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Title:
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A fragmented market on the way to harmonisation? EU policy-making on renewable energy promotion
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Author(s):
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Published by:
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Publication date:
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ECN
Policy Studies
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1-3-2004
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ECN report number:
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Document type:
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ECN-RX--04-017
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Article (scientific)
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Number of pages:
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15
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Published in: Energy for Sustainable Development (Elsevier), , 2004, Vol.Volume VIII, No. 1, March, p.93-107.
Abstract:
This article focuses on the directives of the European Union on the
promotion of (1) electricity produced from renewable energy sources
(the RES-E Directive) and (2) the use of biofuels and other renewable
fuels for transportation (the RF Directive). First an overview is given
of the broader policy perspectives and the political process that led
to their adoption. Next these directives are briefly described and an
assessment is made of their implementation. This sets the stage for
a contribution to the debate on whether or not further steps to EU-wide
harmonisation of national renewables support systems should be made.
This debate is quite relevant to the drafting of the evaluation report
by the European Commission on the implementation of the RES-E directive
due in October 2005. Some major near-term priorities for implementation
of the RES-E and RF Directives are identified.
It is argued that requirements for the emergence of a single energy
market, improvement of the international competitiveness of the EU economy,
and accelerating cost-reducing innovations in the renewables-related
industries all point in the direction of Union-wide harmonisation. This
approach should allow, though, for technology-specific cost considerations.
However, an EU-wide choice for one specific type of support scheme might
not be realisable in the near term. A first step in reducing market
fragmentation could be compatible accounting systems for guarantees
of origin (GOs), which consequently may assume a key role in facilitating
trade.
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