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Official Journal C 158 , 09/06/1994 P. 0006

Proposal for a Council Regulation (EC) concerning a Community programme providing financial support for the promotion of European energy technology 1995 to 1998 ('Thermie-II`) (94/C 158/06) (Text with EEA relevance) COM(94) 59 final - 94/0063(CNS)

(Submitted by the Commission on 15 April 1994)


Having regard to the Treaty establishing the European Community, and in particular Article 235 thereof,

Having regard to the proposal from the Commission,

Having regard to the opinion of the European Parliament,

Having regard to the opinion of the Economic and Social Committee,

Whereas pursuant to Article 3 (t) of the Treaty the activity of the Community shall include measures in the spheres of energy;

Whereas in its resolution of 16 September 1986 concerning new Community energy policy objectives for 1995 and convergence of the policies of the Member States (1) the Council stated that, possible short-term fluctuations on the energy market apart, efforts made must be maintained and, if necessary, reinforced between now and 1995 and beyond that date in order to reduce to a minimum the risk of tension at a later date on the market;

Whereas the same resolution states that one of the horizontal objectives of Community energy policy is to encourage continuous and reasonably diversified promotion of technological innovations and appropriate dissemination of the results throughout the Community; whereas in spite of the present energy situation there should be no relaxation of efforts to diversify the Community's energy supply and improve energy efficiency; whereas the promotion of new technologies will help to achieve these objectives and to ensure better protection of the environment from the impact of energy technologies;

Whereas it is important to dovetail these efforts with the Community strategy for science and technology and with the specific programmes in particular the activity concerning demonstration of clean and efficient energy technologies defined in the fourth framework programme for Community activities in the field of research and technological development, both in terms of programme execution and in terms of the financial status of the programme in the financial perspective;

Whereas the resolution of 16 September 1986 also states that the Community should search for balanced solutions as regards energy and the environment by making use of the best available economically justified technologies; whereas pursuant to Article 130r of the Treaty environmental protection requirements are to be a component of the Community's other policies and action by the Community relating to the environment must be designed to ensure a prudent and rational utilization of natural resources; whereas energy technology has a key role to play in meeting the ecological challenge by increasing energy efficiency, developing new and renewable sources and ensuring the clean use of solid fuels; whereas major efforts in all these areas will be needed to face up to the threat of climatic change;

Whereas the promotion of projects for exploiting the indigenous energy potential of the regions, particularly less-developed regions, will help to strengthen the economic and social cohesion of the Community, an objective which, according to Article 130b of the Treaty, should be taken into account when implementing common policies and the internal market;

Whereas support for the promotion of energy technologies will benefit economic and social cohesion;

Whereas action to promote innovative technologies taken at Community level will avoid the dissipation of resources and increase effectiveness;

Whereas this action should be coordinated with action being taken by the Community within the framework of other specific programmes and which includes the activities of demonstration of technical feasibility of projects, of the promotion of cooperation with third countries and of dissemination and optimization of results of activities in Community RTD;

Whereas financial support should be granted in appropriate cases to projects for the promotion of advanced technology in the field of energy;

Whereas, when selecting projects, preference should be given to projects involving the association of independent undertakings established in different Member States in projects proposed by small and medium-sized undertakings and in dissemination projects;

Whereas for reasons of effectiveness it is necessary to make provision for a programme of four years duration with appropriate overall funding;

Whereas it is necessary to estimate the Community finance needed to implement this programme; whereas that amount must be covered by the financial perspectives defined by inter-institutional agreements; whereas the appropriations actually available will be determined under the budgetary procedure in compliance with the said agreements;

Whereas, notwithstanding the new impetus that the promotion of innovative energy technologies requires, the continuity of measures undertaken under promotional schemes and demonstration projects and industrial pilot projects in the energy field referred to by Regulation (EEC) No 2008/90 (2), (EEC) No 3640/85 and the programme of support for technological development in the hydrocarbons sector referred to in Regulation (EEC) No 3639/85 must be ensured in accordance with this Regulation; whereas such continuity must be achieved on the one hand through the pursuit of measures to promote and disseminate technologies that have received Community support under such Regulations; whereas it may also be achieved through support for the later stages of projects that have already received partial support under the same Regulations; whereas it must be possible in certain cases to support projects of the same sort as those covered by these Regulations provided they also fulfil the requirements of this Regulation;

