Analysing the effectiveness of renewable energy supporting policies in the European Union

With several mid-term policies in place to support the development of renewables, the European Union (EU) seems on its way to increasing the share of renewable energy to the targeted 12% by the year 2010. It is however, yet unclear how effective these policies are, which technologies will see the largest growth and which countries will indeed be able to meet their targets. This article discusses a monitoring protocol that was developed to monitor this effectiveness and judge whether targets will be met. In a step-wise approach policy instruments are characterised and analysed, leading to a quantitative assessment of the likely growth in renewable energy production for each individual technology and country in case no policy changes occur. Applying this monitoring protocol at the EU-level we show that with the current policies in place renewable energy production will reach a share of 8–10% in 2010, and the share of electricity production will reach a level of 15–18% of total electricity consumption, whereas the target is 22.5%. Additional policies are clearly needed to achieve the ambitious targets set.     

Harmonization of renewable electricity feed-in laws in the European Union

This paper focuses on the harmonization of feed-in laws in the European Union as a support mechanism for the promotion of renewable electricity. In particular, it proposes a methodology for harmonization based on a feed-in law with a modular and transparent premium for renewable electricity producers. This premium considers technology costs, some grid services, political incentives and national priorities. The proposed approach includes flexibility mechanisms to update and revise premiums, to avoid windfall profits for producers, and to share technology innovation benefits with electricity consumers while maintaining incentives for innovation. Our approach is based on the review of the main features of the German and Spanish feed-in laws, and takes into account other necessary considerations for harmonization, such as grid access, funding, definitions and standards, ownership of rights derived from renewables, and exceptions for small non-commercial producers and energy-intensive industries.     

Energy efficiency and renewable energy policy in the Czech Republic within the framework of accession to the European Union

The main barrier for end-use energy efficiency and renewable energy in the Czech Republic is the lack of a stable political and regulatory framework. Market incentives can only properly work if the market conditions and restrictions are clear and stable. However, no comprehensive policies and regulation have been implemented in the Czech Republic. Although the acquis communautaire of the European Union includes regulation on energy efficiency and renewable energy, this topic remains low on the negotiation agenda for accession. This paper reports on the current situation in the Czech Republic, including the potentials for end-use energy efficiency and renewable energy, on the existing policy and regulatory framework, and on the remaining gaps with the requirements of accession to the European Union. Also, the impact of the recent increase of nuclear capacity on energy efficiency and renewable energy in the Czech Republic is discussed.     

可再生能源系统效益收费探讨

我国有丰富的可再生能源资源，但由于多方面原因，我国可再生能源的开展一直没有达到预期的效果。文中提出通过系统效益收费，加大可再生能源的研究和开发工作，提高可再生能源本身的经济性。详细论述了实行系统效益收费在我国的必要性和可行性，提出系统效益收费应该集中使用，统一管理，并对系统效益的扶持范围进行了界定。     

Lessons from market reform for renewable integration in the European Union

The European Union (EU) has the most advanced, mature, and liberal energy markets that gave rise to the most dramatic drop in wholesale energy prices, whose fallen, however, has not been translated into a reduction in retail energy prices. Instead, energy prices in Europe rose above inflation year-in-year-out, and are considerably higher compared with major economic partners. This paper highlights the key limitations in the EU market designs and network access toward renewable integration, and the wide range of reforms that the EU is currently undertaken across the Member States to achieve two goals: to make the market fit for renewable, and to set a practical example of how a competitive economy can be built on a sustainable and affordable energy system. This paper concludes with key recommendations to developing nations, particularly in addressing heavy renewable curtailment.     

Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries

In the last two decades, feed-in tariffs (FIT) have emerged as one of the most popular policies for supporting renewable electricity (RES-E) generation. A few studies have assessed the effectiveness of RES-E policies, but most ignore policy design features and market characteristics (e.g. electricity price and production cost) that influence policy strength. We employ 1992–2008 panel data to conduct the first econometric analysis of the effectiveness of FIT policies in promoting solar photovoltaic (PV) and onshore wind power development in 26 European Union countries. We develop a new indicator for FIT strength that captures variability in tariff size, contract duration, digression rate, and electricity price and production cost to estimate the resulting return on investment. We regress this indicator on added RES-E capacity using a fixed effects specification and find that FIT policies have driven solar PV development in the EU. However, this effect is overstated without controlling for country characteristics and is concealed without accounting for policy design. We do not find robust evidence that FIT policies have driven wind power development. Overall, we show that the interaction of policy design, electricity price, and electricity production cost is a more important determinant of RES-E development than policy enactment alone.     

