The European Strategic Energy Technology Plan (SET-Plan) aims to accelerate the development and deployment of low-carbon technologies. It seeks to improve new technologies and bring down costs by coordinating research and helping to finance projects. The SET-Plan promotes research and innovation efforts across Europe by supporting technologies with the greatest impact on the EU's transformation to a low-carbon energy system. It promotes cooperation amongst EU countries, companies, research institutions, and the EU itself.

1. The Strategic Energy Technology Plan
(SET-Plan) – Europe’s answer to
Climate and Energy Challenges
Paolo Michele Sonvilla, Senior Manager
5 October 2015
Financial AdvisoryStrategy Consulting Market IntelligencePolicy Consulting

2. Measurement & Verification
(ESCOs)
Climate Change
(GHG inventory, carbon
footprint, adaptation)
Training
& Outreach
Engineering Energy
management
Consulting
Training
Manuals & Guides
Communication
& Outreach
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Procurement
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(CALENER, LEED...)
Energy
Audits
Policy
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Consulting
Financial Advisory
(M&A, ESCO, origination)
Market
Intelligence
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ESCOs
Energy Efficiency Planning
(corporate, local, national)
Harmonization Committees
(IEC, AENOR)
1 2 3 4
Multilateral Projects (H2020, IBD, EIB, etc.)
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&Telemetry
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identification
& negotiation
A one stop-shop for sustainable energy services
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3. • History and context of the SET-PLAN
• Main content of the SET-PLAN and its evolution
• Main impacts on European markets and open issues
• Business opportunities
Agenda
3

4. 4
SET-PLAN CONTEXT
• In order to ensure the achievement of the ambitious
2020 objectives, the EC recognised the central role
of technology in the energy policy
• Europe was falling short on energy policy
objectives due to easy availability of energy
resources and the lack of proper incentives for
innovation and decarbonisation
• Immediate action was needed to address the
intrinsic weakness in the energy innovation
process
• EC also recognised that Europe should achieve
world leadership in low-carbon energy
technologies
Source: European Commission Communication COM(2007) 723 Final
In 2007, the EC recognised the necessity for a new European strategy for
low-carbon energy technologies to address the climate and energy
challenges

5. 5
• The European Strategic Energy Technology Plan (SET-
Plan) aims to establish an energy technology policy for
Europe:
- Accelerating knowledge development, technology
transfer and uptake
- Establishing an maintaining a EU leadership on low-
carbon technologies
• The SET-Plan features two main timelines:
- Towards 2020, the SET-Plan aims to accelerate the
development of cost-effective low carbon technologies
and the achievement the 2020 Energy and Climate
Change goals
- Towards 2050, the SET-plan is targeted at contributing to
the worldwide transition to a low carbon economy thanks
to a prioritized and focused technological research and
innovation effort in the industrial systemhttp://eur-lex.europa.eu/legal-
content/EN/TXT/?qid=1411399552757&uri=CELEX:52007DC
0723
A EUROPEAN STRATEGIC ENERGY
TECHNOLOGY PLAN (SET-Plan)
The European Strategic Energy Technology Plan (SET-Plan) was the
outcome of such vision
Source: European Commission; SETIS website
SET-PLAN CONTEXT

6. • History and context of the SET-Plan
• Main content of the SET-Plan and its evolution
• Main impacts on European markets and open issues
• Business opportunities
Agenda
6

7. 7
• A new joint strategic planning
- Establishment of the SET-Plan Steering Group
to direct and coordinate the implementation of
the SET-Plan at national and international levels
- Establishment of the SET-Plan Information
System to ease monitoring and reporting of
SET-Plan implementation progress
• A more effective implementation
- Establishment of European Industrial
Initiatives to strengthen industrial energy
research and innovation
- Each initiative has set itself an ambitious
target and has established a Technology
Roadmap and Implementation Plan with
concrete milestones.
- Creation of a European Energy Research
Alliance to coordinate national research efforts
The original SET-PLAN objectives provided for planning, implementation,
resources and international cooperation (1/2)
Source: European Commission Communication COM(2007) 723 Final
SET-PLAN CONTENT
1
Steering Group
Steer the implementation of the SET-PLAN
SETIS
Information
system
European
Industrial
Initiatives and
Technology
Platforms
monitor
report
monitor
report
EERA
EU Energy
Research
Alliance
advise
Support the
work of

8. 8
• Increasing resources
- Mobilizing additional financial resources
through Research and Innovation
programmes, the European Industrial
Initiatives, the European Energy Research
Alliance and the European Investment Bank
- Expanding the Human resource base through
Education and Training
• A new and reinforced approach to international
cooperation
- Towards developed countries, focus on
cooperation in research for the common good,
such as safety and public acceptance, as well
as longer term frontier research
- Towards developing and emerging
economies, support their sustainable growth,
while building new market opportunities for the
EU Industry: large demonstration projects,
innovative financing mechanisms, etc.
The original SET-Plan objectives provided for planning, implementation,
resources and international cooperation (2/2)
Source: European Commission Communication COM(2007) 723 Final
SET-PLAN CONTENT

