Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 Preliminary work programme for the RENERGIX programme abbreviated English version 1. Summary ............................................................................................................................................. 2 2. Background ......................................................................................................................................... 2 What is new since the RENERGI work programme was revised in 2009? ...................................... 3 3. Objectives of the programme ............................................................................................................. 4 4. Priority research tasks......................................................................................................................... 6 4.1 Thematic priority areas ................................................................................................................. 7 4.2 Funding instruments ..................................................................................................................... 9 4.2 International cooperation ........................................................................................................... 11 6. Budget ............................................................................................................................................... 12 Attachment: Thematic priority areas .................................................................................................... 14 Page 1 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 1. Summary This preliminary work programme establishes the formal framework and focus of the RENERGIX programme and provides guidelines for R&D players seeking funding under the programme. Calls for proposals for funding for R&D projects will be based on the content of this work programme, together with the national budget, the appurtenant allocation letters from the funding ministries, the annual analysis of the programme’s project portfolio, and the state-of-the-art and development trends in the thematic priority areas. Purpose: The RENERGIX programme is designed to help to achieve the Government’s energy and climate policy objectives, as well as to advance objectives in other important areas such as transport policy, industrial policy and research policy. The programme is targeted towards Norwegian companies and research and educational institutions that can enhance long-term competence-building that will further the development of the energy industry and related industries, such as the energy processing industry and the supplier industry. The programme is a key instrument in the implementation of Norway's national RD&D strategy, Energi21, as well as for achieving other energy policy objectives. The programme will also promote the broadest possible range of research activities to open the door to new thinking and innovative concepts. Most of the funding for renewable energy research at the Research Council of Norway will be channelled via the RENERGIX programme. The programme will provide funding for long-term basic research, competence-building, applied research and technology development. 2. Background The programme Clean Energy for the Future (RENERGI) was one of seven programmes under the Research Council’s Large-scale Programme initiative, spanning the 10-year period from 2004 to 2013. National and international policy is continually evolving, due in part to ongoing developments and changes in conditions within today’s society. This long-term research programme is based on the policy currently in place at this point in time. Over the course of a decade, shifts may be expected to occur in terms of research policy in general and energy, industrial and environmental policy in particular. Thus, a work programme that covers a 10-year period must be adaptable, must stake out a clear course, and must identify pressing challenges as well as promising opportunities. Page 2 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 What is new since the RENERGI work programme was revised in 2009? The RENERGI work programme was revised in 2009 to reflect changes in the energy sphere and to adapt the direction of the programme accordingly. Additional political guidelines in the energy sphere have emerged since that time and special weight must be given to these when designing a new energy research programme for the next 10-year period. The RENERGIX programme is a new large-scale programme. Therefore, this new work programme involves more wide-ranging changes than a revision of an existing work programme. Nevertheless, the RENERGI work programme represents an important part of the basis for this work programme. Key policy documents underlying the new work programme include: Energi21 – the National Strategy for Research, Development, Demonstration and Commercialisation of New Energy Technology (2011) – which sets out strategic priorities and recommendations and places particular focus on flexible energy systems. Official Norwegian Reports 2012:9 Energiutredningen – verdiskaping, forsyningssikkerhet og miljø (“Report on Energy – Value Creation, Security of Supply and the Environment”), which focuses on value creation based on Norway’s renewable energy resources as well as on raising energy efficiency and promoting sustainability. (Norwegian only) Report No. 21 (2011-2012) to the Storting: white paper on Norwegian climate policy, published in April 2012. Research strategy for the Ministry of Transport and Communications, 2011-2014 (2011). (Norwegian only) Official Norwegian Reports 2011:6 Et åpnere forskningssystem (“A More Open Research System”), which addresses the intensified reporting and measurability requirements for R&D investments. The broad-based political agreement on climate policy achieved in the Storting in 2008 identified R&D as a key policy instrument, which has resulted in stricter requirements for documenting results. (Norwegian only) Report No. 30 (2008-2009) to the Storting: Climate for Research, and the Research Council of Norway’s input for the new white paper on research to be published in 2013. Other relevant documents and processes that have been taken into consideration when designing the programme include: The evaluation of the RENERGI programme and the programme Optimal Management of Petroleum Resources (PETROMAKS) (February 2012). The evaluation of the Ministry of Petroleum and Energy’s allocations to R&D via the Research Council of Norway (April 2012). Additional factors that have influenced the design of the programme include: Allocations from the Ministry of Agriculture and Food and transfer of funding from the now-concluded Research Programme on Nature-based Industry (NATUROGNAERING), giving the RENERGIX programme overall responsibility for research on the value chains for biomass heating, bioenergy, biogas and biofuels. Page 3 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 The EU’s Strategic Energy Technology Plan (SET Plan), and activities relating to drawing up the new EU Framework Programme, Horizon 2020. A detailed description and discussion of key documents that have provided guiding principles and important input for determining the RENERGIX programme’s strategic focus, objectives and thematic priority areas may be found in the Norwegian-language version of the work programme. 