EU plans 30 cities to lead world on "smart" energy

Pete Harrison, Reuters 16 Sep 09;

BRUSSELS (Reuters) - Europe will select 30 cities to pioneer "smart" electricity grids and space-proven insulation as it seeks to lead the global race for green technology, a draft European Union document shows.

The windpower sector must shift offshore and strive to provide a fifth of EU electricity by 2020 -- ahead of industry goals -- said a draft of the European Commission's long-awaited Strategic Energy Technology Plan.

The so-called SET-Plan lays out the EU's strategy for promoting hi-tech solutions to climate change to give European businesses a head start as the world switches to low-carbon energy.

Billions of euros will have to be poured into research to avoid falling behind the United States, which is pouring $777 million into energy research, the draft, obtained by Reuters ahead of the plan's release next month, said.

"Basic research is chronically underfunded in the EU," the report said. "We need to stimulate and incentivize our best brains to push back the frontiers of science."

The project envisages 25 to 30 "smart cities" -- highly insulated cities that glean energy from their waste and the sun and wind overhead and channel it down to the electric cars, trams and buses in the streets below.

"These Smart Cities will be the nuclei from which smart networks, a new generation of buildings and alternative transport means will develop into European wide realities," it added.

EU officials are still calculating the exact needs for funding and how it will be split between industry and the public purse.

MIXED REACTION

Environmentalists gave the plan a mixed reception, saying it should have completely ditched coal power and nuclear.

The geothermal industry, which generates steady "baseload" power by tapping into the earth's natural heat, said it provided the perfect complement to fluctuating wind and solar and expressed dismay it had been ignored altogether.

"A renewable energy mix can not be reached in the future without geothermal energy," the European Geothermal Energy Council said.

Boosting energy efficiency will top the agenda, an area where the European Space Agency is expected to contribute.

"This could be achieved by transferring advanced insulation materials and ultra-efficient energy systems to the terrestrial energy sector," the report said.

Coal-fired power stations will be pushed to trap and bury their carbon dioxide emissions and the nuclear industry will be urged to move toward a new generation of reactors -- the so-called Generation-IV reactor.

"Such reactors will be able to exploit the full energetic potential of uranium, thus greatly extending resource availability by factors up to 100 over current technologies," said the report.

Greenpeace campaigner Frauke Thies said the overall message was inconsistent, as money poured into coal and nuclear would only prolong Europe's unhealthy dependence on an inflexible, centralized energy network.

"We must focus on building a decentralized and flexible energy system that can handle fluctuations in renewable energy and balance supply and demand," she added.

(Reporting by Pete Harrison, editing by Anthony Barker)

FACTBOX: EU seeks to take lead in green energy research
Reuters 16 Sep 09;

BRUSSELS (Reuters) - The European Union's executive will next month publish its strategy for promoting hi-tech solutions to climate change, aiming to give European businesses a head start as the world switches to low-carbon energy.

A draft document obtained by Reuters gives insight into the European Commission's priorities.

Billions of euros will be needed and thousands of jobs created, but officials are still calculating the exact figures and what proportion of spending will come from the public purse or from industry.

WIND ENERGY

The windpower industry must reduce costs faster and build more wind farms offshore where the wind is more reliable and planning constraints are smaller, the report says.

To deal with the tough marine environment, turbines will have to become more powerful and resilient, with new types of substructure to support them.

This will require up to 10 new testing facilities for turbine components, up to 10 demonstration projects of next generation turbines and at least 5 prototypes of offshore substructures.

The goal is fully competitive wind power capable of contributing up to 20 percent of EU electricity by 2020 and a third by 2030.

SOLAR POWER

The photovoltaic sector must reduce costs and enhance performance and lifetime. It must automate and speed up manufacturing. New, visually appealing concepts for integrating photovoltaic systems into the urban fabric need to be developed.

This will require up to 5 pilot plants for automated photovoltaic mass production and several demonstration projects for both decentralized and centralized power production.

The concentrated solar power sector must reduce costs, improve system efficiency, develop storage systems and reduce water consumption. Up to 10 large "first of a kind" power plants must be built.

The programme envisages that up to 15 percent of EU electricity could be generated by solar power in 2020.

POWER GRID

The focus will be on building "smart grids" that can balance the fluctuating supply of electricity from renewable energy sources with fluctuating consumption by EU citizens. Up to 20 real-life scale demonstration projects will be needed.

The goal is that by 2020, half of networks in Europe would allow the seamless integration of renewable energy.

SMART CITIES

Smart cities will glean renewable energy from the sun and wind and from their own waste, feeding it into the electricity network and to trams and cars in the street.

Between 25 and 30 pioneer cities will transform their buildings, energy networks and transport systems.

BIOENERGY

The bioenergy sector must demonstrate its technology at greater scale, from pilot plants to full industrial scale.

Up to 30 such plants will be needed across Europe to take full account of differing geographical and climate conditions and logistical constraints.

By 2020, the contribution to the EU energy mix from cost-competitive, sustainable bioenergy could be at least 14 percent.

CLEAN COAL

The European Union has laid out plans to have 12 Carbon Capture and Storage (CCS) pilot plants up and running by 2015.

The target is to reduce the cost of CCS to 30-50 euros per tonne of carbon dioxide (CO2) captured by 2020, making it cost-effective within a carbon pricing environment.

NUCLEAR

The industry will have to move toward a new generation of reactor type -- the so-called Generation-IV nuclear reactor.

Commercial deployment of Generation-IV reactors is foreseen for 2040, but to achieve that target, work has to start now. Solutions for nuclear waste must be identified.

FUEL CELLS AND HYDROGEN

About 470 million euros ($690 million) has already been earmarked for developing fuel cells and hydrogen-powered vehicles during 2008-2013 -- to be matched by industry contributions.

Larger scale demonstrations and infrastructure will be needed, plus more research funding.

(Reporting by Pete Harrison, editing by Anthony Barker)