Top Banner
MULTI-SCIENCE PUBLISHING CO. LTD. 5 Wates Way, Brentwood, Essex CM15 9TB, United Kingdom Reprinted from ENERGY & ENVIRONMENT VOLUME 24 No. 1 & 2 2013 COORDINATION OR HARMONISATION? FEASIBLE PATH- WAYS FOR A EUROPEAN RES STRATEGY BEYOND 2020. by Resch, G., Gephart, M., Steinhilber, S., Klessmann, C., del Rio, P. and Ragwitz, M.
25

ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

Jul 23, 2020

Download

Documents

dariahiddleston
Welcome message from author
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Page 1: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

MULTI-SCIENCE PUBLISHING CO. LTD.5 Wates Way, Brentwood, Essex CM15 9TB, United Kingdom

Reprinted from

ENERGY &ENVIRONMENT

VOLUME 24 No. 1 & 2 2013

COORDINATION OR HARMONISATION? FEASIBLE PATH-WAYS FOR A EUROPEAN RES STRATEGY BEYOND 2020.

by

Resch, G., Gephart, M., Steinhilber, S., Klessmann, C., del Rio, P.and Ragwitz, M.

Page 2: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

147

COORDINATION OR HARMONISATION?FEASIBLE PATHWAYS FOR A EUROPEAN RES STRATEGY

BEYOND 2020

Gustav Rescha, Malte Gephartb, Simone Steinhilberc, Corinna Klessmannb, Pablo del Riod and Mario Ragwitzc

aCorresponding author: Vienna University of Technology, Energy Economics Group, Gusshausstrasse 25/370-3, A-1040 Vienna, Austria, [email protected]

bEcofys Germany GmbH, Berlin, GermanycFraunhofer Institute for Systems and Innovation Research (ISI), Karlsruhe, Germany

dInstitute for Public Policies and Goods. Consejo Superior de Investigaciones Científicas (CSIC), Madrid, Spain

ABSTRACT With Directive 2009/28/EC, the European Parliament and Council have laid thegrounds for the policy framework for renewable energy sources (RES) in theEuropean Union until 2020. The aim of this paper is to look more closely beyond2020, well in advance, contrasting and analysing potential RES policy options thatare currently being discussed. Generally the assessment includes RES in all energysectors but a topical focus is put on renewable electricity, specifically within thediscussion of policy options for a harmonisation of RES support. The results of thepolicy assessment indicate that cooperation and coordination among MemberStates appear beneficial to tackle current problems in RES markets, and fruitful forthe period beyond 2020. By contrast, “simplistic approaches” to RES policyharmonisation, for example via a uniform RES certificate trading, are not suitableto ensure substantial future RES growth.

Keywords: RES support scheme, long-term strategy, coordination, harmonisation

1. INTRODUCTIONWith Directive 2009/28/EC [1], the European Parliament and Council have laid thegrounds for the policy framework for renewable energy sources (RES) in the EuropeanUnion (EU) until 2020. The aim of this paper is to look more closely beyond 2020,well in advance, contrasting and analysing potential RES policy options that arecurrently being discussed.

RES are expected to provide a significant contribution to a low carbon Europeanenergy sector by 2050. “Strong growth in renewables is the so-called ‘no regrets’

07-Resch 26/03/13 12:29 pm Page 147

Page 3: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

option” [2] from the European Commission’s viewpoint for achieving a 80%-95%greenhouse gas (GHG) reduction by 2050.

Throughout recent years, RES have been deployed faster than previously expectedacross Europe, indicating the positive impact of the strength and stability of the EU’srenewable energy policy. In response to this, in several Member States (MSs), calls fora reform of their RES support framework were made and received growing publicattention, sometimes leading to strong cuts in financial support beyond adequate levels[3]. In addition, the ongoing financial and economic crisis moved the topic ofinvestment risks into focus, leading, even without support cuts, to recent decreases ofRES-related investments in strongly affected economies. This underpins the need forclarity on the future direction of the EU’s energy policy. In particular, consideration ofa RES strategy for the period beyond 2020 is now needed.

1.1. Policy dimensionsSeveral policy dimensions relate to the debate on a future RES strategy for Europebeyond 2020. These include:

• RES support instruments, including related aspects of financing such supportand their attractiveness to investors,

• Electricity market design and impacts on market functioning arising from anenhanced use of (volatile) renewable energy sources,

• Sustainability concerns, particularly those related to the use of biomass,• Cooperation with third countries particularly EU imports of biofuels, solid

biomass and renewable electricity (RES-E). Generally, future policy choices related to the above dimensions might show a

national orientation or could instead incentivise further coordination and cooperationamong MSs. The ultimate stage would be a harmonised approach across the EU.

This paper specifically addresses the role of RES support schemes for theelectricity sector and related impacts on their financing. More precisely, the followingsections will shed light on potential policy approaches for RES support in Europe.Different policy paths ranging from a continuation of national support with varyingdegrees of coordination, up to a full harmonisation of RES support in the years beyond2020 will be reviewed. The paper presents interim findings of the “Intelligent Energy– Europe”1 project beyond20202 and builds on findings gained from previousactivities.

1.2. Research aim and structure of this paperThe aim of this paper is to qualitatively and quantitatively assess different policypathways for RES support, particularly coordination versus harmonisation, in the EU

148 Energy & Environment · Vol. 24, No. 1 & 2, 2013

1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The beyond2020 project is a collaborative action of several European research institutions, policyconsultants, and energy companies assessing the design and impact of a possible harmonisation of RESsupport in Europe beyond 2020. This initiative could be established thanks to the financial and intellectualsupport offered by the Intelligent Energy – Europe (IEE) Programme of the European Commission, operatedby the Executive Agency for Competitiveness and Innovation. For more details on the beyond2020 project,see [5].

07-Resch 26/03/13 12:29 pm Page 148

Page 4: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

for the period 2020-2030. Generally the assessment includes RES in all energy sectorsbut a topical focus is put on renewable electricity specifically within the discussion ofpolicy options for a harmonisation of RES support.

The paper is structured as follows. We start with a concise recapitulation of thepolicy debate on harmonising support schemes for renewable electricity in Europe,illustrating in chronological order the past and ongoing discussions in this topicalcontext, along with the stakeholders involved. Subsequently, section 3 provides aclassification of potential pathways and an introduction to the terminology of relatedconcepts. Evaluation criteria against which to assess the pathways are the subject ofsection 4. Section 5 comprises a qualitative recapitulation and assessment of thecontrasting arguments in favour of and against harmonisation of RES support thathave evolved from the RES policy debate, taking into account the above-mentionedevaluation criteria. Complementary to this, section 6 provides a concise summary ofthe approach and outcomes of a quantitative assessment of potential RES policypathways for the period beyond 2020, focusing especially on the economic evaluationcriteria. Finally, main conclusions and the related discussion on the ways forward arepresented.