Whereas cooperation between undertakings in various Member States in the field of energy technology must be maintained and encouraged;

Whereas technology transfer in the enery sector could contribute significantly to more efficient energy production and the reduction of pollutant emissions in the less favoured areas of the Community and in third countries;

Whereas such technology transfers should therefore be encouraged both within the framework of existing Community programmes and by any other appropriate means;

Whereas the grant of Community support must not affect conditions of competition in such way as to be incompatible with the competition provisions of the Treaty;

Whereas the Treaty does not provide, for the action concerned, powers other than those of Article 235,


Article 1

The Community may, under the conditions laid down in this Regulation, grant financial support for projects for the promotion of energy technology (Thermie 1995 to 1998) in the fields of application referred to in Article 3 and undertake the promotional activities referred to in Article 4.

Article 2

1. For the purposes of this Regulation, 'projects for the promotion of energy technology`, hereinafter referred to as 'projects`, means projects which are not eligible for the specific programmes of the fourth framework programme and which are designed to advance, implement and/or promote innovative technologies in the field of energy, implementation of which entails a large element of economic risk, such that those projects would in all likelihood not be executed without Community financial support.

2. Community financial support may be granted for projects designed to promote with a view to their broader utilization, either under different economic or geographical conditions or with technical modifications, innovatory techniques, processes or products which have already been applied once but, owing to residual risk, have not yet penetrated the market.

Article 3

The fields of application of this Regulation are selected areas of:

- rational use of energy,

- renewable energy sources,

- solid fuels,

- hydrocarbons.

Annex I lists the sectors of application covered by each of these fields. The contents of this Annex may be amended to keep pace with technological developments in accordance with the procedure defined in Article 9 (1), the European Parliament and the Council being kept informed.

Article 4

The Commission might undertake promotional actions, such as those defined in Annex II, designed to encourage the application and market penetration of energy technologies. To that end the Community may provide technical and financial support for bodies that promote innovative technologies in the Member States. A list of these measures appears in Annex II, the contents of which may be amended in accordance with the procedure defined in Article 9 (1).

These promotional actions may be carried out in third countries in so far as such extension is in keeping with the objectives of this Regulation.

Article 5

1. Any project within the meaning of Article 2 must meet the following conditions:

(a) it must use, with a view to their implementation and propagation, innovatory techniques, processes or products, or new application of established techniques, processes or products;

(b) it must offer economically viable prospects of subsequent commercial exploitation of the relevant technology;

(c) it must offer appropriate solutions compatible with safety and environmental protection requirements;

(d) it must be difficult to finance because of major economic risks;

(e) it must be proposed by natural or legal persons capable, in the case of the techniques, processes or products referred to in (a), of implementing and applying them, and of contributing to or assisting in the dissemination thereof;

(f) in the case of any project of a total cost of ECU 2 million or more, it must be submitted by at least two independent promoters established in different Member States.

However, exceptions may be agreed for projects submitted by a single promoter if their implementation would be of particular interest to the Community;

(g) it must be carried out within the Community unless it is essential to the interests of the Community to have all or part of it carried out in an area outside the Community, in particular because of the special characteristics of the project.

2. Additional conditions specific to the sectors of application are given in Annexes I and II.

3. When selecting projects, as an adjunct to the criteria laid down in paragraphs 1 and 2, it shall take account of a preference to be given to projects with the following characteristics:

(a) projects, other than those referred to in paragraph 1 (f), involving an association of a least two independent undertakings established in different Member States, provided that it is established that each undertaking can make an effective and significant contribution to carrying out the project;

(b) projects proposed by small and medium-sized undertakings or by an association of such undertakings;

(c) projects which are to be implemented in regions whose development is lagging behind as defined by Article 8 of Regulation (EEC) No 2052/88 (3).

Article 6

1. Support for a project shall take the form of a financial contribution by the Community granted in accordance with the conditions set out in the paragraphs below and in Articles 7, 11 and 14.

2. Financial support may be granted for an entire project or for different stages of a project. In the latter case, without prejudice to the responsibilities conferred upon the budgetary authority of the European Communities, financial support may continue to be granted for later stages of the same project provided that the eligibility criteria continue to be met and that the Commission is satisfied with the progress of the project.

