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Climate Action Bringing low-carbon technologies to the market: the NER 300 programme Funding innovative low-carbon technologies: the NER 300 programme SET PLAN Conference Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate Action, European Commission
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Page 1: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate Action

Bringing low-carbon technologies to the market: the NER 300 programme

Funding innovative low-carbon technologies: the NER 300 programme

SET PLAN Conference

Bratislava, 30 November 2016

Roman Doubrava

Deputy Head of UnitUnit C.3, Land Use and Finance for InnovationDG Climate Action, European Commission

Page 2: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

What is the NER 300 programme?• One of the world's largest programmes for innovative low-

carbon first-of-a-kind projects, funded by the EU emissionstrading system (ETS).

• A catalyst for the demonstration of environmentally safecarbon capture and storage (CCS) and innovativerenewable energy (RES) technologies on a commercialscale within the EU.

• Funded from the sale of 300 million allowances from thenew entrants' reserve (NER) set up for the ETS.

• Two calls for proposals: the first one was awarded inDecember 2012, the second in July 2014.

Page 3: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

The two NER 300 Call for Proposals

• Calls were funded through the monetisation of 300 million allowances. Categories funded are:

• Bioenergy• Concentrated Solar Power• Geothermal• Ocean• Smart Grids• Solar Photovoltaics• Wind (offshore mostly)

• Carbon Capture and Storage Oxyfuel

Page 4: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

NER 300: statistics• 39 projects in 20 EU Member States: 38 RES and 1 CCS (20

in the first call)

• €2.1 billion NER 300 funding, coming from the sale of 300million ETS allowances

• NER 300 projects will increase the annual EU renewableenergy production by some 18 TWh and are expected tomobilise €2.7bn of private investment

• Their cumulative impact in terms of GHG emissions reductionwould be equivalent of taking 3 million cars off EU roads

• State-of-play (projects of the first call): 3 are in operation,9 reached a positive FID so far.

Page 5: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

Approved projects per category

13

153

5

2

1

8

Bioenergy

Carbon Capture & Storage

Concentrated Solar Power

Geothermal

Ocean

Smart Grids

Photovoltaics

Wind

Page 6: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

NER300 funding per category

€905,795,13443.2%

€300,000,00014.3%

€233,399,077 11.1%

€70,874,3693.4%

141,985,1516.8%

€96,071,3964.6%

8,041,5110.4% €340,536,094 

16.2%

Bioenergy

Carbon Capture & Storage

Concentrated Solar Power

Geothermal

Ocean

Smart Grids

Photovoltaics

Wind

Page 7: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

Approved projects per Member State

0

1

2

3

4 Wind

Smart Grids

Photovoltaics

Ocean

Geothermal

ConcentratedSolar PowerCarbon Capture &StorageBioenergy

Page 8: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

NER300 funding per Member State

€0

€50

€100

€150

€200

€250

€300

€350

Millions Wind

Photovoltaics

Smart Grids

Ocean

Geothermal

ConcentratedSolar PowerCarbon Capture& StorageBioenergy

Page 9: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

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Page 13: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

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Project's public announcement

Page 14: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

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Page 23: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

NER 300: key lessons learnt• Main barriers to NER 300 projects

o Low price of fossil fuels o Cancellation of national support or support schemes, financial riskso Slow permitting process, administrative hurdleso Technology issues

• Main lessons learnto Ring fencing budget for specific technologies is not ideal, as market

developments are difficult to forecasto Significant financial barriers: upfront funding and use of other EU and

national sources could help projects to mitigate riskso NER 300 stimulated innovation, with almost 80% of awards to highly

innovative or potentially game changing projectso NER 300 achieved good geographical coverage and technology spread

thanks to its categories, although 33% in bioenergy

Page 24: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

NER 300: future

• In its proposal for a revised ETS adopted on 15 July2015, the Commission suggests to build on the NER300 experience when setting an Innovation Fund,which should be endowed with 450 million CO2allowances targeted to innovative RES, CCS/CCU butalso to innovative energy-intensive industry.

• It will be a means of directing further revenues fromthe ETS towards the demonstration of innovative low-carbon technologies in the industry and powergeneration sectors.

Page 25: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

Looking forward - key issues• Regulatory framework = stable, predictable and supportive.

• All projects face financial risks, including a lack of or uncertainnational funding, feed-in-tariffs, equity, long-term debtfinancing or revenues. Direct correlation with the businessstability.

• Financing structure has to correlate with risk profile of theproject in different evolution stages. Availability of variousfinancing options reflecting the investment cycle drives theFID.

• For first –of-a-kind investments, various funding instrumentsneed to be compatible.

• Geographical spread is the function of technology and businessoptions. NER 300 effective so far (20MS awarded).

• Administrative burden needs to be reflected.

Page 26: Funding innovative low-carbon technologies: the NER 300 … · Bratislava, 30 November 2016 Roman Doubrava Deputy Head of Unit Unit C.3, Land Use and Finance for Innovation DG Climate

Climate ActionClimate Action

Contact

• Roman Doubrava,• [email protected]• Tel: +32 2 2998452

• NER 300 mailbox: [email protected]

• NER 300 website:http://ec.europa.eu/clima/ner300


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