Brussels, 05/06/2012 (Agence Europe) - In a document due to be published on Wednesday 6 May, Energy Commissioner Günther Oettinger sets out guidelines for support for renewable energy after 2020.
While the legally binding target of a 20% share of the EU's gross energy consumption from renewable sources by 2020 is likely to be reached, in all probability even before the end of the decade, it is time, now, to set the guidelines for the further development of green energy in Europe beyond that date. No matter the scenario for transition to a low-carbon energy system by 2050, renewables will form a substantial part of energy production.
With the new communication, Oettinger is launching the debate well ahead of time since, under the terms of the so-called renewables directive, the question of support for renewables after 2020 should only have been posed in 2018, with proposals to be brought forward within two years. The idea is to increase predictability for investors and to ensure the lasting success of a sector which has the wind in its sails for an EU which is seeking an exit from the crisis and for a return to growth and jobs.
Future support schemes for renewable energy will, according to the Commission, have to address six challenges: regulatory uncertainty, viability of aid, coherence with the functioning of the markets, adequacy of infrastructure, technological uncertainty, public acceptance and environmental sustainability. Furthermore, no matter what policy options are on the table, whether quantified targets or not for renewables by 2030, the development of renewable energy will depend on the carbon market.
In terms of financial support, the Commission wants to move towards support systems which expose longer established producers (land-based wind farms and solar power) to market-price competition and to encourage cost reduction while avoiding over-compensation. On the other hand, support for innovative sectors should be continued. The Commission also advocates extra-budgetary aid, borne by consumers rather than tax-payers, and is promoting support for the development of local-level public-private partnerships that could drive down costs and improve public acceptance.
With regard to non-financial support, the Commission proposes giving a boost to trade in green electricity by simplifying existing legislation on cooperation processes to encourage use of statistical transfers, joint projects between countries and compatible support regimes, for which there is provision in the renewables directive but which are under-used for the moment. The emphasis will also be put on tailoring the development of renewables to network infrastructure.
In terms of technological support, the Commission promises a communication for 2013 to coordinate support for low-carbon technology, by means of the SET-Plan (European Strategic Energy Technology Plan), the new research framework programme Horizon 2020, cohesion funds and revenue from the European carbon market. To reduce the impact on the environment of the development of renewables, in particular biofuels and biomass, the Commission intends to tougher environmental sustainability criteria. (EH/transl.rt)