Assessment of the Innovation Union flagship initiative ...



EU Local and Regional Authorities' Contribution to the

Mid-term Review of Europe 2020

Assessment of the Innovation Union flagship initiative

Three years after its launch, the Committee of the Regions will take stock of the Innovation Union flagship initiative at a conference to be held on 27 November 2013 in Brussels. This conference will be the seventh in a series of CoR events and monitoring initiatives surrounding the mid-term review of Europe 2020. More news on this conference can be found on the CoR website[1].

By participating in this survey, you will:

- ensure that your views are taken into account in the debate held during the conference;

- contribute to the CoR's consultative activity in this field over the coming months;

- provide input to the CoR's contribution to the mid-term review of Europe 2020.

If you wish to participate in this survey, please complete this questionnaire in any eu language, using the spaces provided, and return it in text format to:

europe2020@cor.europa.eu

by 27 September 2013

For more information on this survey and for details on how to join the

Europe 2020 Monitoring Platform, go to:



The questionnaire is available on this website in all official EU languages

You can find more information on Innovation Union, as seen from the local and regional authorities' viewpoint, in the Committee of the Regions' publication Delivering on the Europe 2020 Strategy - A Handbook for Local and Regional Authorities[2]. General information on Europe 2020 may be found on the strategy's official website[3].

Contributor information[4]

|Name of sender: |Executive Member responsible for the Environment and Energy, Autonomous Region |

| |of Friuli-Venezia-Giulia: Sara Vito |

| |FVG Regional Councillor: Vittorino Boem |

|Contact details: |Progetto (Project) RENGOV |

|(address, telephone, email) |Bic Incubatori FVG s.p.a. Via Flavia 23/1 |

| |34148 Trieste Italy |

| |Contact: Maurizio Trevisan |

| |tel: +39 3396565708 |

| |email: m.trevisan@trevisanstudio.it             maurizio.trevisan@rengov.eu|

|On behalf of: |Autonomous Region of Friuli-Venezia-Giulia (RAFVG) |

|(name of local or regional authority) | |

|Type of organisation | City/Town/Municipality Region |

| |County/Province Association of local and/or regional authorities |

| |Other (please specify) |

|Country: |Italy |

|Member of the EUROPE 2020 Monitoring Platform: | Yes No |

Policy challenges and responses at regional and local level

|BOX 1 |

|Innovation Union as specified in the European Commission's Communication |

| |

|The Innovation Union initiative[5] was adopted in 2010, as an integral part of Europe 2020[6]. The overall aim of this flagship |

|initiative is to re-focus research and development (R&D) and innovation policy on the challenges facing our society, such as climate |

|change, energy, health and demographic change. Innovation Union is a crucial investment in our future. For example, it is estimated that |

|achieving the target of investing 3% of EU GDP on R&D by 2020 could create 3.7 million jobs and increase annual GDP by €795 billion by |

|2025. The flagship initiative contains the following aims: |

| |

|In times of fiscal constraints, the EU and Member States need to continue to invest in education, R&D, innovation and ICTs. |

|EU and national research & innovation systems need to be better linked up with each other and their performance improved. |

|Education systems at all levels need to be modernised. Excellence must become the guiding principle even more than before. Researchers |

|and innovators must be able to work and cooperate across the EU as easily as within national borders. The European Research Area must be |

|completed. |

|Access to EU programmes must be simplified and their leverage effect on private sector investment enhanced, since our research needs to |

|result in more innovation. Cooperation between the worlds of science and business must be enhanced, obstacles removed and incentives put |

|in place. |

|The remaining barriers for entrepreneurs to bring "ideas to market" must be removed: we must have better access to finance, particularly |

|for SMEs, affordable intellectual property rights, smarter and more ambitious regulations and targets and a faster setting of |

|interoperable standards. |

|European Innovation Partnerships should be launched. |

|Strengths in design and creativity must be better exploited. |

|Social innovation must be championed and a better understanding of public sector innovation developed, identifying and giving visibility |

|to successful initiatives. |

|Better work with our international partners is needed. That also means adopting a common EU front where needed in international (trade) |

|negotiations. |

| |

|The Innovation Union flagship initiative has evolved since its launch in 2010. New building blocks, such as the Smart Specialisation |

|Platform and five European Innovation Partnerships have already been launched (the EIPs on: Active and Healthy Ageing; Agricultural |

|Sustainability and Productivity; Smart Cities and Communities; Water; and Raw Materials). All these elements as well as news of events |

|are publicly available on or through the EU Commission's dedicated Innovation Union website. |

|1) What type of policy programmes/actions are being implemented in your city/region to support the policy goals of the Innovation Union |

|(see Box 1)? |

|1.1 Investing in R&D, innovation and |Policy programmes/actions contributing to this aim? |