Analysis of harmonisation options for renewable heating support policies in the European Union

Best practice policy design and harmonisation of support schemes for electricity from renewable energy sources (RES-E) within the European Union have been discussed controversially for years. In contrast, policies for improving renewable heating (RES-H) penetration in the European Member States and options for best practice instruments are still being developed. The objective of this paper is to analyse different levels of policy harmonisation for target compliance and the economics of renewable heating and cooling. After presenting the degree of RES-H policy harmonisation resulting from Directive 2009/28/EC, a quantitative assessment is performed of the costs and benefits of different harmonisation scenarios. This selects the obligation to use renewable heating in buildings as the common policy instrument against which the effects of harmonisation are analysed. The paper shows that economic benefits can result from implementing best practice design options for use obligations in EU Member States.     

Support schemes for renewable electricity in the European Union: Producer strategies and competition

Current discussion about how to reform European support schemes for renewable electricity neglects certain risks of market power in wholesale electricity markets. In a stylized Cournot model of interacting spot and forward electricity markets, I analyze how different price-based support schemes affect producer strategies and, ultimately, competition in the wholesale market. I compare the strategic behavior of renewable and conventional producers in terms of electricity production and forward market sales in the presence of two different price-based support schemes: feed-in tariffs and feed-in premiums. I show that the feed-in premium, which is the European Commission's current scheme of choice, may enhance market power and favor conventional electricity production. It may also reduce the likelihood of achieving the political objective to increase production from renewable energy sources.     

French perspectives in the emerging European Union energy policy

The debate over a common European energy policy, its necessity and its establishment has been going on for a number of decades. The discussions have been recently brought back into the spotlight by the evolution of energy market fundamentals and the taking into account of environmental protection. In spite of the energy diversity of the European Union (EU), a common vision has always been shared by all over energy development for the future. The achievements of the internal market, the fight against climate change and supply security are the common energy battles that call for a solution in common. This policy remains the responsibility of the States, but decisions vary from one country to the next. To move from a shared vision to a European energy policy, large steps are necessary. The European construction is making evolve the “typically French vision” of energy policy. France was often characterized as the “black sheep” in the EU. In the political context of president elections, the energy debate in French is of a high interest. This paper discusses the main issues with the French energy policy in the emerging European energy policy.     

European Union and the formation of its initiative in energy minerals

In November 2008, the European Union adopted “The raw materials initiative – meeting our critical needs for growth and jobs in Europe”, dealing especially with ensuring the future needs of metallic and non-metallic raw materials for EU member state economies. After years of hesitation, this may undoubtedly be considered a very progressive step. The article lists the most relevant reasons why the EU should promptly proceed to the discussion and preparation of a similar material of higher legal force for energy minerals. Basic problem areas of forming a political platform for the preparation of the EU energy initiative include the exploitation of domestic energy raw material deposits, raw materials diplomacy, and the matter of renewable sources.     

Competitive and secure renewable hydrogen markets: Three strategic scenarios for the European Union

The European Union (EU) considers renewable hydrogen a key priority for achieving climate neutrality and therefore needs to develop competitive and secure renewable hydrogen supplies. International trade could play a major role in meeting EU hydrogen needs and will require the creation of highly integrated markets between member states. This article analyzes three strategic scenarios in which the EU prioritizes energy independence, cost optimization, or energy security using an optimization model of international hydrogen trade based on production potentials and cost curves in EU countries and potential trade partners. The results show that, while the EU could become hydrogen independent, imports from neighboring countries could minimize overall costs despite higher transportation costs. However, imports from neighboring countries may reproduce past energy dependence patterns. Our results show that to limit reliance on a single supplier without increasing overall costs, the EU could leverage long-distance imports.     

Measuring the security of external energy supply in the European Union

The security of energy supply is one of the main objectives of EU energy policy. In this paper, we introduce an index designed to evaluate the short-term risks associated with the external supply of energy to the EU Member States. It combines measures of energy import diversification, political risks of the supplying country, risk associated with energy transit, and the economic impact of a supply disruption. We construct separate indexes for three primary energy types, oil, gas and coal, and demonstrate that Member States’ levels of supply risk exposure differ across energies. Most other studies of this kind provide aggregate indexes combining different types of energy. Our results suggest that an aggregate approach could be misleading, at least for discussions of the short-term response to risks. We discuss the implications of our findings for the common energy policy.     