9. 9
• The implementation of the SET plan started with the
establishment of 6 European Industrial initiatives:
- European Wind Initiative
- Solar Europe Initiative
- European Electricity Grid Initiative
- European CO2 Capture, Transport and Storage Initiative
- Sustainable Nuclear Initiative
- European Industrial Bioenergy Initiative
• Over the years several other platforms have been created
- Fuel Cells and Hydrogen (FCH) Joint Technology
Initiative
- The Smart Cities and Communities Initiative
- Ocean Energy Europe
• Such initiatives and platforms promote market uptake of
technologies, making coordinated and targeted use of private
and public funding.
European Industrial Initiatives and Technology Platforms bring together
industry, research community, Member States and the European
Commission
Source: European Commission; SETIS website
SET-PLAN EVOLUTION

10. 10
• Funding of SET-Plan RD&I objectives has been mainly enacted
with:
- The 7th Framework Programme for R&D
- The Intelligent Energy Europe Programme (IEE) for
innovation and market uptake
- From 2014 both streams have merged in the
Horizon 2020 programme
• Other programmes contributing to the objectives are:
- European Energy Programme for Recovery (EEPR)
- New Entrance Reserve (NER) 300
- Cohesion Funds 2007-2013 and 2014-2020
Source: European Commission; SETIS website;
SET-PLAN EVOLUTION
Resources for the implementation of the SET-plan are made available
from Industry, Member States and the European Commission

11. 11
The goal of Horizon 2020 is to concretely bring R&D development efforts
to the market, beyond the “Valley of Death”
Source: R.Basosi & M.Capra - SET Plan 2014 Conference
SET-PLAN EVOLUTION
1
FP7
H2020
Technology
Transfer
Success as
A new product
Product
Launch
Commercialisation
Success as
a business
Research & Development
Loss/Profit
Time
Valley of “Death”

12. 12
• The Communication of the European Commission COM (2013) 253 on Energy Technologies and
Innovation confirmed the strategic role of the SET Plan and the development of an integrated
roadmap:
- covering the whole research and innovation chain, from basic research to demonstration and
support for the deployment
- clearly stating the roles and duties of the R&D organizations, businesses and universities and
investors by promoting synergies and interactions
• On the basis of the roadmap, the MS and the Commission will draw up an Action Plan dedicated to
mobilize public ( EU and national/regional) and private investment in R&D on the basis of a principle
of "joint cooperation“.
The Integrated Roadmap encompasses research, development,
demonstration and market deployment
Source: European Commission Communication COM (2013) 253
1
SET-PLAN EVOLUTION

13. 13
Four key Energy System challenges have been identified towards the
Integrated Roadmap (1/2)
• In December 2014, the results of a public consultation involving over 150 stakeholders under
the Supervision of the SET plan steering Group were presented at the SET Plan conference in
Rome
- The Integrated Roadmap was outlined under four key challenges:
• 1 - Empowering consumers and bringing them at the center of the Energy System
- Engaging consumers through better understanding, information and market
transformation
- Activating consumers through innovative technologies, products and services
• 2 - Demand Focus: Increasing Energy Efficiency
- Increasing energy efficiency in buildings
- Increasing energy efficiency in heating and cooling sector
- Increasing energy efficiency in industry and services
Source: JRC - SET-Plan, Towards an Integrated Roadmap (2014)
SET-PLAN EVOLUTION

14. 14
Source: JRC - SET-Plan, Towards an Integrated Roadmap (2014)
• 3 - Optimizing the Energy System
- Modernising the European electricity grid and establishing synergies between the various
energy networks
- Unlocking the potential of energy storage and electricity conversion
- Providing the energy system with flexibility, demand response, security and cost-
effectiveness
- Development and demonstration of holistic system optimisation at local/urban level
(corresponding to the Smart Cities and Communities initiatives)
• 4 - A secure, cost-effective, clean and competitive supply
- Accelerating the development of renewable electricity and heating/cooling technologies
- Enabling carbon capture, CO2 utilisation and storage technologies and increased
efficiency of the fossil fuel-based power sector and energy intensive industry
- Supporting safe and efficient operation of nuclear systems, development of innovative
reactor concepts and sustainable solutions for the management of fissile materials and
radioactive waste
- Developing sustainable biofuels, fuel cells and hydrogen and alternative fuels for the
European transport fuel mix
Four key Energy System challenges have been identified towards the
Integrated Roadmap (1/2)
SET-PLAN EVOLUTION

15. • History and context of the SET-Plan
• Main content of the SET-Plan and its evolution
• Main impacts on European markets and open issues
• Business opportunities
Agenda
15

