Trans-European Networks: Innovation on Islands

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1 Trans-European Networks: Innovation on Islands - Process: "market-sided" innovation - Content: new opportunities through synergies Placing Cyprus at the Forefront of the New Energy Era Nicosia, Cyprus 19 June 2018 Helmut Morsi, Advisor to the Director & Coordinator for Innovation European Commission, DG MOVE Directorate B Investment, Innovative & Sustainable Transport

2 l Introduction: Strong Legal Base of the European Union - on Deployment of Innovation for Transport.TEN-T Core and Comprehensive Networks exists throughout the EU, plus co-operation with Neighbours.Strong legal base for support of innovation» via TEN-T Guidelines Art.33 and» via CEF horizontal priority.cef funding significant; support for studies (upto 50%) and works (upto 20%); Synergy (upto 60% / 30%).Blending & pure loans are becoming more important, ie involvement of private capital, Juncker, European Fund for Strategic Investment EFSI, etc..cef studies (trials/pilots) help bridge gap between RTD and market roll-out (via market-sided innovation concept).not just money: Very large visibility in ministries, plus in industry & banks!!!.after local/regional studies, project promoters are advised to coordinate and collaborate on innovative solutions and organise common, standardised deployment (= market roll-outs).=> EC support not just with money, but with much more! - Towards Sustainable transport & energy - - Fighting climate change - - Production & jobs remaining in Europe (*) TEN-T = Trans-European Networks for Transport; CEF = Connecting Europe Facility 2

3 . Studies. Works l TEN-T/CEF (*) : Market-sided Innovation (50% grant): Market-sided innovation versus research-sided innovation: - The Blob -» No research! Under CEF. Real-life trials: pilot deployments, not just demos) 112 Projects» The dual optimisation process. reduction of unit costs & business-client relation» All projects: Paper-output of study at the end of trial: lessons learnt & analysis on how to scale-up to do rollout; since 2015: business plan for roll-out became contractual deliverable -> banks (20% grant): "experiments are over, people know what they are doing"» Roll-out on (significant part of) corridor into the market! -> Business Plan for Roll-out -> mainly with new fin.instruments EFSI, Juncker Plan, Blending/EIB, etc) -> Advisory Hub. Amazing success in 2017 : Results of the CEF Blending Call (*) TEN-T = Trans-European Networks for Transport; CEF = Connecting Europe Facility 3

4 Overall EC Funding Pipeline for Innovation - Where does the blending call fit? - Valley of Death Blending>> (works) Real-life trial (pilot) -> Roll-out After supporting about 100 alt.fuel trials, we see now the follow-ons of many trials in the proposals submitted to the blending call (7/2017 & 4/2018)! Roll-outs into market are starting for all alt.fuels ("works" under TEN-T/CEF)

5 l EC Focus Synergy T&E Innovative people everywhere in the EU! H2 Battery Kinetic 5

6 CEF Synergy: CYnergy - Gas / Islands l A milestone for European deployment of innovation 6

7 l CEF Synergy : SYNERG-E A milestone for European deployment of innovation 7

8 l CEF Synergy : TSO2020 A milestone for European deployment of innovation 8

9 . Transport l CEF Blending Call Innovation Priority u Blending Call 8 Feb'2017( million grants) -Turning the page for innovation (Alternative Fuels++)!» Grants & loans in one proposal Transport Roll-outs (Works) only => innovation grant: up to 20%» In addition to infrasturcture, support for >>>vehicles<<< for all transport modes: cars, trucks, ships, trains, airplanes, etc (i.e. usual capping for "mobile equipment" removed!!!)» 2 Deadlines: 14 July 2017 (DL1) & 12 April 2018 (DL2)» Overwhelming uptake in both DLs : -> concept works real life trials as preparation for roll-outs into market.» DL1: 10 of 16 inno.projets (all altern. fuels) > 63 % success rate!» DL2: 350 million grant budget for inno (plus 115 million for all other priorities); 2nd deadline moved to 12 April time reversal of TEN-T budgets (inno > others) 33 submitted, total eligible costs 2.17 billion, total request 441 million Expert evaluation meetings in June 2018.» Advice: Go to current "CEF Blending Call"-website and start preparing for future calls, which will shurely come!» New studies/trial/pilot call just published 16 May: Digitisation of Transport» All welcome just establish entity in EU & respect EU legisl. (standards, etc) 9

10 . l Greening the Islands - A possible new priority for deployment? Ultra Green Islands» Synergies: energy, transport, water & waste a 4 sector optimisation problem» 2700 islands in the EU» 18 EU Member States» Total permanent population as large as medium size MS (eg Hungary, about 10 million), during summer in average factor 5 increase!» Deployment of new techology optimised for islands, ie isolate area surrounded by the sea a special case which requires a special optimisation solution(s)?.» Overall: nearly all EU citizens directly benefitting (because of short-stay-tourism). Creating a new business case» Preservation of the Environment (essential for tourism)» New era of energy & transport : global transformation as an opportunity for Islands:. The. A High tech production on islands (clean!) Some examples Better balancing the annual fluctuation of tourists (-> amortisation, social dimens.) Sell optimisation solution(s) to islands across the EU, and then globally! "Greening the Islands" Initiative Permanent secretariat in Italy, global membership.» Observatory just created to study and monitor requirements possible new opening in the next TEN/CEF workprogramme?» Comprehensive network! Good topic for synergies call? 10

11 l CEF Calls Possible Next Steps for Innovation - Preliminary brain-storming level, unclear because lack of budget (*). Digital Transport Call 17 May 2018 (deadline 24 Oct'2018)» Grant call (up to 50%); 450 million; topics: innov, ITS, RIS, ERTMS, etc (no infra). Next Transport Calls(*) 2019/2020? (budget unclear, depends on CEF review)» Works: Grants & loans (&assets) in one proposal (up to 20% grant)» Studies/Trials(**): Grants (up to 50%); geographical restrictions possible. Next Synergy Calls(*) Begin 2019?» On the comprehensive TEN-T network instead of core only!» Support for infra & vehicles for all transport modes (no capping on mobile equipment)» Studies with integrated deplovment = Real-life Trials (grant up to 50+10=60%)» Works = Roll-outs (grant up to 20+10=30%)» New: Budget only from CEF-Transport -> No Energy PCI, just on located TEN-T» Legal reason: Art.33 of TEN-T Guidelines has full transport plus enough energy and ICT elements.» As before: on the comprehensive TEN-T network instead of restriction to core!» Budgets from 20 to 100 million: needs strong support from promoters!» Request by ministries: All regions in all Member States must be able to take part! (*) Availability of budgets depends heavily on results mid-term review of CEF in mid 2018, retrieving unused moneys from non-performing projects. (**) Trials = Studies with integrated deployment. 11

12 l THANK YOU FOR YOUR ATTENTION! Innovation Projects: TENtec Portal (info, maps etc): 12

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