Solar Heat for Industrial

Processes

EU Policy & IncentivesEU Policy & Incentives

Pula, 25 September 2015

Stefano Lambertucci – Policy Officer

European Solar Thermal Industry Federation (ESTIF)

Stefano.lambertucci@estif.org - www.estif.org

• What is ESTIF

• The EU policy framework for RES-H&C

• National and regional support schemes for solar heat for industrial process for solar heat for industrial process

• EU support and incentives

• What next? What can be done?

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• What is ESTIF

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• What is ESTIF

European Solar Thermal Industry Federation

� ESTIF: Common ST voice in Europe– Direct representation, lobbying and input to European institutions on

policies, legislation, funding programmes

� ESTIF: the meeting point of our industry

– Networking opportunities with key partners in the European arena

ESTIF: providing data & keeping members informed

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� ESTIF: providing data & keeping members informed

– Expertise in standardisation, certification and technical regulations

– Market data and intelligence

– ESTIF communication activities, events, publications

� ESTIF: training & supporting ST players

– Information and training on EU & national regulations and policies

• The EU policy framework for RES-H&C

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Energy Union

EU Strategy on Heating and Cooling

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EU Strategy on Heating and Cooling

Legislation (under review): RES-D, EPBD, EED

• National and regional support schemesfor solar heat for industrial process

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for solar heat for industrial process

Solar Thermal support schemes

Subsidy: AT, BE, CZ, EE, FI, FR, DE, EL, IE, LU, MT, PL, RO, SK, SL, GB

Tax exemptions: BE, CZ, DK, FR, EL, IE, IT, NL, SE

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Price-based: GB, IT, LT

Loans: BE, BG, FR, DE, EL, IT, NL, SL, GB

Spain: GIT (Grandes Instalaciones Térmicas)The maximum funding per project is 80% of the value of the eligibleinvestment (the intended thermal generation), with an absolute minimum of250,000 and maximum of € 3,000,000 € per project (5 ml for ESCOs)

UK: Non-Domestic RHI (1 GWth but 93% biomass, 3.2% Solar Thermal..)

Solar Process Heat support schemes

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UK: Non-Domestic RHI (1 GWth but 93% biomass, 3.2% Solar Thermal..)provides financial incentives to increase the uptake of renewable heat. Forthe non-domestic sector it provides a subsidy based on the heat output ofthe system, payable for 20 years, to eligible, non-domestic renewable heatgenerators.

Netherlands: Energy Investment Allowance41.5% of tax deduction of eligible investment costs

Germany:- Market Rebate Programme: process heat subsidy: 140 EUR/m2 gross collector area.

Incentives for innovative designs. Performance based incentive requires Solar Keymark.- Market Incentive programme: investment grants for heat provision <100m2

- KfW-Programme: Renewable Energies – Premium: enterprises can gain investment grant oran interest subsidy for large scale technical plants with demonstration character.

France:- Fonds Chaleur: ADEME supports RES heat production projects in production companies. Itcovers solar thermal plants for hot water production and 350kWh minimum per m2.

10 Rue d'Arlon 63-67 • B-1040 Bruxelles • Belgium • Email: info@estif.org • Web: www.estif.org

covers solar thermal plants for hot water production and 350kWh minimum per m2.- Project call "Grandes installations solaires thermiques" >300m2, subsidy range 45% to 65%

Austria: - Environmental Assistance Programme (UFI): installations >100m2, environment-related investment costs minimum € 10,000 + minimum of 4 t CO2 savings- Kommunalkredit for Klima+Energie Fonds subsidises the realisation of large solar thermalplants, funding is between 40 to 50% of total costs for solar thermal plants between 100 m² and2,000 m²

Solar Thermal support schemes in Italy

Subsidy: Conto termico <1000m2

Tax exemption: 65% of investment for max. 60.000 EUR over ten years

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over ten years

Loans: Fondo Kyoto

Regional support schemes: Wallonia case

Aide à l'investissement (support scheme + tax rebate)

Premium to the investment with exemption from property tax, for SMEsand larger firms carrying out an investment program contributing tosustainable development.

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sustainable development.

Eligible investment costs at least € 25,000

SMEs: max 50 % of the investments costs - total amount of the subsidy cannot exceed € 1.5 million over 4 years

Large companies: max 20 % of the investments costs

Regional support schemes: Extremadura case

Grants to finance tourism and agro industrial companies in the area of Extremadura

- SMEs in agro industrial and tourism sectors can apply

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- SMEs in agro industrial and tourism sectors can apply

- The subsidy consists of a grant of 5% of interest calculated on the

first two years under the terms of a loan arranged.

- Minimum eligible investment 10.000 EUR, max 100.000

- Maximum repayment term of 10 years

- Low temperature

Main weaknesses:

- Bureaucratic procedures (Conto Termico)

- Bad designs (Fondo Kyoto) or implementation- Delays in implementation (RHI), stop-and-go policies (Italian tax

rebate)- Unclear targets. Few support schemes focused on SHIP, most

target all RES-H&C, or all industrial process heat.

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target all RES-H&C, or all industrial process heat.

- Small scale installations prevail when in same scheme- SHIP suffers from competition of other RES (ex. biomass in RHI)

- Information is lacking- Governments prefer instruments delaying payments (tax

exemptions) not tools supporting up-front investment cost

Demonstration Deployment

EU level National level

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- Different typologies of support schemes needed for different market phases (demonstration vs deployment)

- Different typologies of support schemes come from different governance levels

Key success factors for support schemes

- Continuity, predictability and stability

- Contribution of different stakeholders

- Quality and performance assurance

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- Monitoring and evaluation transparency

- Clear targets

- Adequate financial resources

• EU support and incentives

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• EU support and incentives

- EU funds going to regional programmes (ex. Wallonia): ERDF, EAFRD (12-20% earmarked for low carbon economy)

- Specific programmes (Euromed, Jessica, etc.)

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- R&D funds: Horizon2020

- Ultra-large deployment: EIB and EFSI (aggregation?)

- Smart Financing Initiative - 2016

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• What next? What can be done?

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Future challenges:

- EU legislation review

- 2030 framework

- Electrification and other RES competition

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- Electrification and other RES competition

- Changing nature of support schemes

- Going from demonstration to deployment

� Aggregate

� Disseminate

– Establish trust

– Inform about existing options

What can we do?

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� Aggregate

– Reach critical mass

– Exploit success

stories/sectors

� Lobby

– Improve legislation

– Access funds, projects

Thank you for your attention!

Please do not hesitate to contact me:

� Email: Stefano.lambertucci@estif.orgStefano.lambertucci@estif.org� Tel: +32 2 318 40 58

Website: www.estif.orgwww.estif.org�� Twitter: ESTIF_Solar Twitter: ESTIF_Solar

� European Solar Thermal Industry Federation (ESTIF)Place du Champ de Mars 2B-1050 Brussels