3. Objectives of the programme Renewable energy and raising energy efficiency in connection with power production and consumption, heating/cooling and fuel have been identified as the most important means of solving global climate challenges while ensuring secure access to energy. Virtually all activity under the RENERGIX programme is designed to promote this through the development of global technological solutions and advancement of the knowledge base for sustainable social development. The RENERGIX programme is a large-scale, high-profile programme in an area of strategic importance for the long-term restructuring needed to achieve Norway’s aim of becoming a carbon-neutral society by 2050. Activities under the RENERGIX programme will strengthen existing research communities and further refine their expertise. Efforts will be made to foster innovative thinking and create new opportunities. Among other things, this will involve the constructive use of funding instruments to facilitate the emergence of new players with fresh ideas. Based on current national policy and the possibilities inherent in the research itself, the following primary objective and targets have been formulated for the RENERGIX programme: Primary objective: The RENERGIX programme is designed to provide support for the long-term, sustainable restructuring of the energy system in order to accommodate a greater supply of new renewable energy, improve efficiency and flexibility, and facilitate closer energy integration with Europe, with due consideration given to environmental perspectives. The programme will help to generate new knowledge and cutting-edge solutions aimed at achieving five primary targets, which are presented and elaborated on below. The programme will work to: Ensure Norway’s security of supply in light of the increasing integration and internationalisation of the energy system by developing new knowledge, technology and solutions for: ensuring sound management, secure production and optimal consumption and transmission of energy; improving the robustness and flexibility of the energy system. Page 4 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 Achieve sustainable1 utilisation and consumption of Norway’s renewable energy resources in the short and the long term by developing new knowledge, technology and solutions for: using energy properly and using the proper energy; exploiting Norway’s particular advantages with regard to value creation. Reduce Norwegian and global emissions of climate gases by: enhancing knowledge relating to the use of policy instruments, market development and altering energy consumption; developing new knowledge, technology and solutions in areas in which Norway has special expertise to facilitate reductions in global emissions; learning more about how to design effective planning and decisionmaking processes, establish constructive framework conditions and implement useful instruments for the production and consumption of and systems for clean energy. Develop Norwegian trade and industry in areas in which Norwegian players have specific competitive advantages by: developing new knowledge, technology and solutions to boost companies’ national and international competitiveness; ensuring that Norwegian players have access to international knowledge production and open opportunities for innovation in Norwegian trade and industry. -In this context, Norwegian players mean companies that contribute to value creation in Norway, either through Norwegian ownership or a presence in the country. Develop Norwegian research communities in priority areas by: o enhancing technological and social science-related knowledge about challenges relating to the long-term restructuring of the Norwegian energy system; o facilitating innovative research on future conditions and development trends that are not yet known and to answer questions that have not yet been asked. The framework within which these targets are to be met is continually shifting to reflect economic and industrial developments, environmental, social and cultural circumstances, and national and geopolitical conditions, among other key factors. Thus, an understanding of this complex overall context will be essential to ensuring that the research activities adequately target the implementation of new knowledge and application of results. 1 Sustainable development is built on three pillars: 1) the economic, 2) the social, and 3) the environmental. The term sustainable development came into widespread use at the 2002 World Summit on Sustainable Development in Johannesburg. (See Official Norwegian Reports 2009:16 Globale miljøutfordringer – norsk politikk (“Global Environmental Challenges – Norwegian Policy”) (Norwegian only)). Page 5 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 4. Priority research tasks The key documents that provide important guiding principles for the programme are described in Chapter 2.2 of the Norwegian-language version. Of particular importance are the six priority focus areas identified in the Energi21 strategy report: Solar energy Offshore wind power Improved utilisation of resources using balancing power Flexible energy systems – smart grids Conversion of low-grade heat into electricity CO2 capture, transport and storage (CCS) The thematic and scientific perspectives of the RENERGIX programme are summarised in the figure below. The Energy21 strategy identifies six priority focus areas In addition, the RENERGIX programme will focus on: Transport Energy markets and policy Raising energy efficiency Bioenergy The figure illustrates the Energi21 strategy report’s recommendation to intensify efforts across the board (green boxes), with targeted efforts in six priority focus areas (blue boxes). In addition, the RENERGIX programme will encompass the areas of transport, energy markets and energy policy, raising energy efficiency, and bioenergy. Page 6 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 The mandate of the Energi21 strategy is limited to stationary energy production and consumption, while the RENERGIX programme will also address energy production and consumption relating to transport and agricultural biomass. The Official Norwegian Report on energy and the Government white paper on climate policy both emphasise the importance of raising energy efficiency in buildings and industry alike. Energy markets and energy policy are integral topics in the Energy21 strategy report of 2011, and are brought further to the fore in more recent strategy documents. The RENERGIX programme has the additional responsibility of promoting the broadest possible range of research activities to open the door to new thinking and innovative concepts. 4.1 Thematic priority areas The thematic priority areas of the RENERGIX programme are designed to address the priorities described above. The focus of research activities must lie within the operational value chain and on the problems that exist there. Research activities must also view energy systems as an integrated whole and social science-related research must be an integral part of the general energy research. The programme will also promote the broadest possible range of research activities to open the door to new thinking and innovative concepts. Page 7 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 RENERGI.X skal utvikle ny kunnskap og løsninger for: Energipolitikk, samfunn og økonomi Fornybar energi Vann Vind og hav Sol Bio Energisystem Overføring Balansetjenester Konvertering Lagring Nye konsepter Figure 0-1. Thematic priority areas of the RENERGIX programme. The RENERGIX programme will generate new knowledge and solutions for: Energy policy, society and economics Renewable energy Hydropower Wind and marine energy Solar energy Bioenergy Energy systems Transmission Balancing services Conversion Storage Efficient use of energy Buildings Industry Page 8 of 29 Effektiv energibruk Bygg Industri Transport Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 Transport New concepts The programme encompasses technological, natural science, social science and humanities-related research activities with a broad thematic scope. Many research questions will include topics from more than one thematic priority area. Importance is attached to establishing a framework that encourages projects addressing research questions that extend across several thematic priority areas. Please refer to the attachment to this work programme for a more detailed description of the thematic priority areas. 