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Shaping an effective and efficient European renewable energy market (RE-SHAPING)

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The core objective of the RE-Shaping project was to assist Member State (MS) governments in preparing for the implementation of Directive 2009/28/EC and to guide a European policy for RES in the mid- to long term. The past and present success of policies for renewable energies was evaluated and recommendations derived to improve future RES support schemes. The effectiveness and the efficiency of current and future RES support schemes was analysed with specific focus on the European market for renewable electricity products. Current best practices were identified, and (future) costs of RES and the corresponding support necessary to initiate stable growth were assessed. Better integration of RES policies with climate and innovation policy as well as liberalised energy markets were analysed and promoted. Options for flexibility between Member States were analysed. The future deployment of RES in each MS was calculated based on the Green-X model to assist MS in implementing national action plans and to support a long term vision of the European RES policy. The impact of policies on risks for RES financing were analysed and improved policies and financing instruments were proposed.

Results

  • Clear empirical insights into the present success and failures to support RES in Europe on Member State level
  • Quantitative results on the costs and benefits of future policy options such optimised national and coordinated policy options based on the techno-economic model Green-X
  • Detailed definition of best practice criteria for renewable energy support schemes and policy integration
  • Stakeholder involvement through in-depth expert talks with Member States officials and market actors
  • Recommendations and action plan on optimisation of RES policy measures to support policy makers on European and national level
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Lessons learned

  • Effectiveness of RES policy instruments has generally increased in recent years, but the economic efficiency can be classified as still too low in many Member States. Past research used in the European Commission evaluations of Member State support schemes revealed huge differences of Member State performance regarding policy effectiveness (realized growth) and efficiency (support paid compared to generation cost). High support, for example, did not always result in high growth.
  • Support policy cost for renewable electricity projects can be reduced by about 10% in the EU and up to 50% for specific Member States/technologies while improving the investment climate for project developers and investors and thus enhancing the growth of RE considerably. This can be achieved if Member States consider more strongly the risk (perception) of investors and lenders and establish risk-conscious RE policies (Triple-A policies).
  • An increase in the cooperation between Member States appears beneficial from an economic perspective, considering in particular support expenditures related to the RES policy intervention. This was confirmed by theoretical, conceptual as well as quantitative assessments conducted within this project. In contrast, early harmonisation of support conditions all across Europe,if done in a simplistic manner, may contradict progress achieved in previous years within several MS.Last update:30/05/2012
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Partners and coordinator

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Contact

Fraunhofer Society for the promotion of applied research
Germany
Contact point: 
Name: 
Dr Mario Ragwitz
Tel: 
+49-721-6809-157

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In brief

Duration:
01/07/2009 to 31/12/2011
Contract number: 
IEE/08/517

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