3. Financial support may not exceed 35 % of the eligible cost of the projects referred to in Articel 2.

4. The amount of financial support shall be determined separately for each project. When determining the amount, one takes account of the element or proportion of the risk which will have to be borne directly by those responsible for the project and of other support received or expected, in such a way that the total amount of public support does not exceed 49 % of the total cost of the project. To this end, the person responsible for the project shall be obliged to inform the Commission of any public aid expected or received.

5. Whenever specifically required, a decision could be made to set up other appropriate financial mechanisms according to the procedure referred to in Article 9 (1).

Article 7

1. Projects shall be submitted by natural or legal persons established within the Community, whether individually or in the form of associations, following the publication of an invitation to submit projects in one or more of the fields of application referred to in Article 3 in the Official Journal of the European Communities, in accordance with this Regulation. This invitation could be preceded by an invitation from the Commission ecouraging or coordinating the launch of specific projects, called 'targeted projects`, whenever a technological gap exists in a specific area or significant progress could be achieved through cooperation between individuals, companies or other bodies established in at least two different Member States.

2. In the invitations to submit projects, the Commission shall specify those sectors to be given priority when projects are selected; this list of priorities shall be drawn up in accordance with the procedure defined in Article 9 (1). The Commission shall also specify the information applicants will be required to supply for the purposes of the selection of projects.

Article 8

1. The Commission shall be responsible for applying this Regulation.

2. The procedure referred to in Article 9 paragraph 1 applies to:

(a) the amendment of the contents of Annexes I and II;

(b) the establishment of priorities for invitations to submit projects;

(c) the selection of projects, including the fixing of the rate of financial support, for every project or promotional action with a total cost exceeding ECU 500 000;

(d) any institution of financing mechanisms in the sense of Article 6 (5).

3. The procedure referred to in Article 9 (2) applies to the selection of projects and promotional actions, and to the fixing of the rate of financial support for every project or promotional action, with a total cost exceeding ECU 100 000 but not exceeding ECU 500 000.

Article 9

1. In carrying out the tasks referred to in Article 8 (2), the Commission shall be assisted by a committee composed of the representatives of the Member States and chaired by the representative of the Commission.

The representative of the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft within a time limit which the chairman may lay down according to the urgency of the matter. The opinion shall be delivered by the majority laid down in Article 148 (2) of the Treaty in the case of decisions which the Council is required to adopt on a proposal from the Commission. The votes of the representatives of the Member States within the committee shall be weighted in the manner set out in that Article. The chairman shall not vote.

The Commission shall adopt measures which shall apply immediately. However, if these measures are not in accordance with the opinion of the committee, they shall be communicated by the Commission to the Council forthwith.

In the event, the Commission shall defer application of the measures which it has decided for a period of one month from the date of communication.

The Council, acting by a qualified majority, may take a different decision within the time limit referred to in the previous paragraph.

2. In carrying out the tasks referred to in Article 8 (3), the Commission shall be assisted by a committee composed of the representatives of the Member States and chaired by the representative of the Commission.

The representative of the Commission shall submit to the committee a draft of the measures to be taken. The committee shall deliver its opinion on the draft, within a time limit which the chairman may lay down according to the urgency of the matter, if necessary by taking a vote.

The opinion shall be recorded in the minutes; in addition, each Member State shall have the right to ask to have its position recorded in the minutes.

The Commission shall take the utmost account of the opinion delivered by the committee. It shall inform the committee of the manner in which its opinion has been taken into account.

Article 10

1. In implementing this Regulation, the Commission shall ensure the dovetailing of the programmes referred to in this Regulation with the programmes implemented by the Community under other specific programmes and which include the activities of demonstration of technical feasibility of projects, of the promotion of cooperation with third countries and of dissemination and optimization of results of activities in Community RTD.

2. In addition, it shall ensure closer coordination with national schemes in order to avoid duplication of similar projects.

Article 11

1. The contractor responsible for carrying out a project receiving financial support from the Community shall undertake to use the successful technique, process or product or to facilitate its use, and to allow dissemination of the results obtained.