4.2 Funding instruments The overall objectives of the allocations from the Ministry of Petroleum and Energy to energy research are to promote greater long-term value creation and ensure the efficient, cost-effective and sustainable utilisation of Norwegian energy resources. Funding for energy research is intended to reinforce investments in R&D in both the public and private sectors, as well as to support the establishment of and bolster independent research projects on topics not yet prioritised by industry. Funding is to be awarded to projects with major economic benefits that would not have been realised without this support, or at the very least would have been realised on a smaller scale or over a longer period of time. Funding is also to be used to meet the energy sector’s and society’s needs for long-term competence-building. The RENERGIX programme is to provide public funding to projects within the thematic priority areas on the basis of identified needs and opportunities. Financial resources must therefore be administered in a way that ensures that public funding generates research that would not otherwise have been given priority. Long-term objectives and stable framework conditions will be given high priority under the RENERGIX programme. At the same time, the programme must maintain the flexibility required to adapt to changing needs and opportunities over time. Such flexibility will also be crucial when prioritising funding instruments/types of projects. For example, it may be best to promote long-term competence-building in one area for a certain period of time, while promoting industrial innovation in another. The programme board will weigh such considerations on an ongoing basis, while striving to ensure that the need for stability is met. It is equally important that the programme seeks to create new opportunities by facilitating cooperation between public and private players. In certain cases, such cooperation – combined with public funding – may result in projects of greater scientific merit and with a longer timeframe than would otherwise be possible. Differences between branches of industry, technological maturity, the degree of basic research being conducted and the amount of researcher training are all Page 9 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 elements that will play a role when determining which thematic priority areas to select, how much of the public funding to allocate and which instruments to employ. The trend towards increased international research cooperation may also be of importance when setting priorities for the use of national funding. As a general rule, the RENERGIX programme will employ three types of funding instruments: Researcher Projects, Knowledge-building Projects for Industry (KPN), and Innovation Projects for the Industrial Sector (IPN). Together with other public funding instruments, these provide support for fundamental knowledge development, development of strategic competence, and research for innovation in the first segment of the innovation chain. (Please refer to the illustration entitled Hvordan henger vi sammen (“Relationship between the public sector players”) in Chapter 7 of the Norwegian-language work programme.) Interaction with the other public agencies within the research and innovation system is crucial to generating high-quality results of significant relevance and benefit to the various stakeholders, to providing the stability and reliability users need over time, and to ensuring a high degree of achievement of the objectives of public investment. Ongoing strategic planning and assessment are essential to striking the right balance of research activity on various technologies, branches of industry and topics. Different technology areas will require the use of different funding instruments. Such considerations comprise an important part of the strategic planning efforts of the responsible programme board. The figure below provides an historical overview of the distribution of funding among the various project types under the RENERGI programme. This distribution provides a natural foundation on which the new programme can build. Researcher Projects Knowledge-building Projects Innovation Projects International cooperation Ph.D. pool Administration, etc. Page 10 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 4.2 International cooperation According to the Research Council of Norway’s Strategy on International Cooperation, the objectives of Norway’s participation in international research cooperation are to: Help to address global challenges to society. Enhance the quality and capacity of Norwegian research. Secure Norway access to international knowledge production. Boost the competitiveness of Norwegian trade and industry. Promote Norway as a leading research and innovation nation in selected research areas. Knowledge generated under the RENERGIX programme will constitute an important component of Norway’s knowledge base both in terms of strengthening and exploiting the country’s competitive advantages as well as promoting Norwegian industrial development in an international market, and in terms of helping to address global challenges. International cooperation will be an important tool for: further developing Norwegian research communities of high scientific calibre in an international perspective; enhancing the level of expertise in industry-oriented and applied R&D; improving the position of Norwegian research communities by highlighting their efforts and increasing their visibility; participating in advancing the international research front in areas in which Norway has particular advantages. There is an increasing trend towards co-financing of research projects and programme cooperation across national boundaries. This is accompanied by the emergence of new funding instruments and extends to a growing number of arenas for cooperation. The RENERGIX programme will serve in an advisory capacity, provide a meeting place and offer targeted support for researcher mobility. Such efforts will be directed towards enhancing the Norwegian research community’s awareness of and access to networks, and facilitating cooperation with leading international research groups. Support for institutional cooperation may be constructive in helping Norwegian R&D institutions to gain a foothold on global research markets and serve as a springboard for establishing concrete research cooperation. Emerging economies, such as China, India and Brazil, represent potential markets for Norwegian industry but will also take part in setting the agenda for research and technological development. Thus, they are also potential partners in R&D efforts to address global challenges. Resolving energy poverty and poor security of supply in many countries calls for the development of sustainable, renewable energy solutions internationally. Expertise developed in Norway could become sought-after in many parts of the world, representing new research and market opportunities for Norwegian R&D players, consultants and industry. The Research Council has proposed the establishment of a separate initiative in the area of energy security and Page 11 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 development that would be tangential to but not overlapping with the RENERGIX programme. 6. Budget The 2012 budget for the RENERGI programme is NOK 386 million, comprising allocations from seven ministries. The Ministry of Petroleum and Energy provides around two-thirds of the overall allocation and is clearly the most important stakeholder in the programme. Overall financing for the RENERGI programme, 2012: NOK 386 mill. Ministry of Petroleum & Energy Ministry of Education & Research Ministry of Agriculture & Food Ministry of the Environment Ministry of Trade & Industry Ministry of Transport & Communications Ministry of Education & Research Ministry of Agriculture & Food, bioresources Ministry of Fisheries & Coastal Affairs, bioresources The budget framework for the RENERGIX programme will not be finalised until the national fiscal budget for 2013 has been approved; i.e. after approval of the final work programme. Allocations for the coming years will be made over coming national budgets. Page 12 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 A high level of allocations to the RENERGIX programme must be continued if we are to meeting the coming challenges in the energy and climate sphere. The Energi21 strategy report recommends increasing the amount of funding to be channelled via the programme to NOK 500 million annually. Application assessment process With regard to application processing, Researcher Projects and Knowledgebuilding Projects for Industry (KPN) will primarily be assessed by international referees. When feasible, the referees will be convened in a panel for consensus discussions. The consensus process will provide the formal basis for application assessment. Innovation Projects for the Industrial Sector (IPN) will be assessed by national referee panels convened for discussion. The programme administration will incorporate the referee assessments into its