   the results of successful         projects .   By this means ,
     major benefits will accrue from the Community dimension , ensuring
     that maximum added value Is derived from Community funding . This
     will be of particular help to Innovative small and medium-sized
     enterprises which will often , without Community assistance ,
     financial or otherwise , encounter difficulties In promoting
     successful new technologies beyond national boundaries . On the
     other hand , this Initiative will also put to use the results of
     national and Community R&D programmes and will reinforce the
     activities undertaken by         the   Valorisation  and    Utilization   for
     Europe Programme ( VALUE ).
33 . The new Programme would cover the following areas :
             energy efficiency ;
             renewable energy sources ;
             clean use of coa I ;
             oil and gas exploration and development .
34 . The Efficient Use of Energy must clearly be given high priority to
     eliminate    unnecessary       consumption    and   reduce     environmental
     pollution . This section of the Programme will cover :
             Buildings : technologies for retrofitting , new processes or
             products for construction , heating systems ;
              Industry :    improvement of existing or development of new
             production processes , recycling of waste heat , computerised
             energy management systems etc ;
             Transport and urban Infrastructure : vehicles and transport
              systems , with particular emphasis on urban traffic and
              alternative fuels ;
              Electricity and Heat : for Instance electricity use ,
              production , storage , use of residual heat from power plants
              for district heating networks etc .
 ---pagebreak---                                                 7
35 . T i i s .'^r. ew able energies field covers projects for the exploitation
     of ran - axhaust I o I e energies , notably In the following sectors :
                    solar energy , with the conversion of this source to thermal
                    energy by active or passive methods , or by conversion to
                    electrical energy by photovoltaic processes ;
                    energy    from   biomass .    agricultural    products    and   waste
                    matter , as well as plants cultivated for energy production ;
                    geothermal energy for heating , use of heat In Industrial or
                    agricultural processes and for electricity generation ;
                    hydroelectric energy for the production of electricity by
                    low power hydroelectric plant ;
                    wind energy for electricity generation .
36 .  In the case of Coal and other solid fuels It will be essential to
     promote         the   use   of   clean    combustion    technologies    capable   of
     meeting future environmental needs . The problem of effluents will
     also need to be addressed . Particular emphasis should certainly be
     placed on the production of electricity by means of coal
     gasification using the so-called IGCC ( Integrated Gasification
     Combined Cycle )          technology , which shows considerable promise            In
     both cost and environmental terms .
37 . The 01 I and Gas section of the Programme will cover exploration ,
     production ,          storage     and     transportation     activities     In   the
     hydrocarbons sector . More efficient and Innovative techniques will
     make It easier to explore for and produce new reserves , both
     onshore and offshore , thus Improving supply security In the
     Community . Safety will be another area for technology Improvements .
     In this section also , preference will be given to cooperative
     projects and projects Involving small and medium-sized enterprises .
38 . The new Programme will               have two major axes :      The first    Is the
     prompt Ion of three types of projects ( innovation , dissemination and
     targeted ) by way of financial support towards their realisation .
     The second         Is a set of consolidation activities for          the diffusion
     of results and to facilitate the repetition of successful projects .
     These       activities     will   be   undertaken   In  collaboration   with   other
     Community programmes aimed In particular at R&D ( JOULE and ECLAIR ),
      Innovation and technology transfer ( SPRINT ) and the dissemination
     and utilization of the results of scientific and technical research
     ( VALUE ) .
39 .  Innovation         projects    will    show   for   the   first   time   that   new
     technologies can be exploited successfully on a commercial scale .
     Dissemination projects on the other hand will encourage the wider
     use of a new technology after the first successful project . In
     addition , a central role will need to be assigned to targeted
     projects . These projects will be carried out at the Commission 's
     own Initiative , after appropriate Inter-service consultation , to
     prove the advantages of specific favourable technologies . They
     will Include , for example , pilot projects designed to promote the
     further use of technologies already proven at the R&D stage .
     These will for          Instance     be used to provide answers on matters of
 ---pagebreak---                                         8
     special concern such as the environment , as well as to support
     projects better undertaken on a cooperative basis by a number of EC
     firms . The Consultative Committee set up under the new Programme
     will need to consider what proportion of the total budget should be
     assigned to such projects , and whether they should receive a higher
     rate of support .
40 . Consol Idat Ion activities will be strengthened . These Include
     effective auditing and monitoring of projects , technology and
     market assessments , diffusion of results and promotional efforts ,
     and cooperation seminars or fora to bring EC companies together . In
     addition to Improving the commercial success rate of the projects
     selected , these activities will also provide an essential feedback
     from the market place Into a strategic approach for the new
     Programme as a whole .         Thus they will       contribute to the
      Identification of future Innovation priorities and to decisions
     about their funding . These activities will be undertaken after
     consultation and In collaboration with the appropriate services of
     the Commission ( see point 38 ).
