The EuropeanCommission will look to complete the internal energy market by 2014, which will, in turn, play an important role in reducing energy costs and improving the cost-effectiveness of support schemes for renewable energy. This is part of a wider promotion of resource efficiency through improving waste and water management, recycling and energy efficiency, as recently outlined in the Annual Growth Survey 2014. Read more…
An internal electricity market for Europe is urgently needed to achieve the European Union’s objectives on energy and climate change, according to a recent Communication on the subject. The EU has set itself ambitious climate and energy targets, including a 20% reduction in greenhouse gas emissions, a 20% share for renewables in the EU energy mix and a 20% increase in energy efficiency by 2020.
Member States have agreed to complete the internal electricity market by 2014, which will act as an important tool for ensuring affordable, secure and sustainable electricity supply in the future. A degree of public intervention – be it regional, national or local – is necessary to ensure that the market is completed and works effectively. However, public interventions must be carefully designed to avoid severely distorting the functioning of the market, leading to higher energy prices for households and businesses.
Renewable energy, in particular, requires public intervention to stimulate innovation, increasingly expose renewables to market prices, prevent overcompensation, diminish the costs of support and, ultimately, end support. Therefore, the Commission is providing information, guidance and best practice to Member States on how to design and reform national support schemes for renewables. This will include how best to financially support schemes, the most effective support instruments for incentivising market development, respecting investors’ expectations regarding returns and coordinating renewable energy strategies.
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