recommendation to the programme board. Applicants who wish to have their applications for innovation projects treated confidentially must explicitly request this. In such cases applicants will have the opportunity to comment on the proposed referees. Page 13 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 Attachment: Thematic priority areas Energy policy, society and economics Background State-of-the-art Research-based knowledge on society, economics and policy provides an important basis for the longterm energy strategies of the authorities and trade and industry. To date, a number of dynamic research groups have been established in this area, with extensive expertise in among other things: analysis of energy and environmental policy and public instruments in a national and international context; knowledge about the energy market in Norway, the Nordic countries and Northern Europe; and development trends in household consumption of energy in daily life and in homes. Social science and economic research on human-related factors underlying the framework for restructuring of the energy system comprise a key component in achieving a development towards more environment- and climate-friendly energy. Opportunities and challenges Renewable energy is an important element of transition strategies towards a more sustainable society. The point of departure for such a transition must be the prevailing economic, industrial, social and cultural conditions. A broader understanding of how societal framework conditions pose barriers to as well as opportunities for change is needed. Research must address the following areas, which also should be viewed in relation to one another: Public policy and instruments There is a need for knowledge about public policy and instruments as a basis for achieving overall energy and environmental policy objectives. Research activities in this area will typically include studies on how policy and management are manifested in the form of investments and financial instruments (taxes, subsidies, quotas), as well as studies of the statutory framework, directives and standards, and information and competence-building to help to alter patterns of energy consumption. In this context, it is vital to analyse the impact of institutional and political shifts in the international arena – particularly in the Nordic countries and the EU, but in other parts of the world as well – on developments in Norway. Research activities will also include generating knowledge to improve governance principles, processes for granting concessions, and cooperation between public agencies and between public and private players. Technology analysis, innovation and diffusion A better understanding is needed of the characteristics of innovation processes for development and diffusion of different energy technologies, and of the interaction between technology and environmental, social, cultural and societal factors. Market imperfections often have an impact on innovation and diffusion, so gaining an understanding of this mechanism is vital to providing a basis for designing instruments. A basis for greater insight into the effect of uncertainty/risk on public and private investment in R&D, demonstration and commercialisation activities is also essential. The development of models to determine which investments offer the most commercial and economic benefits in various scenarios of demand and technology development is also a research activity in this area (roadmap). A better understanding of the processes of democratic dialogue and public Page 14 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 engagement in relation to the role of renewable energy technologies in society is needed as well. Market design for production, sale and supply of renewable energy Effective market design is crucial to promoting increased, efficient and secure production, distribution and sale of renewable energy. In recent years, research has focused on regional, national and Nordic power market-related questions. Given that in the years to come the energy system will have to accommodate more unbalanced power as well as international needs, agreements and regulations, knowledge should be developed on how markets that operate differently and use different technologies can function together. There is also a need to analyse how investment signals work, and how they can be designed to encourage various markets to focus more towards improving the efficiency of resource use and increasing production and consumption of renewable energy. Sustainability and efficiency of resource use This area encompasses issues relating to efficiency of resource use, lifecycle perspectives and discussions of sustainability in the interface between local and global climate and environmental challenges. Renewable energy resources are not evenly distributed geographically, and patterns of energy consumption vary from place to place around the world. There is a need for knowledge about the degree to which various individual technologies and/or energy technology mixes are sustainable in the context of the available resource base and of their effect on the environment. Projects in this area would model typical resource use and emissions from the energy system, and would develop indicators for climate impacts (carbon cycle and radiation balance) and impacts on biological diversity and human health. There is also a need to shed light on, assess and compare various types of environmental impacts. Targets Within this thematic priority area the programme will seek to: Develop new knowledge about the prerequisite economic, social, political and cultural factors and framework conditions that will facilitate the long-term restructuring of the energy system. Develop a research-based foundation for long-term, knowledge-based resource management on the part of the authorities and the industry. Develop practice-oriented solutions in collaboration with relevant public and private players. Cultivate an informed public, equipping private individuals with the information they need to understand and tackle energy-related challenges. Assist in establishing new knowledge and analysis services in the energy sector. Page 15 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 Renewable energy Background Renewable energy -Hydropower -Wind and marine energy -Solar energy -Bioenergy Fornybar energi Vann Vind og hav Sol Bio Sustainable production of renewable energy is a cornerstone of the Norwegian energy system. Fully 96 per cent of Norway’s electricity production comes from hydropower. While Norway has developed much of its potential for expanding large-scale hydropower, the potential for increased value creation through enhanced utilisation of existing hydropower plants and small-scale plants still remains. There is also potential for new wind power. There are opportunities available for Norwegian industry players to deliver new technology for hydropower and offshore and land-based wind power. Marine energy may represent additional industrial opportunities. In the field of solar energy (photovoltaic solar energy), a significant industry based on materials expertise and industrial and research experience has been established in Norway; this can be further developed to target a rapidly growing market. In utilising thermal solar energy and bioenergy, there is potential related to even better utilisation within the Norwegian energy system. For utilising geothermal energy, heat pumps are currently most used. Deep geothermal energy could gain importance in the future. Research in these areas must help to increase the sustainable utilisation of renewable energy resources in Norway – while preserving the natural environment and ensuring security of supply – as well as contribute to industrial development in areas where Norwegian players have competitive advantages. Hydropower Norway had a leading role in the development of hydropower, and now plays a leading role in hydropower operations. In recent years, few large-scale hydropower plants have been built in Norway, but maintenance-related reinvestments are increasing. Research related to upgrading and expansion may lead to substantial new production and provide both commercial and economic benefits. Norwegian players have to some extent maintained their high competency in hydropower