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Assessment of Potential and Promotion of New Generation of Renewable Technologies ____________________________________________________________________________________________ They also show that entry of the Netherlands to the joint support scheme by Sweden and Norway (which is currently being designed and planned to be operational by early 2012) could result in welfare benefits for all participating countries “amounting to several hundreds of millions of euros per year” [ibid.]. This gives an indication of the potential benefits of EU-wide harmonisation of the currently fragmented national support schemes. 3.1.4. Impact of EU regulatory policy on the share of renewables in the EU energy mix To conclude this section on EU regulatory policy, it may be useful to assess how regulatory policy influences the share of renewables in the EU energy mix. Past experiece shows that target-setting alone may not be sufficient to support the penetration of renewables. The former 2010 indicative EU renewables target serves as a good example to proove this point. It refers to the 2001 renewables Directive21 which set for the EU an overall target of sourcing 12% of its gross inland energy consumption from renewables by 2010. The directive also aimed at increasing the share of electricity from renewable energy sources to 21% by 2010. Both the overall 12% target, as well as the 21% electricity target were indicative, i.e. non-binding. As a result, the EU was not on track of meeting them in the year 2007 (the last year for which data is available). By 2007, only 7.8% of gross inland consumption was based on renewables, while the share of electricity from renewable sources was 15.6% [European Commission 2010]. Although these targets became obsolete with the adoption of the new renewables Directive in 2009, the [European Commission 2009] notes that it is unlikely that they would have been met. The main reasons for this failure were the indicative nature of the national targets and the uncertain investment environment provided by the existing legal framework (e.g. in terms of ineffective and changing renewables support schemes). As to the new binding 20% RES target to be achieved by 2020, the situation looks more optimistic. According to member states’ forecast documents [summarised by European Commission 2010], the EU as a whole can expect to exceed its 20% target by 0.3% by 2020. While five member states expect not to reach their national targets, their deficit is overcompensated by ten member states, which expect a surplus in comparison with their national targets. However, the documents also note that the achievement of the target is dependent on investments in new infrastructure such as interconnectors and the capacity of the grid. As such, more emphasis needs to be put on the latter, and the speedy adoption/implementation of the Second Strategic Energy Review and the 3rd internal market package are of utter importance in this respect. At the same time, it should be noted that it is too early to judge more concrete effects of the policies described in this chapter on renewable energy sources in the EU due to the fact that they were only recently adopted (with the exception of the Second Strategic Energy Review, which remains to be adopted). 3.2. Other policy areas 3.2.1. The role of renewables in development policy Energy and energy infrastructure play a crucial role in economic development and can help to explain why some countries have undergone successful industrialisation and others have not [see, e.g. UNIDO 2010]. 21 Directive 2001/77/EC of the European Parliament and of the Council of 27 September 2001 on the promotion of electricity produced from renewable energy sources in the internal electricity market IP/A/ITRE/ST/2009-11 & 12 83 PE 440.278PDF Image | Policy Department Renewable Technologies
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