2. THE POLITICAL DEBATE ON HARMONISING SUPPORT SCHEMESFOR RENEWABLE ELECTRICITY IN EUROPEA possible harmonisation of support schemes for RES has been a central element inthe European RES policy debate since its very beginning in the 1990s. Contextualising‘harmonisation’ into the political debate shows that it has moved from explicit callsfor a harmonised support scheme towards both a focus on improved national supportschemes, and coordination and cooperation. Nevertheless, one can expect from pastexperience and against the backdrop of MSs potentially missing their RE targets thatcalls for harmonisation might reappear on the political agenda in the future. Oneadvocate for harmonisation in this debate has been the European Commission which,in its capacity to propose new legislative initiatives, has put forward this idea inseveral draft Directives, Communications, and reports on the support of RES, asillustrated further below. However, facing opposition from the majority of MSs and theEuropean Parliament, the political debate has moved from harmonisation towardscoordination and cooperation between MSs in relation to several identified bestpractices.

In the last four legislative periods, the Commissioners for Energy have takendifferent positions on the issue of harmonised support schemes. Broadly speaking, twomajor considerations have influenced the Commission’s calls for such a scheme: a)harmonised RES support facilitates the extension of the internal market to renewableenergy; and b) harmonisation increases the (cost-) efficiency of RES support (seesection 5 for details on the pro and contra arguments). The evolution of the politicaldebate on harmonisation can be divided into four different phases:

1. an intensive discussion about harmonisation between 1996 and 2001, initiatedby the publication of the 1996 Green Paper on renewable energy (COM(96)567final) [6]. The 1999 Communication from the European Commission is arepresentative document of the arguments put forward at that time [7];

Coordination or harmonisation? Feasible pathways 149for a European RES strategy beyond 2020

07-Resch 26/03/13 12:29 pm Page 149

Page 5: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

2. a less intensive phase between the years 2001 and 2007, particularly with therelease of the communication COM(2005) 627 [8];

3. another intensified phase of the debate between 2007 and 2008, initiated by thediscussions on the European Commission proposal for the RES Directive thataimed at introducing a European guarantee of origin (GO) trade system; and

4. a subsidence in the debate after 2009 with the adoption of Directive 2009/28/ECand with the publication of the Commission’s most recent Communication inJune 2012 (COM(2012) 271) [2]. This calls for guidance on best practices andcooperation rather than harmonisation.

Figure 1 offers a summary of the debate on harmonised RES support schemes inchronological order3.

Source: [10]

Figure 1: Illustrative overview of the debate on harmonisation

During the last phase of intense debate, after publication of the EuropeanCommission’s RES Directive Proposal in 2008, conventional electricity industryassociations favoured the idea of a Europe-wide harmonised trade in GOs, while RESindustry associations and environmental NGOs were strictly against it. Many MSs,especially Germany, Spain, and later the UK, also had a strong interest in keeping theirown national schemes undisturbed. Tradable GOs were finally rejected by both theEuropean Parliament and the Council of the European Union [11 - 13]. From the firstpublication of the Commission proposal in January 2008 to the adoption of the final

150 Energy & Environment · Vol. 24, No. 1 & 2, 2013

3 On the discussion surrounding Directive 2001/77/EC which provided a European framework forsupporting renewable electricity, see also [9].

07-Resch 26/03/13 12:29 pm Page 150

Page 6: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

version of the Directive in December, stakeholders had changed their positions andvarious advocacy coalitions had formed and re-formed. This gives some indication asto which views stakeholders will take in the discussion on post-2020 regulation.However, in 2020, the RES sector will have come a long way, and stakeholders maychange their positions in the face of new circumstances.

A variety of stakeholders are involved in the policy discussion regarding RESsupport mechanisms beyond 2020. As the decision concerns a legislative process onEU level, the stakeholders who are directly involved are naturally the EU legislativebodies already mentioned above: (i) the European Commission, mainly via itsDirectorate General for Energy and the Directorate-General for Competition, (ii) theEuropean Parliament with its 754 members, and (iii) the Council of the EuropeanUnion, in which the 27 EU MSs meet in different configurations, always representedby those ministers responsible for a given topic. While the Commission has the rightof initiative regarding the proposal of new legislation, it is the latter two EU bodieswho vote on these proposals [14 - 16].

In addition, the legislative process is influenced by interest groups both at EU andnational levels. The literature analysing the policy debate on harmonisation precedingthe passing of the 2009 RES Directive mentions a variety of stakeholder groups [12,17, 18]:

• EU-level RES industry associations such as EREF, EREC, EWEA, AEBIOM,and national associations such as BEE

• Conventional energy industry associations, such as Eurelectric, RECS, andEFET

• Environmental NGOs• In addition, opposition parties in MSs may shape public opinion and thus

influence the actions of the parties in government.

3. PATHWAYS FOR A EUROPEAN RES STRATEGY BEYOND 2020 –PRINCIPAL POLICY OPTIONS AND DETAILED CONCEPTS 3.1. Classification of conceptsIn the debate on the convergence of support schemes for RES, different concepts suchas ‘convergence’, ‘coordination’, ‘cooperation’, and ‘harmonisation’ are used andsometimes conflated. Subsequently we aim to provide further clarification on theterminology, in accordance with [19], classifying and defining the means of thedifferent concepts:

• ‘Convergence’ simply means that policies, and possibly related regulations,become similar in different Member States. The following concepts are meansto achieve the overarching goal of convergence.

• ‘Cooperation’ refers to the RES Directive (2009/28/EC) and its inherentpossibilities of establishing statistical transfer of renewable energy, jointrenewable energy projects (among MSs or with third countries) or joint supportschemes (i.e. merged support schemes) as specified in Articles 6, 7, 9, and 11 ofthe Directive.

• ‘Coordination’ often refers to the “Open Method of Coordination” (OMC),which was first employed under the Amsterdam Treaty (1997) with regard to EU

Coordination or harmonisation? Feasible pathways 151for a European RES strategy beyond 2020

07-Resch 26/03/13 12:29 pm Page 151

Page 7: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

employment policies, but it was explicitly mentioned only later in the “LisbonStrategy” in 2000.” We refer to it as knowledge exchange between governmentsand possible alignment of certain elements of a support scheme, i.e. to a bottom-up process of MS loosely working together. Coordination and cooperation havedifferent implications: e.g. regarding who initiates the convergence (top-down orbottom-up), regarding different levels of the binding nature of a giveninstrument and different levels of detail.

• ‘Harmonisation’ can be defined as a top-down implementation of common,binding provisions as they affect the support of RES-E throughout the EU [20].There are many possibilities on what needs to be harmonised, and how, the levelof harmonisation which can be along a continuum from “full” to “minimum”,depending on the combination of “what” options (i.e., targets, support scheme,design elements, support level) and “how” options (i.e., whether decisions aretaken at EU or MS level) [21].

3.2. The European Commission’s principal policy optionsTaking into consideration stakeholder perceptions, the European Commissionpresented four principal policy options with respect to a post-2020 framework for RES(SWD(2012) 163 final) [22] in its impact assessment to the recent Communication“Renewable Energy: a major player in the European energy market” (COM(2012) 271final) [2]:

• Business as usual (BAU), implying no new EU policy promoting renewableenergy after 2020. RES would continue to benefit from the current EU EmissionTrading Scheme (ETS) legislation.

• Decarbonisation without renewable energy targets post-2020. This optionimplies a strengthened GHG reduction target and/or policies fully compatiblewith the long-term (2050) EU decarbonisation goals, without setting specifictargets for RES in 2030.

