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Europe Daily Bulletin No. 10305
Contents Publication in full By article 11 / 40
GENERAL NEWS / (eu) eu/energy

Oettinger wants investment in renewables to double

Brussels, 31/01/2011 (Agence Europe) - In a report published ahead of the European Council of 4 February, much of which will be devoted to energy policy, the European Commission urges member states to redouble their efforts for the promotion of green energy.

The EU's binding target for 2020 is for 20% of the EU27's energy consumption to be provided by renewable energy (there are separate national targets too) and this is expected to be easily reached if member states properly apply their national action plans and increase investment options, explains the European Commission in a document unveiled on 31 January by Commissioner Günther Oettinger. The Commission is calling for greater cooperation among the member states and a more joined-up renewable energy market in Europe.

The national plans for implementation of EU Directive 2009/28/EC on energy generated from renewable energy sources (which should have been transposed into national legislation by 5 December 2010) state that all the member states must meet their binding targets by 2020, but recent reports show that most member states, along with the EU as a whole, did not actually manage to achieve their 2010 interim targets for electricity and transport, targets set out in directives dating back to 2001 and 2003 on renewable energy. The European Commission therefore urges the member states to double their annual capital investment in renewable energy, taking it from €35 billion a year to €70bn.

In the new legislation set out in the EU Renewables Directive, member states are required to do the necessary work to invest and cooperate in the explanation of renewable energy. In order to continue investing in renewables, national aid schemes will be required and the Commission points out that these should ensure the best value for money (as should all other systems used to finance renewable energy).

Various mechanisms are used by the member states when it comes to promoting green energy, like subsidies, loans, part exchange and certification, but the European Commission says that the management of these systems needs to be improved because the subsidies need to be more joined-up, certain and understandable.

The Commission stresses the importance of greater cooperation among member states to encourage greater harmonisation of national aid systems and their incorporation in the market so that the markets for renewable energy and related technology can become competitive as soon as possible. According to a recent survey carried out by the European Commission, a more joined-up approach would allow savings of up to €10 bn a year.

Three mechanisms currently encourage such cooperation: - the sale (a paper transfer of statistics) of surplus energy generated by one member state from renewable sources to another member state whose renewable energy generation costs may be higher; - joint projects whereby one member state could co-finance a new renewable energy project in another member state, with both countries sharing management of electricity generated by the project; and - joint aid systems whereby two or more member states decide to fully or partially harmonise their national aid schemes. In 2014, the Commission will examine how effective these mechanisms have been. (E.H./transl.fl)

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