CELEX: 51978PC0511
Language: en
Date: 1978-10-13
Title: Proposal for a COUNCIL REGULATION (EEC) on the implementation in the solar-energy sector of Council Regulation (EEC) No 1302/78 concerning the granting of financial support for projects to exploit alternative energy sources (submitted to the Council by the Commission)

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COM (78) 511
Vol. 1978/0185
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 ---pagebreak--- COMMISSION OF THE EUROPEAN COMMUNITIES
                                                     COM ( 78 ) 511 final .
                                                     Brussels - 13 October 1978
                                  Proposal for a
                              COUNCIL REGULATION ( EEC )
       on the implementation in the solar-energy sector of Council
       Regulation (EEC ) No 1302/78 concerning the granting of financial
       support for projects to exploit alternative energy sources
               ( submitted to the Council by the Commission)
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C0M(78 ) 511 final-
 ---pagebreak---                          EXPLANATORY NOTE
 To increase trie potential contribution of solar energy in the European
 Community's energy supplies , an active research and development programme'
 has been and is "being pursued at Community level . The scope of the indirect ac­
tions programme* Includes researoh in heat collectors, power production, photo­
voltaic conversion , photochemical and phot phiological processes , photo­
 synthesis (biomass ) and solar radiation. The Community * s research prograjmne (**
dates from 1975 .        The Joint Research Centre has been active in the solar
energy field since the 1970*8 .
 The first results from these energy research and development programmes
are helping to show those areas where more research may "be necessary and
where certain applications of solar energy are at the threshold of economic
competitivity.
The realisation by industrialists that solar energy is on the verge of
being a viable and competitive energy source has increased interest in the
                                                 ln the space heating market ,
. potential role that solar energy might play /       Possible applications"
 for solar energy include the pre–heating of water for industry and the
piblic services , bioraass applications , including commercial forestry, and
power generation .      Many of these applications will need a certain level of
 financial support in order to encourage industry and public authorities
to make investment decisions in favour of solar energy applications , where
a great amount of capital investment is required.           aiding in the
finance of the solcr energy option, a suitable range of solar energy
demonstration projects will be established.
The demonstration projects selected will have to satisfy certain criteria
which include industrial and commercial viability demonstrated by previous
studies and research. The projects must conform with Council Regulation
 (EEC ) 1302/78, particularly Article 4. The cost of the installation (or '
installations ) producing usefal energy should in general exceed 100,000
 European Units of account .                                       1
   *
   #¿Council decisión 22.8.1975 . OJ L 231 of 2.9.75 . ( 1.7.75 - 30.6.79 )
     'Council decision of 18.7.1977. OJ L 200/4 of 8.8.77.
       ( 1977 - 1980 ).
 ---pagebreak---                                                                                   m 2 «•
                  In its resolution on the need for a Community policy on the use of solar
                  energy (1 ), the European Parliament recommended that the practical
                  applications of solar energy he quickly ascertained.                                                The proposed
                  application regulation for demonstrations in the solar energy field ,
                  drawn up in accordance with the Council Regulation (EEC ) Ko. 1302/78
                  of 12 June 1978 . helps to meet this objective*
                 (1 ) OJ to. C 163/66 of 11.7.1977 based on ; V                                                           >
                          Document 120/77. Report by Mr L. 7So4 on the need for a Community
                          policy on the use of solar energy (3 June 1977 ).
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                                                   ' • " ••
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 ---pagebreak---                                  Proposal for a
                               COUNCIL REGULATION
                on the implementation in the solar-energy sector of
                Council Regulation " ( EEC ) No 1302 /78 concerning the
              . granting of financial support for projects to exploit
                          alternative energy sources
THE COUNCIL OF THE EUROPEAN COMMUNITIES
Having regard to the Treaty establishing the European Economic Community , and in
particular Article 235 thereof i
                                                                         i
Having regard to Regulation (EEC ) - No 1302/78 of 12 June 1978 for the granting of
financial, support for projects to exploit alternative energy sources ^ and in
particular Article 3 thereof ,
                                                                             4 *
                                                              t
Having regard to the proposal from the Commission ,            *     %     •
                                                                 2)
Having regard to the opinion of the European Parliament             ,
        «                                                              * «
Having regard to the opinion of the Economic and Social Committee
Whereas among alternative energy sources , solar energy holds out interesting
possibilities for exploitation that require proven technologies to be available
in good time ,
HAS ADOPTED THIS REGULATION :
                                   Article 1
    n accordance with the conditions laid down in Regulation ( EEC ) No 13.02/78 and
   the rules laid down in the following Articles , the Community may grant financial
   support for demonstration projects to exploit solar energy .
