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

Author

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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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    1. Klessmann, Corinna & Nabe, Christian & Burges, Karsten, 2008. "Pros and cons of exposing renewables to electricity market risks--A comparison of the market integration approaches in Germany, Spain, and the UK," Energy Policy, Elsevier, vol. 36(10), pages 3646-3661, October.
    2. Munoz, Miquel & Oschmann, Volker & David Tabara, J., 2007. "Harmonization of renewable electricity feed-in laws in the European Union," Energy Policy, Elsevier, vol. 35(5), pages 3104-3114, May.
    3. Klessmann, Corinna, 2009. "The evolution of flexibility mechanisms for achieving European renewable energy targets 2020--ex-ante evaluation of the principle mechanisms," Energy Policy, Elsevier, vol. 37(11), pages 4966-4979, November.
    4. Toke, David, 2008. "The EU Renewables Directive--What is the fuss about trading?," Energy Policy, Elsevier, vol. 36(8), pages 2991-2998, August.
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    Citations

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    Cited by:

    1. 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.
    2. 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.
    3. 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.
    4. 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).
    5. 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).
    6. 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.
    7. Unteutsch, Michaela, 2014. "Who Benefits from Cooperation? - A Numerical Analysis of Redistribution Effects Resulting from Cooperation in European RES-E Support," EWI Working Papers 2014-2, Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI).
    8. 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, Open Access Journal, vol. 5(2), pages 1-32, February.
    9. 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).
    10. 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.
    11. 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.
    12. repec:eee:rensus:v:80:y:2017:i:c:p:519-530 is not listed on IDEAS
    13. 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.
    14. 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).
    15. Steinbach, Jan & Ragwitz, Mario & Bürger, Veit & Becker, Liv & Kranzl, Lukas & Hummel, Marcus & Müller, Andreas, 2013. "Analysis of harmonisation options for renewable heating support policies in the European Union," Energy Policy, Elsevier, vol. 59(C), pages 59-70.
    16. 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.
    17. 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.

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