41 . Preference should clearly be given to Joint venture projects
      Involving at least two Independent undertakings from different
     Member States . This will strengthen the Community dimension In the
     sectors    concerned   and  aid   the transfer   of   technology across
     national boundarles .
42 . Preference should also be given to small and medium-sized
     enterpr I ses ( SMEs ), which are a frequent source of Innovative
     thinking . This category of enterprise often lacks the necessary
     funding to develop new technologies and bring them to the market
     place . Nor will SMEs generally have sufficient resources to
     disseminate new technology or diffuse Information to other
     Community regions . The Community therefore has a special role to
     play In providing assistance to SMEs In the energy technology
     f leld .
43 . As far as dissemination projects are concerned , preference should
     clearly be given to those located In the less prosperous regions of
     the Community . In this way the new Programme would provide an
     essential    complement to Valoren which    is being used , within the
     ERDF , to finance Investments beyond the Innovation stage In fields
     such as energy efficiency and renewable energies . The combined
     effect of these two programmes would help to overcome the present
     weaknesses In the energy situations of these regions .
44 . To fulfil Its objective of accelerating the use of the new energy
     technologies In the energy market , the new Programme will need to
      Introduce decision procedures which are faster , more flexible and
     more efficient . Under the present programmes It Is only possible to
     take one set of decisions each year . The Commission and the
     Consultative Committee established under the new Programme should
     agree on procedures which can reduce this delay to a level more
     acceptable to Industry .
45 . There    is also a need to re-examine management procedures for
     technology projects . The Commission 's views Is that there Is scope
     for Improving management efficiency by making more use of resources
      In Member States , both within and outside governments . This need
     for greater subsidiarity In programme management Is now being
 ---pagebreak---                                          9
     actively studied In a wider sense by the Commission 's services .
     Specific proposals on how to achieve a greater national
     participation     In the technical ,         contractual     and financial
     management of energy technology projects will be made before the
     end of this year In the light of those studies .
46 . In  the   light   of   the   experience    and  results   of   the existing
     demonstration      and     hydrocarbon     technology    programmes ,   the
     Commission 's assessment Is that the new Programme , taking the four
     main technology sectors together , will require a significantly
     higher level of funding than the 125 MECU a year allocated to the
     current programmes In the period 1986-9 . A reasonable duration for
     the new Programme Is also essential for Industrial confidence and
     to   allow    Its    objectives    to   be    pursued   consistently .  The
     Commission 's proposal therefore Is that the new Programme should be
     authorised for a period of five years .
47 . A draft Council Regulation establishing ths new Programme for the
     Promotion of Community Energy Technologies with effect from
     1st January 1990 Is annexed .
 ---pagebreak---                                             10 -
                                  THERMIE PROGRAMME
                   ( European Technologies for Energy Management )
                                    Proposal   for a
                               COUNCIL REGULATION ( EEC )
             concerning the promotion of energy technology In Europe
THE COUNCIL OF THE EUROPEAN COMMUNIT IES ,
Having regard to the Treaty establishing the European Economic Community ,
and In particular Article 235 thereof ,
Having regard to the proposal from the Commission ,
Having regard to the opinion of the European Par 1 1 ament ,
Having regard to the opinion of the Economic and Social Committee ,
Whereas    In  Its Resolution of     16 September 1986 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 this same Resolution states that one of the hor I zontal objectives
of Community energy policy          Is   to encourage continuous      and reasonably
divers ! f led   promotion    of   technological     I nnovat Ions  and  appropriate
dissemination of the results throughout the Community ;             that In spite of
the present energy situation there should be no rel axat Ion of efforts to
diversify the Community 's energy supply and improve energy efficiency ;
whereas     the promotion of new       technologies will     help  to  achieve these
object Ives ;
Whereas It Is Important to link these efforts with the Community strategy
for science and technology as defined             in the framework programme for
Community actions on technology R&D ;
 ---pagebreak---                                                11
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 economical I y - Just I f led
technologies ;      whereas      according         to    Article    130r      of   the    Treaty ,
environmental       protection      requirements         shall   be   a    component      of  the
Community 's other       policies and action by the Community relating to the
environment       shall     be   designed       to    ensure    a   prudent       and    rational
utilisation of natural         resources ;
Whereas   the promotion of projects               for exploiting the         indigenous energy
potential of the regions , particularly less developed regions , will help
to reinforce      the economic and social             development    of   the Community as a
whole ,  an    objective      which ,    according      to  Article   130r     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 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 coordinated with action being taken by the
Community within the framework of other specific programmes concerned , in
part Icul ar ,   with    research       and   development      In   the     field    of   energy ,
innovation and technology transfer and the dissemination and utilization
of the results of scientific and technical                 research ;
Whereas , after the research stage , financial support should be granted in
appropr I ate cases to projects for the promotion of advanced technology In
the field of energy ;
Whereas   for    reasons of continuity and effectiveness                  It   Is  necessary   io
envisage    a   programme     with    a   duration     of  five   years ,    provided with     an
adequate budget ;
Whereas cooperation between undertakings in various Member States In the
field of energy technology Is desirable ;
 ---pagebreak---                                      - 12 -
Whereas the grant of Community support must not affect conditions of
competition In such a way as to be Incompatible with the competition
provisions of the Treaty ;
Whereas the Treaty does not provide the necessary specific powers .
