Renewable Energy - Projects

Analysis of market stimulation of renewables-based electricity in the internal market and the degree of harmonisation of support schemes

By 2010 12% of EU gross domestic energy consumption will come from renewable energy sources (RES). With regard to electricity 20% of generation is going to be RES. At present renewables represent around 14% of the EU’s electricity mix with all major hydroelectric capacity explored and with EU electricity demand steadily increasing by 1% p.a. For member states and the EU collectively to meet set targets of renewables-based electricity (RES-E) support mechanisms have been developed to stimulate the greater share of RES-E in the EU’s energy mix.

Currently most EU member states have opted for direct preferential payments (feed-in tariffs) which in effect feed eligible RES-E into the grid. An alternative to this approach is the renewable electricity quota system, where national targets are set on a yearly basis and companies (generators and suppliers) have the obligation to generate a percentage of their RES-E on that basis. To increase flexibility the process is facilitated by tradable certificates which companies can buy and sell.

The main question for this Task Force concerns the degree of harmonisation of national support schemes for RES-E. Crucial elements in the analysis are the development of an EU Energy Market, the promotion of synergies to improve price efficiency, R&D and competitiveness, and potential policy coherence of RES-E market stimulation support schemes with other environmental and internal market policies.

The report can be downloaded at ECN.

For more information please visit the site of CEPS or contact Jaap Jansen