|ICT (own resources, public-private | |

|partnerships, other sources…) | |

| | Yes No Don’t know |

| |Brief description: (Project RENGOV - Regional Energy Governance) |

| |Using funds from the Autonomous Region of Friuli-Venezia-Giulia (RAFVG), the regional financial |

| |company (Friulia s.p.a.) and the own resources of the regional business incubator BIC Incubatori |

| |FVG s.p.a., specialist research institutes (e.g. SiTI) are tasked with seeking systemic solutions |

| |in the field of energy governance as a catalyst for local development, in relation to the use of |

| |renewable energy sources (RES), energy efficiency, new energy technologies and "smart" |

| |infrastructures. |

|1.2 Providing support to potential |Policy programmes/actions contributing to this aim? |

|beneficiaries to access EU funds and | |

|participate in EU initiatives in the | |

|field of research and innovation | |

| | Yes No Don’t know |

| |Brief description: (Project RENGOV) |

| |BIC Incubatori FVG s.p.a. (the regional business incubator) provides logistical and administrative |

| |support for companies, in line with the R&D strategies developed in RENGOV. |

|1.3 Encouraging the use of the |Policy programmes/actions contributing to this aim? |

|results of research projects in | |

|innovative products and services | |

| | Yes No Don’t know |

| |Brief description: (Project RENGOV) |

| |With research based on real data and a motivated involvement of partners it is possible to achieve |

| |innovative services and added value within an economically and environmentally sustainable business|

| |plan. |

|1.4 Removing barriers to innovation, |Policy programmes/actions contributing to this aim? |

|such as expensive intellectual | |

|property rights and limited access | |

|to finance | |

| | Yes No Don’t know |

| |Brief description: (Project RENGOV) |

| |The involvement of regional technology centres through BIC Incubatori FVG s.p.a. represents a |

| |strategic element in building innovative business pathways in the field of renewable energy, energy|

| |storage and smart grids. |

| |The systemic approach of regional governance facilitates the replication of solutions, the sharing |

| |of results among stakeholders and the bankability of projects. |

|1.5 Participating in one of the |Policy programmes/actions contributing to this aim? |

|European Innovation Partnerships | |

| | Yes No Don’t know |

| |If so, which one? |

| |This is a strategic objective for the region. |

|1.6 Stimulating social innovation |Policy programmes/actions contributing to this aim? |

| | Yes No Don’t know |

| |Brief description: |

| |Project RENGOV, for example, achieves the creation of awareness through the direct involvement of |

| |citizens by means of innovative financial instruments (e.g. crowd funding, smart bonds). |

| |Creating smart new companies within business models for sustainable energy governance. |

|1.7 Cooperation with international |Policy programmes/actions contributing to this aim? |

|partners in the field of research and| |

|innovation | |

| | Yes No Don’t know |

| |Brief description: |

| |Collaboration within project RENGOV with the Joint Research Centre (JRC-IET) of the European |

| |Commission in Petten (NL). |

| |Participation in the Smart Cities and Communities Stakeholders Platform promoted by the European |

| |Commission, where it was selected as the best project at European level in the Energy and Supply |

| |sector. |

|1.8 Encouraging innovation in the |Policy programmes/actions contributing to this aim? |

|public sector[7] | |

| | Yes No Don’t know |

| |Brief description: (Project RENGOV) |

| |New forms of aggregation/integration between local authorities to promote innovative approaches to |

| |territorial governance through energy issues. Development of sustainable energy supply chains to |

| |encourage local added value. |

| | |

|2) One of the main aims of the Europe 2020 Strategy is to increase investments in R&D to 3% of EU GDP. This target is underpinned by |

|several actions under Innovation Union. The latest Innovation Union Scoreboard[8] of the European Commission, a progress monitoring tool,|

|shows that there are big differences in the progress made towards this target across the EU. Which of the following challenges would you |

|consider as the most urgent to address? |

|Multiple answers possible |

| |

|Under-investment in the existing knowledge base (infrastructure, public research centres etc.); |

|Poor access to finance for innovative start-ups; |

|High costs of intellectual property rights (IPRs); |

|Ineffective use of the innovation possibilities offered by public procurement; |

|Fragmentation and costly duplication of projects and programmes; |

|No strategic approach to innovation at national level; |

|No real cooperation between research and industry, limited scale of bringing ideas to market; |

|So-called "brain-drain" (best talents leaving Europe for opportunities elsewhere); |

| |

|Other (please specify) |

|The regulatory environment in calls for services with a high level of innovation; |

|The training of technical officials in the institutions at various levels; |

|Models for collaboration between local authorities and private companies in the field of energy efficiency and new infrastructure (e.g. |

