Recommendations for proper reform and design of support schemes for renewable energy technologies in Europe
The European Commission should ensure that regulatory frameworks set by Member States to support renewable energy sources do not undermine investors’ confidence and provide a sustainable economic environment for the growth of the sector.
Thus, support schemes should be reformed in order to be:
– Reliable, reducing investment risk and thus project costs;
– Predictable, avoiding sudden changes and increasing transparency;
– Easy to understand, allowing domestic and community users to navigate the scheme;
– Flexible or dynamic, ensuring that there is not overcompensation but at the same time; maintaining high enough levels to attract investments and trigger innovation; and
– Inclusive, providing market access for all.
Support mechanisms should be designed in ways that:
– Apply technology-specific approaches to ensure innovation and commercialisation in technologies that promise to be socially and environmentally acceptable dues to potential for low impacts and costs;
– Distinguish between different market segments, to avoid over-compensation;
– Distinguish between (national) markets to reflect the maturity of the sector and the associated administrative and legal costs;
– Set the remuneration fee based on a transparent and proper assessment of the technology cost, including market and legal related costs; and
– Guarantee grid access for renewable energy systems.