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Press release 10 July 2002

Renewable energy in EU needs extra policy efforts

Ecofys recently finalised the study "Progress of Renewable Energy: Target Setting, Implementation and Realisation" - or Pretir. The production of renewable energy in the European Union shows an impressive growth and will continue to do so in the next few years. However, the targets set in EU Directives are even more ambitious. So member states will need to increase their policy efforts or to start active policies in renewable energies, that is the conclusion of the Pretir-project. They can learn the trick from successes in Spain, Germany and the Netherlands. "The solution lies in high ambitions and flexible instruments", according to Prof. Kornelis Blok, director of Ecofys. "High ambition should be translated into practical policies, e.g. sufficient financial support and adequate fines."

The comprehensive Pretir study on all EU member state renewable energy policies, conducted by Ecofys (the Netherlands), 3E (Belgium) and the Fraunhofer Institute (Germany), shows an expected increase of the share of renewable electricity with current policies (policies implemented before September 2001) to 15%-18% of the total electricity consumption. Likewise, the share of total renewable energy is expected to increase to 8%-10% of the total energy consumption of the EU. However, the targets in the EU Directives are more ambitious as they consider active policies in each member state: a share of 22% renewable electricity production in the total electricity consumption in 2010, and a share of 12% renewables in overall energy consumption. Member states shall bring into force the Directive before October 2003.

 

The production of energy from renewable sources is more expensive than production with traditional fossil fuel sources. Because of this financial drawback the bottom line is clear: government policies have to compensate this deficit, and therefore are the key drivers of a progressive development. The study conducted by Ecofys, 3E and Fraunhofer Institute shows that strategies for renewables of the different EU Member States are very diverse and are not always successful. But there are some good examples. Germany and Spain e.g. have chosen high feed-in tariffs and long-term contracts as their main strategy, which provides financial security for investors. Especially in these two countries markets for wind energy are booming. The Netherlands successfully aims at developing a consumers' market by means of a tax exemption for green energy. One million Dutch households now buy exclusively green electricity. Potentially strong policy instruments are the new renewable obligations, linked to green certificates, as countries like UK, Sweden, Belgium, Italy and Austria are learning.

 

Authorities are aware that they will need all the help they can get from the energy business. Ambitious targets, flexible policy instruments and trade of green energy: these are the ingredients for the EU to meet its targets. "The growth of renewables in Europe is remarkable and offers many business opportunities. When the targets can be met, the EU will enjoy a blooming renewable energy industry", says Prof. Blok.

 

Ecofys

Ecofys (www.ecofys.com) is a leading company with the mission "a sustainable energy supply for everyone". More than 150 employees in six countries deliver expert services, products and projects in all areas of sustainable energy and energy efficiency. Ecofys is part of the Econcern group (www.e-concern.com).

 

 

Note for the editorial staff:

For more information please contact:

Prof.Dr. Kornelis Blok

telephone: + 31 (0)30 - 280 83 99

e-mail: k.blok@ecofys.nl

 

Link to the report: http://www.greenprices.com/eu/doc/pretireureport.pdf