1. William Gillett Head of Unit, Intelligent Energy Executive Agency (IEEA) william.gillett@cec.eu.int PREPARING YOUR APPLICATION Essential steps and key issues

2. 2 Principles  Work to improve policies and legislation, and show how they should be implemented  Combine promotion of demand management and renewables wherever possible  Involve / “engage” actors from public and private sectors in different countries, aiming to accelerate EE and RE market growth  Disseminate information, training, etc.

3. 3 What kind of projects ?  IEE is a European programme looking for European added value  NOT for singular actions on a national or local level (subsidiarity)  BUT for learning together and from each other  IEE is a non-technology programme  NOT funding costs for investments in demonstration  BUT addressing non-technological barriers

4. 4 What kind of Contractors ?  Existing “clientele” :  organisations with a mission to promote rational use of energy and renewable energy sources - governmental (1/3), non-profit organisations (1/3)  complemented and enriched by private market actors from all sectors (1/3)  Looking for new clientele :  participation from local level  greater integration of actors from new member states and candidate countries  More from industry and other companies

5. 5 EIE project impacts 3 levels of impacts are expected :  Raise awareness  Change attitudes / policies  New legislation / new investment / market transformation

6. 6 Key documents  Global Work Programme (2003 – 2006)  Annual Work Programmes specifying priorities and budget for the year (current Call 2005)  Call for proposals (detailing evaluation criteria, announcing priorities and deadlines)  Application forms (Type 1 SASH, COOPENER, Type 2, and Type 3)  Guides for proposers

7. 7 Contents of Call and Work Programme  Call Text  Vital instructions and requirements  Work programme  Guidelines for each of the specific fields and key actions (chapter 2)  Implementation arrangements (chapter 3)  Evaluation criteria (chapter 4)  Indicative timetable for implementation of the WP (chapter 5 and 6)

8. 8 Supported actions, grants and deadlines Participating countries : EU-25, NO, IS, LI, BG, RO Type Budget in million € Expected number of grants Deadline(s) for submission Minimum number of applicants Grants Projects (“Type 1”) SAVE, ALTENER, STEER 40 100 31 January 2006 At least 3 independent organisations from 3 participating countries Up to 50% of eligible costs COOPENER5 28 February 2006 At least 2 independent organisations from 2 participating countries Energy agencies (“Type 2”) 5 25 31 January 2006 At least 2 local or regional authorities from 2 participating countries Events (“Type 3”) 125 30 November 2005 28 April 2006 1 or more organisations from participating countries Up to 50% of eligible costs, not more than € 40,000

9. 9 15 key actions open in 2005 (1) Sustainable Energy Communities (2) Think globally, act locally (3) Financing mechanisms and incentives (4) Monitoring and evaluation HORIZONTAL KEY ACTIONS SAVEALTENERSTEERCOOPENER (1) Multiplying success in buildings (2) Retrofitting social housing (3) Innovative approaches in industry (4) Energy efficient equipment and products (5) Electricity from renewables (6) Heat and cooling from renewables (7) Small-scale RES applications (9) Policy measures for efficient energy use in transport (8) Alternative vehicle propulsion (11) Energy policies, legislation and market conditions for alleviating poverty developing countries (12) Strengthening local energy expertise in developing countries VERTICAL KEY ACTIONS

10. 10 Planning your proposal  Investigate the state of the art. What has been done before?  What exactly do you propose to do ?  What will be different when your project has ended ? (When you have finished, how will we know that you have succeeded ? ) EXPLAIN THESE STEPS CLEARLY IN YOUR PROPOSAL !

11. 11 Choosing your partners  Who (which market actors – eg architects, bankers, local policy makers, urban planners, utilities, ESCO’s, social housing companies, installers, householders) will own, benefit from and take forward the project outcomes ?  How can these market actors be “engaged” in the project, so that they will naturally take on that ownership ?  Why does it make sense to share the action with partners from other countries ? How many ?  What combination of partner types would make the most effective “multi-disciplinary” team ?  Get to know (meet ?) your partners. Are they committed to the project ? What exactly will each partner do?

