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What is the scope for the Dutch government to use the flexible mechanisms of the Renewables Directive cost-effectively?
Published by: Publication date:
ECN Policy Studies 7-4-2010
ECN report number: Document type:
ECN-E--10-020 ECN publication
Number of pages: Full text:
47 Download PDF  (488kB)

This report provides a preliminary assessment of the scope for cost-effective use by the Dutch government of each of four flexible mechanisms available to EU Member States to achieve their respective mandatory renewables target in year 2020. The flexible mechanisms, defined in the Renewables Directive 2009/28/CE, are:
• Statistical transfers between Member States.
• Joint projects between Member States.
• Joint projects between Member States and third countries.
• Joint support schemes.

In theory, statistical transfers and joint support schemes are the flexible mechanisms with the most potential for cost-effective use. The Dutch government is advised to explore each of these options. In this report, it is argued that in practice well-designed joint support schemes are likely to turn out having most potential. To that effect, the report presents a concrete suggestion on the most promising short-term application. To successfully harness a substantial part of the joint support schemes potential warrants protracted efforts in the design phase: the devil is in the detail.

Moreover, the joint projects between Member States mechanism may well turn out to provide some interesting opportunities. For collaboration between the Netherlands and a selection of (four) other Member States some technologies to focus upon are identified. Reasons are given why the flexible instrument joint projects between Member States and third countries is poised to have quite limited potential to cost-effectively contribute to the Dutch renewables target in year 2020.

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