CEER is ringing in the new year with ourAnnual Conference (29 January 2013). It promises to be a cracker of a conference. The focus is on progress towards and prospects of the EU’s 3 energy policy objectives: competitive, sustainable and secure energy. The speaker line-up includes EU Energy Commissioner, Mr Oettinger; EU Consumer Commissioner, Tonio Borg; MEP Karins; Mr Goodwin from the Irish Presidency; and CEER’s Lord Mogg. There are also many distinguished panelists. Not surprisingly, the event is fully booked out. However, conference proceedings will be available on the website afterwards.
Our new report on Renewables and Energy Efficiency support schemes (see the Feature below) will be officially launched at our Annual Conference. In accordance with our new practice, our RES report is accompanied by a simple Citizens 'Q&A memo.
Check out our public consultation calendar and our events calendar for how you can input into our 2013 deliverables.View here the FSRvideo interview with Lord Mogg on regulatory cooperation.
CEER’s review of national renewable support schemes in Europe
CEER has published its latest Status Review of Renewable Energy and Energy Efficiency Support Schemes. It shows that there are differences between EU Member States’ schemes and the overall costs to consumers. This CEER report is timely given on-going debates in some countries on the effectiveness and efficiency of their renewable policy support instruments. It is further hoped that this CEER report will help to inform the European Commission’s review of RES support schemes in the EU and the issuing of guidance on best practice.
What are renewable energy sources and why are they important? Renewable energy sources (often referred to as RES) include wind, hydro (water/tidal) and solar power, as well as biomass, biofuel and geothermal energy. The development of RES is important for a number of reasons, including meeting Member States and pan-European carbon reduction targets, encouraging growth in low carbon innovation, goods and services, and contributing to energy security of supply across Europe.
How do support schemes work? The purpose of support (or subsidy) schemes is to encourage the take up and deployment of renewable energy generation, energy efficiency and heating/cooling technologies amongst industrial, commercial and residential consumers. Many types of renewable energy technologies are not yet cost-competitive with more traditional, established technologies, hence subsidies are used to support the ‘maturing’ of these technologies until they reach a point where they can compete alongside more established generation.
CEER’s Review of Support Schemes CEER has collected comparable data on support schemes for electricity from renewable energy sources, by technology and type of instrument. The CEER Status Review provides data on: - Financing of support schemes (Feed In Tariffs, certificates, etc.) - RES volumes receiving support - Total costs of RES support schemes - Support level per technology (€/MWh) - Type of connection charges and regimes in place
CEER’s main findings • Support schemes vary across Member States. But so do other parameters such as connection fees. • With the volumes of RES increasing, renewables are becoming increasingly mainstream. Stability and level of support matters more than type. • Of the 17 countries who provided data, unit support levels on final electricity consumed vary from 0.12 to 25.52 €/MWh, while the average support is around 7 €/MWh (2010). • For the 18 countries who provided detailed data on MWh receiving support, the RES-supported electricity accounts for on average 7.7% of the gross electricity generation in 2010 and 8.6% of final electricity consumption.
Why is this important for energy customers? Typically, the costs of RES support schemes are financed by energy consumers (e.g. through increased electricity prices or adding additional charges to energy bills or general national budgets). In some countries, the cost of such support schemes has had a significant impact in the increase of customers’ electricity bills. Therefore, understanding the different approaches to RES subsidies can help to inform future support scheme designs, ensuring that costs are minimised and benefits are maximised for consumers.
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• CEER Status Review on renewable and energy efficiency support schemes in Europe (Ref: C12-SDE-33-03) • CEER Citizens’ Q&A memo on the RES and Energy Efficiency support scheme report •CEER Annual Report 2012