Brussels, 06/06/2012 (Agence Europe) - In guidance on support for the development of renewable energy until and after 2020, the Commission is urging convergence of national support schemes and increased use of cooperation mechanisms between member states. To maintain the expansion of green, climate-friendly energy and ensure the long-term future of this fast-growing sector in a Europe seeking growth and jobs, Energy Commissioner Günther Oettinger is considering binding targets for after 2020.
So that the EU can reach its legally binding target of 20% of energy from renewable sources by 2020, and to ensure that green energy continues to grow beyond that date, the Commission, in a communication presented on Wednesday 6 June, calls for convergence of national support schemes through coordinated reform and increased use of renewable energy trading between member states. To ensure predictability for investors, the Commission is proposing that discussions be opened straight away on the future of the regulatory framework governing the development of renewable energy.
Horizon 2020. Even though the targets are likely to be reached before the end of the decade, the Commission communication indicates four key areas where efforts should be stepped up until 2020 to achieve our renewable energy goals whilst being cost-efficient. Firstly, the Commission stresses the need to complete the internal energy market and acknowledges the need to provide power generation investment incentives in the market to allow for a smooth integration of renewables into the market. Secondly, the Commission favours support schemes that encourage cost reductions and avoid over-compensation. It also calls for support schemes to be more consistent across member states in order to avoid unnecessary barriers. The Commission, thirdly, encourages an increased use of the cooperation mechanisms contained in the renewable energy directive which allow member states to achieve their national binding targets by trading renewable energy. Thus, a member state may, for example, buy wind or solar energy from another member state or from a third country outside the EU. This can be cheaper than producing solar or wind in the home country. Finally, the Commission suggests improvements to the regulatory framework and calls for cooperation in the Mediterranean area where an integrated regional market in the Maghreb would facilitate large-scale investments in the region and enable Europe to import renewable electricity.
Post-2020. The Commission considers that, without an appropriate framework for fostering innovation and bringing costs down, renewables will not be a promising sector of investment for growth. It therefore proposes to start the process on preparing future policy options and milestones for 2030, identifying three options beyond business as usual: - either the EU has new goals for greenhouse gas emissions (GHG) but no goals for renewable energy, which would mean that ETS would be the main instrument for cutting down on CO2 emissions; - or member states would be set three national targets for renewable energy, energy efficiency and GHG; - or it would set these objectives for itself. On Wednesday, Oettinger even said he was “personally in favour” of a higher binding objective in 2030 allowing green energy producers to improve their competitive position on the European energy market, the idea being to no longer subsidise the most mature techniques (wind and solar power) but faced with the problem that electricity produced in this way cannot be stored.
Wind sector in favour of binding objectives. The new Commission strategy contains “major reasons” why binding objectives for renewables by 2030 should be promoted, the European Wind Energy Association (EWEA) states in a press release, placing emphasis on the advantages of continuing to develop the wind energy sector which could, within 20 years, generate over 3 million jobs, ensure GDP growth of nearly 0.4%, and allow the EU to save between €520 and 550 billion as it would cut back on the cost of importing fossil fuels.
Greens lambast lack of ambition. Rapporteur on the renewable directive Claude Turmes (Greens/EFA, Luxembourg) has slammed Oettinger's lack of ambition. “The Commission's renewable energy plans are characterised by a lack of vision. They fail to address the current challenges faced by Europe's renewable energy sector and fail to provide much-needed certainty on the medium and long term strategy to ensure the sector can continue to thrive and provide lasting jobs”, he argues, calling on the Commission to look to any of a number of scenarios that show that renewables could contribute up to 45% of the EU energy mix by 2030. (EH/transl.rt/jl)