12. 12 Defining work packages  Separate work package for management, including regular consortium meetings and reporting.  Delegate responsibilities to partners – coordinators should not try to lead all work packages  Each work package should produce clearly defined deliverables (be ambitious, but don’t exaggerate!)  EU added value from partners working together on common tasks. Not one work package per country  Work package texts should state very clearly what the partners will actually do !  Schedule deliverables with progress, interim or final reports. Typical project duration 24 - 36 months

13. 13 Writing the proposal  It takes longer to write proposals than you think !  Make it easy to read - evaluators must assess it in little more than about 2 hours  Follow the guidance on the application forms  Clearly show the roles of each partner  Show how you will measure your performance during the project (performance indicators)  Schedule the work appropriately – not all work packages at the same time

14. 14 Application forms Part 1 Part 2

15. 15 Gantt Chart Project phase / Duration of the project (in months) 12345678910101 1212 1313 1414 1515 1616 1717 18 Work package 1: Name Work package 2: Name Work package 3 Work package 4 Etc. Work package x: Dissemination Work package x: Common Dissemination Activities Project meetingsXXxx Project deliverables*PR*PR* IR*IR* PR*PR* FR *

16. 16 Dissemination / Communication?  Define target audience and establish dialogue with them from the beginning (not at the end)  Web site (separate, clearly identified, easily accessible) for information transfer, and take action to ensure that it is visited (until 2 years after project end)  Develop simple messages and communicate directly to each specific target audience  Reach out to new markets and actors at their own venues / events – local, national or EU.  Common dissemination work package with budget of 7000- 15000€, for EC requested work

17. 17 Budgets ?  No research or hardware costs  Realistic bottom up costing, based mainly on hours of work - do not inflate the budget ! Average EC support to IEE Type 1 projects is ~0.5 M€ (excluding Coopener and Agencies)  Share the work between partners and countries – not too much for one. If a partner’s input is very limited, will they stay committed to the end ?  Do not sub-contract important tasks (except COOPENER). Select subcontractors using transparent competition  Allow enough for meetings and travel, but don’t exaggerate !  Overall, what will you finally deliver ? Will it offer good value for money ?

18. 18 Convincing the boss  Participation in IEE can help you to :  Discover new ideas and solutions  Learn from the experiences of others  Develop new contacts and networks  Make a difference on the local level  Establish new business opportunities  Experience motivating and inspiring international cooperation  A good IEE project will benefit you and help the European Union to achieve its policy commitments

19. 19 Come and talk to us ! IEEA welcomes a discussion or meeting with proposers before they submit their proposal

20. Mari Varho Senior Financial Officer, IEEA mari.varho@cec.eu.int FINANCIAL ISSUES

21. 21 Focus today: Part 1 of the application form  Determination of EC contribution  Criteria for eligibility of costs (direct and indirect costs)  Cost categories  Ineligible costs  Other forms Part 1

22. 22 The Commission contributes up to 50% of the eligible costs of an action The outcome of the evaluation process fixes the upper limit of the Commission's contribution in % and value ! Determination of EC contribution - example The potential % and amount are set at the end of the evaluation – limited to 50%

23. 23 Eligibility criteria are straight-forward and logical  relate to the action and be necessary  be reasonable and justified  have been budgeted  be generated during the action  abide by the relevant accounting principles and participant's internal rules  be identifiable and verifiable  be actually incurred  exclude any profit margin Costs must

24. 24 Budget summary table  Personnel (important to have correct rates !)  Travel and subsistence  Subcontracting (external assistance)  Consumables  Equipment  Other specific costs Direct costs  7% Flat rate (7%FR)  A lump sum of maximum of 7% of total direct costs.  Indirect costs do not have to be substantiated by accounting documentations.  Full Cost rate (FC) (important to have correct rates!)  Include all the indirect general costs necessary for carrying out the action. E.g. costs of administration and management, depreciation of buildings and equipment, water, electricity, telecommunications and postal charges, office supplies, and administrative personnel costs. Indirect costs Drawing up a solid budget and understanding the rules will facilitate the evaluation process  contract negotiation process  project implementation

25. 25 Personnel costs  Identify each category of staff you will need.  You may charge only technical and specialised staff; administrative and secretarial staff may not be charged directly since they are included in the indirect costs.  Exception can be made when tasks outlined in the action justify a significant and continous allocation of administrative or secretarial staff. Consequently, must be excluded in the calculations of indirect costs.  Examples of staff categories: project manager, expert, senior expert, junior expert, senior engineer, technician etc.  Classification of freelance ‘staff’ depends on contractual terms and conditions.  Hourly rate: must be calculated on the basis of the actual gross salary or wages plus obligatory social charges but excluding any other costs.

