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Assessment of Potential and Promotion of New Generation of Renewable Technologies ____________________________________________________________________________________________ This may be beneficial in situations where vertically integrated DSOs try to make switching procedures more difficult and where they have a disincentive to make markets more transparent by introducing smart metering. Similarly, very small generation sites directly connected to the distribution network (i.e. distributed generation) will benefit from unbundling at the distribution level. Most importantly, there needs to be legal certainty for investments in electricity generation from renewable energy sources. This also needs to address regulatory frameworks for interconnectors and offshore transmission, which vary greatly from country to country. Putting in place proper incentives for investments in the grid, including in interconnections, will also require shortened and streamlined permitting processes. With sufficient interconnections and infrastructure in place, it will be time for EU member states to reconsider their national approach to renewables support schemes. Policy harmonisation will be beneficial for reasons of productivity, cost effectiveness, cross-border externalities or economies of scale. In a well-functioning internal European electricity market, support schemes should incentivise investments in the most cost effective locations (e.g. Mediterranean for solar power and coastal northern Europe for wind power). Currently, however, investments in renewable energy sources aim for maximum subsidies, which lead to a sub-optimal allocation of investments into less productive and more costly regions. Hence, different levels of support schemes may distort investment decisions and provide incentives for gaming. Harmonisation of the level of support would reduce incentives for gaming. There may be no need to have a uniform system across the EU for all technologies. But the same technologies should fall under a support mechanism to be agreed upon by all member states. There is also a need for the creation of an EU-wide regulatory framework for support. While many aspects will remain the responsibility of the member states, such as permitting and more generally the administration, the implementation of renewables support policy will need to be undertaken within a common EU framework. Different elements of this framework can be developed within different timeframes. 4.2.2. EU R&D strategy and financial support for R&D The idea of using the EU budget or the EIB to contribute significantly to R&D in Europe is rather novel. Research and Development as a public policy for promoting growth at European level has not been an issue until the appearance of the Lisbon Strategy for Growth and Jobs in 2000. With the Lisbon Agenda for jobs and growths, fostering innovation has become a key objective of the EU. This central position of R&D at EU level is allowing the rather modest R&D budget to increase in size and relevance, and the formerly lose policy on R&D to take central stage and develop into a fully fledged EU policy. For renewable energy, the key policy element is the Strategic Energy Technology Plan (SET-Plan) which outlines an ambitious strategy for a coordinated and well funded research effort across the EU in the field of non-fossil fuel energy. It is based on the creation of several new institions and the expansion of public private partnerships with industry and academia. The EU with the SET-Plan has set up a new roadmap for technology development in the energy sector. Although the Framework Programmes have helped developing cross border cooperation, the lack of appropriate instruments to ensure the effectiveness and a follow up of projects has been reducing the effectiveness of the EU’s R&D policy. IP/A/ITRE/ST/2009-11 & 12 113 PE 440.278PDF Image | Policy Department Renewable Technologies
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