HAS ADOPTED THIS REGULATION :
                                    Article 1
The Community may , under the conditions laid down In th / s Regulation ,
grant financial support for projects for the promotion of energy
technology In the fields referred to In Article 3 and undertake the
assoc ! ated measures referred to In Article 5 .
                                    Article 2
1.  For the purpose of this Regulation ,        "projects for the promotion of
    energy    technology " , hereinafter    referred  to  as " projects " ,  means
    projects designed to develop and promote for the Community Innovat Ive
    technologies In the field of energy , and for which the Implement at Ion
                                                                    \
    entails a large element of risk .
2.  Community financial support may be granted for :
    (a)     Innovatory projects ; these are projects Implement / ng Innovatory
            technique ,  processes or products     for which the research and
            development stage has been completed , or new applications of
            established   techniques ,   processes or products ;   th / s type of
            project   should prove     the viability of new     technologies   by
            applying them on a sufficiently large scale for the first time
    ( b)    dissemination projects ; these are projects disseminating within
            the Community the techniques , processes or products referred to
            In (a ); they are designed to encourage preliminary applications
            of tested new technologies either under different economic
 ---pagebreak---                                                13
              or geographical conditions or with technical modifications and
              which still     entail  some risk .
                                         Article 3
The fields of appl leaf ion of this Regulation are as follows :
( a ) " rational   use of energy ",      l.e .   activities which result      In a major
      energy saving or a restructuring of energy demand in such a way as to
      improve the Quality of the environment or make more efficient use of
      electr Id ty and heat ;
( b ) “ renewable energy sources ", /            sources of energy which will not run
      OUt ;
( c ) " coal  and other solid fuels” ,          i.e.  the clean use of coal        and the
      upgrading of waste products , and coal gasification I ntegrated with a
      combined gas / steam cycle ;
( d ) " hydrocarbons " ,      l.e .  prospecting       for , producing ,    storing     or
      t ranspor ting hydrocarbons .
Annexes     1 to IV list      the sectors covered by each of these fields . These
lists may be amended by the Commission to keep pace with changes on the
energy     market    and / or   technological     developments  after    consulting    the
Advisory Committee referred to In Article 8(3 ).
                                         Article 4
Whenever the Commission considers It necessary , and In part Icul ar where a
need Is not being met or where a significant technological advance could
be achieved      through cooperation between persons or            undertakings      In at
least two Member States ,         It shall  Itself take the I nl 1 1 at Ive to encourage
or   coordinate     the setting-up of specific projects ,          known as     " targeted
projects " .
                                         Article 5
The Commission may undertake associ ated measures ,             examples of which are
 ---pagebreak---                                             14
given In Annex V , to encourage the application and marketing of energy
technologies .
                                       Article 6
1 . Any project , as referred to In Article 2 , must meet the following
    conditions .
    (a)    It    must     Implement ,    with    a   view   to    their propagation .
           Innovatory       techniques ,     processes or products ,           or new
          applications of established techniques , processes or products .
    (b )   It must appear technically and economically viable .
    (c )   It   must    offer    appropriate    solutions   for   protection    of the
          environment and safety .
    (d)    It must be difficult to finance because of major technical and
          economic risks .
    (e)    It must be designed to encourage propagat Ion of the technology
          on the market .
    ( f)   It must be proposed by persons In a position to disseminate the
          techniques , processes or products referred to above .
    (g)   It    must ,   as  a   general  rule ,   be   submitted   by  at   least f^o
          Independent promoters In different Member States , although the
          Commission may agree to exceptions for projects which have a
          total cost of less than 10 MECU . These exceptions shall apply :
          (!)    either to individual projects : If the project Is submitted
                 by small      and medium-sized enterprises or         an association
                 of such enterprises or by the public author It les or If the
                 promoter can justify the particular advantages of having
                 the project concerned implemented by only one body ;
          ( il ) or    to   a   complete    sector ,    depending   on   the   special
                 characteristics of that sector .
 ---pagebreak---                                               15
    (h)       It must , as a rule , be carried out within Community territory .
              However ,   If It  is In the interests of the Community to have all
              or part of a project carried out        In a non-member state , because
              of  the special      characteristics of the project ,       such a project
              may also receive financial support .
2.  Subject      to   the conditions set out       In paragraph   1   above ,  preference
    sha II be g I ven :
    (I)       to projects proposed by small and medium-sized enterprises or
              by an association of such enterprises ;
    ( II )    to    projects    specified     In  Article   2(b )   which     are  to   be
              implemented In less-developed regions as defined by Article 8
              of Council Regul at Ion ( EEC ) No . 2052 / 88 .
