How effective was public funding for energy research – and where is further action needed? The evaluation of the Federal Republic of Germany’s 7th Energy Research Programme, which was carried out by AIT Austrian Institute of Technology, KERLEN Evaluation and KMU Forschung Austria on behalf of the German Federal Ministry for Economy and Energy (BMWE), reaches a nuanced conclusion: the programme was highly relevant and effective from a strategic perspective, mobilised additional R&D investment and increased technological maturity. At the same time, transfer to the market and widespread application remain a key challenge.
The study examined the projects, real-world laboratories, micro-projects and accompanying measures funded from 2018 to the end of 2023. By July 2025, 59 per cent of the sub-projects had been completed; long-term impacts and market diffusion are therefore not yet fully observable. The report combines positive findings on impact with a clear need for further development, which informed the design of the 8th Energy Research Programme.
High additionality and technological impact
The evaluation gives an overall positive assessment of the programme’s relevance, effectiveness and cost-effectiveness, whilst clearly identifying the limits of its direct influence.
A total of 6,499 sub-projects were funded and around 4.9 billion euros were spent on R&D; of this, around 3.3 billion euros came from funding, whilst a further 1.6 billion euros was mobilised additionally. 70 per cent of respondents would not have carried out their project without funding; for a further 28 per cent, the project was expanded or accelerated; only 2 per cent would have proceeded unchanged. Technological impact is also evident: the TRL rose by more than two levels on average. However, the evaluation identifies further potential in terms of transfer and scaling; market diffusion is often limited by regulatory and economic conditions.
From Findings to Recommendations
The evaluation also served as a learning tool for programme management. The findings were incorporated into the 8th Energy Research Programme – for example, in mission-oriented management, enhanced monitoring, the programme advisory board, and the focus on knowledge transfer, real-world laboratories and micro-projects.
For future development, the report recommends regular impact assessments, stronger governance and cross-departmental coordination, as well as the development of more systematic transfer pathways. These include a more adaptive funding architecture with opportunities for follow-on funding, the early involvement of end-users, and simpler, more transparent procedures. The key conclusion is that research funding can catalyse innovation; however, market diffusion and scaling up also require appropriate regulatory, market and industrial policy frameworks.