• Binding renewable energy targets post-2020 and coordinated support. Thisoption would require an update of the 2008 Climate and Energy Package, bysetting EU and national RES targets for 2030, along with EU objectives on GHGemissions and energy efficiency.

• EU renewable energy target and harmonised measures. The fourth option refersto the establishment of an EU-wide RES target backed-up by a harmonisedsupport scheme and electricity system management.

3.3. Detailed implementation concepts based on Commission policy options A first assessment of these options was undertaken in the Commission’s related impactassessment, analysing their likely economic, environmental and social impacts. Forthis evaluation process, the beyond2020 project also offered some contribution,assessing the above sketched general policy options according to four specificimplementations of their detailed design. Note that the outcomes of this quantitativepre-assessment are discussed in section 6 of this paper while the underlying detailedRES policy concepts are presented next.

152 Energy & Environment · Vol. 24, No. 1 & 2, 2013

07-Resch 26/03/13 12:29 pm Page 152

Page 8: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

Source: own elaboration

Figure 2: A European RES policy beyond 2020 - from principal policy options to detailed implementation concepts

Figure 2 provides an overview of the limited set of policy cases assessed during theinterim analysis conducted within beyond2020. It also describes the linkage ofprincipal policy options with detailed implementation concepts, i.e. the defined RESpolicy pathways. Although the number of assessed cases appears limited they cover abroad spectrum of feasible pathways to contribute best to the ongoing open policydebate. These policy alternatives were chosen as representatives for main options toidentify the key implications of different courses of action. The RES policy casesresearched can be characterised as follows:

• No Support: Under this option no binding RES targets exist for 2030. The ETSrepresents the key driver at EU level for low carbon technologies in the periodbeyond 2020. Two variants are considered: 4

- Low carbon prices reflect a business-as-usual / reference development(according to the PRIMES reference case as of 2011 (see [23]) where noambitious mid- to long-term climate targets are envisaged.

- Moderate / high carbon prices in line with a balanced case for meetingambitious long-term climate targets; the PRIMES scenario of diversifiedsupply technologies of the EC energy roadmap 2050 [23].

Coordination or harmonisation? Feasible pathways 153for a European RES strategy beyond 2020

4 Low carbon prices correspond to the EC’s policy option of a “business as usual” development whilemoderate to high carbon prices reflect a decarbonisation without RES targets post-2020.

07-Resch 26/03/13 12:29 pm Page 153

Page 9: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

In addition to the ETS, national RES support may remain valid but theirdesign and impact may be challenging to predict. Thus, as a default it isassumed that no country applies dedicated support for RES beyond 2020.

• Extension of the RES directive with either moderate cooperation or strongcoordination between Member States. Both pathways build on the assumptionthat the current policy framework as given by the RES directive (2009/28/EC)will be extended for the period up to 2030, meaning that national RES targets for2030 will be established. Similar assumptions are consequently taken for RESsupport – i.e. a continuation of strengthened national RES policies until 2030.Differences are however assumed with respect to the level of cooperation /coordination: - Moderate cooperation. The case of moderate cooperation reflects a stronger

but still limited use of cooperation mechanisms where MSs primarily aim fora domestic RES target fulfilment and, consequently, only “moderatecooperation” arising from that.

- Strong coordination. A “European perspective” is taken under the secondvariant which can be classified as “strong coordination”, where an efficientand effective RES target achievement is envisaged at EU level rather than thefulfilment of each national RES target using domestic resources.

• Harmonised Quota System. The impact of a harmonisation of RES support isinvestigated under this policy option, assuming that harmonised RES policiesbecome effective by 2021. The discussion of harmonisation is however reducedto the most prominent option – a harmonised quota system offering uniformsupport for all RES options across the EU. This can be expected to give a strongincentive for the full exploitation of the least-cost technology options and lessemphasis on novel innovative technologies in the short term. The fulfilment ofthe 2030 RES target at EU level is envisaged in the applied quota obligationaccompanied by an EU-wide certificate trading scheme for RES in the electricitysector.5

3.4. Potential policy pathways for a harmonisation of RES support beyond 2020This section builds on the four implementation concepts shown in Figure 2 but goesinto further detail on the conceptual elaboration of potential policy options for theperiod after 2020. It identifies 15 potential policy pathways, which partly overlap withthe previous four, see Table 1. In order to define and substantiate this morecomprehensive range of policy pathways, an extensive literature review, includingwork already performed by the members of the research team were performed. Astakeholder consultation and a consortium-internal cross-check were also conductedduring the inception phase of the beyond2020 project.6

154 Energy & Environment · Vol. 24, No. 1 & 2, 2013

5 Note that within the subsequent assessment generally also for RES in heating & cooling a suitable mixtureof support instruments is conditioned. Thereby, a similar conceptual approach is taken as discussed for RESelectricity where support instruments are either harmonised or tailored to country-specific needs. In contrast to above, for biofuels in transport within all assessed cases physical trade across the EU isconditioned, meaning that support follows current practices, reflecting a high degree of harmonisation. 6 The aim of the inception phase was not to propose one precise design of each policy instrument, but toopen the spread of feasible design options for the later impact assessment within the project.

07-Resch 26/03/13 12:29 pm Page 154

Page 10: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

While being conceptually restricted to “harmonisation”, the project introduces thedifferentiation between “minimum”, “soft”, “medium” and “full harmonisation”,“depending on the combination of ‘what’ options (i.e., targets, support scheme, designelements, support level) and ‘how’ options (i.e., whether decisions are taken at EU orMS level)” [21].

Minimum harmonisation refers to the state of integration where the RES target alone isregulated on the EU level and the EU leaves the fulfilment of this target to the individualcountries. Soft harmonisation takes place when MSs are additionally obliged to adopt aspecific support instrument, which has been decided at EU level, without adoptingcommon support levels or detailed design elements. Medium harmonisation includes theEU-level regulation of these provisions so that there is only one target for the entire EU,disregarding national targets. However, this degree of harmonisation leaves room for a MSto provide additional support (such as investment subsidies or additional tariff payments).Full harmonisation would leave “a very limited role to be played by MSs” [21], since thelegal framework as a whole, including regulatory issues, would be decided at the EU leveland the cost of the support scheme would be fully shared by all MSs [21].

Table 1: Overview of harmonisation pathways for RES support beyond 2020analysed in the beyond2020 project

Source: [21]

The policy pathways that will be analysed in a detailed manner during thebeyond2020 project are illustrated in Table 1. The list of identified pathways has

••

Coordination or harmonisation? Feasible pathways 155for a European RES strategy beyond 2020

07-Resch 26/03/13 12:29 pm Page 155

Page 11: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

become significantly longer than the limited set of four main options discussed aboveand analysed during the quantitative interim assessment of the project (see section 6).The wide range of potential pathways results from the combination of different levelsof harmonisation with different support instruments, as follows (for a detaileddescription, see [21]):

• Fixed Feed-in tariff;• Feed-in Premium;• Quota with uniform Tradable Green Certificates (TGC);• Quota with banded TGC;• EU Emission Trading System (EU ETS);• Tendering.