欧盟发布《可再生能源概览2010》

<正>近日,欧洲联合研究中心(欧委会下属的唯一具有研究职能的总司)发布《可再生能源概览2010》,对欧盟2009年可再生能源发展情况进行了分析,主要内     

European Union's renewable energy sources and energy efficiency policy review: The Spanish perspective

The European Union's (EU) energy objectives, legislation and programmes are determinant for the current strategy for the promotion of renewable energy sources (RES) and energy efficiency (EE) in Spain, which is becoming a key element for its international competitiveness.Firstly, this article explores the evolution of the EU's energy strategy, focusing on the adopted legislations and programmes to promote RES and EE. It concludes with an analysis of the impact of those measures in Spain.     

Econometric perspective of the energy consumption and economic growth relation in European Union

This paper's aim is to examine the relationship between energy consumption by fuel end economic growth in a comparative analysis for Spain, Romania and European Union. Applying a methodology in three steps on data for the 1990–2010 period, long-run and short-run relationships are revealed. On long-run, the energy consumption with total petroleum products source yields evidence of linkage with economic growth (proxied by Gross Domestic Product per capita in constant prices) for both two states and European Union. Furthermore, on short run only two relationships were emphasized both sustaining the growth hypothesis. So, in Romania, renewable energy consumption influences on short run the economic performance of activities; the relation is unidirectional and is not valid in the other direction, meaning that economic growth does not cause renewable energy consumption. In Spain, energy consumption with source natural gas causes economic growth on short-run, and the relation is valid just in this direction. The findings of this study help understanding the energy-growth nexus which stands behind all energy policies.     

Fostering the use of renewable energies in the European Union: the race between feed-in tariffs and green certificates

Fostering the use of renewable energies for power generation is at the heart of the EU's long term energy policy. Accordingly, the European Commission and literally all member states have set up ambitious installations targets for alternative energy sources. These aims can only be reached by recurring to support systems that help covering the cost disadvantages faced on liberalised electricity markets. Currently, a dichotomy of support models exists: Feed-in tariffs on the one side and green certificates on the other side seem promising tools to foster renewable energies. In this contribution we look closely at the concepts of both models as well as their advantages and disadvantages in terms of ecological effectiveness and economic efficiency. It becomes obvious that in the context of the liberalised power markets and the rush for the harmonisation of the instruments it will depend very much on in-detail regulations whether the installation targets will be met-regardless of the basic choice of model.     

Design options for cooperation mechanisms under the new European renewable energy directive

In June 2009, a new EU directive on the promotion of renewable energy sources (RES) entered into effect. The directive 2009/28/EC, provides for three cooperation mechanisms that will allow member states to achieve their national RES target in cooperation with other member states: statistical transfer, joint projects, and joint support schemes. This article analyses the pros and cons of the three mechanisms and explores design options for their implementation through strategic and economic questions: How to counterbalance the major drawbacks of each mechanism? How to reflect a balance of costs and benefits between the involved member states? The analysis identifies a number of design options that respond to these questions, e.g. long term contracts to ensure sufficient flexibility for statistical transfers, a coordinated, standardised joint project approach to increase transparency in the European market, and a stepwise harmonisation of joint support schemes that is based on a cost-effective accounting approach. One conclusion is that the three cooperation mechanisms are closely interlinked. One can consider their relation to be a gradual transition from member state cooperation under fully closed national support systems in case of statistical transfers, to cooperation under fully open national support systems in a joint support scheme.     

Spatial relationship between economic growth and renewable energy consumption in 26 European countries

The relationship between economic growth (GDP) and renewable energy consumption in different regions has been studied using diverse methods and data. However, most of these studies focus on the temporal aspect but do not explain the spatial relationship between GDP and renewable energy since they assume that each country is an island unto itself and do not consider the possible spatial relationship between neighbouring countries. In this study, we have used a spatial Durbin model with panel data to investigate the spatial dependence between GDP and renewable energy consumption for 26 European countries over the period 1991–2015. We conclude that spatial dependence leads to a change in renewable energy consumption that affects the GDP of neighbouring countries. Specifically, a 1% increase in the renewable energy consumption of one country will increase economic growth by up to 0.054% in the GDP of its neighbouring countries.