Regional Analysis

Drawing upon the insights gained from examining the regional performance, we can identify internal strengths and weaknesses, as well as external opportunities and threats that shape current and future trajectories in developing strategic goals concerning the energy transitions over the five regions involved in TRINEFLEX use cases. By supplementing these with the assessment findings embedded in the respective regions’ innovation strategies, we can conduct a comprehensive SWOT analysis that provides a holistic understanding of the regions’ ecosystem innovation potential and requirements in the energy transition.

Basque Country (ES21), Spain

Strengths

• The region’s prioritization of innovation actions related to cleaner energy, eco-innovation, and sustainable cities is a key strength in its energy transition efforts. By prioritizing renewable energy sources, developing green technologies, and adopting green mobility the region is reducing its reliance on fossil fuels and improving the overall energy efficiency. In addition, commitment to digital transformation, green technologies, circular economy principles, climate resilience and smart cities is driving sustainable growth in the region.
• In RIS the region is a Strong Innovator (ranked first among the 5 regions involved in TRINEFLEX and the best performing region in Spain), which indicates high performance in aspects related to research, digitalisation, ICT, finance, investments, environmental sustainability, and others, all of them strong enablers in energy transition.
• A significant number of the identified key actors in energy transition are established in the region, indicating the region’s leading role at national level.

Weaknesses

• Despite being recognized as one of the EU’s strong innovators, the region’s involvement in Green Deal EU-funded R&I projects was slightly behind the average of similarly engaged regions in Spain. This raises questions about the region’s ability to sustain its innovation momentum in the domain of energy transition.
• The region shows weaknesses in aspects linked to innovation in SMEs, such as expenditure on technological innovation (not R&D), adoption of innovation in products and processes, and innovating with in-house resources.

Opportunities

• The net primary income of the region, which is above EU’s average, serves as an incentive to attract skilled workforce and foster innovation among local energy actors.
• The region’s strong economy, as indicated by its high regional GDP (the highest among the 5 regions involved in TRINEFLEX), renders it attractive for energy stakeholders to collaborate and introduce innovative projects in the region.
• The region boasts a sizable network of established energy communities, poised to serve as a driving force for innovation and synergy in local energy transition efforts.

Threats

• Slow progress in the integration of social challenges and civil society stakeholders in the regional innovation strategy, poses a significant impediment to maximizing its energy transition innovation potential.
• Incomplete understanding of the necessity to harmonize regional initiatives and stimulate innovation across inter-regional value chains hinders the region’s ability to fully realize energy transition innovation.
• Lack of flexibility in adapting and experimenting with new funding strategies and in adopting a policy mix that facilitates inter-regional investments, slow down the region’s pace towards energy transition innovation.

Region of Murcia (ES62), Spain

Strengths

• The region’s main trends related with climate change, decarbonisation, and the energy transition in the period 2021-2027 include cleaner and smarter cities with smart and positive energy buildings, use of alternative energy sources such as biomass and biogas from organic waste and concentrated solar energy, increased energy efficiency and promotion of self-consumption, establishment of energy communities.
• Trends in sustainable technologies in the region include biogas and biofuels production upgrades, PV and shallow geothermal renewable energy production, energy storage technologies, and green hydrogen.
• The region has an active R&I ecosystem with a significant number of local organizations participating in EU-funded projects related to energy transition.

Weaknesses

• According to the most recent available data, the region is facing a slower economic recovery from the COVID-19 pandemic, which could hinder its ability to fully realize its innovation potential in the energy transition.
• No key actors were identified in the region, which may suggest limited potential impact of local stakeholders in energy transition.
• Limited awareness about the importance of research and innovation in both the business community and society at large, limits the region’s investment in innovation, hindering the development of a robust innovation ecosystem.

Opportunities

• The existence of several energy communities in the region offers a compelling opportunity to amplify innovation and collaboration over local energy transition initiatives.
• Region’s expertise and resources in areas related to sustainable agriculture and water management, can be leveraged to develop innovative solutions combined with clean energy that address global challenges related to climate change.
• Training and promotion of sustainable technologies and digitalization, particularly in the realm of Industry 4.0, presents a tremendous opportunity for the region to adopt and deploy innovative solutions for its energy transition.

Threats

• The region’s comparatively low employment rate (second lowest among the 5 regions of TRINEFLEX) poses a significant challenge, as it may discourage young talent from staying and contribute to the region’s economic stagnation and hinder its ability to lead innovative energy transition initiatives.
• While ranked as a Moderate Innovator- in RIS 2023, the region compared to the previous year demonstrates the lowest improvement among the project’s five regions, indicating a need for strategic initiatives to enhance its innovation potential.
• The region’s reliance on public funding for research and innovation leaves it vulnerable to fluctuations in public spending and makes it difficult to attract and retain private sector investments. This lack of funding hinders the development of new energy transition technologies and the adoption of existing ones.

Veneto (ITH3), Italy

Strengths

• The region is commitment to smart manufacturing and the digitalization of industrial production. By embracing advanced technologies, AI and data-driven insights, the region is laying the foundation for a more efficient, sustainable, and decarbonized industrial sector. At the heart of this transformation lies the ability to optimize resource utilization and enhance energy efficiency across the industrial value chain, which can lead to significant reductions in energy waste and a more sustainable manufacturing footprint. Advanced technologies can facilitate the integration of alternative energy sources into industrial operations, enabling the sector to tap into cleaner energy and reduce its reliance on fossil fuels. Moreover, smart manufacturing practices can guide the adoption of circular economy and industrial symbiosis principles, promoting waste reduction, resource recovery, and a more sustainable material flow within industries.
• The region’s robust economy, exemplified by its elevated regional GDP and nominal labour productivity, makes it a compelling destination for industrial and energy actors to engage in collaborative efforts and introduce novel initiatives for the energy transition.
• The region implemented a number of policies to reduce pollution and promote sustainability. This focus on environmental innovation can be leveraged to develop new technologies and adopt solutions that support the transition to clean energy.