2. The Commission shall, in cooperation with the bodies responsible in the Member States, endeavour to ensure the dissemination and application of projects supported in accordance with this Regulation and Regulations (EEC) No 1971/83 (4), (EEC) No 1972/83 (5), (EEC) No 3639/85 (6), (EEC) No 3640/85 (7) and (EEC) No 2008/90 (8), and to promote their exploitation. It may take appropriate steps to achieve this objective in connection with the promotional actions referred to in Article 4.

Article 12

Contracts shall be signed between the Community and the persons referred to in Article 14 for the implementation of the projects and promotional actions adopted under this Regulation, they shall govern the rights and obligations of each party, including the methods of dissemination, protection and exploitation of the results of the projects and the possibility of repayment of the financial support in the event of non-compliance with contractual obligations.

Article 13

Subject to Article 11, the information obtained by the Commission under this Regulation shall remain confidential.

Article 14

Responsibility for any project shall lie with a physical or legal person constituted in accordance with the law applicable in the Member States, or with an association of such persons, within they are jointly and severally liable, in so far as the law applicable in the Member State permits.

Article 15

Financial support granted by the Community must not affect conditions of competition in such a way as to be incompatible with the relevant provisions of the Treaty.

Article 16

Two years after the entry into force of this Regulation and also upon expiry thereof, the Commission shall submit a report on the implementation of this Regulation, in particular on the compatibility between national and Community action, to the European Parliament and to the Council for the purposes of assessing the results obtained.

Article 17

The appropriations necessary to the implementation of this Regulation shall be entered each year in the general budget of the European Communties.

The appropriations shall cover the financial support to be granted to projects referred to in Article 2, the financing of the actions referred to in Article 4 and other expenditure necessary to the implementation of this Regulation.

Article 18

Regulation (EEC) No 2008/90 shall continue to apply to projects and measures to which support has been granted pursuant to those Regulations.

Article 19

The Regulation shall enter into force on 1 January 1995.

It shall apply until 31 December 1998.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

(1) OJ No C 241, 25. 9. 1986, p. 1.

(2) OJ No L 185, 17. 7. 1990, p. 1.

(3) OJ No L 185, 15. 7. 1988, p. 9.

(4) OJ No L 195, 19. 7. 1983, p. 1.

(5) OJ No L 195, 19. 7. 1983, p. 6.

(6) OJ No L 350, 27. 12. 1985, p. 25.

(7) OJ No L 350, 27. 12. 1985, p. 29.

(8) OJ No L 185, 17. 7. 1990, p. 81.



The fields of application in Article 3 cover the sectors listed below.

1. Rational use of energy (RUE)

Financial support will focus on the following sectors of application:

- transport,

- building,

- industry,

- energy industry.

1.1. Transport

Projects must lead to a substantial improvement on the overall efficiency as well as a reduction on emissions, CO2 and other atmospheric pollutants, through technical improvements on traffic conditions and vehicles. Preferences are given to fleets of vehicles for public transportation, including urban freight delivery vehicles.

Two areas of projects can be considered:

(a) RUE applications:

- projects related to the promotion of innovative fleets of vehicles (new designs, new fuels: CNG, LPG, biofuels, diesel-electric . . .);

(b) energy substitution applications:

- projects related to the promotion of new fuels infrastructure and distribution systems (rapid and slow charging units, O + M special requirements),

- projects related to the technical adaptation of vehicles to new fuels.

1.2. Buildings

Projects must lead to a substantial reduction in energy consumption according to standards and substantial reduction of emissions and pollutants in building stocks through integrated technical and economic improvements. Preference will be given to projects with clear integration of design, materials and equipments with loads control and management.

RUE applications:

- projects related to the promotion of rehabilitation of buildings,

- projects related to the promotion of new integrated designs for new buildings,

- projects related to the promotion of new cooling systems (without CFCs).

1.3. Industry

- Heat recovery using new heat exchanger concepts for high polluted exhausting gases or new kiln designs for a best use of heat in the chamber(s). Combustion of exhausting gases with later use of heat produced can be also considered as well as CHP schemes improving the reliability of the equipment or incorporating new approaches for the use of the flue combustion gases.

- Technologies for the recovery of energy from industrial wastes through the production of by-products to be used as derivated fuel or direct energy production. Solutions to eliminate possible negative environmental impact have to be incorporated.