development by participating in international projects, and refine their operational expertise by managing Norway’s hydropower resources. It is important to maintain and renew this vital expertise through e.g. research and development. Wind and marine energy Norway has considerable potential for developing offshore wind capacity. Steady wind conditions give Norwegian turbines significantly more operational uptime than those of other European countries. In recent years, offshore wind power activities in Norway have increased markedly; two research centres have been established in addition to a substantial upsurge in the number of other relevant research projects. Norway also has in-depth expertise in installing and operating offshore installations. Page 16 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 Wave energy remains an immature technology. No particular concept or technology stands out thus far. Tidal power is somewhat more mature; several different prototyping and demonstration facilities have been in operation for years, but there is still a need for further R&D efforts. Solar energy The solar energy industry has grown dramatically over the last 15 years, and this international market is expected to continue to grow. Currently, the solar energy industry is facing the challenge of high production capacity (particularly from Chinese players) and falling prices; this has had the largest effect on the European and US industries. The market is undergoing rapid growth, however, and is expected to stabilise as the industry matures. Norwegian players have great opportunities within the segments of the value chain where they have competitive advantages. Bioenergy Biomass can be utilised and processed for transport-oriented applications and stationary-sector applications. There is potential for increased production and better utilisation of bioenergy within the Norwegian energy system. In contrast to neighbouring countries, bioenergy in Norway is primarily utilised for heating purposes. There is thus a need to develop new solutions for utilising biomass on a wider scale. It is important to consider the factors of efficiency, profitability, and not least sustainability, taking care to preserve biodiversity while maximising CO2 uptake and binding over time. This requires more knowledge about sustainable extraction of biomass resources in Norway. Greater utilisation of Norwegian bioenergy resources will help to increase the use of available natural resources and energy resources and lead to higher resource efficiency, reduced emissions and enhanced security of supply – all while helping to create new, green jobs. Opportunities and challenges Wind and marine energy Offshore wind power and marine energy must be strengthened, and costs must be reduced significantly. These will be the main challenges in the short and medium term. Norway has considerable experience in constructing and operating offshore installations. Several major Norwegian players are investing in wind power. Development of offshore wind power in deeper waters is still immature; Norway has great potential to succeed in this area. The Norwegian power production industry is strong and is in an excellent position to participate in wind power development. Land-based wind power is more mature; a key topic is enhanced knowledge about environmental and social impacts of establishing wind farms. Hydropower Identify environmental impact of utilising hydropower, both large and small-scale. Generate knowledge and solutions that promote environmental design for sustainable and efficient production. Increase use of hydropower as balancing power. Take advantage of the potential of small-scale plants. Develop a hydropower-related supplier industry. Solar energy Large potential and strong growth in markets ahead, and Norway has significant expertise and is Page 17 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 well positioned. How can we secure and enhance these? Consumption of solar energy, including in Norway, is now relevant. How can we optimise its use in Nordic areas and integrate solar cells into buildings? Development of processes for more efficient production throughout the entire value chain. Bioenergy Identify opportunities and barriers for increased, sustainable harvesting of forest-based biomass. Devise harvesting and logistical solutions for waste from agriculture, domesticated animals, households and industry. Find new bioenergy raw ingredients such as algae and other marine biomass. Carry out environmental analysis. Targets Hydropower Ensure and further develop expertise for supporting export-oriented trade and industry. Optimise energy production at existing facilities. Develop Norwegian hydropower to be capable of supplying balancing power to Europe. Contribute to sustainable development and efficient utilisation of hydropower resources. Generate knowledge about environmental impact and develop environmental design to reduce negative effects. Wind and marine energy In the short term (5-10 years) help Norwegian trade and industry to become a significant player in wind and marine energy. Provide a knowledge base for developing Norwegian suppliers of products and solutions for an international market. Help to lower the levelised cost of energy (LCOE) for wind and marine energy. In the longer term (10-20 years) help to develop concepts for offshore wind power in deeper waters and expand offshore wind and marine energy on the Norwegian continental shelf. Generate knowledge about environmental impact and develop environmental design to reduce negative effects. Solar energy Provide a knowledge base within solar energy for further developing the Norwegian solar energy cluster and new industry. Help to ensure that Norwegian players maintain a leading position through e.g. enhanced understanding of silicon as a solar cell material and related production processes. Introduce new materials, processes and concepts that can raise efficiency of solar cells and panels and reduce overall cost per installed kWh. Bioenergy Enhanced value creation by using bioenergy from all forms of sustainable biomass. Efficient, sustainable value-chain development for harvesting and logistics. Contribute to successful technology development that yields more application areas. Generate knowledge about environmental impact and develop environmental design to reduce negative effects. Page 18 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 Page 19 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 Energy systems Background Energy systems -Transmission -Balancing services -Conversion -Storage The thematic priority area of energy systems encompasses transmission, balancing services, conversion and storage of energy in the form of electricity, thermal energy, and liquid and gaseous fuel. The development of new infrastructure – including transmission systems, energy conversion facilities and storage depots – is critical for utilising renewable energy, raising the efficiency of energy use and restructuring energy for transport. Investments on the order of several tens of billions of kroner must be made in the Norwegian power system to achieve sufficient capacity and functionality in accordance with the EU’s SET Plan 20-20-20 targets, under which Norway has also undertaken commitments. Norway alone houses nearly 50 per cent of Western Europe’s total hydropower reservoir capacity. However, Norwegian hydropower has primarily been developed for satisfying Norwegian energy demands rather than for supplying flexibility. Thus the average uptime of Norwegian hydropower exceeds 4 100 hours, in contrast to the roughly 1 750 hours of the Union for the Co-ordination of Transmission of Electricity (UCTE) system. Europe must be prepared to find its own solutions to this challenge. Norwegian hydropower and reservoirs are one possibility. Norway’s annual heating and cooling needs amount to 45-50 TWh. Increased development and restructuring to energy-flexible heating and cooling will mean more use of available natural and energy resources, higher resource efficiency, reduced emissions and enhanced security of supply, and will help to create new, green jobs. Annual consumption of liquid motor fuel in Norway is approximately 80 TWh – nearly all of which is fossil energy. Consumption of petrol, diesel fuel and other motor fuels