4. EVALUATION CRITERIA AND STAKEHOLDER PREFERENCESThe political fate of each of the above-mentioned policy pathways is of course notonly determined by objective features, but also by the subjective preferences ofpolitical decision-makers and stakeholders. A decision-maker’s opinion on anypathway, promoting either harmonisation or any other form of convergence, willdepend on (i) how well the pathways perform against a set of suitable evaluationcriteria and (ii) on how much importance the decision-maker attaches to each criterion.

National RES support schemes have been evaluated against a number of criteria inthe literature. Effectiveness, efficiency, and equity are frequently mentioned [18, 21 24- 35]. As part of the beyond2020 project, del Rio et al. [21] have defined a set ofassessment criteria based on literature research, which are both relevant in assessingthe harmonisation pathways, and measurable:

Effectiveness refers to the extent to which a promotion strategy is capable oftriggering RES deployment, either measured in increased generation or increasedinstalled capacity. To make the increase comparable between different countries, it canbe measured against a reference quantity, for instance a RES target, or nationallyavailable RES potentials [21]. Targets can be set in absolute or relative terms – forinstance as a share of final energy demand, as is currently the case under the RESDirective. This in turn influences how effectiveness is measured and how actualdeployment is fostered by governments [35].

Static efficiency (or cost-effectiveness) refers to the achievement of a given RES-Etarget at the lowest cost to society. Maximum efficiency, in accordance with theequimarginality principle commonly applied in environmental economics, is reachedwhen those firms with the lowest RES deployment costs are encouraged to deploymore RES, while those with higher costs deploy less [21, 35].

Dynamic efficiency refers to the extent to which a promotion strategy incentivisescontinuous technical improvements and cost reductions in RES. This is a key aspectin a long-term challenge such as climate change mitigation. RES, and especially themore costly technologies, may not be the most cost-efficient greenhouse gasmitigation options today, but may be needed to achieve more ambitious targets in thefuture. Strategies which simultaneously promote several RES technologies usuallyfare better in this regard [36 - 40]. This may be in conflict with the above-mentionedstatic efficiency criterion, which favours technology-neutral support strategies under

156 Energy & Environment · Vol. 24, No. 1 & 2, 2013

07-Resch 26/03/13 12:29 pm Page 156

Page 12: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

which least-cost technologies are deployed while less mature ones are unsupported[35, 41].

Equity refers to whether a support strategy’s distributive impacts on consumers,citizens, sectors, or firms, are considered “fair” by policy makers and citizens. Forinstance, RES support may lead to a concentration of costs among certain consumergroups, or to a concentration of investments, and the resulting benefits, in certainregions [21]. Verbruggen [35] sees the realisation of the polluter-pays-principle as anindicator for this criterion, along with the avoidance of excess producer profits. On theother hand, windfall profits are covered under the static and dynamic efficiencycriteria according to del Rio et al. [21].

Environmental and economic effects can be positive side effects such as an increasein employment, a strengthening of export industries, or a reduction in local pollutants.It can also refer to negative effects on the environment and biodiversity, or onlandscape aesthetics.

Social acceptability and political feasibility are closely linked, assuming that policypreferences of the electorate translate into actions by political decision-makers. Thiscriterion also overlaps with the equity, efficiency, and environmental and social effectscriteria, but focuses more on how these issues are perceived by the general population.Furthermore, some countries may have a historical preference for certain types ofpolicy instruments[42].

Legal feasibility includes two aspects: legislative competence of the EU versusMSs in the field of energy, and compatibility with other EU primary and secondarylaw. The former is addressed in Article 194 of the Treaty on the Functioning of theEuropean Union. The latter refers to consistency of RES-related policies with otherexisting EU laws and policies [21].

Early 2012, the Council of European Energy Regulators (CEER) held a publicconsultation regarding the implications of non-harmonisation of RES support schemes[43]. Stakeholders’ preferences regarding future support schemes divergedsignificantly. The reasons for this may partly lie in how much importance they allocateto each of the above-mentioned assessment criteria. Criteria weightings for differentstakeholder groups will be the subject of further research in the beyond2020 project inorder to provide a nuanced picture of their preferences regarding the above-mentionedpolicy pathways.

5. QUALITATIVE PRE-ASSESSMENT: MAJOR ARGUMENTS IN FAVOUROF AND AGAINST HARMONISATION DERIVED FROM THE RES POLICYDEBATE5.1. General pros and cons of a RES policy harmonisationPolitical and other stakeholders have put forward several interlinked arguments thatsupport the harmonisation of support schemes and the extension of the internal marketto RES-E:

• The internal market and the objective of its extension is a fundamental part ofthe ‘Acquis Communautaire’ and it is the EU’s goal to work towards itscompletion. It is therefore a logical step forward to create an internal market forenergy, including renewable energy. Deviations from this overarching goal

Coordination or harmonisation? Feasible pathways 157for a European RES strategy beyond 2020

07-Resch 26/03/13 12:29 pm Page 157

Page 13: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

could pose not only economic, but possibly also legal challenges.• The creation of the internal market generally facilitates cost savings in various

ways, which to a large extent also holds true for renewable energy. Thefollowing arguments are often used [20, 44]:- The internal market leads to an optimised allocation of resources, that is,

electricity would be produced at the best places with, for example, high solarirradiation or wind speeds. This in turn would result in cost savings [45] [46].

- An internal market leads to more competition between sites and technologiesand fosters innovation [47].

- A larger market with converged regulations reduces transaction costs forinvestors in renewable energy and leads to economies of scale. This triggersadditional investments in renewable energy [48].

• Harmonised European support schemes and/or targets are more effective andeasier to enforce, at least compared to national support schemes of countrieswhich are lagging behind.

Others have either criticised these assumptions or pointed to challenges in, andlimits to, realising an internal market for renewable energy.

• Uniform support payments across Europe could lead to higher rents for thoseproducers which make use of least-cost technologies and sites. This could leadto a substantial increase in target achievement related costs for society (taxpayers or consumers) [38, 39, 49, 50].

• Each MS has different geographical, legal, political, and market conditions inwhich renewable energy support schemes operate. These contextual conditionswould either need to be harmonised (which is not completely possible) or theremaining differences would need to be sufficiently reflected in a harmonisedsupport scheme. A lack of context-specificity could decrease the effectivenessand efficiency of support, which is the opposite of the aim for harmonisation(and thus the internal market) [51].7

• In order to obtain public acceptance in MSs for a harmonised support scheme,politically accepted distribution of costs and benefits would have to be achieved.This is likely to pose a significant challenge, given the large number of MSs andtheir national preferences. Neglecting domestic costs and benefits could lead to(local) opposition and loss of public acceptance [52, 53].

• Domestic energy policy and different policy interests make harmonisationdifficult to achieve. In line with the principle of subsidiarity, MSs havedeveloped their own tailor-made energy policies, which include different goalsand ambitions: that is, different preferences. At the moment, not all MSs share acomparable ambition towards renewable energy, and they are not willing totransfer the required competences to the European level [28, 52, 54].

5.2. Pre-assessment of beyond2020 policy pathwaysThe 15 pathways developed in the beyond2020 project as shown in Table 1 reflect the

158 Energy & Environment · Vol. 24, No. 1 & 2, 2013

7 CHP is frequently mentioned as possible challenge for harmonising RES support biomass, questioninghow one system may incorporate the different country-specifics (i.e. differing climate conditions ordifferences with respect to feedstock supply) in an adequate manner.