|public lighting, the viability of dealerships, etc.). |

|BOX 2 |

|Regional Policy contributing to smart growth in Europe |

| |

|The Communication of the European Commission entitled "Regional Policy contributing to smart growth in Europe 2020[9]" [COM(2010) 553] |

|sets out the role of regional policy in implementing the Europe 2020 strategy[10] in the area of smart growth and in particular the |

|flagship initiative Innovation Union.[11] The Communication calls on national and regional governments to develop smart specialisation |

|strategies to maximise the impact of regional policy in combination with other EU policies. As a follow-up, in June 2011 the European |

|Commission launched an online platform with a set of tools which can be used to optimise the development of local and regional smart |

|strategies. The Smart Specialisation Platform (SPP) provides users with practical guidelines such as the latest news and events, as well |

|as many other features. In the Communication document, the European Commission provides a non-exhaustive list of ideas which regions could|

|use to design their strategies: |

|1. Innovation clusters for regional growth |

|Clusters provide a favourable environment for fostering competitiveness and driving innovation. Support for their development needs to be |

|concentrated on areas of comparative advantage. |

|2. Innovation-friendly business environments for SMEs |

|Regional and national authorities should support innovation-friendly business environments to assist SMEs, R&D-intensive ones especially, |

|and the creation of new firms. |

|3. Lifelong learning in research and innovation |

|Focusing school, vocational and higher education curricula on cross-sector skills such as creativity and entrepreneurship will help young |

|people to develop their full potential for innovation. |

|4. Attractive regional research infrastructure and centres of competence |

|National and regional authorities should consider, in particular, how EU regional policy can contribute to the 2015 objective of the |

|Innovation Union flagship of completing or initiating 60% of the research infrastructure currently identified by the European Strategy |

|Forum on Research Infrastructures (ESFRI)[12]. |

|5. Creativity and cultural industries |

|Cultural and creative industries, which flourish at local and regional level, are in a strategic position to link creativity and |

|innovation.[13] They should be integrated into regional development strategies. |

|6. Digital Agenda |

|With regard to the significance of ICT for the innovation system, Member States should consider how to better use the ERDF to accelerate |

|achievement of the EU 2020 objectives for broadband access. |

|7. Public procurement |

|Innovative public procurement means the public sector taking on the role and risks of a lead customer, while improving the quality of its |

|services and productivity. |

|3) In line with the Innovation Union flagship initiative and the additional Communication on "Regional Policy contributing to smart growth |

|in Europe 2020" (see Box 2), local and regional authorities are encouraged to build smart specialisation strategies, as a condition for |

|having access to EU Structural Funds available for investments in research and innovation. Does your region/city have a smart |

|specialisation strategy? |

| Yes No Don’t know |

|If you answered "yes" please describe briefly its main elements and the opportunities you have identified in your smart specialisation |

|strategy, corresponding to the list in Box 2. |

|The Autonomous Region of Friuli-Venezia-Giulia is a multi-centred system in north-east Italy, at the crossroads of some major strategic |

|routes (Ten V, Baltic-Adriatic Corridor), a natural logistics platform towards the north-east of Europe. Project RENGOV (Regional Energy |

|Governance) has been promoted through BIC Incubatori FVG s.p.a. (Friulia group) with the scientific and technical support of the Higher |

|Institute on Territorial Systems for Innovation. |

|This is a "Smart Energy Governance" initiative with the strategic objective of developing innovative energy management capabilities at |

|local level, integrating distributed renewable energy sources (solar, biomass, hydroelectric, etc.) in accordance with the Virtual Power |

|Plant (VPP) approach, creating a regional smart grid regional and using energy storage capacity (storage). |

|Project RENGOV provides for the direct and active involvement of local authorities, private individuals and investors, building models of |

|public-private partnership aimed at creating value. Local authorities, producers of energy from renewable sources, operators of energy |

|transmission and distribution systems, producers of energy storage systems, financial institutions and enterprises based in the region are |

|therefore an integral part of this "smart approach": this also makes for the triggering of virtuous communication and participation |

|arrangements (awareness-raising). |

|RENGOV is based on the construction of "energy clusters" made up of groups of power stations for the production of energy from renewable |

|sources, where it is possible to simulate and/or assess under operational conditions the potential impact of technologies on current |

|business models (production, distribution, transmission), thus providing information of use in forecasting the market development of |

|innovative energy systems. The set of clusters represents an Experimental Operations Context (CSO) that is unique in Europe. Even buildings|

|in urban areas are regarded as energy "prosumers" (producers and consumers), part of the system's VPP. Within the CSO it will therefore be |

|possible to bring out the real benefits of adopting coordination arrangements aimed at optimising the overall production and networking of |

|energy, overcoming congestion and other technical limitations. |

|The aim is to maximise economic returns for each of the production units, set up arrangements for stabilising networks and create jobs (in |

|particular new, smart entrepreneurs). Using the real data generated under the CSO, it will be possible to make appropriate economic and |

