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Design options for cooperation mechanisms under the new European renewable energy directive

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  • Klessmann, Corinna
  • Lamers, Patrick
  • Ragwitz, Mario
  • Resch, Gustav

Abstract

In June 2009, a new EU directive on the promotion of renewable energy sources (RES) entered into effect. The directive 2009/28/EC, provides for three cooperation mechanisms that will allow member states to achieve their national RES target in cooperation with other member states: statistical transfer, joint projects, and joint support schemes. This article analyses the pros and cons of the three mechanisms and explores design options for their implementation through strategic and economic questions: How to counterbalance the major drawbacks of each mechanism? How to reflect a balance of costs and benefits between the involved member states? The analysis identifies a number of design options that respond to these questions, e.g. long term contracts to ensure sufficient flexibility for statistical transfers, a coordinated, standardised joint project approach to increase transparency in the European market, and a stepwise harmonisation of joint support schemes that is based on a cost-effective accounting approach. One conclusion is that the three cooperation mechanisms are closely interlinked. One can consider their relation to be a gradual transition from member state cooperation under fully closed national support systems in case of statistical transfers, to cooperation under fully open national support systems in a joint support scheme.

Suggested Citation

  • Klessmann, Corinna & Lamers, Patrick & Ragwitz, Mario & Resch, Gustav, 2010. "Design options for cooperation mechanisms under the new European renewable energy directive," Energy Policy, Elsevier, vol. 38(8), pages 4679-4691, August.
  • Handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:4679-4691
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    References listed on IDEAS

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    4. Klinge Jacobsen, Henrik & Pade, Lise Lotte & Schröder, Sascha Thorsten & Kitzing, Lena, 2014. "Cooperation mechanisms to achieve EU renewable targets," Renewable Energy, Elsevier, vol. 63(C), pages 345-352.
    5. Papapostolou, Aikaterini & Karakosta, Charikleia & Nikas, Alexandros & Psarras, John, 2017. "Exploring opportunities and risks for RES-E deployment under Cooperation Mechanisms between EU and Western Balkans: A multi-criteria assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 80(C), pages 519-530.
    6. Klessmann, Corinna & Rathmann, Max & de Jager, David & Gazzo, Alexis & Resch, Gustav & Busch, Sebastian & Ragwitz, Mario, 2013. "Policy options for reducing the costs of reaching the European renewables target," Renewable Energy, Elsevier, vol. 57(C), pages 390-403.
    7. Sebastian Strunz, Erik Gawel, and Paul Lehmann, 2015. "Towards a general Europeanization of EU Member States energy policies?," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
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    9. Gungah, Aarti & Emodi, Nnaemeka Vincent & Dioha, Michael O., 2019. "Improving Nigeria's renewable energy policy design: A case study approach," Energy Policy, Elsevier, vol. 130(C), pages 89-100.
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    11. Chao-Chan Wu, 2016. "Constructing a weighted keyword-based patent network approach to identify technological trends and evolution in a field of green energy: a case of biofuels," Quality & Quantity: International Journal of Methodology, Springer, vol. 50(1), pages 213-235, January.
    12. Shariat Torbaghan, Shahab & Müller, Hannah K. & Gibescu, Madeleine & van der Meijden, Mart & Roggenkamp, Martha, 2015. "The legal and economic impacts of implementing a joint feed-in premium support scheme on the development of an offshore grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 263-277.
    13. Haas, Reinhard & Resch, Gustav & Panzer, Christian & Busch, Sebastian & Ragwitz, Mario & Held, Anne, 2011. "Efficiency and effectiveness of promotion systems for electricity generation from renewable energy sources – Lessons from EU countries," Energy, Elsevier, vol. 36(4), pages 2186-2193.
    14. Unteutsch, Michaela, 2014. "Redistribution Effects Resulting from Cross-Border Cooperation in Support for Renewable Energy," EWI Working Papers 2014-1, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    15. Gawel, Erik & Strunz, Sebastian & Lehmann, Paul, 2014. "Wie viel Europa braucht die Energiewende?," UFZ Discussion Papers 4/2014, Helmholtz Centre for Environmental Research (UFZ), Division of Social Sciences (ÖKUS).
    16. Boute, Anatole & Willems, Patrick, 2012. "RUSTEC: Greening Europe's energy supply by developing Russia's renewable energy potential," Energy Policy, Elsevier, vol. 51(C), pages 618-629.
    17. Paul Lehmann & Felix Creutzig & Melf-Hinrich Ehlers & Nele Friedrichsen & Clemens Heuson & Lion Hirth & Robert Pietzcker, 2012. "Carbon Lock-Out: Advancing Renewable Energy Policy in Europe," Energies, MDPI, vol. 5(2), pages 1-32, February.
    18. Xingang, Zhao & Tiantian, Feng & Lu, Liu & Pingkuo, Liu & Yisheng, Yang, 2011. "International cooperation mechanism on renewable energy development in China – A critical analysis," Renewable Energy, Elsevier, vol. 36(12), pages 3229-3237.
    19. Fürsch, Michaela & Lindenberger, Dietmar, 2013. "Promotion of Electricity from Renewable Energy in Europe post 2020 - the Economic Benefits of Cooperation," EWI Working Papers 2013-16, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    20. Creutzig, Felix & Goldschmidt, Jan Christoph & Lehmann, Paul & Schmid, Eva & von Blücher, Felix & Breyer, Christian & Fernandez, Blanca & Jakob, Michael & Knopf, Brigitte & Lohrey, Steffen & Susca, Ti, 2014. "Catching two European birds with one renewable stone: Mitigating climate change and Eurozone crisis by an energy transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 1015-1028.
    21. Barbosa, Luciana & Ferrão, Paulo & Rodrigues, Artur & Sardinha, Alberto, 2018. "Feed-in tariffs with minimum price guarantees and regulatory uncertainty," Energy Economics, Elsevier, vol. 72(C), pages 517-541.

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