Horizon 2020 opportunities and synergies with Cohesion Policy Andreea Strachinescu Head of Unit New energy technologies and innovation DG Energy Gergana Miladinova Team Leader 'Sustainable Growth‘ DG Regional and Urban Policy 17 March, 2015

HORIZON 2020 and the EU energy policy

R&I strategy -2008: The SET Plan Focus on technologies with market impact up to 2020 (set up of EIIs) Wind Solar Electricity grids CCS Bioenergy Nuclear Smart Cities and Communities Fuel cells and hydrogen Focus on longer-term research actions beyond 2020 (set up of EERA) Objective for 2020 - 20% reduction of CO2 emissions (base1990) - 20% share of Renewable Energy - 20% improvement in Energy Efficiency

R&I strategy - 2013: Communication on Energy Technologies and Innovation Key Principles New challenges post 2020 From sectors to system Bridging R&I with energy policy Making better use of existing financial resources Keep options open Join endogenous resources

Implementation: FP7 2007-2013 FP7: 50.5 bEur total funding (7 years) 400 FP7: 50.5 bEur total funding (7 years) Energy: 2.5 bEur (5%)

Implementation: FP7 – demo projects GRID 4 EU ECOGRID EU 6 DSOs (cover more than 50% of the metered electricity customers in Europe) 27 partners (Utilities, Energy Suppliers, Manufacturers, Research Institutes) Duration: 51 months (November 2011 - January 2016 The demonstration on the Danish island Bornholm - more than 50 % electricity consumption from RES. 2000 residential consumers - flexible demand response to real-time price signals; participants will be equipped with residential demand response devices/appliances using gateways and "smart" controllers.

Implementation: FP7 – demo projects TRANSFORM – Smart Cities project

What's new ? A single programme: FP7 + CIP + EIT Focus on societal challenges

Budget = 70.2 bill Eur

Energy challenge – 2014 -2015 calls Energy efficiency Smart cities & communities Competitive low-carbon energy SME's and Fast Track to Innovation for Energy Other actions

WP 2014-2015 Energy efficiency Buildings and consumers (Prefabricated modules, building designs, construction skills, deep renovation, demand response, engagement of consumers and public authorities, ICT-based solutions, socio-economic research, etc.) Heating and cooling (district heating/cooling, market barriers) Industry and products (heat recovery, procurements, SME-targeted activities) Finance for sustainable energy

WP 2014-2015 - Low-carbon energy Renewable electricity and heating/cooling (Demonstration and research on next generation of technologies (PV, CSP, wind energy, ocean energy, geothermal energy, hydro energy, solar/biomass heating/cooling); market uptake measures Sustainable biofuels / alternative fuels (Demonstration and research on next generation of fuels, market uptake measures) European electricity grid / energy storage technologies (Meshed off-shore grids, transmission and distribution grid, small scale and large scale storage, next generation storage technologies)

WP 2014-2015 - Low-carbon energy Sustainable use of fossil fuels (Decarbonising the fossil-fuel based power sector and energy intensive industry through CCS, understanding/preventing/ mitigating the environmental impacts of shale gas exploitation, highly flexible and efficient power plants) European Research Area in energy research (ERA-NETs, support to coordinating national R&D activities) Socio-economic research (Human factor in the energy system, modelling) Cross-cutting issues (SME-targeted activities, NCP network)

Lighthouse projects WP 2014-2015 - Smart Cities & communities Low energy districts Integrated infrastructures Sustainable urban mobility Enhancing the roll out Standards systems –interoperability Networks of public procurers joint procurements for SMEs

Implementation

Implementation: EU (II) Integrated approach All demonstration projects shall integrate Innovative Technology development Innovative Business models Develop plans for market uptake Check existing market barriers and work out proposals for solutions (policy, legislation, regulation, etc.)