3.  Additional conditions specific to these fields are given In Annexes I
    to   IV .
                                          Article 7
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  accordance  with     the    provisions   of
    Articles 8 ,       10 and 13 .
2.  The 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 shall continue to be granted
    for subsequent stages provided that the eligibility criteria continue
    to be met and that the Commission is satisfied with progress on the
    project .
3.  Financial       support   may not     exceed 40% of   the eligible cost        of  the
    project ,      In   the case of     the projects   referred   to    In Article 2(a )
 ---pagebreak---                                              16 -
   ( I nnovatory projects ) and Article 4 ( targeted projects ) ;              It may not
   exceed 30% of the eligible cost in the case of the projects referred
   to    in Article 2(b ) ( dissemination projects ) .             In no case may the
   financial support be less than 15% of the eligible cost .
4. The amount of financial support shall be determined separately for
   each    project ,   In    accordance     with    the   procedure    provided    for   In
   Article 8 .    When   determining      the amount ,     the Commission shall        take
   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 will        not ,   In principle , exceed 49% of the total cost
   of the project .
5. The public authorities in the Member States shall not .                  In principle ,
   grant support that would have the effect of subsidizing the project
   beyond the level of 49% of its total cost .                All public support shall
   be notified to the Commission .
6. The Commission reserves the possibility of Introducing ,                  If necessary
   and    after  consul tat Ion     with  the   Advisory Committee       referred    to   In
   Article 8 , paragraph 3 , other financial mechanisms , such as Interest
   rebates , guarantee funds or part ici pat ion in capita ! funding .
                                        Article 8
1. Projects shall      be submitted by persons or undertakings established
   within the Community ,        Including small and medium-sized undertakings ,
   whether     Individually or       In the form of associ at ions ,       following the
   publication of an invitation to submit projects in one or more of the
   fields     referred    to   in   Article 3     in   the   Official   Journal   of    the
   European Communities , In accordance with this Regulation .
 ---pagebreak---                                              17
2.   In the   Invitations to submit projects ,          the Commission shall          specify
    those sectors to be given priority when selecting projects . This list
    of priorities shall        be drawn up by the Commission after consulting
    the   Advisory    Committee     referred    to  in   paragraph     3.    It   shall     also
    specify the information appl i cants will be required to supply for the
    purposes of selecting projects .
3.  The Commission shall        decide to grant      financial    support       for projects
    on  the basis of the       information provided by the applicant                and after
    consulting an      Advisory Committee consisting of              two  representat Ives
    from each Member State and chaired by a Commission representat Ive . The
    Committee     shall    be    constituted      differently      for    each      field     of
    application referred to In Article 3 .
    The   Commission     representative       shall    submit    the    projects       to    the
    Committee     and  the    Committee     shall   then    give    its   opinion      on    the
    projects ,   if necessary following a vote .
    This opinion shall be entered in the minutes . Each Member State also
    has   the   right   to  ask    that   its   own position      be    mentioned       In   the
    minutes .  The Commission shall        take as much account as possible of the
    opinion given by the Committee .          It shall    inform the Committee of the
    extent   to which it has taken account of its opinion .
4.  The   Committee     referred     to  in    paragraph     3  does     not     have    to   be
    consulted on projects whose total cost Is less than 100 000 Ecus .
5.  The    Commission 's     decision      shall    be     notified      Immediately         for
    Information     to  the Council ,    the European Parliament           and    the Member
    States .
                                        Article 9
In Implementing this Regul at Ion , the Commission shall ensure coordination
with projects carried out         under other Community programmes               relating     to
research and development ,       innovation and the transfer of technology , and
the diffusion and utilization of research results .
 ---pagebreak---                                            - 18 -
                                        Article 10
1.   The contractor responsible for implementing 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 . If the contractor
     does not respect this undertaking the Commission may require all or
     part of the financial support granted to be repaid .
2.   The Commission shall , in cooperation withn the bodies responsible In
     the   Member     States ,    endeavour     to    ensure    the   dissémination   and
     Implement at ion    of     projects    undertaken      in    accordance  with   this
     Regulation and Regul at ions ( EEC ) No 1302 / 78 , No 1303 / 78 , No 1971 / 83 ,
     No 1972 / 83 and No 3640 / 85 and to promote their exploit at ion . It shall
     take   appropr i ate   measures    to   achieve    this   objective   In  connection
     with the projects referred to            in Article 5 ,     and  If necessary shall
     also give suitable assistance to the contractor .
                                        Article    11
Contracts shall be signed between the Community and the persons referred
to  in Article 13      for   the   implementation of       the projects    adopted under
this Regul at Ion . These contracts shall govern the rights and obi Igat Ions
of each party       including     the methods of dissemination ,          protection and
exploi tat ion   of   the   results    of   the   projects     and   the  possibility  of
repayment of the financial support .