|financial calculations and simulations, in order to build innovative business models. The goal is to return the added value of energy |

|production to the territory. |

|In June 2013, RENGOV was presented to the "Smart Cities and Communities Stakeholder Platform" promoted by the European Commission |

|(eu-smartcities.eu) with the title of "Integrated Urban Energy Governance", and out of the 146 participants it was selected as the best|

|"Key To Innovation" in the Energy and Supply sector. |

|In recent years, substantial public funding and huge private investments have enabled the creation of various initiatives in the field of |

|"Smart Grids" in both Europe and the United States, through specific research projects, pilot sites and demonstrators (see JRC [2011]). On |

|the basis of this proliferation of initiatives the strategic objectives of the European Union for 2020 in terms of energy policy have been |

|set as follows: |

|• a 20% reduction in greenhouse gas emissions; |

|• the production of an amount equal to 20% of energy from renewable energy sources (RES) compared to the total from the primary sources|

|used within the EU; |

|• a 20% increase in energy efficiency (EE), together with a reduction in energy consumption. |

|Smart Grids are considered one of the key factors in the transition towards a low CO2 economy, ensuring greater efficiency in production |

|processes and the integration of renewable energy within a model for distributed generation. However, simply implementing "Smart Grid" |

|technologies is not enough to ensure the optimum use of available resources. A general cultural rethink is necessary, introducing |

|sustainable energy systems to optimise the exploitation of existing infrastructures and resources, with a particular focus on renewable |

|energy sources. |

|Within the Autonomous Region of Friuli-Venezia-Giulia there is a strong component of power generation from renewable sources. According to |

|a study conducted by the GSE (Electrical System Manager), in 2011 20.1% of total consumption was covered by renewable sources. |

|In 2011 there was also a sharp increase in production from solar energy, exceeding the production from biomass. |

|By their very nature, plants generating electricity from renewable sources are distributed throughout the country (e.g. photovoltaic |

|systems placed on the roofs of homes or facilities for micro-hydroelectric generation). An integrated and coordinated management of the |

|various plants in the area is essential to minimise network congestion, which causes losses and reduced efficiency, and also affects the |

|price of energy. A complete reorganisation of consumption networks and systems is necessary, with a reduction in the average distances of |

|energy displacement to favour solutions that bring the points of production and use closer together. Existing infrastructures must be made |

|​​more "intelligent" to allow secure data sharing, both for producers and consumers. |

|In addition, the installation of electric storage systems makes it possible to overcome certain supply planning limitations. Such systems |

|enable energy to be accumulated in times of overproduction and re-used when production is less than demand. The accumulated energy can also|

|be used to study and adopt network balancing arrangements which take full advantage of the features of existing networks (thus postponing |

|the need to construct new lines) and which, when combined with appropriate financial policies, are able to generate resources to repay at |

|least part of the investments made. |

|When new development policies are being formulated, account must be taken of several aspects even at regional level: energy production, how|

|to maximise the profitability of power plants, how to optimise management arrangements, how to involve all public and private actors |

|(stakeholders), reduce fuel consumption, and create economic and financial resources. In this way, thanks also to the intelligence of the |

|networks that will allow energy to become a fundamental catalyst for territorial development and growth, it will be possible to overcome |

|the current economic contingency. One vital reason why the renewability of energy production, with all its difficulties and the costs |

|involved, may become the general rule in the sustainable energy strategy, is the close association of such renewability with the criterion |

|of making maximum use of each unit of energy produced. |

|In order for the policies identified to be effective, it is necessary to think up (and then implement) activities which, based on the |

|features of the territory, identify interventions that can lead to a more widespread production and consumption of energy from RES than at |

|present, while at the same time making consumption more efficient. Such activities call for a detailed knowledge of the territory, the |

|adoption of innovative solutions as regards energy and efficiency and collaboration between the various actors (public and private) in the |

|community who oversee the different areas. Local and territorial authorities benefit from such virtuous circles, creating attractive |

|conditions for domestic and foreign investment and ensuring the environmental and social sustainability of initiatives and projects. In |

|this way economic and business activities are able to derive maximum benefit because the new processes give them the opportunity to develop|

|new professional and business profiles in response to the "new demands", with the competitive advantage of knowing the territory's features|

|and needs before the others. |

|Regional Energy Governance (RENGOV) |

|With RENGOV the RAFVG, along with the business sector, will be at the forefront of policies for growth, the development of new technologies|

|and sustainable government thanks to the opportunities provided by the energy sector, using these various forms of knowledge to attract |

|national and European funding more easily. |

|The peculiar geomorphological and environmental richness of the Friuli-Venezia-Giulia region (mountains, hills, plains, springs, lagoons, |

