Press Release 18-08
CEER Welcomes Progress in Efficiently Decarbonising Europe's Energy System
• Decarbonisation is a central focus of energy regulators, at least cost
• Renewable support schemes are a significant but falling cost to European electricity consumers
• The amount and cost of RES support differs across countries
RES subsidies are a falling cost to European consumers
The CEER Status Review of Renewable Energy Support (RES) Schemes in Europe published today shows that:
- the weighted average subsidy paid to renewable generators in Europe, on top of the wholesale price, was €96.29/MWh in 2017.
- although this RES subsidy cost is high, it is a decrease of 12.6% from €110.22/MWh in 2015. This cost improvement has been facilitated by the increased use of competitively-determined support schemes (tendering procedures), a move strongly advocated by CEER.
- The amount of gross electricity produced receiving RES support is fairly stable, at 17% in 2016.
The cost of RES support is mostly financed through non-tax levies paid via electricity consumer bills. The ACER-CEER Market Monitoring Report shows that RES charges make up about one-seventh (14%) of the average European household electricity price.
CEER President, Garrett Blaney stated:
“Subsidies have driven significant renewables growth in Europe over the last 15 years. European energy regulators are now actively working to achieve higher 2030 renewables targets and to facilitate decarbonisation of the energy system at least cost. In this context the move towards more efficient supports for renewables, highlighted by this CEER report, is welcome progress”.
The amount and cost of RES support differs across countries
The CEER report includes data on the amount and type of RES support and aspects of RES market integration such as balancing responsibilities, curtailment and compensation. There are wide national variations in RES support across countries, ranging from €12.87/MWh in Norway to €198.29/MWh in the Czech Republic. Whilst the proportion of gross electricity that receives RES support is fairly stable in recent years (17% across CEER members in 2016, up from 16% in 2014), there are wide variations across countries, from 3% in Norway to 63% in Denmark.
Decarbonisation at least cost
In terms of RES integration into wholesale markets, the CEER report finds that 18 countries have balancing responsibility for RES producers as a feature in their support schemes. CEER advocates decarbonisation at least cost using a variety of measures, with a key one being retrofitted wholesale markets which integrate and work better to facilitate renewables.
Brussels, 14 December 2018
Ends - see Notes for Editors