Europe to dedicate funds to renewables under new program

STRASBOURG, France, June 21, 2006 (Refocus Weekly)

The European Parliament will dedicate two-thirds of its research budget for non-nuclear energy to renewables and energy efficiency.

Members of the EP voted to spend Euro 50 billion under the European Union’s Seventh Framework Program for Research (FP7) that will run from 2007 to 2013. The program will consist of four specific programs (Cooperation, Ideas, People, Capacities) to cover a number of thematic areas, including energy, environment (including climate change), health, agriculture, information technologies, nanosciences, transport, socio-economic sciences, security and space.

At its plenary session in Strasbourg, Parliament passed an amendment to bring the budget into line with the agreement on the financial perspective, and the seven-year program will have a budget of Euro 50,521 million compared with the Euro 72,726 million originally proposed by the Commission. This is a substantial increase with the previous program (FP6) from 2002 to 2006, which had a budget of Euro 16,279 million.

The areas of energy and health were identified as priorities for Parliament, with energy to receive a budget of Euro 2,415 million, of which two-thirds will go to research conducted under the three renewable energy activities and energy efficiency and savings.

In a parallel vote, Parliament allocated Euro 4 billion to nuclear research and training activities under the European Atomic Energy Community Treaty (Euratom), and a separate budget for nuclear research and training from 2007 to 2011 will be Euro 2,751 million, compared to the original EC proposal of Euro 3,092 million.

The EU Council of Ministers is expected to give final approval to the revised package at a meeting in July.

“The European Parliament’s vote reverses decades of unbalanced focus on fossil fuel energy research,” says Christian Kjaer of the European Wind Energy Association. “Europe is moving closer to a European energy future based on known and predictable cost of energy, derived from clean and indigenous energy sources free of all the security, political, economic and environmental disadvantages associated with the current energy supply structure.”

“In an era of energy uncertainty and a climate disaster waiting to happen, the European Parliament has made a bold statement - that renewables are a vital part of Europe’s future energy mix,” he adds. “For the wind industry, the decision will contribute to further progress of the technology and reduced cost, while maintaining Europe’s leading position in the global market.”

The International Energy Agency says research has lead to cost reductions of 40% for wind energy over the last 20 years, “so the Parliament has taken a big step towards enabling wind energy to reach cost parity with - and even to undercut - the cheapest alternatives,” he adds. Under the Sixth Framework Program, wind received only limited funding for research.


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