accounts for over 25 per cent of national CO2 emissions. Restructuring the transport system to non-fossil transport energy will also have implications for the stationary energy system. Many new challenges will emerge that involve the transmission grid system, for instance: charging of electric vehicles; production, storage and distribution of hydrogen; phasing in stationary production from small-scale power plants, wind turbines and solar cells; the use of heat pumps/geothermal energy; and heat integration with various sources such as biofuel production plants of the future. Relevant topics for R&D activity: Transmission Transmission solutions for electricity, including offshore grids. Smart grids: interactive power system, control systems, safety systems, demand-side management Page 20 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 including vehicle charging, coordination with district heating. Integration of customers as both consumers and producers. District heating/cooling: distribution systems with integration of different sources of heat and energy storage, including communications and balancing. (Gas distribution with integration of different sources of gas and gas storage, including communications and balancing.) Balancing services Facilitating the sale of system services (balancing power) to Europe by integrating tomorrow’s energy systems with the Continent, first via expanded HVDC connections and, later, by developing a single integrated offshore power system in the North Sea. Developing frameworks for a power market and insight into the size of the European market for balancing power. Devising models for determining the environmental impacts of short and long-term balancing power. Developing technological solutions and systems for pumped-storage capacity. Identifying the environmental impacts of rapid discharges and major changes in reservoirs. Enhancing understanding of turbine and electromechanical stresses from increased power output and dynamic operation. Conversion Centralised heat production (district heating) from bioenergy and waste. Other thermochemical conversion processes. Biochemical conversion processes. Biogas processes. Hydrogen conversion (reformation, electrolysis, fuel cells). Storage Electric batteries and charging systems and solutions. Hydrogen and biomethane: stationary storage, storage in gas infrastructure, storage in vehicles, filling and tapping solutions. Heat storage: geothermal storage, storage of heat and cold in compact units, manufactured heat storage tanks, storage in district heating systems, filling and tapping solutions for thermal energy. Other energy storage methods: air pressure, chemical storage, etc. Opportunities and challenges Transmission Realising energy systems of the future will require major restructuring in relation to expertise, technology, personnel and organisation – but the opportunities for Norwegian trade and industry are great. Norwegian component and systems suppliers are advanced in certain key areas, and R&D players have a high level of expertise in component technology, grid analysis, operation and management. Since 1991 the Norwegian grid regulatory regime has provided few incentives for innovation and development. Grid owners’ R&D activities targeting tomorrow’s grid solutions have been in steady decline, with only a few exceptions, and implementation of expertise has progressed slowly. The SET Plan’s European Electricity Grid Initiative (EEGI) and the Energi21 strategy both acknowledge that efforts must primarily focus on innovation, testing and demonstration between now and 2020. On the transmission side and in the longer term, there may be greater need for basic competence-building. According to EEGI, in 2012 the EU will double its R&D activities relating to energy Page 21 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 systems. This includes environmental design as well as proper placement of new grids to reduce social conflicts. Norway has the infrastructure, technology, logistics and expertise to utilise available natural resources and produce and distribute heating and cooling efficiently, integrating it into a smart energy system that offers end users many choices. Norway has smart solutions which utilise a variety of energy sources and technologies (biomass heating, heat from surroundings, geothermal, solar, waste heat, heat pumps) that complement each other. Heating will play a nationally strategic role in a secure future energy supply; combined heat and power (CHP) can also play a part. District heating and district cooling grids represent large-scale solutions for utilising local energy resources. A future energy system that comprises greater variation on both the consumption and production sides must place greater emphasis on system-integrated production solutions and costeffective distribution systems. Development of local heating and cooling infrastructure must be viewed in context with the other regional energy systems as well as access to local energy resources such as biomass (including waste), geothermal energy and waste heat which can be upgraded with adapted heat pumps. Balancing services Utilising Norwegian hydropower is attractive both technologically and cost-effectively, but it requires the development of new European solutions for regulation and market design which ensure sufficient security of supply at all times. Nevertheless, Norway could clearly play a role in this market by making the most of the capacity of existing Norwegian hydropower reservoirs to supply a significant share of the large demand for flexibility in Europe’s power system. Conversion In combustion of both waste and virgin biomass, Norway has substantial expertise and a rapidly growing industry targeting district heating. Higher efficiency and lower emissions can be facilitated by intelligent fuel mixtures, more extensive monitoring and control of combustion, and refinement of combustion chamber technology. In the area of transport-oriented conversion, Norway has competitive companies and dynamic, industry-oriented research groups for materials research that are relevant for reformers, electrocatalysts, fuel cells and catalysts for biofuel conversion. Norwegians have acquired a great deal of relevant expertise from their lengthy experience with oil and gas refining, wood processing, and other processing industries. The use of hydroelectrolysis, for example, dates back more than 80 years in Norway. This opens up opportunities to establish internationally competitive research groups on biofuels and hydrogen. Storage Developing an efficient energy system for the future will entail extensive expansion of thermal energy systems. This will better utilise scarce, costly and/or variable renewable energy resources, free up much of the electricity directly applied for heating (and cooling), and make it possible to phase out the use of fossil energy for heating and industrial processes. Norwegian energy companies and affiliated research groups have in-depth expertise in hydropower technology. This will be a valuable commodity as Norway’s hydropower reservoirs are increasingly used to store energy for Norway and the rest of Europe, which will entail more use of hydropeaking Page 22 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 and the construction of more pumped-storage plants. Another important area is storage of gaseous energy carriers such as hydrogen and methane. Norwegian companies and research institutions have expertise in compression, cooling, and liquefaction as well as storage in metal hydrides. In the Norwegian context this is particularly relevant when oriented towards the transport sector. Underground storage of thermal energy is another area in which Norway has valuable experience, in part originating from research groups working in the petroleum industry. Storage of heat and cold in compact units could substantially help to reduce peak loads in the industry. Explosion safety is vital knowledge applying to conversion, filling, tapping and storage of hydrogen, and is another area in which Norwegian companies and research groups have already delivered outstanding research results. For electric batteries, Norway also has first-class expertise in materials research relating to cathode materials and battery systems. Targets Transmission Technology that