A Regional and European Framework for RES and Technology Development

The year 2014 saw important amendments to RES support mechanisms in Europe, most notably through the State Aid Guidelines revision. Support mechanisms have to be related to market prices so that, for example, no RES subsidies are granted when wholesale prices are negative or when market uptake is a given. Should subsidies for RES technologies in the future still be necessary – for instance due to prolonged low CO2 prices – they should be designed in a way that minimises the market and operational impacts and be sufficiently co-ordinated across Europe to support trading or participation across borders. ENTSO-E welcomes the EU-wide RES target for 2030 and stresses the need for a regionally coordinated approach to RES development. Moreover, to ensure that RES investments are efficiently driven by price signals, European Policy should ensure a comprehensive approach to RES targets, reformed ETS, interconnection targets and energy efficiency.

Recommendations

  1. The EC should review the RES directive with a view to minimising market distortions, promoting cost-efficiency and facilitating regional RES co-operation.