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ECN publication
Title:
A timetable for harmonisation of support schemes for renewable electricity in the EU
 
Author(s):
Egenhofer, C.; Jansen, J.C.
 
Published by: Publication date:
ECN Policy Studies 1-4-2006
 
ECN report number: Document type:
ECN-RX--06-088 Article (scientific)
 
Number of pages:
0  

Published in: European Review of Energy Markets, Vol. 1, Issue 2, p.85 (), , 2006, Vol.april, p.-.

Abstract:
The case for renewable energy sources (RES) support in the EU is usually based on a great number of different reasons. RES promise strategic improvements in the security of energy supply, reduce in the medium to long term both upward energy price risk and energy price volatility and could offer an enhanced competitive edge for the EU RES technology industry. Renewables reduce air pollution and greenhouse gas (GHG) emissions. They also facilitate improvement in the economic and social prospects of rural and isolated regions in industrialised countries and provide better access for meeting basic energy needs in developing countries. The cumulative effect of all these benefits makes a robust case for renewables support. This remains true also if measured against the benchmark of the Lisbon agenda of making the EU more competitive. However, the different objectives are not necessary mutually reinforcing and in many cases they constitute trade-offs. This article examines how policy should deal with these trade-offs in light of vested interests demanding more support for “their” technology. It analyses the merits of different support models and examines how different member states schemes can gradually been brought into an EU-wide scheme. The article proposes a timetable for EU-wide harmonisation of (still) national support schemes to reap the benefits of the internal market without allowing for distortions to competition in the emerging EU power market. It distinguishes between three areas for action: overall support level, harmonisation of support schemes, and creation of a common EU framework.


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