07-Resch 26/03/13 12:29 pm Page 158

Page 14: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

different harmonisation approaches discussed in the past.8 Accordingly, many of thearguments summarised above can be applied to these pathways.

Several issues arise that are related to the potential instrument chosen for aharmonised support scheme:

• Quota without banding and ETS would give priority to static cost-efficiency(least-cost technology approach) over effectiveness, dynamic efficiency andtechnology development. From the current perspective, this would probablyprevent the further development of less mature technologies, like offshore windand more expensive biomass technologies. ETS could even threaten further RESdevelopment as a whole. Furthermore, uniform support would either lead to verylimited RES deployment or to substantial rents for producers of least-cost RES-E. Given the strong interest in certain, less mature technologies and the publicand political sensitivity to support costs, both pathways currently appear ratherdysfunctional.

• Given deeply embedded differences between MSs regarding strict marketorientation vs. more state interventionist approaches, a harmonisation of eitherFIT or quota schemes seems politically difficult to achieve, even beyond 2020,and therefore perform weakly in the socio-political acceptability criterion. A FIPand/or a combination of instruments for small- and large-scale RES might beconsidered the most feasible option, since they are accepted and applied in bothtypes of countries9.

Other issues are independent of the instrument, but relate to the degree ofharmonisation:

• Medium and full harmonisation would either abolish additional RES policyefforts by MSs (full harmonisation) or would put them under pressure (mediumharmonisation), because the internal market would not allow (or at least wouldrequire strong justification) for market distortions through additional explicitRES support. This would probably lead to low socio-political acceptability.

• Medium and full harmonisation would create substantial challenges regarding afair and, more importantly, politically acceptable distribution of costs andbenefits. In particular, the effect on indirect costs and benefits (such as localadded value, but also grid integration costs, etc.) would be likely to createopposition by MSs.

Against this background, we argue that both pathways, i.e. medium and fullharmonisation, seem politically challenging and partially dysfunctional with regard tothe envisaged increase in RES-E deployment.

The choice and harmonisation level of a support instrument by itself will not yetdetermine the effectiveness and efficiency of RES-E support. Several best practicesand design criteria have emerged during recent years (see [56] and [57]) and thesewould have to be taken into account, many of them regardless of the supportinstrument or the level of harmonisation.

Coordination or harmonisation? Feasible pathways 159for a European RES strategy beyond 2020

8 An exception to this is the reference case that also includes an optional minimum harmonisation. Notefurther that this reference track is excluded from the subsequent pre-assessment.9 For further reading, see [54, 55].

07-Resch 26/03/13 12:29 pm Page 159

Page 15: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

6. A QUANTITATIVE PRE-ASSESSMENT OF POLICY OPTIONS6.1. Background and approachThe quantitative pre-assessment of policy options, analysing the impacts of fourconcrete RES policy concepts as outlined in section 3.2, was done by application ofthe Green-X model. Green-X is an energy system model that offers a suitablerepresentation of RES technologies in Europe and indicates the consequences of RESpolicy choices in a real-world energy policy context. The model allows conducting in-depth analyses of future RES deployment and corresponding costs, expenditures andbenefits arising from the preconditioned policy choices on country, sector andtechnology level.10 While the above qualitative assessment of 15 pathways takes intoaccount all of the assessment criteria described in section 4, including social, political,and legal implications, the more detailed quantitative assessment of four selectedpolicy options focuses on their performance regarding effectiveness, and static anddynamic efficiency. Conclusions on equity and environmental and economic effectscan also be drawn using Green-X results, but are not described further here.

This policy assessment complements and partly updates previous related modellingactivities – e.g. the quantitative assessment of RES policy options as conducted withinthe IEE project futures-e (see e.g. [39]) in the 2020 context. The detailed RESassessment also complements other recent work conducted in this topical area, forexample the European Commission’s “Energy Roadmap 2050” [23] containing recentPRIMES modelling of feasible energy pathways for achieving long-term carboncommitments. Note that in order to assure consistency with other related studies at EUlevel, key assumptions on the conventional reference system, energy and carbon pricesas well as energy demand were based on these general energy scenarios, in particularon the PRIMES “high renewables” case [23]. Moreover, in common with thisPRIMES case, the targeted deployment of RES (as a share of gross final energyconsumption) at EU level by 2030 was set at 31.2%11 for all Green-X scenarios, seeFigure 3.12

As shown in Figure 2 and Table 1 the number of scenarios assessed at this interimstage of the project is limited but the range of policy options can be classified assufficiently broad, ranging from no dedicated RES support to national policyapproaches with more or less intensified cooperation / coordination to a fullharmonisation across the EU.

160 Energy & Environment · Vol. 24, No. 1 & 2, 2013

10 For more details on the Green-X model, see [58].11 According to the European Commission’s energy roadmap 2050 [23] the assumed 2030 RES target canbe classified as ambitious, reflecting a decarbonisation pathway for Europe where RES are expected tobecome the major contributor, compare Figure 3.12 In the Green-X scenario of “no (dedicated RES) support” no RES target was assumed for 2030 since,under this policy variant deployment only represents an outcome, not a precondition.

07-Resch 26/03/13 12:29 pm Page 160

Page 16: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

Source: based on [23]

Figure 3: Assumed RES deployment target for 2030 (in accordance with thePRIMES “high renewables” case)

6.2. Interim results – RES-E deployment and related support expendituresIn this section we provide a brief overview of the results of the interim assessment,indicating key outcomes on the RES policy assessment at EU level for the electricitysector only, compare Figure 4 and Figure 5.

More precisely, Figure 4 illustrates the feasible RES-E deployment over time (left)as well as more specifically for 2030 (right), indicating the penetration of new RES-Einstallations in the observed time frame. It becomes evident that, without dedicatedsupport, RES-E deployment would stagnate after 2020, reaching a RES-E share of35.5% by 2030.13 This indicates that an ETS alone does not provide sufficient stimulusfor RES-E deployment. In contrast to the “no support” case, the expected deploymentof RES in the electricity sector by 2030 ranges from 55.2% to 55.4% for all otherpolicy variants. If total RES are taken into consideration, “no (dedicated RES)support” would lead to a RES share in gross final energy demand of 24.6%14 by 2030,while it appears feasible for all other policy paths to reach the required RESdeployment target for 2030 of 31.2%.

Figure 5 complements this depiction, also indicating the cost impact, in particularthe resulting support expenditure for new RES-E installations. More precisely, Figure5 offers a comparison of both overall deployment of new RES-E plants (installed 2021to 2030) by 2030 as well as the corresponding support expenditures (on average peryear for the period 2021 to 2030) for all the assessed cases. Apparently, strengthenednational RES policies complemented by moderate to strong cooperation and

Coordination or harmonisation? Feasible pathways 161for a European RES strategy beyond 2020

13 This figure refers to the variant of low carbon prices. If moderate to high carbon prices are expected, aRES-E share of 37.8% can be achieved.14 Again, this figure refers to the case of low carbon prices, as described in section 3.2. In the case ofmoderate / high carbon prices a RES share of 26.6% appears feasible.