- Improvements of industrial processes reducing specific energy consumption, where this has an important weight in the total benefits of the project.

- Technical solutions for a best use of the electricity, especially in the peak load periods. Automation of process could be also considered, using standard and modular solutions easily replicable or new approaches, such as predictable and adaptable systems.

1.4. Energy industry

Advanced combustion burners, integrating solutions to save energy and reduce the environmental impact, as well as efficient cooling towers with lesser maintenance costs and reduced environmental impact. These solutions should be mainly addressed to the re-powering of existing plants.

Advanced systems to transport the heat produced in the district heating schemes either to reduce the cost of the installation or to decrease the energy losses in the distribution or through the heat exchangers.

Technical solutions to reduce the electricity consumption in power plants, that could be also used to get a most flexible operation in hydro pump/turbine schemes. Reduction of losses and increase of quality in the transport and distribution of electricity should be also considered.

2. Renewable energy sources

Financial support will focus on the following sectors of application:

- energy from biomass and waste,

- solar energy,

- wind energy,

- hydroelectric energy,

- geothermal.

2.1. Energy from biomass and waste

(a) Projects aiming at improving competitivity of biomass as fuel:

- activities aiming at improving the productivity of energy crops and harvesting and transformation technologies,

- activities aiming at improving and upgrading biomass conversion technologies for energy production and use (production and use of liquid, solid and gaseous fuels, production of heat and/or electricity),

- activities aiming at reducing the costs for providing the energy produced from biomass (reduction of specific investment costs, rationalization of production technologies . . .).

(b) Projects aiming at the energy use of vegetal, animal, urban and industrial waste:

- activities for the upgrading of waste which have a significant impact on the production, substitution of energies or on energy savings aiming at the reduction of the costs of the energy produced.

Projects must comply with the guidelines of community environment and agricultural policies.

2.2. Solar energy

(a) Photovoltaics


Dissemination of photovoltaics processes to supply electricity for:

- groups of houses, villages,

- buildings, with architectural integration of PV modules into roofs and/or facades,

- means of telecommunication, warning, signalling, water pumping, water purification, desalination, etc. . . .,

- distribution from PV central power stations.

(b) Thermal applications


Dissemination of techniques which relate to optimal technical and economic integration of active solar energy systems with efficient conventional systems, with guaranteed results for an overall improved reliability, used for:

- production of large quantities of hot water (or other fluids) for heating and/or cooling applications,

- production of large quantities of hot air for ventilation or drying applications.

2.3. Wind energy


- Dissemination of the results obtained from previous R& D programmes, in order to assist market penetration, encourage European industry, and promote the transfer and broader use of advanced technology, particularly in the less developed countries of Europe.

- Dissemination and popularization of the use of wind energy conversion systems tailored to the specific nature of the markets in the different Member States by wind turbines of a wide range of nominal capacity.

- Dissemination of techniques with minimum effect to the environment, namely reduced noise, minimum land use and improved aesthetic impact that will lead to an increased public acceptability.

2.4. Hydroelectric energy


Dissemination of techniques aimed at the production of electricity for a public network or for private use in low-power plants.

Fields of application:

- projects (targeted) aimed to bring together industrial partners to carry out high quality, reliable and competitive standard equipment in order to promote the creation of, or the penetration into new markets,

- projects (targeted) aimed to perfect simple, reliable and cheap techniques or technology, especially those adapted to the markets and needs of countries whose development is lagging behind,

- rehabilitation or modernization of abandoned sites or those which are approaching the end of their technical or administrative lives, by the use of high performance of state of the art technologies (best quality/price).

All projects must take into consideration existing and foreseen environmental protection measures.

2.5. Geothermal


To promote, through dissemination actions, the utilization of already located important geothermal resources, not yet exploited, bearing in mind economic and environmental aspects, and security of supply.

Fields of application:

- techniques in the drilling sector, wellhead equipment, corrosion, scaling, automation and the treatment systems for brine waters,

- exploitation of geothermal fields where the resources are proven, in order to reduce the mining risk,

- development of geothermal applications in agriculture, aquaculture and water desalination, thus helping the regions affected by the modifications of the common agricultural policy.