                                        Art / de   12
Subject to the provisions set out in Article 10 , the Information obtained
by the Commission under this Regulation shall remain confidential .
                                        Artide     13
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 which they are several ly
and jointly / / able .
 ---pagebreak---                                           19
                                     Article 14
The   financial     support  granted      by  the    Community   must   not   affect
conditions of competition In such a way as to be Incompatible with the
competition provisions of the Treaty .
                                     Article 15
The Commission shall     submit a regular report on         Implementation of this
Regulation and on compatibility between national and Community projects
to the Council and the European Parliament for the purposes of assessing
the results obtained .
                                     Article   16
The amounts to be granted In accordance with this Regulation shall                be
entered each year In the General Budget of the European Communities .
These   amounts   shall  cover    the   financial    support  granted   to  projects
referred to In Article 2(2 ), Article 4 , as well as projects referred to
In  Article 5    and  expenditure     relating    to  the Implement at Ion  of  this
Regul at Ion .
                                     Artide    17
Regul at Ions ( EEC ) No 3639 / 85 and No 3640 / 85 shall continue to apply to
projects submitted following Invitations to submit projects published In
accordance with those Regul at Ions .
 ---pagebreak---                                     - 20 -
                                   Article 18
On    the    expiry    of   Council      Decision 87/516 /Euratom , EEC of
28 September 1987 relating to the framework programme for Community
actions on technology research and development 1 • , the Commission will
assure the linking of the present programme with the framework programme
for technology R&D .
                                   Article 19
This Regulat Ion shall enter Into force on the day following that of Its
publ Icat Ion In the Official Journal of the European Communities .
It shall apply until 31 December 1994 .
This Regul at Ion shall be binding In Its entirety and directly applicable
In all  Uember States .
Done at Brussels .                                      For the Council
 1.  0J No   L 302 , 24.10.1987 , p. 1 .
 ---pagebreak---                           ANNEX 1 : RATIONAL USE OF ENERGY
List    of   sectors   of   appl I cat Ion  ( as  referred   to   In  Article 3 )   and
additional conditions ( Article 6(3 )).
1 .      Buildings
1.1      Simple and cheap methods of          Improving the energy performance of
         existing buildings by demonstrating more efficient ways of :
(I)      heating or af r-condl t lonlng premises ;
( II )   producing domestic hot water ;
( III )  regulating , controlling and metering heat ;
( Iv )   Improving   the    thermal    characteristics    of  the   building  as   such
         ( Insulation , dr aught -proof I ng ) ;
(v)      recovering heat from the air extracted .
1.2      Use of new processes or products for constructing buildings with a
         heated volume of at least 2,000 m^ , taking Into account problems
         of co ndensat Ion , ventilation ,     thermal  Inertia and fire and safety
         regulations .
1.3      Projects relating to new urban or district heating networks .
2.       Industry
2.1      Projects designed to make major changes to manufactur Ing processes
         by   using    advanced     technologies     to   bring    about   substent Is !
         reductions     In   energy    consumption    per   unit   of  product    under
         acceptable economic conditions .
 ---pagebreak--- 2.2     Projects Implementing new technologies or using new equipment :
(I)     to   reduce     energy    consumption     by   rationalising    an   existing
        manufactur Ing process ;
( II )  to recycle residual        heat ,   particularly low temperature heat .      In
        particular by using new heat exchangers and new methods of storing
        heat .
2.3     Projects using proven techniques provided that ( a ) a comblnat Ion
        of  several    such   techniques will     constitute an   Innovation   and / or
        (b)    a new application of one or          more establ I shed   technologies
        presents particular risks .
2.4     Projects      which ,   apart     from   energy   efficiency ,    have  other
        objectives such as Improving the quality of products or Increasing
        automation ,    provided that saving energy Is still          the overriding
        object Ive .
2.5     Projects designed to protect the environment by :
(I)     reducing emissions of pollutants Into the atmosphere ;
( II )  reducing emissions of pollutants Into surface waters ;
( III ) disposing of waste .
2.6     Projects     designed    to  Improve    management   of  energy   consumption
        using new . replicable micro-electronic units .
2.7     Projects designed to enhance energy efficiency In the conversion
        of agr / cultural products .
Additional conditions relating to points 2.5 and 2.7
2.5 :   Provided that these projects also have the effect :
        (!)     of Improving the energy efficiency of Instal latlons ;
 ---pagebreak---                                     - 23 -
      ( II ) preventing an Increase In energy consumption as a result of
             the Implementation of environmental protection regulat Ions .
2.7 : Projects     must   comply   with   the  broad    lines     of  the   common
      agr ¡cultural pollcy .
3.    Energy Industry , electricity and heat
3.1   More effective methods of producing heat          and/ or   electricity for
      public use ; methods for making full use of the waste heat from the
      energy     Industry ,   In   particular   district     heating     networks ;
      demonstrat Ing new systems for raising the output of low-enthal py
      heat systems for use In district heating networks .
