Do almost mature RES technologies need support towards 2030?

Towards 2030 – Paper No. 11

Published: 10/05/2017

Ecofys, a Navigant company, examined together with Fraunhofer ISI, CSIC, TU Wien, CEPS and ECN whether the dedicated support of almost mature renewable energy technologies like onshore wind and solar PV should be continued beyond 2020. The report was produced as part of the Towards2030-dialogue research project funded by Intelligent Energy Europe.

The experts find that continued support is valuable to lower the cost of the energy transition, as it reduces the risks of renewables investments and facilitates further technology cost reductions. These investments and cost reductions could not yet be yielded through the prices offered by emissions trading and power markets, as these markets are currently under transition. 

In the report, the experts also show that, contrary to many assumptions, the current support for renewable energies is not the main cause of low prices on the carbon and power markets. The authors propose a combination of policy instruments to reduce over-supply on these markets, including an improved market stability reserve for emission allowances and auction-based volume control of renewables support.