facilitates a smarter, sufficiently reliable transmission and distribution system. Cheaper transmission solutions that enable Norway to supply more balancing power to Europe. Balancing services Technology and solutions that facilitate efficient, environment-friendly hydropeaking and pumped-storage capacity at Norwegian hydropower plants. Sufficient knowledge about instruments and market design. Realisation of the value of hydropower by developing flexibility services. Conversion Important advances for more energy-efficient, environment-friendly bioheating centres and waste combustion plants. Applicable thermochemical conversion processes for production of second-generation biofuels. More biochemical conversion processes useful in fuel production and other biorefining. More efficient biogas processes which can also utilise new fractions of biomass and waste. Applicable hydrogen processes, including advances in hydrogen safety. Storage Sufficient systems knowledge (including environmental and resource knowledge) for costeffective development and operation of heating and cooling systems. Optimised storage solutions for district heating, local heat production centres and heating/cooling solutions for individual buildings. Optimised technology for large-scale storage of gaseous energy carriers. Optimised solutions for underground storage of thermal energy. New materials and solutions for more efficient electric batteries. Page 23 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 Efficient use of energy Background Efficient use of energy -Buildings -Industry -Transport Effektiv energibruk Bygg Industri Transport Buildings Together, Norwegian residential and commercial/industrial buildings account for roughly a third of the nation’s total energy consumption – in fact, when energy for materials and equipment are included, this ratio climbs to 40 per cent. Norway’s total needs for heating and cooling amount to 45-50 TWh. Construction and renovation of buildings is being carried out for more than NOK 100 billion annually. To a large extent, these are the investments that will determine Norway’s future energy situation. Ambitions relating to the energy efficiency of buildings are steadily rising, as evidenced by increasingly stringent technical requirements in regulations for managing energy use in a building. Yet some uncertainty has arisen concerning existing technologies and whether they are properly adapted for Norwegian climate, whether they offer the end user sufficient flexibility in using the building, whether the solutions promote health, and whether actual energy consumption is as low as that being sought. Buildings will be increasingly integrated into the energy system as part of the development of smart energy grids, in which buildings of the future will be “prosumers”, i.e. producers as well as consumers of energy. Surplus energy from smart low-energy buildings, together with building-based energy production, will be transmitted back to the grid. This will apply to both electricity and district heating and will open up new technological, economic and regulatory potential and challenges with regard to the energy system. Already, plus-energy buildings are being planned and built in Norway. These are buildings whose energy performance surpasses passive-house standard and which in the course of their lifetime will generate more energy than they consume. Moreover, it is a key ambition for the construction industry to succeed in realising “zero-emissions buildings” which emit no climate gases throughout their lifetime, including the construction and operation phases. These are buildings that will basically need to be energy-neutral or at least zero-energy standard. Buildings rarely stand isolated; they are normally part of the structure of a neighbourhood in an urban or village setting. A building’s energy consumption is thus affected by its surroundings in terms of energy supply, infrastructure, utilisation of solar energy, degree of shelter from wind, land use, etc. Qualitative aspects of an area’s design (such as adaptation to locality, architectural quality, identity, green areas, combination of functions, social diversity and sense of community) also greatly affect the use and attractiveness of an area and in turn either help or hinder involvement in and acceptance of energy-friendly solutions in and around buildings. Industry Of all the energy consumed in Norway, land-based industry accounts for roughly a third. More than Page 24 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 half of this is in the form of electricity. Industrial energy consumption has remained level since the 1990s, while industrial production has increased. There is substantial potential for further raising energy efficiency, but significant barriers stand in the way. The high level of Norwegian expertise coupled with good availability of renewable energy resources could lay the foundation for developing a new energy-refining industry and promote increased value creation based on national energy resources. This energy-refining industry would produce for a global market. Norwegian industrial production could replace coal-based power production in other regions, representing a complementary way of exporting Norwegian renewable energy. With a central role as a provider of flexibility in the energy system, the industry would have to use energy efficiently and properly. Transport Annual consumption of liquid motor fuel is approximately 80 TWh – nearly all of which is fossil energy – comprising roughly a third of all energy consumed in Norway. Consumption of petrol, diesel fuel and other motor fuels accounts for roughly 28 per cent of national CO2 emissions. Achieving national emissions reduction targets will require substantial changes in the transport sector. Reduced transport needs, changes in modes of transport, and conversion to more environment-friendly transport technology will be essential elements in an integrated solution. Increased use of both hydrogen and biofuels and a transition to electric vehicles represent three parallel, complementary initiatives that would help to cut emissions. Opportunities and challenges Buildings The new white paper on Norwegian climate policy submitted on 25 April 2012 signals a tightening of building regulations to passive-house standard in 2015 and close to zero-energy standard by 2020. R&D activities in this area should be targeted towards providing support for these advances in order to design cost-effective methods of constructing good buildings and urban areas, and not least to achieve solutions that facilitate the primary reconditioning of existing buildings that must be carried out to ensure compliance with applicable regulations. A substantial boost in the construction industry will be required to realise the ambitions of the new white paper on Norwegian climate policy. It will also be necessary to develop planning processes and a system of measures and instruments that promote urban and area development that helps to achieve the targets for far more energy-efficient buildings. There is a great need for more knowledge in relation to the planning, construction and operation of low-energy and low-emissions buildings – not least in relation to energy production and grids. This applies to building-integrated energy production, energy plants in buildings, and consumer behaviour involved in actually realising a building’s calculated level of energy use. Research on buildings in the energy system will require an interdisciplinary approach – combining analyses of energy technology, construction technology and framework conditions. Furthermore, much more knowledge is needed to better understand energy use in buildings and how users deal with more technologically advanced lowenergy and plus-energy buildings. Efficient spot heating based on e.g. bioenergy must be adapted to needs in passive housing and plusenergy buildings. The low output requirement in this type of building puts new demands on heating while at the same time maintaining low emissions, high efficiency and comfort. R&D activities in this area must also take into account a building’s significance and role within the complex energy system. The “Smart Cities” line of thinking, which is prominent in the EU context, must be reflected in Norwegian activities as well. As part