3.2   More effective methods for the transportat Ion and distribution of
      electricity    by   major  energy  producers   ( managing    network   loads ,
      storage , etc .).
3.3   Projects designed to Improve management of heating networks ( new
      ways of storing heat on a dally or seasonal           basis , new ways of
      managing networks , etc .).
4.    Transport and urban Infrastructure
4.1   Projects which will significantly Improve components as a means of
      Improving the efficiency of vehicles and/ or transport systems .
4.2   Projects      which   aim   to    manage   traffic     more     efficiently ,
      part Icul ar ly In towns and particularly In ways which benefit           the
      environment .
4.3   Projects designed to promote the use of al ternat Ive fuels by road
      vehicles .
4.4   Projects designed to optimise the use of urban            Infrastructure   In
      order to provide more advanced solutions and benefits In terms of
      the balance between energy , environment and employment .
 ---pagebreak---                                        24
Additional conditions for the projects referred to In point 4.3 and 4.4
4.3    Proposals    submitted   should  aim    to prove benefits In terms of
       energy and the environment ,     together with technical and economic
       benefits at least for particular sections of the transport market
       fe.gr . urban buses , dedicated fleets , etc .).
4.4 :  Where duly Justified , support may be limited solely to the study
       o f feaslbl I Ity and/ or advlslbl I Ity .
 ---pagebreak---                                                25
                         ANNEX II : RENEWABLE ENERGY SOURCES
List     of  sectors   of    application  ( as    referred  to   In  Article 3 )  and
addlt lonal conditions ( Article 5.3 ).
1 .    SOLAR ENERGY
1.1 THERUAL APPLICATIONS
       Sectors of application :
       Conversion of solar energy Into thermal energy using active and / or
       passive processes In :
(!) buildings ( not swimming pools ):
( II )        Industry ;
(!!!)        agriculture and horticulture .
       Addltlonal conditions :
( I ) systems designed solely to produce domestic hot water are excluded ;
( II )       groups   of   dwellings   must    Include   at  least  five  one- fami I y
             homes ;
( III )      special attention should be given to the archl tectural aspects
             of buildings and solar Instal I at Ions .
1.2 PHOTOVOLTAl C APPLICATIONS
       Sectors of appl leaf Ion :
       Conversion of     solar energy using photovoltaic processes         to supply
       electricity , preferably In Isolated locations , for :
(!) houses , groups of houses , small villages , means of telecommunication ,
       signalling devices and alarms ;
 ---pagebreak--- II )      water pumping , pur If 'oat Ion or desal / nation plants ;
( III )   other suitable appl ‘cat Ions , except street lighting .
          Addl t lonal  conditions :
(I)       groups of dwellings must Include at least five one-faml ly homes ;
( II )    special    attention     should    be  given   to   the  environmental  and
          architectural aspects of the Insial I at Ion and to the arrangement
          of photovol talc modules .
2.        ENERGY FROM BIOMASS , AGRICULTURAL PRODUCTS AND WASTE
          Sectors of appl I cat Ion :
(I)       direct or Indirect use of biomass unci all plant , animal , urban and
          Industrial      waste 1  and waste from specially cultivated energy
          crops ;
( II )    use of    technology to produce biomass         for energy purposes or   to
          convert    biomass ,    egr Icul tural products    and  waste  In order  to
          derive fuels , and projects entailing the use of these derivatives
          for direct and Indirect energy use .
          Addl t lonal  conditions :
          Projects must comply with the broad lines of Community environment
          and agr Icul tural policy .
3.        GEOTHERMAL ENERGY
          Sectors of appl Icat Ion :
(!)       heating      of    dwellings ,     public    premises .   greenhouses   and
1      Except for those types of waste which are covered by technological
       projects relating to solid fuels (see Annex III below).
 ---pagebreak---                                           27
        Instal I at ions used for fish-farming ;
( II )  use of heat      In   Industrial   processes (e.g.     for drying ,   and for
        desalinating sea water );
( III ) producing electricity , Including the use of Ranklne organic cycles
        to exploit medium-enthalpy resources ;
( Iv )  combined use of the above processes . In series or as alternatives .
        Additional    conditions ;
        Projects In these sectors must be designed :
(!)     to exploit geothermal resources In new areas , or new reservoirs In
        establ Ished areas ;
( II )  the development of new methods and technologies to reduce the cost
        of underground and above-ground operat Ions , optimising the use of
        the    available     geothermal    potential    and   solving    problems   of
        corrosion , scaling , reinjection or clogging .
4.      HYDROELECTRIC ENERGY
        Sector of appl I cat Ion :
        Product Ion of energy for a public network or for private use .
        Addlt lonal   conditions :
(I)     rated power must be less than 3000 kW ;
( II )  the project     should apply new concepts of design ,          construction ,
        materials ,    method    of operation   or   control   In  order   to  Improve
        economic viability or other Important factors ( e.g. reliability );
( III ) sites   should    be   planned  In   such  a  way  as   to  take   account  of
        envl ronmental protection requirements .