07-Resch 26/03/13 12:29 pm Page 161

Page 17: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

coordination appear to keep RES deployment well on track for reaching moderate tostrong targets to be achieved by 2030. Related support expenditures can then bemaintained at a comparatively low level (22.8 to 23.5 billion € as yearly average fornew RES-E installations) while uniform RES support as determined in the case of aharmonised RES trading regime (without banding) may lead to a consumer burdenalmost twice as high (38.3 billion €). Considering this strong negative consumer /societal impact a uniform RES certificate trading does not appear to be a suitablecandidate for harmonisation, neither in the short- nor long-term (compare also [59]).

In the case of “no (dedicated RES) support” there are obviously no supportexpenditures for RES. If long-term climate targets are taken seriously, with Europestriving for the 80%-95% GHG reduction by 2050, a policy of no dedication to RESmay however possibly cause side effects: a comparison of the two variants of “nosupport”, characterised by either low (in the case of no strong carbon commitment) ormoderate / high carbon prices (reflecting a continuous long-term carbon commitment)indicates that in the absence of a strong RES deployment, a rise of electricity pricesmay lead to an indirect consumer burden of almost similar magnitude to that of thecase of perfectly tailored RES policies. This happens in the absence of continuousRES support and related expansion; on the one hand, there is a reduction of the so-called “merit order” effect that usually goes hand in hand with RES deployment, andon the other hand, a lower level of RES-E penetration results in higher carbon pricesand, thus, electricity prices. This is because more alternatives have to enter the(common) carbon market in order to comply with the carbon target.

Source: [60]

Figure 4: Comparison of the resulting RES-E deployment over time for all RES-E(left) as well as by 2030 for new installations only (either from 2011 to 2030, or

from 2021 to 2030) (right) in the EU-27 for all assessed cases

162 Energy & Environment · Vol. 24, No. 1 & 2, 2013

07-Resch 26/03/13 12:29 pm Page 162

Page 18: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

Source: [60]

Figure 5: Comparison of the resulting 2030 deployment on new RES-E (installed2021 to 2030) and the corresponding (yearly average) support expenditures in the

EU-27 for all assessed cases

7. CONCLUSIONS AND WAYS FORWARDThe RES Directive (Directive 2009/28/EC) lays the ground for the RES policyframework until 2020, but a strategy and clear commitment to RES beyond 2020 isneeded if RES is to deliver what is expected. The initial results of both the quantitativeand qualitative policy assessment indicate that cooperation and coordination amongMSs appears beneficial and, indeed, is required to tackle current problems in RESmarkets. Thus, both policy options would also appear to be fruitful for the periodbeyond 2020. By contrast, “simplistic approaches” to RES policy harmonisation (e.g.via a uniform RES certificate trading) cannot be recommended – neither in the short-nor in the long-term.

There has been a complex interplay of coordination, cooperation and selectiveharmonisation, which appears to be a functional and politically feasible way forward,even beyond 2020. The continuation of a mixture of top-down and bottom-upprocesses would focus on harmonised minimum design criteria (top-down) andintensified coordination and cooperation between MSs (bottom-up). This optionwould foster policy convergence and market integration, while respecting the MSs’different preferences, which should increase the political feasibility and publicacceptance of such an approach.

The ultimate choice of the policy option will depend on the weighting of evaluationcriteria given by different stakeholders in the EU energy sector. Initial results in thisrespect indicate that the criteria effectiveness and dynamic efficiency are consideredvery important across all groups. Environmental and economic effects were also seenas relevant, but less so by MS governments/ministries and by the conventional energyindustry respondents. Not surprisingly, however, it was the most important criterion

Coordination or harmonisation? Feasible pathways 163for a European RES strategy beyond 2020

07-Resch 26/03/13 12:29 pm Page 163

Page 19: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

for environmental NGO representatives. Further research should analyse how thedifferent options for coordination/harmonisation put forward in this paper could bettercope with the risks associated with the current financial crisis which have led toreductions in RES investments. Moreover, the expectation that in the case ofdecentralised PV systems grid parity may be reached in the near future deservesfurther attention, indicating that for certain technologies discussions on future supportmay become obsolete.

8. ACKNOWLEDGEMENTThis paper presents interim findings of the beyond2020 project, a collaborative actionof European research institutions, consultants and industry partners. Thus, wegratefully acknowledge the financial and intellectual support for this initiativeprovided by the Intelligent Energy – Europe (IEE) Programme. Moreover, we thankthe three anonymous reviewers of this paper for their constructive and helpfulcomments and suggestions and Helen Colyer for the proofreading of this paper.

REFERENCES[1] European Commission, Directive 2009/28/EC of the European Parliament and of the

Council of 23 April 2009 on the promotion of the use of energy from renewable sourcesand amending and subsequently repealing Directives 2001/77/EC and 2003/30/EC.

[2] European Commission, Communication from the Commission to the EuropeanParliament, the Council, the European Economic and Social Committee and theCommittee of the Regions Renewable Energy: a major player in the European energymarket, COM(2012) 271 final 2012.

[3] Hamelinck C., De Lovinfosse I., Koper, M., Beestermoeller, C., Nabe, C., Kimmel, M.,Ragwitz, M., Van Nysten, J., Fouquet, D., Resch, G., Liebmann, L., Ortner, A., Panzer,C., Walden, D., and Diaz Chavez, R., Renewable energy progress and biofuelssustainability, by order of the European Commission, DG Energy, 2012.

[4] European Commission, Executive Agency for Competitiveness and Innovation,Intelligent Energy – Europe: for a sustainable future [Online]. Available:http://ec.europa.eu/energy/intelligent/.

[5] Vienna University of Technology, Energy Economics Group (EEG), Beyond2020 - designand impact of a harmonised policy for renewable electricity in Europe [Online].Available: www.res-policy-beyond2020.eu.

[6] European Commission, Communication from the Commission Energy For the Future:Renewable Sources of Energy. Green Paper for a Community Strategy, COM(96) 576final 1996.

[7] European Commission, Commission Working Document: Electricity from renewableenergy sources and the internal electricity market, SEC(1999) 470 final 1999.

[8] European Commission, Communication from the Commission: The support of electricityfrom renewable energy sources, COM(2005) 627 final 2005.

[9] Rowlands I.H., The European directive on renewable electricity: conflicts andcompromises, Energy Policy, 33(8), 2005, 965–974.

164 Energy & Environment · Vol. 24, No. 1 & 2, 2013

07-Resch 26/03/13 12:29 pm Page 164

Page 20: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

[10] Klessmann, C. and De Lovinvosse, I., Minimum design criteria for future effective andefficient RE support – lessons learnt and thoughts for the way forward. Presentation heldat joint Workshop of EREC and Ecofys on The Future Development of RenewableElectricity Support Schemes, 2012, September 19, Brussels, 2012.

[11] Nilsson, M., Nilsson, L.J. and Ericsson, K., The rise and fall of GO trading in Europeanrenewable energy policy: The role of advocacy and policy framing, Energy Policy,37(11), 2009, 4454–4462.

[12] Futterlieb, M. and Mohns, T., Erneuerbare Energien-Politik in der EU - DerPolitikprozess zur Richtlinie 2009/28/EG, 2009.