   °J NS L 158 , 16.6.1978 , p. 3 . •
      No C 299 , 12.12.1977 , p." 50.
      No C 287 , 30.11.1977 , p. 7 .
 ---pagebreak---                                                2
  2 , Financial support shall "be granted to projects for exploiting solar energy for
       the purposes of heating or cooling domestic , industrial o± other premises ,
       production of mechanical and/or- electrical energy , or industrial or agricul­
       tural applications of heat or fuel production .
                                           .                                          4
                                     Article 2
  Financial support may be granted for projects for the exploitation of solar energy
- which satisfy the following conditions :
  - they must be capable of encouraging other installations for the same type in
                                V            .
     the Community and have real prospects of commercial use ;
  - in view of the risks or large investments involved in 6uch activities finance
     for the demonstration of potentially viable projects is not forthcoming in a
     satisfactory manner .
                                     Article 3
  Support may in general* be no less than 25# and no more than k9% of the total
  estimated cost of the project ; The level of support shall be determined for each
  project individually and with due regard to any other aid received or expected .
  The conditions and procedure for any repayment of financial aid will, be laid
  down in the contract between the Commission and those responsible for the project .
                                      Article 4
   1 . The Commission shall publish announcements in the Official Journal of the
        European Communities inviting proposals for projects for the exploitation
        of solar energy .                ,
   2 . Every project submitted shall be examined by the Commission on the basis of
        the following information to be supplied by the applicants :          .
    - a detailed description of the project and the time table for its execution ;
 ---pagebreak---                                      - 3 -
  the importance of the project for reducing energy dependence and
  diversification of supply ;
  the financial guarantees and technical capabilities of those responsible
  for the project ;                             .
  the nature and extent of the technical and economic risks involved in the
  project ;
  the cost of the project , the prospects of economic viability and the
  proposed arrangements for financing it ;
  the extent to which the relevant experience obtained may encourage
  widespread introduction of the technique , process or product in the
  Community ; the prospects of widespread application of the technique ,
  process or product and the benfits thereby obtainable for the economy
  as a whole ;
  whether at an earlier stage of research and development the project has
  been given financial support by the Community or by Member States ;
  details of any other financial support provided for by or expected from
  Member States or the Connnunity ;
  any other information which justifies the Community support requested ;
  how it is proposed to publicize the results .
, Pursuant to Article 6(2 ) of Regulation (EEC ) No 1302 /78 the Commission shall
  set up an Advisory Committee on the Management of Projects for the Exploitation
  of Solar Energy composed of representatives of the Member States .    This
  Committee shall assist the Commission in the examination of applications .
  The projects to receive financial support shall be selected in accordance
  with Article 6(2 ) of Regulation (EEC ) Ho 1302/78 .
                                    Article 5
his Regulation shall apply for 5 years .
he Council , acting on a proposal from the Commission , shall decide whether
t should be extended or amended.
he Commission shall report to the European Parliament and' the Council .
 ---pagebreak---                                   Article p
 This Regulation shall enter into force on the day following that of its
publication in the Official Journal of the European Communities .
Article T of this Regulation shall apply following the decision taken by
the Commission , or by the Council in the event of appeal , on the first series ,
of projects in accordance with Article 6 of Regulation ( EEC ) No 1302 /78 .
This Regulation shall be binding in its entirety and directly applicable in
all Member States .