 ---pagebreak---                                       2ü -
5.      W I ND ENERGY
        Sector of appl Icat Ion :
        Setting up wind farms to produce electricity .
        Addlt lonal   conditions :
(I)     wind farms should Include at least five machines with total rated
        power In excess of 150 kW ;
( II )  the technical features adopted should make It possible to reduce
        Investment costs and make full use of available wind resources In
        order to Improve the economic viability of projects ;
( III ) part Icul ar attention should be paid to envl ronmental aspects ;
( Iv )  Community financial support for wind farm projects will be limited
         to a maximum of 30% of the total eligible cost , which In this case
         Is defined as the extra cost of setting up a wind farm Instead of
        a conventional power plant .
 ---pagebreak---                                        ANNEX   III
                              COAL AND OTHER SOLID FUELS
List    of   sectors    of   application   ( as   referred fo  In   Article 3 )   and
additional conditions ( Article 6.3 ).
For the purposes of this Regulation ,          'coal and other solid fuels " means
anthracite , coal ,     / Ignlte/brown coal or any other derived fuel . Peat Is
also Included when used as a fuel .
1 .      COMBUSTION
         SECTORS OF APPLICATION
         New or Improved clean combustion methods and the clean combustion
         of   waste   arising   from  the processing of     coal  and other     solid
         fuels :
(I)      reel rcul at Ing fluidised beds , particularly for the use of poor and
         difficult fuels ;
( If )   pressurised fluidised beds ;
( III )  I ow-NOx burners ;
( Iv )   production and combust Ion of ultra-clean coals ,        Including In the
         form of a coal / water mixture ;
(v)      high temperature flue-gas scrubbing .
 ---pagebreak---                                            - 30 -
        Additional conditions
        Combustion      projects    relating    to  the following   fields  shall   be
        excluded :
(I)     stat lonary fluidised beds at atmospher Ic pressure , except projects
        designed to dispose of waste arising from the use of coal ;
( II )  coal / liquid mixtures using non-pur I fled coal ;
( III ) pulverised coal ,      except    the types mentioned above ,    unless novel
        technological advances are proposed .
        Applications      aimed    at   private   generation  or  the  product Ion  of
        electricity from pressurised fluidised beds are considered to be
        of particular Importance .
2.      CONVERSION
        SECTORS OF APPLICATION
        Conversion of coal        and other solid fuels      Into gaseous or    liquid
        products     which    will    Improve   the  Community 's  energy  supply   by
        reducing Import at Ion of hydrocarbons :
(!)     production of gas for raising heat In Industry ;
( II )  continuation of actlvltles begun under Regul at Ions ( EEC ) 1302/ 78 ,
        No . 1971 / 83 , No . 2125 / 84 and No . 3640/ 85 .
        Addlt lonal    conditions
        Projects     to produce synthesis gases and pyrolysis projects are
        considered to be of secondary priority .
        Projects designed to produce subst I tute natural gas are excluded .
        Liquefaction projects are excluded , except for those already In
        progress under the Regulations mentioned above or those to be
 ---pagebreak---         carried   outside the Community based on    technologies    which were
        financed by the Commission on the basis of those Regul at Ions .
3.      WASTE
        SECTORS OF APPLICATION
        Use , treatment or enhancement of gaseous ,  I / Quld and solid wastes
        arising as a result of the use of coal and other solid fuels :
(I)     using   the ash arising    from  fluidised bed combustion    as   a raw
        material   In the building Industry or In the manufacture of a raw
        material for the building Industry ;
( II )  new gas-scrubblng techniques .
4.      GASIFICATION INTEGRATED WITH A COMBINED GAS / STEAM CYCLE
        Eligible projects    designed   to produce electricity    In  a module
        consisting of a gasifier producing a gas which Is burned directly
        In a gas turbine and a thermodynamic steam cycle . Projects must
        use totally new conf Igurat Ions .
        Special conditions
        Projects In this sector must :
(!)     be carried out on Community territory ;
( II )  entail cooperat Ion between several undertakings , one of which must
        be an electricity generating company , from several member States ;
        priority will   be given to those projects which require the most
        extensive cooperation within the Community ;
( III ) have a minimum capacity of 150 NWe ;
( Iv )  use a gasifier constructed with the help of Community support In
        the framework of the programme of demonstration projects         In the
        field of energy ;
 ---pagebreak--- be appreciably more efficient than convent lonal power stations so
as to reduce carbon dioxide emissions .
The Commission shall be entitled to part Id pate In meetings of the
bodies managing gasl float Son Integrated with combined cycle
projects .
 ---pagebreak---                                       ANNEX IV
                                   HYDROCARBONS
 List   of   fields   of  application   (as  referred    to   In   Article 3)   and
 additional conditions (Article 6.3).