16. 18%
16%
15%
14%
11%
10%
8%
7%
1%
Energy Storage
Wind
Bioenergy
Solar
CCS
Fuel Cells and H2
Electricity Grids
Ocean
• Yearly public and private investments for development
of SET Plan priority technologies more than doubled
from 3.2 bn€ in 2007 to 8.8 bn€ in 2011, of which:
- 66% from Industry
- 28% from the Member States
- 6% from the European Commission
• In the 2014-2020 period, important funding levels are
foreseen:
- 30 bn€ from Horizon 2020 programme for low-carbon
technologies and services
- 38 bn€ from Cohesion Policy funds for transition to
low-carbon economy
16
Funding for SET-Plan Objectives has been growing steadily since the
inception of the SET-Plan
Source: JRC - Capacity Mapping: R&D investment in SET-Plan technologies (2015); European Commission COM (2015) 6317
SET-PLAN IMPACT & OPEN ISSUES
28%
6%66%
Member States
European
Commission
Industry
Distribution of SET-Plan R&D investment in 2011
Technology Distribution of SET-Plan R&D investment in 2011

17. 17
The impact assessment of the SET-Plan implementation has confirmed its
strengths, but also identified open issues to be addressed
SET-PLAN IMPACT & OPEN ISSUES
• The SET-Plan has significantly contributed to low-carbon technology cost reduction and
market development in Europe
• However, Member States’ commitment to the SET-Plan is suboptimal, resulting in insufficient
public and private investment flows
• The main technology-related shortcomings identified are:
- Notwithstanding the significant decrease in PV system costs, European PV cell production
has fallen by more than 50% from 201o to 2013
- Investments in biomass are currently frozen
- Europe is quite weak in smart consumer services
- Europe is lagging behind USA, Japan and Korea in terms of energy storage
manufacturing capacity
- Market uptake of energy efficiency building renovation solutions is still insufficient
- CCS demonstration projects are yet not signed off
Source: European Commission COM(2015) 80, COM (2015) 6317

18. 18
In 2015, the EC delivered the Energy Union Package, integrating the SET-
Plan as a pillar of its RD&I dimension, and demanding its upgrade
SET-PLAN IMPACT & OPEN ISSUES
• The Commission proposed a revised European energy RD&I approach, comprising an upgraded
SET-Plan and a strategic transport agenda, with a limited number of essential priorities and
clear objectives, to be delivered in 2015-2016
• The upgraded SET-Plan establishes ten focused RD&I actions to accelerate the energy
system's transformation and create jobs and growth.
• More specifically, it :
- Adds focus on sustainable transport
- Introduces a more effective governance structure
- Recognizes the need for better financing
- Triggers the review of national market design and regulatory frameworks
Source: European Commission COM(2015) 80, COM (2015) 6317

19. • History and context of the SET-Plan
• Main content of the SET-Plan and its evolution
• Main impacts on European markets and open issues
• Business opportunities
Agenda
19

20. 20
Source: Creara analysis
BUSINESS OPPORTUNITIES
Consumers
Industry and
Service
Providers
Governments
and authorities
• Energy efficiency in buildings: construction and renovations
• Renewable energy technologies
• Smart energy tools and services
• Sustainable transport vehicles
• Increased demand
for services and
products
• Increased demand for
services, tools and
products
• Availability of EU
funding opportunities
• Increased demand
for policy support
• Increased demand
for services, tools
and products
• Energy efficiency in buildings: construction and renovations
• Renewable energy technologies
• Smart energy / Demand response tools and services
• Smart grid solutions
• Audit and energy management services
• Energy efficiency in buildings: construction and renovations
• Smart Cities and Communities: sustainable energy and transport
• Audit and energy management services
• Review of regulatory frameworks
• Smartening of public funding
The implementation of the SET-Plan consistent business opportunities
over the next years
SET-Plan priorities OpportunitiesMarket participants

21. • REMOURBAN is aimed at developing a sustainable urban
regeneration model to transform3 European Lighthouse
Cities into Smart Cities
- Valladolid (Spain)
- Nottingham (UK)
- Eskisehir (Turkey)
• The innovation and demonstration actions are implemented
across 4 interconnected dimensions:
- Low Energy Districts
- Sustainable Mobility
- Integrated infrastructure
- Society
• Total project budget: 23,8 m€ (70% EC funding)
• Website: http://www.remourban.eu
21
Horizon 2020 project: REMOURBAN (Smart Cities and Communities)
Source : REMOURBAN (2015)
BUSINESS OPPORTUNITIES

22. 22
FP7 project: BESTPATHS (Evolution of transmission networks)
Source: Best Paths (2015)
BUSINESS OPPORTUNITIES
• The Best Paths project will help to overcome the challenges
of integrating renewable energies into Europe’s energy
mix.
• It aims to develop novel network technologies to increase
the pan-European transmission network capacity and
electricity system flexibility.
• The project features five large-scale demonstrations to
validate the technical feasibility, costs, impacts and benefits
of the tested grid technologies:
- Transition to High Voltage Direct Current (HVDC)
lines to HVDC grids;
- Upgrade and repower existing Alternating Current
(AC) parts of the network;
- Integrate superconducting high power DC links within
AC meshed network
• Total project budget: 62.8 M€ (55% EC funding)
• 39 Partners from 11 European countries
• Website: http://www.bestpaths-project.eu

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