3. Solid fuels

The principle area is clean combustion.

All type of fluidized bed combustion (FBC) should be now spread around in the Community: small and large FBC are now reaching the industrial maturity and it will be effective to use them more and more. They have not to be limited to a type of fuel. But on the contrary, their ability to use a wide range of fuel should be taken into account in order to disseminate this technology. Therefore, use of bituminous coal, lignite, peat, rest coals, wastes, biomass, RDF, and all type of carbonaceous materials should be encouraged - alone or in mixture - to be burned in FBC.

FBC should be promoted to produce electricity, and also to be used in CHP generation.

4. Hydrocarbons


The programme should strengthen the industry capability to answer the short and long term requirements for the availability of efficient technologies in the field of oil and natural gas. The Community effort is therefore aiming at:

- the dissemination of technologies for assisting market penetration. Special attention (including cooperation projects) will be given to market penetration in the PECOs and CIS.

Beneficiaries would be mainly oil and gas related companies which are developing and promoting innovative and effective technologies to improve the exploration, production, transportation and use of hydrocarbons.

The fields of application in the upstream sector will be the dissemination of:

- tools and methods for enhancing exploration capability, particularly towards difficult and complex targets as the North Sea and for maximizing recovery rate,

- new technologies for marginal fields exploitation, notably for gas fields resulting in increased production from those reservoirs characterized by difficult economic conditions,

- safety and the environmental protection systems in exploration and production, particularly for the offshore sector,

- new and efficient LNG production and transport systems with a view to diversifing the supply.



1. Objectives

Encouraging the application and market penetration of energy technologies as referred to in Article 4 requires the undertaking of actions by the Community. Such actions are to be undertaken only in so far as market conditions require it and as they are in keeping with the objectives of this Regulation.

Community support for actions may therefore be granted in order to meet energy policy and other related objectives set out by the Treaty on European Union, in particular concerning:

- increased utilization of the industrial potential of energy technology development and improving the technological base of European industry, in particular for SMEs,

- encouraging European industry to become more competitive by exploiting technology development and market potential to the full,

- protecting and improving the quality of the environment by the rational use of energy resources, the use of renewable energy sources and clean energy technologies and reducing harmful emissions,

- technology transfer into less developed regions in Europe and exploitation of the local energy potential,

- improved working conditions and employment opportunities by the use of innovative and efficient energy technologies developed and supplied within the Community,

- international cooperation facilitating economic and social development of developing countries.

2. Type of actions

The actions referred to in Article 4 include:

2.1. Coordination with national schemes and other Community programmes related to energy technology in order to avoid duplication of similar actions and to ensure fully the application of the principle of subsidiarity for Community action, and in particular through:

(a) systematic exchange of information about national support schemes;

(b) programme evaluation activities carried out jointly;

(c) definition of objectives and implementation of strategies for energy technology promotion;

(d) monitoring the achievement of objectives.

2.2. Instruments of Community action in particular through:

(a) analysis of the features and evaluation of the potential of the market for the application of energy technologies and their market penetration (including technologies for demand side management, sectoral diagnosis, feasibility studies);

(b) the dissemination of information on European energy technologies, their further promotion and the dissemination of the results of public funded projects by the organization of events (technical workshops, seminars, conferences, project site visits, exhibitions), participation in technical fairs, the production of documentary material etc., as far as the undertakings' contractual obligations do not provide for it or the undertakings concerned are not able to carry them out by themselves;

(c) advice and promotional activities to guide the development of actions undertaken, ensure the wider penetration of efficient energy technologies and address barriers in the market;

(d) training of staff involved in management or technical applications of innovative energy technologies;

(e) development of appropriate financial mechanisms.

2.3. Recourse to public or private organizations cooperating in the above activities for the promotion of energy technologies ('OPET`) in particular using the OPET network.

2.4. Recourse to the above activities with a view to industrial cooperation with third countries, providing guidance for Community aid programmes and achieving optimal use of energy technologies inside and outside of the Community.

3. Implementation

As referred to in Article 9 of the Regulation, the implementation of the measures will be carried out in close cooperation with Member States by the committee which will assist the Commission in the definition of the programme, the establishment of the priorities for action, the decision of granting financial support and the evaluation of results.