|the open sea), its "special administrative status" with its own legislative and management powers, its balance between man-made industrial |

|and residential sites and agricultural areas and woodlands, enables it to be defined as an optimal case study and as a framework for |

|practical application. In addition, the establishment of cross-border EGTCs, with the prospect of involvement in Slovenia and the county of|

|Istria (Croatia), will increase the opportunities to create a proper route towards a future interregional vision with a community outlook. |

|In addition, the region includes a number of RES-based power plants (especially hydroelectric, biomass, biogas and photovoltaic). Energy |

|production is already close to the target set for 2020, as renewable sources account for 11.9% of total energy consumption (the percentage |

|rises to 20.1% if electricity alone is taken into account). |

|The region also possesses an efficient distribution and transmission network (in some areas local companies are owners of the networks and |

|the sources of renewable energy) thanks to the geographical location of the border with Slovenia which makes the RAFVG an important transit|

|point for energy imported by Italy from the producing countries of Eastern Europe. To reduce congestion further, new infrastructure |

|investments are scheduled for the next few years involving the construction of a high voltage (380kV) line between South Udine and |

|Redipuglia plus a number of other cross-border connections on the transmission grid to either Slovenia or Austria. |

|RENGOV provides for the involvement of local authorities, energy producers, distributors, manufacturers of storage systems, financial |

|institutions and companies in the region, in accordance with an approach geared to the construction of public-private partnership models |

|designed to create value in to trigger virtuous arrangements for communication and public involvement. |

|RENGOV therefore represents an initiative open to all public and private stakeholders in the RAFVG able to maximise synergies and potential|

|at regional level in the field of energy, in accordance with a bottom-up logic that starts from basic needs and, within a context of |

|sustainable governance, formulates development-oriented energy policies. |

|Experimental Operations Context (CSO) and Clusters |

|RENGOV is based on achieving an Experimental Operations Context (CSO) within which either innovative policies on energy management or new |

|technologies that will improve the level of exploitation of available resources (e.g. energy storage technology) can be tried and tested. |

|In addition, economic assessments can also be carried out within the CSO regarding the possible benefits of adopting new business models. |

|Such assessments will be based on real data, thus providing information of use to the process of improving energy governance policies and |

|forecasting the market development of innovative energy systems. |

|The CSO is made up of clusters, which can be divided into two types. |

|The first type of cluster involves grouping together energy production centres, which will be managed in accordance with a Virtual Power |

|Plant (VPP) approach. A VPP operates a number of plants based on renewable sources in a coordinated manner distributed over a more or less |

|wide area, so that they act as if they were a single production centre, and tries to optimise the use of resources available from both the |

|economic and environmental point of view. The model for the management of resources is based on four basic points: |

|1. defining appropriate policies for the management of large amounts of energy from various production points based on renewable sources |

|which, by their very nature, cannot be planned and/or are intermittent (e.g. hydroelectric and photovoltaic); |

|2. supporting the spread of electric mobility, creating the conditions for the setting-up of an "energy distribution infrastructure" able |

|to meet the specific requirements of electric cars and charging stations; |

|3. identifying the best energy storage solutions for storing the surplus production from renewable sources for re-use at a time when |

|economic conditions are more favourable; |

|4. promoting energy efficiency schemes to improve the management of consumption in the various sectors (residential, services, |

|manufacturing, etc.). |

|In addition to RES-based plants, a VPP also includes commercial, industrial and residential buildings fitted out with ICT technologies that|

|allow such buildings to be considered as "smart", i.e. able to modulate energy demand and/or act as producers. In practice, they are what |

|is known as a "prosumer" able to act both actively and passively within the energy grid. A prosumer is an entity that acts as both an |

|energy producer (producer) and as a consumer (consumer). |

|Power stations based on renewable sources can be grouped into clusters according to two main criteria. The first is management-based and |

|provides for the grouping of plants under the same management company in order to analyse the economic benefits obtainable from optimised |

|power management. In this way it is easier to introduce arrangements for sharing data between the different points of production so as to |

|be able to analyse them and define optimisation policies. A second criterion is technical whereby the cluster includes all the power |

|stations connected to the same electrical network. In this way it is possible to manage any critical areas within the network itself better|

|and optimise the direct consumption of energy in the area where it is produced. |

|The second type of cluster within RENGOV involves the grouping of municipalities able to define consistent and unitary policies for |

|example, within the Covenant of Mayors. The aim is to implement cohesion through shared projects and programmes using a bottom-up approach |

|through a single application and procedural framework in keeping with choices and procedures, taking advantage of development opportunities|

|and applying models aimed at increasing energy efficiency and exploiting available resources to determine new and innovative policies and |

|programmes for territorial governance. In addition, this approach may foster the development of new local business ventures in the field of|

|energy, triggering the creation of public-private partnerships to satisfy local needs. |

