The effectiveness and the efficiency of current and future RES-E support schemes shall be analysed with specific focus on a single European market for renewable electricity products. Current best practices shall be identified, and (future) costs of RES-E and the corresponding support necessary to initiate stable growth shall be assessed. Main barriers to a higher RES-E deployment as perceived by market actors and stakeholders will be assessed. The central questions of this project are the following:

  • What is the current level of support for RES-E in Europe compared to the corresponding costs of RES-E generation?

  • Which funding mechanisms are being implemented today? Which funding schemes should be fostered to have financial viable projects?

  • Which of the currently implemented support schemes (investment incentive, feed-in law, obligation, portfolio standard, tender procedure) are most effective and which are most efficient?

  • Are these support schemes compatible with the principles of the internal electricity market and what are the effects of different RES-E support mechanisms on the restriction of trade?

  • Which interactions between various RES-E support schemes in different countries exist?

  • Which interactions of RES-E support schemes with other policies like CO2 certificate trading occur?

  • What is the level of internalisation of avoided external costs into RES-E support schemes and what are the real socio-economical costs due to RES-E support if external costs are internalised?

  • Which innovative policies and regulatory frameworks might be alternatives to the currently existing ones?

  • Is a harmonisation of RES-E support in Europe preferable with respect to effectiveness and to efficiency in the future and which instruments are optimal in a harmonised scenario?

  • Which level of technology deployment is needed for a self sustained growth of the different RES-E technologies?

  • The oil price influence on the development of renewable electricity?

In particular the project will address the issues raised in article 4 of the Directive on the promotion of renewable electricity (2001/77/EC).