Cohesion Policy Support for Innovation in Energy & Synergies

Translated into Fund-specific investment priorities 11 Thematic Objectives Research & innovation Information and communication technologies (ICT) Competitiveness of Small and Medium-sized Enterprises Smart Growth Shift towards a low-carbon economy Climate change adaptation & risk management and prevention Environmental protection & resource efficiency Sustainable transport & removing bottlenecks in key network infrastructures Sustainable Growth Employment & support for labour mobility Social inclusion & combating poverty Education, skills & lifelong learning Institutional capacity building & efficient public administration Inclusive Growth Translated into Fund-specific investment priorities

Smart specialisation and energy RIS3: (national/regional) research and innovation smart specialisation strategies - Bottom-up agenda for place-based economic transformation based on innovation - Continuous, participatory process - Ex-ante conditionality for TO1 Good news: energy features in many of the national/regional RIS3 It is very welcoming that many regions have opted for energy R&I in their RIS3 (68 out of 151 registered at the S3 platform). Transition to the next slides! S3Platform: http://s3platform.jrc.ec.europa.eu

Synergies ESIF and Horizon 2020 New possibilities: Synergies/ commutation of funds Alignment of cost models Spending outside Operational Programme area (15%) ESIF and Horizon 2020 synergies: Mean: more impacts and amplifying results, carrying further projects and ideas But are not: substitution of private/public funds, funding of the same cost items twice Different ways to realise synergies: In one project, successive projects, parallel projects Cohesion Policy

~€100 billion for innovation in wide sense Overall concept for complementarily Horizon 2020 ESIF ESIF ~€100 billion for innovation in wide sense € 79.4 billion "Stairway to Excellence" Hopefully also excellence, but "Innovation Excellence" "Research Excellence" National/RegionalR&I systems Capacity Building Research & Development Innovation Market "Up-stream" "Down-stream"

Synergies: not easy but possible Key differences between the programmes: Research excellence vs. socio-economic development Multi-country approach (consortia) vs. place-based (single beneficiaries) Competition for funds vs. geographical pre-allocation Annually adjusted work programmes vs. 7-year-OP Centralised management vs. implementation by MS/regions >> For possible solutions: See the ”Guide on Synergies’’

Conclusions Reinforced opportunities for support of innovation, including on energy Combination of Cohesion policy funds and H2020 possible but challanges exist Good planing, cooperation and proactive approach needed The new initative ‘Smart Specilisation Platform on Energy’ will offer further support http://ec.europa.eu/regional_policy/sources/docgener/guides/synergy/synergies_en.pdf

Thank you for your attention! Find out more: www.ec.europa/research/horizon2020 http://ec.europa.eu/regional_policy/index_en.cfm

Synergies :HOW? ESIF side Strategy development comes first: Include Horizon2020 actors and international contacts in the entrepreneurial discovery process to design RIS3. Get involved in structured cooperation. Full innovation cycle in policy-mix, not only capacity-building! Programme development: Open OPs for transnational activities, foresee H2020 compatible / complementary support forms that could help attaining the economic transformation objectives of your RIS3. Team up with other MS/regions around RIS3 fields instead of waiting for H2020 calls. Implementation Design management system and project selection methods to be able to synchronise with award decisions with H2020 calls & evaluations. Align to H2020 cost models. Invite the NCPs in monitoring committees. Foresee support to applicants for finding international partners, etc.

Synergies: HOW? H2020 side Strategic level: Open strategic platforms and structured cooperation between R&I programmes and actors for regional level policy actors. Facilitate access to ESFRI infrastructures for industrial users and integrate ESFRIs in industrial clusters. Programme implementation level: Design work programmes, implementation documentation and tools (participant portal) in an synergies friendly way Train staff, evaluators, auditors etc. on ESIF basic rules and synergies NCPs get familiar with ESIF rules, RIS3 and MA Explain Horizon2020, COSME, Erasmus+, CEF etc. to MA and public procurers (cost models, project formats …) Inform Managing Authorities on H2020 participants Communicate on synergies & Provide guidance to beneficiaries …. Horizon2020: Interpretation of rules for H2020 participation: emphasize synergies issues in guidance to participants & evaluators Adapt implementation documentation, e.g. budget break-down in applications, standard contracts & letters Align work programmes and EIP agendas to RIS3 fields of specialisation to maximise lever on ESIF Strengthen the collaboration of the NCPs with MA and regional structures of support Training for RTD, CNECT, ENTR, etc staff, external evaluators and auditors on synergies with ESIF Facilitate transfer of technology and research results from H2 (and FPs) Flexibility regarding JTI / P2P proposals … Tracking system for synergies in applications or reporting AND BOTH should ensure: more exchange of information between the different programme managers and implementing bodies (NCPs, MAs, etc.) Mutual learning Tracking of synergies for providing good practice examples