                                        Done at Brussels ,
 ---pagebreak---                                  Financial Record
     These financial implications are presented as illustrative .         The final
     figures will "be submitted for approval "by the usual "budgetary procedures .
1.   Budget heading :      Line 3241
2.   Title of budget heading :     New energy sources demonstration programme .
3 * Legal base : Council Regulation (ESC ) No. 1302/78 of i 2 June 1978 on the .
                     granting of financial support for projects to exploit alternative
                     energy sources .
4*   Description , objectives and .justification of the project
4.0. Description of the project /persons concerned
4.0.0.   Dejsc£i£tioii j   To reduce the Community ^ dependence on imported energy
                           supplies , . it is necessary to develop indigenous energy
                           resources .     At present , considerable advances in energy
                           research are being made and within the near fixture the
                           results of these researches will allow progress to be made
                           in the demonstration and commercialisation of this new
                           energy source .
                           Community financial support for the demonstration and
                           commercialisation projects will help reduce the financial
                           risks and by establishing solar applications will increase
                           Community knowledge about solar energy . It is envisaged
                           that this first programme to develop and promote the uses
                           of solar energy will last for five years .
4.0.1.2 . ^so^^hical^l^cation :           Within territory of the Member States
4#1#   Objectives of the Droiect
         General ob.i ect ive s To accelerate the use of solar energy ; to develop
                                 the Community 's own resources and thus to contribute
                                 to the security of supply for the Community.
4»2 . Justification for the form of action chosen to attain the objectives
       Active solar research and development programmes have been and are being
       pursued at Community level . The first results from these solar energy
       R D programmes are helping to show those areas where more research may
       be necessary and where certain applications of solar energy, for example ,
       pre–heating of water , are at the threshold of eoonomic competitivity.
       kany of these applications will need a certain level of financial support
       in order to encourage industry and publio authorities to make investment
       decisions in favour of solar energy where a great amount of capital
       investment is required.
 ---pagebreak---                                             - 2 -
                                                     ?
 5.     Implication in respect of expenditure
    •   16 million EUA have been written into the first draft of the 1979 "budget
        ( line 3241 ) for new . sources of energy .       The necessary credits for the
        first year of the solar programme will be finalised when all tenders have
       been submitted , though it is estimated that 3 million EUA might be required
        for the first year of a solar energy demonstration programme .           Rirther , it
       is estimated that 60 million EUA could be required for a five–year solar
       energy demonstration programme .
5.0.0.0. ^fo^t^annual tiroel^ble,
 Commitments ■                         Payrnent s
                     1979       1 980     1 981        1982     1 983
         3 MUC        1.5       0.75      0.75
       27 MUC          -        9 . 20    8.80     ;    9.0
       30 MUC          -         -       11.90          9.8       8.3
                      1.5       9.95     21.45         18.8       8.3
5 « Oo 0.1 »   Calculai ion method
       Solar energy demonstration projects will have a three-year repayment periods
                       50$ when the contract is signed
       ,         .   . 25$ in the second year
                       25/S in the third year.
5.O.O.1.1 .                   incert itude
                 – the number of projects submitted
                 – delays in the construction of certain projects.
6.     Control foreseen
       Responsible service - 3XJ XYII/d/1
       Budgetary execution - Financial Control .
7.     Financial implications                                                      >
7.0.       Community budget - 60 MUC .                  s
           The contractants might be asked to repay the contributions in the event of
           successful commercial developments .
       Information re^nrdin^ nt aff*jng and the appropriationa for administr*.tivA
       expenditure necessary for the implementation' nf +.WQ' 'r^U'4,'„+
       a) Personnel ex^TeriRns
            The personnel needs for 1 979 have been calculated on a basis of 0.5 A/5 ,
            0.5 V It 0.5 C. For 1980, a new grade A official will be requested. The
            of11                  ^ mind        guidelines of the Council Decision Of
            <n«iz.i9i6 relating to remuneration of officials .
 ---pagebreak---                                  - 3 -
Is ) In view of the diverse nature of solar energy applications , a uniform
     calculation method has not teen established.
     A consultative committee will givs its opinion on the distribution of
 .   credit .