Narrative

The National Energy Strategy (NES) issued in 2013 recognizes that the energy sector has a fundamental role to play in the growth of the economy. Developing a more competitive and sustainable energy is therefore one of the most significant challenges for Italy’s future. Accordingly, the NES aims being to pave the way for wider and more effective participation of industry and the country’s public and private research centers in future R&D programmes. Smarter investment in energy-related research activities will contribute to further improving the energy and resource efficiency of the economy and to creating new sources of growth.

As envisaged, currently the NES is under review in the light of 2015 Paris Agreement and the related new European Union 2030 climate and energy targets. In this regard, it is important to underline that a new 2030-2050 NES – which will be issued for a prior public consultation and finally launched in the next months – foresees a strong commitment in R&D activities including a key role of Mission Innovation in the future revised Italian R&D governance.

Furthermore, it is important to point out that the Central Government has the review of governance of public research through the 2015-2020 National Research Plan (PNR), that also includes the activities of energy and clean tech R&D. In fact, the high level of fragmentation of actors and areas of research together with a lack of a unified coordination actor/”control room” can be addressed by the new PNR. The PNR was approved by CIPE (Comitato Interministeriale per la Programmazione Economica) in 2016 for an overall amount of public funding of EUR 2.5 billion.

Accordingly, one of the aims of the new NES is to pave the way for wider and more effective participation of industry and the country’s public and private research centers in future R&D programmes. On this basis, the NES proposes a series of new measures:

• Greater support for R&D promoted by private stakeholders: Tax reliefs were recently introduced as a first step.
• These measures will be complemented with two other instruments: the Fund for System Research in the Electricity Sector (financed from electricity tariff revenues), and the Fund for Sustainable Growth.
• Increase the amount of resources available under competitive access conditions to create partnerships between both universities and research establishments and private-sector companies.

Italy’s technological innovation activities are closely coordinated with the European Union Strategic Energy Technology (SET) Plan in the perspective of the full implementation of the Energy Union at European level. In coming years in fact, EU R&D resources will increasingly be allocated to the priority projects identified under the SET Plan, as already happened for the Horizon 2020 Programme for Research and Innovation.

Moreover, also considering UE efforts and commitment in Mission Innovation, the new NES will establish an integrated approach for both MI and the SET Plan to be implemented by the Italian government in designing the clean tech R&D governance framework.
Within this context, Italy considers the launch of Mission Innovation an opportunity to accelerate public and private investments in clean energy research and innovation. The Italian participation can offer a significant contribution in facing problems such as the low private sector participation in R&D investment in the energy sector and the high degree of fragmentation among the R&D actors.

Highlights

The Ministry of Economic Development (MISE) has been appointed by the Italian Prime Minister’s Office, as lead Administration of the Italian participation in Mission Innovation and, thus, has implemented two levels of governance. One with the main Ministries involved: the Ministry of Foreign Affairs and International Cooperation (MAECI), the Ministry of Economy and Finance (MEF), the Ministry of Education, Universities and Research (MIUR) and the Ministry of Environment and Protection of Land and Sea (MATTM).

The other level is with the public R&D institutions which carry out energy-related research such as the National Agency for New Technologies, Energy and Sustainable Economic Development (ENEA), the National Research Council (CNR) and Research on Energy Systems (RSE) which are committed in the context of Programme Agreements with MISE. An important role will be also played by the regional governments and the scientific community (universities, R&D labs).

Funding Programme

Research and development investments in low carbon technologies are implemented through a number of mechanisms including cost-shared projects with the private sector, research and development activities at the R&D National Agencies, grants to universities and Cohesion Funds at regional level. Further resources have been budgeted to fund R&D through tax breaks through 2015-2020 to the benefit of the private sector and of public- private research projects.

The main contribution to Mission Innovation investments will come from public institutions both at national and regional level. Following a period of decline in the first half of the 2000s, public funding for energy-related R&D increased, reflecting the renewed priority attached to this sector. Funding declined again at the end of the decade, however, as a result of an overall cut in public spending. The government energy R&D budget allocated to energy efficiency and renewable technologies grew steadily during the decade, with the exception of the last few years. In 2011, public energy RD&D funding amounted to around EUR 400 million. The budget structure has changed in recent years, with a marked shift towards energy efficiency and renewable (24% and 17% of the total budget respectively), while nuclear R&D has lost ground (23% in 2011 compared to 40% in 2000). Transport research is also funded through the general research framework and through programmes dedicated to transport.

Baseline

Baseline is composed of the Mission Innovation related parts of enacted appropriations for Fiscal Year 2013 (base year), as identified among selected line‐items of clean energy RD&D, across the Ministry of Economic Development, and like‐budget tables of other Governmental Agencies and public R&D Institutions.

Innovation Challenges

Italy is engaged in all the 7 Innovation Challenges with different levels of interest and involvement.

1 -Smart Grids IC

Co-Lead with China and India and it is extremely active in engaging other partners, stakeholders and related international institutions.
Italy is founder of ISGAN and relies on notable expertise in deploy smart solutions and on research and economic actors with relevant international profile along the whole value chain as TSOs, DSOs, technology component manufactures (batteries, electrical and electronic devices).

2 – Off-Grid Access to Electricity IC

Endorsement of IC and sharing of relevant national information and perspectives also in the light of a high national interest both at research and industrial level. Italy has a specific target regarding the deep decarbonisation of small non connected communities.

3 – Carbon Capture IC

Endorsement of IC and current position of observer in order to better match Challenge plans with national related R&D activities

4 – Sustainable Biofuels IC

Endorsement of IC and great expectation of the work programme’s development, forasmuch as several research and deployment activities are ongoing in Italy along the entire innovation value chain; moreover according to national plan biofuels are among key tools for transport sector decarbonisation. In fact Italy works on the analysis of biomasses availability, the designing of sustainable bioenergy scenarios, the development of biomass-in-biofuel conversion technologies and the efficient utilization of biofuels in engines. Biofuels are

5 – Converting Sunlight IC

Endorsement of IC and involvement in work plan strategic planning, in the light of a national interest which is reflected in activities all along the research chain (modeling, design, prototypes production). Italy shares the perspective of a conspicuous engagement of the industrial sector in the IC activities.

6 – Clean Energy Materials

Endorsement of IC and active involvement in planning further developments..
Italy has strong competence in new material synthesis engineering and industrialization, with particular interest in topics as energy conversion, low energy application and materials with peculiar properties and emerging class of 2D materials (graphene). It is envisaged as a complementary activity a national “roadmap for new materials for energy”.

7 – Affordable Heating and Cooling of Buildings IC

Endorsement of IC and active participation in the activities.
Based on the significant energy demand for H&C applications, Italy can rely on important research efforts in topics related to the development of integrated and efficient energy urban districts and in the integration of heating and cooling systems in the building sector.