 Those projects eligible under this Regu ! at Ion are Innovatory projects as
defined    In Artlcdle 2(1 ) and (2)(a ) and those corresponding with the
provisions of Article 4 of th / s Regulation .
These    projects    relate   to  the   onshore    and   offshore    explorat Ion ,
production ,   transportation and storage of oil and natural gas .        Refining
projects are excluded .
The projects     referred  to  In Article 2(2)(b )   are not    Included  In  this
field of appl I cat Ion .
 ---pagebreak---                                     ANNEX V
Assoc I ated measures ( Article 5 )
(a)      Evaluating and analysing market features and potential ( Including
         any feasibility studies ).
(b)      Clrculat Ing  Information   and  results  of_ projects    for wider
         dissemination within the Community .
(c)      Monitoring , auditing projects and sectoral energy audits .
(d)      Areas of technological cooperat Ion .
( e)     Encouraging Industrial cooperat Ion with third countries .
(f)      Tralnlng staff .
(g)      Using regional Institutions to help with these activities .
 ---pagebreak---                                            - 56 -
 5.        Financial  Impact
 S. 1      Type of expenditure :
 (I)       contract expenditure for financial support cf projects ;
 ( II )    contract expendlture for measures to d / ssemlnote résulta ;
 (!!!)     administrative expendlture ;
    ^    Foreseen credits    ( indicative amounts )
 The Comml ss Ion has not yet del I berated on the budgetary envelopes which
  It will propose to be allocated for the THERUIE programme . For this
 reason the amounts given In this sheet are purely Indicative and should
 not be taken to prejudge the conclusions of the Commission . The
 expenditures under lines 700 and 701 relate to " other policies ", which
 will    be the object of a combined review In the framework of the
 preparation of the 1990 APB . The Commission will transmit a working
 document giving precise figures after the establishment of the 1990
  APB .
       A total of 700 million ECU for the five years from 1990 to 1994 .
The breakdown of the total amount per year will correspond to the actual
management of the programme .
                   Comml tment appropriations        Payment appropr I at I ons
                        ( for guidance )                  ( for guidance )
 1990                     65 - 130                                  33
 1991                            135                                67
1992                            140                               ! 13
1993                            140                               1 40
7994                            155                              155
                                700                              508
                                     ( fol lowing years )        192
                                                                 700
 ---pagebreak---                                   - 37 -
6.     F / nancfna expendl ture
       Appropr I at / ons repaired must be entered Into the budgets for the
       financial years 1990 to 1994 .
7.     Control
7.1    Financial   control
(!)    By    the  Df rectorate-General    for   Financial Control  as    regards
       Implementation     of  the  budget   and  checking that expend i ture  is
       genuine and conforms to the rules .
( II ) By the Resource Uanagement Division of DG XVII .
7.2    Technical control
(I)    By the officials responsible In DG XVII .
( II ) By the consul t ants contracted to DG XVII .
 ---pagebreak---         Draft Council Regul at Ion for a new programme
            for the promotion of energy technologies
                     ASSESSMENT OF   IMPACT ON SME s
Advantages for enter pr Ises
The programme will pursue ,        In the first place ,         the objective of
Improving the security of energy supply for the Community through
a  more    rational     use  of   energy   and      Increased    exploltat Ion   of
Community     resources .     This   new   I nl 1 1 at Ive  relating    to   energy
technologies will        encourage enterprises of more than one Member
State to form Joint enterprises and will               favour the dlsseml nat Ion
of technological Information within the Community .
In this context , preference Is given to projects promoted by SMEs ,
which will thus be able to benefit more fully from the Community 's
policy  for     the   development   of   energy      technologies    and   for  the
transfer of those technologies .
Drawbacks for enter pr I ses
There are practically no disadvantages                for enterprises     with  the
exception    of    certain   contractual    obi Igat Ions     to  the   Commission
relating ,   In particular ,    to the transmission of periodic reports
and aval l abl 1 1 ty for the dissemination of results .
Effects on employment
The  promotion      of   energy  technologies        of  an  I nnovai Ive   nature ,
being beyond the research stage , Is aimed at achieving penetration
of the energy market by those technologies , and thus at creating
or consol Idat Ing new enterprises .
 ---pagebreak---                                   - ЗУ -
   The SUEs are particularly affected given that ,       In several cases ,
   such     enterpr I sed   operate   In   the  areas    covered    by  the
   programmefe.g . , energy saving and the explol tat Igon of renewable
   energy sources ).
   Even If It     Is difficult to estimate quant I tat Ively the Influence
   of  the    programme   on  employment ,  It may  be  affirmed   that the
   effects will be positive , considering also the type and quality of
   Jobs that will be created .
4. Prel I mi nary concertai fon wlth social partners
   The    Economic    and  Social   Committee  will  be  consulted   on the
   Commission 's    proposal  on  the occasion  of  the submission of   the
   programme to the Council for adoption .