General details
EDIHs involved
Challenges
With the European Green Deal, the EU set out to reduce net greenhouse gas emissions by at least 55% by 2030. In October 2023, the Fit for 55 package of measures was completed with legally binding climate targets for all key sectors of the economy. The European Green Digital Coalition has identified a limited number of priority sectors for action, including above all 1) energy/power, 2) smart cities, 3) manufacturing and 4) construction/buildings. Especially in Ukraine and the Baltic Sea countries, corresponding measures are urgently needed: Already since 2005, the European Union and Ukraine have been working towards integrating Ukraine into the European energy markets and systems (especially the electricity grid) (IP/05/1506). Moreover, the EU considers Ukraine a strategic partner to achieve the European Green Deal targets - with Ukraine being a potential source of green electricity and hydrogen that is nearby and that has relevant transport infrastructure. To underline Ukraine’s high potential and expertise in the area of renewable energies, the Dnipro Hydroelectric Station - one of the largest in Europe - counts as best practice example for renewable energies. Also with regard to the Baltic Sea countries, the EU underlines the importance of ending energy isolation and achieving an open, integrated regional energy market (see Baltic Energy Market Interconnection Plan). The main challenge hence is to create a corresponding innovation ecosystem in Ukraine and the Baltic Sea countries, that would support the achievement of the European Green Deal goals in the priority sectors identified above.
Solutions
Our objective was to develop sustainable energy innovations that provide industry with risk-free, pioneering technologies for increasing system performance and competitiveness while decreasing CO2 emissions and energy costs. Following initial contacts with Ukrainian partners through the EEN in November 2023, we conducted several expert consultations, process analyses and consultations on investments with relevant partners from the Baltic Sea region and Ukraine. Together, we developed several ideas on how to effectively support the European Green Deal targets in the Baltic Sea countries and also in Ukraine, despite the war.
Overall, four dedicated innovation project ideas could be defined. Two of them rely on artificial intelligence (AI), the so-called Digital Twin technology: Following an initial expert consultation in February 2024 and a subsequent feasibility study, the “Smart energy-efficient manufacturing” innovation project was defined in March 2024 together with AIDEAS OU. It is expected to achieve significant savings in terms of energy (up to 65%). Similarly, the “Smart energy grid” R&I project will maximise energy efficiency already at the root of its provision: the distribution system operators promise a reduction in maintenance & operating costs of 35%, and 50-100% reduction in CO2 emissions. This innovation project was a result of an initial expert consultation with Lithuanian ESO on 8 February 2024 with subsequent feasibility study. The third project “Innovative renewable energies” was jointly designed by University of Tartu and SolarGaps LLC, initiated by an Ideas and Future Workshop by EDIH Saarland. The project targets the development of nanostructured photonic solar cells with increased efficiency of light harvesting. Last but not least, in talks with Ukraine’s State Agency on Energy Efficiency and Energy Saving, the realisation of a national Decarbonisation platform was discussed to further boost energy-efficiency in public and private sectors.
Results and Benefits
In support of the four ideas above, a first proposal “InnoEnergyHub” was created in response to the call HORIZON-WIDERA-2023-ACCESS-07-01, focusing on the development of a robust innovation ecosystem for energy-efficient smart cities and sustainable industries in Ukraine and the Baltic Sea countries that would support digital and energy transition in those countries and function as the leading innovation engine, bringing the technology and skills required to accelerate decarbonisation goals. Supported by the Chambers of Commerce in Ukraine, Lithuania and Estonia, a strong consortium was built with key scientific partners (Institute of Physics of National Academy of Science of Ukraine, Dnipro University of Technology, University of Tartu), relevant companies (SolarGaps LLC, AIDEAS OU, Energijos Skirstymo Operatorius AB), central innovation agencies (Estonian Business and Innovation Agency, Lithuanian Innovation Centre, State Agency on Energy Efficiency and Energy Saving, Entrepreneurship and Export Promotion Office, Tartus Regional Energy Agency) and society representatives (Estonian Green Movement, DiXi Group) in Ukraine and the Baltic Sea countries.
Moreover, several alternative funding schemes were identified to provide financial support to the aforementioned innovation projects in case the original proposal fails.
In the context of the “Smart Energy Grid”, priority will be given to Interreg Baltic Sea Region (covering both LI, EE!), focusing on solutions for a green and resilient Baltic Sea region and the Just Transition Fund of the European Commission for EU regional and urban development (EE, LI). Furthermore, uptake by Estonian DSOs will be attempted through EAS’ Company development plan programme and in the case of Ukraine through the Electric Energy Forum (EEF).