[13] Klessmann, C., The evolution of flexibility mechanisms for achieving Europeanrenewable energy targets 2020—ex-ante evaluation of the principle mechanisms, EnergyPolicy, 37(11), 2009, 4966–4979.

[14] European Commission [Online]. Available: http://ec.europa.eu/index_en.htm. [Accessed:04-Dec-2012].

[15] European Parliament [Online]. Available:http://www.europarl.europa.eu/aboutparliament/en/00b3f21266/At-your-service.html.[Accessed: 04-Dec-2012].

[16] Council of the European Union” [Online]. Available: http://www.consilium.europa.eu/. [Accessed: 04-Dec-2012].

[17] Fouquet. D. and Johansson, T.B., European renewable energy policy at crossroads—Focus on electricity support mechanisms, Energy Policy, 36(11), 2008, 4079–4092.

[18] Jacobsson, S., Bergek A., Finon, D., Lauber, V., Mitchell, C., Toke, D. and Verbruggen,A., EU renewable energy support policy: Faith or facts?, Energy Policy, 37(6), 2009,2143–2146.

[19] Gephart, M., Klessmann, C., Kimmel, M., Page, S. and Winkel, T., Contextualising thedebate on harmonising RES-E support in Europe - A brief pre-assessment of potentialharmonisation pathways. Report compiled within the project beyond2020 (work package6), supported by the EACI of the European Commission within the Intelligent EnergyEurope Programme, Ecofys, Berlin, Germany, 2012.

[20] Bergmann, B., Bitsch, C., Behlau, V., Jensen, S., Held, A., Pfluger, B., Ragwitz, M. andResch, G., Harmonisation of support schemes. A European harmonised policy to promoteRES-electricity – sharing costs & benefits. Report compiled within the European researchproject futures-e (Deriving a Future European Policy for Renewable Electricity), co-financed under the European Commission’s Intelligent Energy for Europe Programme,Fraunhofer ISI, Karlsruhe, Germany, 2008.

[21] Del Río, P., Ragwitz, M., Steinhilber, S., Resch, G., Busch, S., Klessmann, C., DeLovinfosse, I., Van Nysten, J., Fouquet, D. and Johnston, A., Key policy approaches fora harmonisation of RES(-E) support in Europe - Main options and design elements.Report compiled within the project beyond2020 (work package 2), supported by theEACI of the European Commission within the Intelligent Energy Europe Programme.CSIC, Madrid, Spain, 2012.

Coordination or harmonisation? Feasible pathways 165for a European RES strategy beyond 2020

07-Resch 26/03/13 12:29 pm Page 165

Page 21: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

[22] European Commission, Commission Working Staff Document – Executive Summary ofthe Impact Assessment - Accompanying the document – Communication from theCommission to the European Parliament, the Council, The European Economic andSocial Committee and the Committee of the Regions - Renewable Energy: A major playerin the European energy market. SWD(2012) 163 final, 2012.

[23] European Commission, Energy Roadmap 2050, COM(2011) 885/2, EuropeanCommission, 2011.

[24] Palmer, K. and Burtraw, D., Cost-effectiveness of renewable electricity policies, EnergyEconomics, 27(6), 2005, 873–894.

[25] Junginger, M., Van Sark, W. and Faaij, A., Technological Learning In The Energy Sector- Lessons for Policy, Industry and Science, Edward Elgar Pub, Cheltenham, UK, 2010.

[26] Markard J., Truffer B. and Imboden, D. M., The Impacts of Market Liberalization onInnovation Processes in the Electricity Sector, Energy and Environment, 15(2), 2004,201–214.

[27] Reiche D. and Bechberger, M., Policy differences in the promotion of renewable energiesin the EU member states, Energy Policy, 32(7), 2004, 843–849.

[28] Lauber, V. and Mez, L., Three Decades of Renewable Energy Politics in Germany, Energyand Environment, 15(4), 2004, 599–623.

[29] Mitchell, C. and Connor, P., 2004, Renewable energy policy in the UK, Energy Policy,32(17), 1990–2003, 1935–1947.

[30] Meyer, N.I., Development of Danish Wind Power Market, Energy and Environment,15(4), 2004, 657–673.

[31] Lewis, J.I. and Wiser, R.H., Fostering a renewable energy technology industry: Aninternational comparison of wind industry policy support mechanisms, Energy Policy,35(3), 2007, 1844–1857.

[32] Inoue, Y. and Miyazaki, K., Technological innovation and diffusion of wind power inJapan, Technological Forecasting and Social Change, 75(8), 2008, 1303–1323.

[33] Negro, S.O., Suurs, R.A.A. and Hekkert, M.P., The bumpy road of biomass gasificationin the Netherlands: Explaining the rise and fall of an emerging innovation system,Technological Forecasting and Social Change, 75(1), 2008, 57–77.

[34] Yatchew, A. and Baziliauskas, A., Ontario feed-in-tariff programs, Energy Policy, 39(7),2011, 3885–3893.

[35] Verbruggen, A., Performance evaluation of renewable energy support policies, applied onFlanders’ tradable certificates system, Energy Policy, 37(4), 2009, 1385–1394.

[36] Huber, C., Faber, T., Haas, R., Resch, G., Green, J., Ölz, S., White, S., Cleijne, H.,Ruijgrok, W., Morthorst, P.E., Skytte, K., Gual, M., Del Río, P., Hernández, F., Tacsir, A.,Ragwitz, M., Schleich, J., Orasch, W., Bokemann, M. and Lins, C., Green-X - Derivingoptimal promotion strategies for increasing the share of RES-E in a dynamic Europeanelectricity market. Final report of the European research project Green-X, funded by theEuropean Commission, DG Research within the 5th framework programme. Vienna,Austria, 2007.

166 Energy & Environment · Vol. 24, No. 1 & 2, 2013

07-Resch 26/03/13 12:29 pm Page 166

Page 22: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

[37] Huber, C., Ryan, L., O´Gallachoir, B., Resch, G., Polaski, K. and Bazilian, M., 2007,Economic Modeling of Price Support Mechanisms for Renewable Energy: Case Study onIreland, Energy Policy, 35(2), 2004, 1172–1185.

[38] Ragwitz, M., Held, A., Resch, G., Faber, T., Haas, R., Huber, C., Coenraads, R., Voogt,M., Reece, G., Morthorst, P. E., Jensen, S. G., Konstantinaviciute, I. and Heyder, B.,OPTRES - Assessment and optimisation of renewable energy support schemes in theEuropean electricity market. Final Report of the project OPTRES (Assessment andoptimisation of renewable support schemes in the European electricity market), Contractno. EIE/04/073/S07.38567, co-financed under the European Commission’s IntelligentEnergy for Europe Programme, Fraunhofer ISI, 2007.

[39] Resch, G., Panzer, C., Ragwitz, M., Faber, T., Huber, C., Rathmann, M., Reece, G., Held,A., Haas, R., Morthorst, P. E., Grenna, Jensen, S., Jaworski, L., Konstantinaviciute, I.,Pasinetti, K. and Vertin, K, Action plan futures-e - Deriving a future European Policy forRenewable Electricity. Concise final report of the European research project futures-e,supported by the EACI of the European Commission within the research programmeIntelligent Energy for Europe. Vienna University of Technology, Energy EconomicsGroup in cooperation with Fraunhofer ISI, Ecofys, EGL, 2009.