26. 26 Other direct cost categories  Travel and subsistence:  Only travel and related subsistence allowance for staff. Travel costs of subcontractors, if applicable, are to be included in the subcontract.  Travel costs shall be charged in accordance with the internal rules of the proposer.  Subcontracting:  Subcontracting relates to purchase of services, not of goods and relate to the actions’s core activities.  Beneficiary and co-beneficiary can not subcontract services to one another or internally.  Subcontractors must be selected on transparent grounds, to the best bid offered taking into consideration price and quality (best value for money).

27. 27 Other direct cost categories  Consumables:  Must be specifically related to the project implementation. General consumables such as telephone, communication costs, heating, paper, etc. are included in the indirect costs.  Equipment:  Due to the type of actions (non-technological), any equipment will only be accepted under exceptional circumstances, i.e. specific to the project and necessary for the action.  Other specific costs:  Costs not included under the previous classifications of direct Examples: Costs of audit certificates Charges for financial guarantees when applicable Subscription fees to conferences or events

28. 28 What are not eligible costs?  Value of contributions in kind* as no cost is incurred (no co- ordinator or co-beneficiary has made and accounted such payments)  Provisions for losses or possible future losses or charges  Resources made available to a participant free of charge  Unnecessary or ill-considered expenses  VAT, unless the participant can show that he is unable to recover it (In such a case the participant must provide the Commission with proof from his national tax authorities)  Exchange losses *e.g. if a party who is not a signatory to the grant agreement provides expertise, meeting rooms, brochures etc. free of charge as their contribution to the action

29. 29 Other financial forms to be submitted  Banking information form (only co-ordinator)  All payments are made via the co-ordinator  Simplified balance sheet and profit and loss account form (all proposers)  Financial viability check will be done for each proposer  Legal entity form (all proposers)  To substantiate the legal status of each proposer

30. 30 What you should remember...  Planning:Plan the budget of your action thoroughly – already at the stage of proposal  Rules:Eligibility of costs !  Knowledge:Documents and guidelines are available on the Agency's website – read and discuss them with your partners.  Financial guidelines  Guidance on indirect costs

31. Vincent Berrutto Head of Unit, Intelligent Energy Executive Agency (IEEA) vincent.berrutto@cec.eu.int SUBMITTING YOUR PROPOSAL - EVALUATION - NEXT STEPS

32. 32 Submitting your proposal (1)  For each application, one signed proposal (“original”) and five copies of the proposal must be supplied  Submissions must be placed inside two sealed envelopes  If self-adhesive envelopes are used, they should be sealed with adhesive tape and the sender must sign across that tape  Applications may be submitted in three different ways:  Registered letter/parcel by postal service (posted no later than the closing date midnight)  Private delivery services (NEW: sent no later than the closing date midnight)  Personal delivery to EC Central Mail Service (delivered no later than 16:00 on the closing date)

33. 33 Submitting your proposal (2)  After having submitted the paper version, applicants are requested to send the application forms by e-mail to the IEEA. This email is not obligatory but strongly recommended.  Applications may NOT be delivered directly to the Intelligent Energy Executive Agency (whether personal delivery or delivery by any authorized representative of the applicant, including private delivery services).  Applications submitted to the Commission after the closing date will NOT be taken into consideration.

34. 34 How will your proposal be evaluated?  Basic principles:  Fair and equal treatment of all proposers  Based on the criteria announced in the Call  Three successive checks: 1.Eligibility criteria (yes/no) 2.Selection criteria (yes/no) 3.Award criteria

35. 35 Eligibility criteria  Proposals must fullfill the submission conditions  Coordinators must be private or public legal persons from EU25, BG, RO, NO, IS, LI  Number of project partners should be equal or above the minimum required  Scope of the action must fit with the priorities  Duration of the project is max. 36 months  In addition: Partners must not be in one of situations listed in Article 93 (1) of the EC’s Financial Regulation  Cannot be bankrupt or guilty of serious professional misconduct, or engaged in illegal activities, etc.  Partners must sign the standard « declaration of the applicant »

36. 36 Selection criteria  Applicants must show that they have the FINANCIAL capacity to complete the action (checked with balance sheets; does not concern public organisations)  => YES or NO  Applicants must show that they have the TECHNICAL capacity to complete the operation (based on CVs, description of organisation, previous contracts, etc.)  => YES or NO