Regarding the “Innovative Renewable Energy” solar cells, relevant existing financing options include potential investors (e.g. Homeowner Associations through Revolving Fund of Cities (RFC) in UA and INVEGA loans for high-value-added product developments in LI) as well as suitable funding programmes, in particular funding provided by the European Urban Initiative.
Last but not least, dedicated financing options for “Energy-efficient Smart Manufacturing” include potential investors (manufacturers in UA, LI, EE) and/or suitable funding sources (e.g. CHANGE Loans provided by INVEGA, but also through HORIZON Europe under destination HORIZON-CL4-2024-DIGITAL-EMERGING).
As Serafeim Moustakidis (CTO of AIDEAS OÜ) stresses, the collaborative actions are of central interest and importance also for the European economy. With regard to smart manufacturing and energy-efficiency he explains:
"The proposed project is invaluable as it leverages our cutting-edge AI and Digital Twin technology to significantly enhance operational efficiency, quality control, and predictive maintenance. As the technology provider, we anticipate substantial benefits for our partners, including improved sustainability, reduced waste, and optimised resource use. This project aligns with our commitment to driving innovation and supporting environmentally responsible manufacturing practices."
Moreover, in close cooperation with the Ukrainian Chamber of Commerce, Ukraine’s State Agency on Energy Efficiency and Energy Saving and Tartu’s Regional Energy Agency, a national Decarobinsation platform shall be created, that automates the act of becoming energy-efficient (e.g. through automated feasibility study preparation, autonomous certifications/energy audits, and easy access to energy-efficiency solutions that maximise their uptake), thus enabling Ukrainian citizens and companies to minimise energy-usage and CO2 emissions. Financial support will also be sought in particular through the European Development Fund, the Cohesion Fund, as well as through the respective Recovery and Resilience Facility.
Perceived social/economic impact
In addition to the strategic importance both for the EU and Ukraine, the actions offer significant economic benefits for Ukraine and the Baltic Sea countries: All consumers of energy and building services – i.e. virtually all households in these countries – will directly benefit from the defined activities and results. Moreover, a significant part of the total economy in Ukraine, Estonia and Lithuania is expected to benefit from the actions: More than 150.000 companies and 2.7mio. employees amounting to 17-56 % of the total economies in Ukraine, Estonia and Lithuania will directly profit from the projects results, thus enabling economic growth and prosperity in these countries.
The collaborative actions will not only support EU’s Green Deal and the Baltic Energy Market Interconnection Plans, but directly contribute to securing Ukraine’s independence and sustainability in the energy sector and beyond, as Dr. Olena Fesenko, Head of International Innovation Cooperation, Technology Transfer and Intellectual Property Protection explains: “Energy sustainability and independence of the Ukrainian business became the key priority for the Ukrainian economy due to the Russian war against Ukraine. That is why our efforts will be focused on developing a robust innovation ecosystem in Europe and Ukraine for implementation of energy-efficient smart cities and sustainable industries, which support digital and green energy transition. We plan to continue our cooperation in the frame of the Central Ukrainian EDIH which is focused on stimulation of digital and green transformation, innovation and energy efficiency for the development of sustainable and industrial regions of central Ukraine. The Central Ukrainian EDIH aims to develop the digital and innovation ecosystem in the regions of central Ukraine and will maintain close cooperation with other national and international EDIHs to stimulate the process of large-scale digital transformation in SMEs and the public sector in Ukraine.”
Measurable data
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19 partners brought together
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3 expert consultations conducted
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2 feasibility studies concluded
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1 ideas & future workshop done
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10 funding and investment sources identified
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3 innovation projects designed
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1 funding application submitted
Lessons learned
To fully achieve its objectives and maximise the impact of the aforementioned activities, it is important to set-up a network of renowned experts across targeted countries. This collaboration spans scientific experts, industry representatives, SMEs, policy-level organisations, and societal representatives. Moreover, to mitigate the risk of funding shortfalls, it is worth to identify several alternative funding opportunities. These alternatives will serve as a backup in case the initial application is unsuccessful.
What proved to be also difficult is communication with non-scientific partners (in particular SMEs in Ukraine). Here, we advise to use the EEN as mediator connecting the local community with the European experts.
The Benefits of the collaboration
The EEN is considered the world's largest support network for SMEs with international ambitions. It facilitates requests by companies across all of Europe and goes far beyond the scope of individual EDIHs. Through the EEN Saarland/Rheinland Pfalz, dedicated expertise that can be found within EDIH Saarland could be connected with companies and institutions in need of such expertise. So both EDIH and EEN usefully complement and extend each other for the benefit of companies in Europe.
Lessons learned – do’s and don’ts of the collaboration
When reaching out to companies via the EEN, it is crucial to allocate adequate time for SMEs to respond. Responses from companies can sometimes take up to four weeks from the initial contact to the receipt of feedback.