Renewable Energy Policies in Europe

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Renewable Energy Policies in Europe
Annemarije van Dijk Energy research Institute of
The Netherlands ECN Policy Studies
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AGENDA

• RE in Europe
• RE policy targets
• Main policy instruments
• Examples of policies
• Conclusions

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RE electricity compared to total EU production
source EUROSTAT
Total electricity production 2500 TWh Total RE
electricity 375 TWh (15) EU Target 2010 22
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Why support renewable energy?

• Economic Drivers
• Security of Supply
• Rural electrification
• Labour
• Promoting local industry
• Economic Cohesion
• Environmental Drivers
• Reducing Emissions
• Reducing Climate Change
• Other local and regional environmental benefits

• Social Drivers
• Public Support
• Social Cohesion
• Promoting regional en local social development
• Other Drivers
• Economical Optimisation
• Global Equity and corporate social responsibility

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EU targets for RE electricity
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Costs of RE electricity production
costs in 2010 grey electricity production 3-5
eurocent/kWh source REBUS, ECN 2001
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How to stimulate the market for renewable energy?

• Direct instruments
• Policy instruments with financial incentives
• Obligations or agreements
• Indirect instruments and policy context
• Procedures and regulations for renewable energy
  project implementation
• Awareness, training and education
• Disincentives for non-renewable options

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Direct and indirect support instruments and
framework
Planning procedures
Awareness, training, education
Green electricity market
Price of fossil fuels and grey electricity
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Direct policy instruments for production and
consumption
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Feed-in tariffs- Germany
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Bidding- Ireland
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Green certificate systems

• Austria - 2001 small hydro
• Belgium Flanders-2002, Wallonia end 2002
• Italy - 2002
• Netherlands - July 2001
• Sweden - 2003
• UK - April 2002

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Tradable Quota with Green Certificates-UK
Obligation 3 of sales in 2002/2003 10.4 of
sales in 2010/2011 Buyout price 48 Euro/MWh
www.greenprices.com
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International trade in Green certificates
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Stimulating demand through priceThe Netherlands

• Regulating Energy Tax (REB)
• Exemption of the REB on renewable electricity
  consumption (indirect measure)
• Production subsidy to renewable electricity
  generators from the REB revenues

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Voluntary Green Labels - Germany
www.greenprices.com
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Negotiated agreements- Netherlands

• Environmental Action Plan 1991-2000
• Energy efficiency and renewable energy
  (obligation on result from 1997)
• Financed by subsidy, fiscal measures, MAP
  premium tariff, Green Labels

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Indirect measures

• For example
• Planning procedures and permits for installation
• Grid access regulations
• Environmental regulations (eg limits on landfill)
• Disincentives for non-renewable options- increase
  of taxes on fossil fuels
• Awareness, training and education

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Taxes on grey electricity
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Summary and Conclusions

• Many options for stimulation of RE
• Evaluate on effectiveness, cost-effectiveness,
  national priorities
• No one best way