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EU Policy on Electricity from Renewable Energy Sources


Current status

The European Union aims to have 21% of its electricity coming from renewable energy sources by 2010. This target has been formulated in the Directive 2001/77/EC on the promotion of renewable electricity. The Directive also stipulates that Member States have to provide better grid access for renewable energy generators, streamline and facilitate authorisation procedures and establish a system of guarantees of origin.

This directive, the most important piece of legislation in the world for renewables, has brought a framework that guarantees growth and shows the necessary stability, which is crucial to investments. It is a success from our point of view: The production of renewable electricity, without large hydropower, in 2005 is more than the combined overall electricity production in Denmark, Portugal and the Slovak Republic. In the first years of this century the development of renewable electricity was happening only in some frontrunner countries, yet already now we can see a second wave of countries with significant growth rates. This is in our opinion the real success of the existing directive.

Towards 2020

The European Commission announced it will issue before the end of 2007 a Framework Directive covering, amongst other sectors, the electricity sector to support renewable energy’s development and reach the target of 20% renewable energy by 2020.

According to EREC’s estimates, it is possible to generate 35 % of Europe’s electricity by renewable energy sources by 2020. To achieve this, it is crucial to maintain and strengthen the existing legislative frameworks for renewable electricity. The Commission should also establish minimum requirements for the removal of administrative barriers, including streamlined procedures such as one-step authorization. Priority grid access and a more balanced sharing of the costs related to connection to the grid should be part of the Directive.

Possible guidelines for improvements to national support schemes could be part of the Directive, while harmonization at EU level is currently not desired nor necessary as 95% of the power market is heavily distorted, as emphasized by the Commission’s sector inquiry.

EREC’s presentations and views