|The Experimental Operational Context therefore makes it possible to collect real data continuously so that it is possible to simulate |

|energy market trends on the basis of trials of new regulatory approaches before their actual enactment. In addition, the collection of real|

|data makes it possible to prepare business models for new business ventures related to the energy market. |

|Data Sharing |

|Integrated energy resources management is based on the continuous exchange of data on the state of the entire energy system between all the|

|parties involved (such as energy producers, distributors and end users). In addition to production data supplied from power stations, it is|

|also essential to collect data on users' consumption in order to define profiles of energy production that are able to satisfy demand. |

|Furthermore, such data can enable users to be more aware of their consumption and consequently take steps to increase energy efficiency. |

|To gather information it is of particular importance to have or to build an ICT (Information & Communication Technologies) infrastructure |

|designed specifically for the collection of sensitive data. Involving local telecom operators will enable data to be collected reliably and|

|securely as data security and privacy are a priority for those who have to define local energy management arrangements and for ensure the |

|effective participation of users (both producers and consumers) in the process of optimising energy processes. |

|Energy storage |

|Incorporating storage arrangements into local energy systems optimises production and load profiles and mitigates infrastructure |

|limitations. In this way, energy is stored at times when production exceeds users' needs and is returned to the grid at times when |

|production cannot meet demand, taking into account price variability in the energy market (thus allowing energy to be stored when the price|

|is low and fed into the grid when the price is high). "Storage" arrangements also help to reduce network congestion during peak times, |

|postponing the need for infrastructure investments. |

|There are various storage technologies on the market that could be adopted in the system. Within RENGOV consideration will mainly be given |

|to hydroelectric-based systems with pumping, compressed air (CAES) or battery-based systems. On the basis of technical and economic |

|criteria the best solution will be identified through a cost-benefit analysis carried out using appropriate simulation software and in |

|collaboration with the main producers of storage technologies. Wherever possible we will consider redeveloping former military areas, which|

|cover 1.3% of the entire region. |

|Energy storage systems can be a catalyst to promote the optimisation of production and sales profiles through distributed generation, |

|particularly in a VPP approach with a coordinated management of multiple subjects. In this way, the investment required for setting up the |

|whole system may be recovered by optimising supply services and reducing the costs of energy generation. Through appropriate simulations it|

|is possible to estimate the economic benefits for the whole system of regional governance, analysing each technology by means of the usual |

|financial ratios (return on investment, net present value, internal rate of return, etc.). Economic feasibility also depends on the |

|application scenario: some technologies are more suited for long-term storage with frequent discharges, while others perform better in |

|other application scenarios. |

|Up to now, the payback period for chemical storage technologies such as batteries has been longer than their useful life (SiTI, 2012) and |

|therefore their use does not seem convenient in normal circumstances. Other types of energy storage, such as hydroelectric pumping or the |

|use of compressed air in special tanks or underground cavities, require higher initial investments and there is also the difficulty of |

|identifying the correct area for their construction, and taking public opinion into account. However, the rapid development of technology |

|and the widespread territorial diffusion of renewable energy sources are changing the technical and economic landscape together with the |

|fact that the system of incentives for RES is no longer sustainable. One of the objectives of RENGOV is to analyse the benefits of storage |

|systems in a Smart Grid approach in order to highlight the possible benefits within a coordinated governance scheme, identifying what can |

|be the cost threshold that would allow storage systems to become cost-effective and, as a result, open up new market scenarios. |

|Territorial impact |

|The development of integrated policies for energy management has many positive effects on energy saving. In particular, defining a strategy|

|for energy production based on renewable sources that optimises the use of available resources reduces the total amount of energy produced |

|because only the power required to cover consumption will be generated. This result is also obtained thanks to the use of storage systems, |

|which will reduce the need to incorporate systems based on fossil fuels into the system for generating energy from RES. The reduction in |

|the quantity of energy produced, and consequently the reduced use of fossil fuels, will also reduce greenhouse gas emissions, either |

|directly or indirectly, through the integration of innovative electrical mobility systems. |

|Within the energy balance it is also necessary to consider the energy lost due to the performance of the storage system, and also that the |

|overall reduction of energy produced may fully compensate for this part of lost energy. Furthermore, the possibility of increasing the |

|share of energy consumed in the vicinity of the production points helps to reduce network losses, a phenomenon particularly evident in |

|low-voltage networks. Finally, the real-time collection of data on the consumption of different users enables specific policies to be |

|formulated for improving the use of energy with the possible involvement of end-users, who may be encouraged to change their habits on the |

|basis of tangible and objective findings. |

|In particular, the adoption of integrated policies will have certain consequences in the short term, mainly concerning the creation of an |

|Advisory Service able to support the choices and evaluations of the investments connected with renewable sources and energy efficiency on |