37. 37 Award criteria (Type 1 actions) 1.Quality of the action 2.Quality of the approach 3.Community added value 4.Costs and benefits 5.Organisation of the Team

38. 38 Award criteria (Type 1 actions) 1.Quality of the action  Does it reflect the state of the art ?  Does it complement relevant actions in Member States?  Are the goals important in relation to EU policies?  Are they compatible with the needs of the key market actors?  What is the quality and relevance of the expected results? 2.Quality of the approach 3.Community added value 4.Costs and benefits 5.Organisation of the Team

39. 39 Award criteria (Type 1 actions) 1.Quality of the action 2.Quality of the approach  Do we have clear work packages and deliverables?  Appropriate targets and indicators for success?  A good methodology and approach?  A sound dissemination plan and tools to be used? 3.Community added value 4.Costs and benefits 5.Organisation of the Team

40. 40 Award criteria (Type 1 actions) 1.Quality of the action 2.Quality of the approach 3.Community added value  What are the benefits from carrying out the project at EU level?  The EU dimension of the issues to be tackled, and of the actions to be carried out?  Is the geographical coverage of the project team appropriate?  Are the results transferable to other parts of the EU? 4.Costs and benefits 5.Organisation of the Team

41. 41 Award criteria (Type 1 actions) 1.Quality of the action 2.Quality of the approach 3.Community added value 4.Costs and benefits  How appropriate is the co-financing scheme ?  How appropriate are the costs for the various sub-tasks ?  And the costs per cost category, notably sub-contracting ?  Does the project represent good value for money ? 5.Organisation of the Team

42. 42 Award criteria (Type 1 actions) 1.Quality of the action 2.Quality of the approach 3.Community added value 4.Costs and benefits 5.Organisation of the Team  Are the efforts between partners well distributed ?  Do they together have strong knowledge, expertise and relevant experience ?  Are the relevant market actors present in the consortium ?  Is the project management well organised ?

43. 43 Award criteria (Type 1 actions) 1.Quality of the action => 0..10 scoreMust be ≥ 6 2.Quality of the approach => 0..10 scoreMust be ≥ 6 3.Community added value => 0..10 scoreMust be ≥ 6 4.Costs and benefits => 0..10 scoreMust be ≥ 6 5.Organisation of the Team => 0..10 scoreMust be ≥ 8 => 0..50 scoreMust be ≥ 36  Marks given to the proposal as written and not based on the assumption that modifications are taken into account  All proposals scoring 36 points or above are recommended for funding  If they account for more than the Call budget, priority is given to proposals with the highest scores and the rest constitutes a reserve list

44. 44 The evaluators  The Evaluation Committee will be composed of staff from the IEEA and from DG TREN  A pre-evaluation will be carried out by external experts (except for the events):  With the best expertise in relation to the received proposals  Avoiding conflicts of interest  Paying attention to gender balance and geographical coverage  Mixing new and more experienced evaluators  Our current experts database contains more than 650 names  If you want to apply, go to the IEEA web site  If you are registered already, you do not need to apply again, unless your data have changed, in which case send a new CV to TREN- IEEA-EXPERTS@cec.eu.int

45. 45 Planning (1) For Projects and Agencies (except COOPENER): Closing date for submission of applications: 31 January 2006 Estimated date of completion of the evaluation:End of April 2006 Estimated date for signature of contractsfrom September 2006 Closing date for submission of applications: 28 Feb. 2006 Estimated date of completion of the evaluation:Mid May 2006 Estimated date for signature of contractsfrom October 2006 For COOPENER actions:

46. 46 Planning (2) For events (Type 3 actions): Closing date for submission of applications: 30 Nov. 200528 April 2006 Estimated date of completion of the evaluation: Mid February 2006End of June 2006 Estimated date for signature of contracts from May 2006from Oct. 2006 => Events should not take place earlier than 9 months after the deadline for submission

47. 47 More information and help  Intelligent Energy – Europe website (slides of today’s Info Day, call 2005 documentation, application forms, ongoing projects, national info days…) http://europa.eu.int/comm/energy/intelligent/index_en.html  ManagEnergy (Partner search, events, projects, EU legislation…) http://www.managenergy.net  IEEA E-mail: tren-intelligentenergy@cec.eu.int Fax: +32 2 292 18 92

48. Time for questions!