Renewables investment incentives should come from market not subsidies: Eurelectric

8 November 2007 - Eurelectric has called on the European Commission to frame its forthcoming proposal for a new directive on renewables to make the internal energy market work in favour of the European economy.

Eurelectric, Renewable Energy Certificate System (RECS) and European Federation of Energy Traders (EFET) said they collectively support an increased role for renewables, in the context of a sustainable energy mix.

However a the target of a 20 per cent share for renewables in overall EU energy consumption - implying an ambitious share of approximately 35 per cent of total electricity production - is an extremely challenging one, it commented.

In striving to achieve this target, it is of vital importance not to close off over one-third of the European electricity market through the creation or continuation of non-market-based incentive mechanisms.

Eurelectric said any new directive on renewable energy must therefore be properly integrated into the framework of the internal electricity market. Specifically, this means adapting renewable energy support mechanisms to patterns of wholesale power supply and demand.

The most obvious immediate way to do so will be to open up EU-internal borders to trade in instruments which evidence renewables production.

Therefore the new directive must provide for a European system of tradable guarantees of origin for electricity produced from renewable sources, the association continued. Member states should be entitled to meet part of their national target through guarantees of origin acquired and redeemed by power suppliers.

Suppliers should be able to trade these instruments across borders independently from the purchase of physical electricity. This would help to optimise cost-effective renewables development, to the benefit of the European customer.

EU Member States must also ensure that their RES incentive systems are compatible with the EU Emissions Trading Scheme, as well as being economically efficient and transparent, added Eurelectric.

Sponsored by FLSmidth

Related Articles

Cape Wind secures $400M more in financing for offshore project

Cape Wind said it has secured an additional $400 million dollars from several financial institutions for the offshore wind project slated to be built in Nantucket Sound.

Dragonfly Solar, SolarWorld to deliver solar power to utility co-ops

Commercial solar developer, Dragonfly Solar and SolarWorld, a solar manufacturer, will deliver solar arrays, totaling 517-kW to four electric utility cooperatives in the U.S. Midwest.

Follow Power Engineering on Twitter
Latest News

Wisconsin governor: Obama power plant rule 'unworkable'

Wisconsin Gov. Scott Walker, a Republican eyeing a presidential run in 2016, says President B...

Kansas governor signs deal on renewable energy mandates

Kansas Gov. Sam Brownback has signed a compromise between the wind energy industry and critic...

NRC may increase oversight of Pilgrim nuclear power plant

The U.S. Nuclear Regulatory Commission (NRC) may increase oversight at the Pilgrim nuclear po...

SunEdison brings 14MW of solar power to Long Island

SunEdison (NYSE: SUNE) has signed agreements with five municipal entities on Long Island to b...

New Mexico regulators delay decision on power plant

New Mexico regulators on Wednesday gave Public Service Co. of New Mexico more time to ink agr...

Missouri governor delays state energy plan deadline

Missouri Gov. Jay Nixon has pushed back the deadline to craft a comprehensive statewide energ...
05/27 Henry Hub Average Natural Gas Spot Prices

05/27 Henry Hub Average Natural Gas Spot Prices

The Henry Hub is the pricing point for natural gas futures contracts traded on the New York M...

Siemens to provide the first H-class power plant technology in Mexico

Siemens has been awarded a contract to supply two SGT6-8000H gas turbines and two generators ...

Power Engineering Current Issue

03/01/2014
Volume 118, Issue 3
1403PE-cover
Products Showcase
Dynamic Fluoride Ion cleaning DFIC of industrial natural gas turbines Hi-Tech Furnace Systems

Dynamic Fluoride Ion Cleaning of IGT Parts

The Dynamic Fluoride Ion Cleaning (DFIC) Process from Hi-Tech Furnace Systems is able to clean deep, narrow cracks of oxides by cycling between negative, atmospheric, and positive pressure.

Archived Articles

2000 | 2001 | 2002 | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 | 2013

Power Industry Wire News

AutoGrid Systems Is Short-Listed for the 2015 Red Herring Top 100 North America Award

AutoGrid Systems Is Short-Listed for the 2015 Red Herring Top 100 North America Award

2015 Bakken Conference Announces Pre-Conference Agenda With Special Presentation: "Bakken Workforce Update"

2015 Bakken Conference Announces Pre-Conference Agenda With Special Presentation: "Bakk...

MCW Energy Group to Present Its Corporate Story at LD Micro Conference in Los Angeles, Wednesday, June 3rd, 2015

MCW Energy Group to Present Its Corporate Story at LD Micro Conference in Los Angeles, ...

Orbital Tracking Corp. Appoints Lieutenant Commander Hector J. Delgado to Board of Directors

Orbital Tracking Corp. Appoints Lieutenant Commander Hector J. Delgado to Board of Dire...

National Automation Services Retains Firm to Provide Advisory Services in Connection With Effort to Obtain a Listing on a National Stock Exchange

National Automation Services Retains Firm to Provide Advisory Services in Connection Wi...

Power Engineering

Article Archives for Power Engineering Magazine

Continuing Education

Professional Development Hours

To access a course listing associated to a specific topic listed below, click on the topic of choice from the list below.

Latest Energy Jobs

View more Job Listings >>