[40] International Energy Agency (IEA), Deploying Renewables, 2008.

[41] Bergek, A. and Jacobsson, S., Are Tradable Green Certificates a cost-efficient policydriving technical change or a rent-generating machine? Lessons from Sweden, EnergyPolicy, 38(3), 2003–2008, 1255–1271.

[42] Bohne, E., Conflicts between national regulatory cultures and EU energy regulations,Utilities Policy, 19(4), 2011, 255–269.

[43] Council of European Energy Regulators (CEER), Implications of non-harmonisedrenewable support schemes – Conclusions Paper, 2012.

[44] Van Sambeek, E.J.W., The European Dimension of National Renewable Electricity PolicyMaking – An analysis of the Dutch experience, 2002.http://www.ecn.nl/docs/library/report/2002/rx02060.pdf

[45] Voogt, M.H., Uyterlinde, M. A., De Noord, M., Skytte, K., Nielsen, L. H., Leonardi, M.,Whiteley, M. and Chapman, M., Renewable energy burden sharing – REBUS. Effects ofburden sharing and certificate trade on the renewable electricity market in Europe,Energy research Centre of the Netherlands (ECN) in ccoperation with ESD, RISO andSERVEN, 2001.

[46] Energy for Sustainable Development, The European Renewable Electricity CertificateTrading Project (RECERT) - Final Technical Report, United Kingdom, 2001.

[47] Fürsch, M., Golling, C., Nicolosi, M., Wissen, R. and Lindenberger, D., European RES-E Policy Analysis - A model based analysis of RES-E deployment and its impact on theconventional power market, Institute of Energy Economics at the University of Cologne(EWI), Cologne, Germany, 2010.

[48] Pedersen, K., Behrens, A. and Egenhofer, C., Energy Policy for Europe: Identifying theEuropean Added-Value - Ceps Task Force Report, Centre for European Policy Studies,Brussels, 2008.

Coordination or harmonisation? Feasible pathways 167for a European RES strategy beyond 2020

07-Resch 26/03/13 12:29 pm Page 167

Page 23: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

[49] De Jager, D., Klessmann, C., Stricker, E., Winkel, T., De Visser, E., Koper, M., Ragwitz,M., Held, A., Resch, G., Busch, S., Panzer, C., Gazzo, A., Roulleau, T., Gousseland, P.,Henriet, M. and Bouille, A., Financing Renewable Energy in the European EnergyMarket. By order of: European Commission, DG Energy, 2011.

[50] Ragwitz, M., Steinhilber, S., Breitschopf, B., Resch, G., Panzer, C., Ortner, A., Busch, S.,Rathmann, M., Klessmann, C., Nabe, C., De Lovinfosse, I., Neuhoff, K., Boyd, R.,Junginger, M., Hoefnagels, R., Cusumano, N., Lorenzoni, A., Burgers, J., Boots, M.,Konstantinaviciute, I. and Weöres, B., RE-Shaping: Shaping an effective and efficientEuropean renewable energy market. Report compiled within the European project RE-Shaping, supported by Intelligent Energy - Europe, ALTENER, Grant Agreement no.EIE/08/517/SI2.529243. Fraunhofer ISI, Karlsruhe, Germany, 2012.

[51] Dårflot, I., Analysis of the barriers to the convergence of support to renewables inEurope, Madrid, 2004.http://favores.die.unipd.it/Downloads/finalReports/wp5/WP5_2_Comillas.pdf

[52] Ringel, M., Fostering the use of renewable energies in the European Union: the racebetween feed-in tariffs and green certificates, Renewable Energy, 31(1), 2006, 1–17.

[53] Del Rı?o, P., A European-wide harmonised tradable green certificate scheme forrenewable electricity: is it really so beneficial?, Energy Policy, 33(10), 2005, 1239–1250.

[54] RES4LESS, Cost-Efficient and sustainable deployment of renewable energy sourcestowards the 20% target by 2020, and beyond - D3.1 Barriers and Critical Success Factorsfor the Implementation of Cooperation Mechanisms., Report to the Intelligent Energy-Europe Programme June 2012http://www.res4less.eu/page/deliverables.html

[55] Kitzing, L., Mitchell, C. and Morthorst, P.E., Renewable energy policies in Europe:Converging or diverging?, Energy Policy, 51(0), 2012, 192–201.

[56] Steinhilber, S., Ragwitz, M., Rathmann, M., Klessmann, C. and Nouthout, P., Indicatorsassessing the performance of renewable energy support policies in 27 Member States.Report compiled within the European project RE-Shaping, supported by the EuropeanCommission, EACI within the Intelligent Energy Europe Programme. Fraunhofer ISI,Karlsruhe, Germany, 2011.

[57] Rathmann, M., De Jager, D., De Lovinfosse, I. de, Breitschopf, B., Burgers, J. andWeÖres, B., Towards triple-A policies: More renewable energy at lower cost. Reportcompiled within the European research project RE-Shaping (work package 7 (D16)),supported by Intelligent Energy - Europe, ALTENER, Grant Agreement no.EIE/08/517/SI2.529243. Ecofys, 2011.

[58] Vienna University of Technology, Energy Economics Group (EEG), Green-X - derivingoptimal promotion strategies for increasing the share of RES-E in a dynamic Europeanelectricity market. Official web page of the Green-X model. [Online]. Available:www.green-x.at.

[59] Resch, G. and Ragwitz, M., Quo(ta) vadis, Europe? A comparative assessment of tworecent studies on the future development of renewable electricity support in Europe (EWI

168 Energy & Environment · Vol. 24, No. 1 & 2, 2013

07-Resch 26/03/13 12:29 pm Page 168

Page 24: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

and futures-e). Report compiled within the project RE-Shaping, supported by the EACIof the European Commission within the research programme Intelligent Energy forEurope, Contract no. EIE/08/517/SI2.529243. Energy Economics Group at ViennaUniversity of Technology, Vienna, Austria, in cooperation with Fraunhofer ISI, 2010.

[60] Resch, G., Panzer, C., Ortner, A., Busch, S., Ragwitz, M., Steinhilber, S., Del Río, P.,Klobassa, M., Winkler, J., Gephart, M., Klessmann, C., De Lovinfosse, I., Van Nysten, J.,Fouquet, D., Johnston, A., Battle, C., Linares, P., Knapek, J., Kralik, T., Faber, T.,Borosoy, B., Toro, F. and Lifschitz, I., Inception report beyond2020 - approaches for aharmonisation of RES(-E) support in Europe. Report compiled within the projectbeyond2020, supported by the EACI of the European Commission within the IntelligentEnergy Europe Programme. Energy Economics Group at Vienna University ofTechnology, 2012.

Coordination or harmonisation? Feasible pathways 169for a European RES strategy beyond 2020

07-Resch 26/03/13 12:29 pm Page 169

Page 25: ENERGY & ENVIRONMENT · 148 Energy & Environment· Vol. 24, No. 1 & 2, 2013 1 More details on the Intelligent Energy – Europe Programme of the European Commission in [4]. 2 The

07-Resch 26/03/13 12:29 pm Page 170