I. Title of the Best Practice
Financial Support for Demonstration of Innovative Technologies
II. Overview of the Best Practice
A. Characteristics of the measure
1. Objectives
New technologies resulting of research programs or innovative processes of companies encounter barriers to penetrate the market. The demonstration phase after the R&D is important under two points of view : validation of the technology under real working conditions and exemplarity regarding potential users of the technology.
The public support to demonstration projects makes new technologies able to be recognized by stake-holders and to disseminate themselves in the market.
2. GHG targeted
Demonstration projects concern all gases.
3. public targeted
All stake holders, mainly potential investors in new technologies : companies, local authorities, owners and constructors, manufacturers...
4. Design of the measure
The public support can be done through direct subsidy to the investment or reimbursable support ("incase of success") to the owner of the new equipment.
The technology is evaluated as a best available technology and a market study is necessary ex-ante to assess the potential of the dissemination. Usually a measurement campaign is conducted to evaluate the results of the demonstration project. Information dissemination on the results of the demonstration project is necessary (technical seminars, visits on site...).
B. Reasons for inclusion as a Best Practice
An evaluation of industrial demonstration projects in energy efficiency had been conducted in France in 1996 covering the period of implementation 1986-1991 by the French agency for energy efficiency (ADEME).
The subsidy was up to 50% of the eligible part of the project and conditioned by a measurement campaign financed at 100% by the agency ; the results of the demonstration were publics and on site technical on site visits were implemented.
The global public cost of the measure reach 850 Millions Francs (representing 400 projects), e.g. 50 Millions Francs/year in average.
The evaluation covering 106 projects concluded that :
- the projects concerned 56 small industries (12% of subsidy funds) and 50 large ones (88% of funds).
- Technical success ratio was 70% among the 106 projects (among these 70% of successes the energy savings reach 70% of the ex-ante assessments).
- Taking into account the demonstrations themselves and the duplications observed the 106 evaluated projects induced energy savings for an amount estimated between 500 000 and 700 000 toe/year e.g. a public cost of 350 to 500 Francs per toe saved per year during investment lifetime.
- The ratio between sales of demonstrated technologies and public support is estimated to 10.
- The technical staff of the energy efficiency agency implementing the procedure was an important part of the selection of efficient technologies and technical support of projects.
- However the evaluation stressed that the energetic impact of the measure was mainly noticeable on the demonstration project itself (2/3 of the gains) while the expected duplications were overestimated (1/3 of the gains as measured by the evaluation). This observation conducts to enhancements for the measure implementation through more deeper ex-ante market studies and more information dissemination upon the results of the demonstration project.
III. Categorizing the Best Practice
1. classification : incentive
2. social actors involved :
Central government and public agency
Businesses, industries, commercial,
manufacturers
consultants
Local authorities
3. Sectors
4. Target (Greenhouse Gases)
IV. List of Attachments
La Maîtrise de l'Energie : rapport d'évaluation ; Comité interministériel d'évaluation des politiques publiques- Premier Ministre Commissariat Général du Plan. La Documentation Française 469 pages 1998
V. Contacts
F. Moisan Director of strategy and Communication
ADEME : Agence de l'Environnement et de la Maîtrise de l'Energie
27 Rue Louis Vicat, 75015 Paris France. |
