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

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

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    File URL: http://www.sciencedirect.com/science/article/B6V2W-5005SR8-1/2/1fe71c47a25fedceeb9f7f0eeec6c34a
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    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 38 (2010)
    Issue (Month): 8 (August)
    Pages: 4679-4691

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    Handle: RePEc:eee:enepol:v:38:y:2010:i:8:p:4679-4691
    Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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    1. Toke, David, 2008. "The EU Renewables Directive--What is the fuss about trading?," Energy Policy, Elsevier, vol. 36(8), pages 2991-2998, August.
    2. 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.
    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. 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.
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