|the basis of scientific strategies and national and European policies and to guarantee the full transfer of the powers needed to carry out |

|the projects. In addition, possible joint actions between entrepreneurs and between entrepreneurs and the public authorities may be |

|developed and supported with the aim of finding interesting legal and fiscal solutions for achieving specific energy objectives. All this |

|will have a positive impact on the regional economy and business within the energy sector with the start of operational control phases for |

|the start-up of new projects and for supporting industrial conversion between mature companies, also on a local basis. |

|However, the approach may also have medium and long-term benefits through the development and growth of enterprises and service providers |

|in the field of electricity and heat generation from renewable sources within the region, network infrastructure for the transport and |

|intelligent distribution of energy, storage systems and energy efficiency-related services. In this way, the share of energy produced from |

|renewable sources may later be increased, thus helping to achieve the burden-sharing objectives regarding the RAFVG. |

|Conclusions |

|This article has described an approach to integrated energy governance being developed by the RAFVG through project RENGOV. The project |

|aims to make use of tools to optimise the use of renewable energy sources in the region through a coordinated management scheme based on |

|the exchange of data on both production and consumption in real time. |

|The focal point of the approach is the active involvement of local authorities, private individuals and investors in setting up an |

|Experimental Operations Context (CSO) in which innovative approaches can be simulated and tested, including the possible use of energy |

|storage arrangements. Within the CSO two types of cluster will be identified. The first is made up of energy producers who share production|

|data with a single control centre, which will be responsible for defining profiles for optimised production. The second is made up of |

|groups of municipalities, which will share experiences on the implementation of initiatives to reduce consumption and increase energy |

|efficiency. |

|In June 2013, during the annual conference of the "Smart Cities and Communities Stakeholder Platform" promoted by the European Commission |

|and held in Budapest, the approach, entitled "Integrated Urban Energy Governance", was selected as the best "Key Innovation" of Europe in |

|the energy sector. |

|If you answered "no" please let us know whether your region/city was asked by your national government to initiate a smart specialisation |

|strategy. |

| Yes No Don’t know |

|4) Innovation Union and the concept of smart specialisation encourage a better integration of cultural and creative industries in the |

|overall economic development. Although they have a high innovation potential, they are not always included in strategies or projects. Are |

|cultural and creative industries included in the economic development strategy and/or in the smart specialisation strategy of your |

|city/region? |

| Yes No Don’t know |

|If you answered "yes" please describe how. |

|Under project RENGOV through the collaboration of companies (which are also citizens) to build a core of widespread awareness, working with|

|SiTI and BIC to implement a communication plan. The strategy for including cultural and creative industries will be designed to set up a |

|campaign for separate types of stakeholders. |

How is the Innovation Union relevant to your city or region?

|5) The Innovation Union contains 34 actions, which are listed with a detailed description on a dedicated platform: Innovation Union |

|Information and Intelligence system (I3S)[14]. All actions are grouped under 12 thematic headings and an additional one on monitoring |

|progress.[15] In your opinion and from a regional perspective, please state in which of these chapters has the EU made the most |

|significant progress, which ones have good prospects and in which ones has the EU not done enough. |

| |Significant progress |Some progress and good|No visible progress, |

| | |prospects |more effort needed |

|Promoting excellence in education and skills development | | | |

|Delivering measures for the European Research Area to be | | | |

|completed by 2014 | | | |

|Focusing EU funding instruments on Innovation Union priorities | | | |

|Promoting the European Institute of Innovation and Technology | | | |

|(EIT) and its Knowledge and Innovation Communities (KICs) as a | | | |

|model of innovation governance in Europe | | | |

|Enhancing access to finance for innovative companies | | | |

|Creating a single innovation market | | | |

|Promoting openness and capitalising on Europe's creative potential| | | |

|Spreading the benefits of innovation across the EU | | | |

|Increasing social benefits | | | |

|Pooling forces to achieve breakthroughs: European Innovation | | | |

|Partnerships | | | |

|Leveraging our policies externally | | | |

|Reforming research and innovation systems | | | |

|Additional comments: |

|.........................................................................................................................................|

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|................................................... |

|6) Overall, what are the strong and weak points of the Innovation Union flagship initiative, as seen from your regional/local standpoint?|

|Strong points: The geopolitical and multi-centred context, the exchange of knowledge, research initiatives, innovative regional |

|approaches, experience in integrated projects. |

|Weak points: The need for initiatives to be focused more on priority issues in accordance with bankable approaches that enable the |

|creation of value and new jobs. Improving methods of approach and involvement of public and private social actors. The capacities for |

|planning, management and control at local level need to be improved. |

|7) Would you recommend any specific changes to the Innovation Union flagship initiative, during the mid-term review of the Europe 2020 |

|strategy in 2014? |

|Please explain |

|More "bottom-up" involvement of local stakeholders. Improve the whole process of information and territorial involvement. |