Weaknesses

• The region appears much less involved in EU-funded R&I initiatives related to the energy transition compared to other regions in northern Italy. This observation suggests a potential stagnation in its innovation potential in the field.
• The absence of a critical mass of established key actors in the region may hinder local involvement and impact in the overall energy transition efforts.
• Contrary to the robust presence of energy communities observed in other north regions of the country, the region’s underwhelming uptake of such initiatives indicates a less developed environment for supporting grass-rooted activities targeting the energy transition.

Opportunities

• The high net primary income of the region, which is above EU’s average and the highest among the 5 regions involved in TRINEFLEX, serves as an incentive to attract skilled workforce and foster innovation among local energy actors.
• The region is ranked Moderate Innovator+ in RIS 2023, with a solid increase over the previous year, which creates a solid foundation for further growth and exploitation of its overall innovation potential.
• The region’s strong manufacturing industrial sector has a strong base of highly skilled workers and provides a fertile ground for digitalisation and the adoption of green technologies to create efficient and sustainable production.

Threats

• Difficulty in technology transfer and collaborations between research institutions and companies in the region.
• Preparedness of business and local stakeholders active in various economic sectors to adapt and evolve their business models in line with the changes required by the energy transition.
• Limited orientation of foreign investments in the region with innovation development and the energy transition.

Central Greece (EL64), Greece

Strengths

• Among its innovation priorities for the 2021-2027 period, the region has included investing in green innovation, pursuing energy savings, and increasing the penetration of renewable energy sources and biofuels in energy production.
• The region boasts a robust industrial base, with metal, chemical, and plastic production dominating its export portfolio. Additionally, the region plays host to some of the nation’s largest food and beverage industries.
• The region has recognized the importance of local industrial value chains, and the sustainable development of its industrial areas is part of its innovation strategy.

Weaknesses

• Low participation of local actors in EU-funded R&I activities may indicate a limited capacity of the region to adapt to the challenges and opportunities presented by the energy transition.
• Lack of funding instruments and financial motives to encourage local investment in energy transition.
• The majority of local businesses are SMEs, which often lack the resources to invest in research and development and to adopt new technologies.
• Lacking regulatory framework and clear policies to support energy innovation.

Opportunities

• The region’s relatively low GDP may serve as a catalyst for attracting public support and private funding for local energy actors and energy-related investments. In conjunction with the region’s impressive economic growth rate and its post-pandemic rebound, this presents a unique opportunity for the region to accelerate its progress in the energy transition.
• In RIS 2023 the region ranked only as an Emerging Innovator+ (the lowest score among the project’s 5 regions) but has demonstrated significant improvement compared to the previous year, which suggests that the region harbours untapped potential for innovation.

Threats

• The region’s comparatively low employment rate (lowest among the 5 regions of TRINEFLEX) poses a significant challenge, as it may discourage young talent from staying, contribute to the region’s economic stagnation and hinder its ability to lead innovative local energy transition initiatives.
• Region’s very low nominal labour productivity index demonstrates that may be challenging to attract skilled and experienced labour force in the region.
• While a handful of key actors have been identified in the region, its proximity to the capitol region of Attica poses a significant threat that stakeholders may opt to establish their operations there rather than locally.
• The limited presence of established energy communities in the region may hinder citizens’ and small businesses’ engagement in local energy partnership schemes.

Attica (EL30), Greece

Strengths

• Among the innovation priorities for the period 2021-2027, the region has included the energy transition with a focus on integrating more renewable energy sources, increasing energy saving and creating smart power grids.
• Management of the region’s natural resources and the improvement of primary production with focus on energy and environment are also among the priorities of the region which impact the sustainability and energy transition of local industrial value chains.
• The region exhibits the highest net primary income in Greece, and with a robust concentration of enterprises and public sector entities, it presents a plethora of employment opportunities that can attract highly qualified personnel.
• The vast majority of Greek R&I actors as well as the key stakeholders involved in energy transition are concentrated in the region, emphasising its position as Greece’s central hub of economic and research activity.

Weaknesses

• The majority of local businesses are SMEs, which often lack the resources to invest in research and development and to adopt new technologies.
• Lack of collaboration between businesses, research institutions, and academia to transfer knowledge and commercialize new technologies related with the energy transition.
• Lacking regulatory framework and clear policies to support energy innovation.

Opportunities

• The region’s ranking as a Moderate Innovator in RIS 2023, with a notable improvement over the previous year, signals a promising trajectory in harnessing its burgeoning innovation potential.
• The region’s proliferation of energy communities, particularly those focused on renewable energy production and distribution, provides increased opportunities for citizens and the private sector to actively collaborate and participate in energy transition initiatives.
• The increased use of RES creates a need to manage, store, and distribute this energy efficiently, which will create opportunities for local businesses to develop new technologies and adopt sustainable solutions.

Threats

• The loss of skilled and talented workforce to other countries (brain drain) can have a significant negative impact on research and innovation of the region.
• Low energy security and vulnerability to energy price fluctuations can pose challenges for local actors in investing and adopting variable energy sources without robust energy storage infrastructure present in the grid and the region.
• Slow embrace of digitalization by businesses and failure to adapt to Industry 4.0 principles by local industrial actors hinder the region’s progress in the energy transition.