of this, the R&D projects are encouraged to Page 25 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 incorporate coordination with other energy-related thematic priority areas (smart grids, smart electricity, energy markets, production of renewable energy). The user aspect must also be considered and addressed. In many areas it is interdisciplinary cooperation and exchange of expertise that generates innovation in this field. Energy consumption depends just as much on user behaviour as on technological solutions. Greater attention must be given to this when developing new solutions. Industry Industrial R&D activities must target both industry-specific as well as pan-industrial challenges. New and/or improved solutions must be cost-effective and maintain a focus on industry’s substantial opportunities for value creation. R&D activities must be targeted towards: more energy-efficient production methods and processes; process development/conversion for phasing in renewable energy carriers while phasing out fossil fuels; automation and control systems; better utilisation and upgrading of waste heat, including cooling and heating methods. Transport Although Norway does not have an automotive industry per se, it is home to an extensive industry for automotive parts as well as related industry-oriented research groups. This gives Norway some interesting opportunities to help to develop technology for raising energy efficiency in vehicles and transport systems. When it comes to electric and hydrogen-powered vehicles, Norway is at the forefront and is an important demonstration arena – due in part to very favourable incentives for purchasing and using such vehicles, and in part to the country’s climate and topography, which make it an attractive test arena for producers of cars and other vehicles. In the area of social science-related research, Norway also has some dynamic, internationally-oriented groups of relevance for analysing the pending economic and social impacts associated with a largescale energy-system conversion within the transport sector, and for helping to develop effective instruments designed for new markets. Targets Buildings Research activities for the planning and construction sector should focus on replacing current uncertainty with knowledge and expertise. This in turn will make it possible for future new and renovated buildings to satisfy technical requirements, including for a healthy indoor environment, as well as the requirements of end users for attractive, user-friendly buildings and urban areas in a sound, cost-effective manner. At the same time, buildings overall must function optimally with other components as an integral part of the energy system. Industry Norwegian industry must continue to create value and hone its competitiveness on the international market. In order to accomplish this, it will be essential that the industrial sector maintains a focus on energy-efficient operations through the introduction of new, innovative solutions and processes. Transport R&D activities must be carried out to establish technology and a knowledge base that provide a foundation for phasing in new environment-friendly transport technology and solutions. While this Page 26 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 encompasses Norway-based solutions to some degree, increased user competence in implementing the best solutions developed around the world will be equally important. In this context one of the objectives is to facilitate Norwegian value creation targeted towards the rapid emergence of new transport technology in areas where Norwegian players may have comparative advantages. Page 27 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 New concepts in the energy sphere Background We are facing major challenges in the energy sphere, nationally and globally. Looking towards the future, it is clear that tackling these challenges will involve gradually improving current technology and solutions as well as developing entirely new technology and concepts. New solutions may arise from both basic research and applied research in which solutions from various sectors are combined in new ways. Research conducted under the RENERGIX programme must be directly applicable to the energy sector. Basic research projects that focus directly on some of the topics specified by the programme will belong under this thematic area; there is, however, room for basic research projects that extend between or across sectors as well. Close, effective collaboration with other basic research programmes at the Research Council will be essential in such projects. Challenges within the energy sector are global, and energy systems are linked in such a way that researchers from a number of countries will have to work together to develop ideas and solutions. Norwegian research groups must therefore be given the support they need to become attractive partners in high-calibre international research cooperation. The RENERGIX programme should also provide support for international institutional cooperation between top Norwegian and international R&D environments. Targets and instruments The RENERGIX programme will span a 10-year period. It is impossible to identify all of the research topics and questions that will lead to tomorrow’s solutions and breakthroughs in a work programme. This thematic area is designed to provide the latitude to cultivate new ideas and concepts in areas in which too little is currently known to be able to set firm targets. This thematic area will give researchers the opportunity to work on projects involving solutions whose contours have not yet emerged. An important task here is to encourage promising ideas and projects, and this may require the use of a greater number and/or different instruments or project types than those generally employed under the programme. Therefore, the design of funding announcements and the choice of funding instruments within this thematic priority area may differ from those used in the other thematic priority areas. Targets The RENERGIX programme seeks to nurture truly innovative thinking and concepts within the energy sphere. The programme will also further refine instruments and methods to support R&D communities in their efforts to achieve international excellence. Opportunities and challenges Basic research that can lead to new solutions in the energy sector The RENERGIX programme will provide funding to strategic basic research projects that apply to the energy sector but fall between or outside of the subject areas encompassed by the work programme. This may include research projects on generic technologies such as materials Page 28 of 29 Preliminary work programme for the RENERGIX programme Approved by the Research Board of the Division for Energy, Resources and the Environment, 15 June 2012 technology, biotechnology and ICT or in other disciplines. There may be a need to develop new knowledge relating to basic method development, measurement techniques (data and technology) and modelling (physical and numerical) as well. New innovative concepts Major breakthroughs in the energy sector may also come from radical new thinking and innovation that extends across existing branches of industry and markets. The RENERGIX programme will provide an open framework for research projects involving new concepts and fresh thinking in the energy sector. Such projects, however, must be targeted towards developing solutions that support the achievement of the programme’s primary objective and targets. International excellence – a world-class Norwegian “team” Building and strengthening strong research communities will be the most important means of achieving the programme’s primary objective and targets. To succeed in a globalised world, Norwegian researchers must be of top international calibre. The RENERGIX programme will promote research excellence with the use of ordinary project funding, but it will also have to develop other funding instruments to facilitate the entry of research teams and institutions into the international arena. Such instruments may comprise support for institutional cooperation, grants for visiting researchers to conduct a stay in Norway, mobility funding for researchers, and support for researcher recruitment in cooperation with international research communities. Page 29 of 29