Are your country's policies relevant to your city or region?

|8) Does your country's 2013 (current) National Reform Programme[16] (NRP) for Europe 2020 adequately respond to your regional/local needs|

|in the policy areas covered by the Innovation Union flagship initiative (e.g. investments in R&D, bringing ideas to market, smart |

|specialisation)? |

| Yes No Don’t know |

|Please explain |

|We need a higher level of information, involvement and integration. |

|Integrated approaches of a "bankable" type are needed. |

|9) Would you suggest any changes in your country's National Reform Programme for 2014 in the area of innovation? |

| Yes No Don’t know |

|Please explain |

|We hope to be involved in initiatives to define priorities and new approaches (workshops, committees, study groups, etc.). |

Policy and funding issues

|10) Which of the sources of funding listed below are used to finance your actions under the Innovation Union flagship initiative? Are any|

|other policy/financial instruments involved? |

|Multiple answers possible |

|FP7 (The Seventh Framework Programme for Research and Technological Development) |

|Competitiveness and Innovation Framework Programme (CIP, 2007-2013): |

|► Entrepreneurship and Innovation Programme (EIP) |

|► Intelligent Energy-Europe Programme |

|European Regional Development Fund |

|The Lifelong Learning Programme |

|Others? Please specify: ......... |

|11) Are any of the actions you have undertaken to implement the Innovation Union flagship initiative (as stated in your answers to |

|questions 1 and 2) carried out in partnership with different tiers of government? If so, please state (a) which administrative levels are|

|involved and (b) which practical arrangements are taken to manage these actions jointly. |

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|................................................ |

|12) The policy goals under Innovation Union require an integrated, multi-sector approach. They can be achieved only if relevant |

|stakeholders are also involved. Do you have a strategy for involving these various actors, such as the different research institutions, |

|innovation centres, hi-tech companies (especially SMEs) and members of the public? If so, what kind of involvement have you pursued (e.g.|

|information campaigns, dedicated events, PPPs)? |

|Please explain. |

|The RAFVG is implementing project RENGOV. |

|13) Please add any further comments you wish to make on the issues covered in this questionnaire. |

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|SHARE YOUR GOOD PRACTICE |

| |

|As part of the preparations for the CoR conference to be held on 27 November 2013 and to showcase good practices in areas covered by the |

|Innovation Union flagship initiative (e.g. smart specialisation strategies, hi-tech clusters, bringing ideas to market, innovation in |

|public administration), you are invited to submit examples of good practice from your local area. |

|Please complete the form available on our website: |

| |

|[pic] |JOIN THE EUROPE 2020 MONITORING PLATFORM |

| | |

| |To help convey the voice of EU cities and regions in the implementation of Europe 2020 at EU level and in your |

| |country, join us. For more information, visit: |

| | |

THANK YOU FOR YOUR COOPERATION!

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[1]

[2] The Handbook can be downloaded from:

.

An e-book version is also available at:

.

[3] .

[4] Privacy Statement: The follow-up to your contribution requires that your personal data (name, contact details, etc.) be processed in a file. All the answers to the questions are voluntary. Your replies will be kept for a period of 5 years after the receipt of your questionnaire. Should you require any further information or wish to exercise your rights under Regulation (EC) No 45/2001 (e.g. to access, rectify or delete your data), please contact the data controller at europe2020@cor.europa.eu. If necessary, you may also contact the CoR Data Protection Officer (data.protection@cor.europa.eu). You have the right of recourse to the European Data Protection Supervisor at any time (edps.europa.eu). Please note that the questionnaire with your contribution and your contact details will be published online. Your questionnaire may be transmitted to CoR rapporteurs and other EU institutions for information. Should you not agree to this, please inform us accordingly.

[5] Europe 2020 Flagship Initiative Innovation Union [COM (2010) 546] , available online:



[6] Europe 2020 Strategy [ COM(2010) 2020] is available online:

[7] For more information on innovation in public sector, please visit European Public Innovation Scoreboard webpages: .

[8] 2013 Innovation Union Scoreboard: .

[9] COM(2010) 553, available online in all EU official langauges:

.

[10] COM (2010)2020 'Europe 2020: a strategy for smart sustainable and inclusive growth'.

[11] Please see also CoR Opinion on the Flagship Initiative 'Innovation Union' from 30 June 2011, which lists a similar list of priority actions, available in your language at: V/010&id=20858

[12] ESFRI website: .

[13] COM(2010)183 “Unlocking the potential of cultural and creative industries'.

[14] Innovation Union Information and Intelligence system: .

[15] Please see the 2013 Innovation Union Scoreboard: and the 2012 Regional Progress Innovation Monitor:

[16] All available here: .

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