Opinion of the Committee of the Regions on the 'Proposal for a Council Decision concerning a multiannual programme for the promotion of renewable energy sources in the Community (Altener II)` (97/C 379/14)

THE COMMITTEE OF THE REGIONS,

having regard to the Commission proposal to the Council [COM(97) 87 final - 97/0106 (SYN)] ();

having regard to the decision taken by the Council on 26 June 1997 to consult the Committee of the Regions on the matter, in accordance with the first paragraph of Article 198c of the Treaty establishing the European Community;

having regard to its decision of 11 June 1997 asking Commission 5 (Land-Use Planning, Environment and Energy) to prepare the opinion;

having regard to the draft opinion (CdR 173/97 rev.) adopted by Commission 5 on 3 July 1997 (rapporteur: Mr Leinen),

adopted the following opinion unanimously at its 19th plenary session on 17 and 18 September 1997 (meeting of 18 September).

1. Introduction

1.1. The Committee of the Regions welcomes the continuation of the Altener programme for the promotion of renewable energy sources (RES) and endorses its objectives. This programme will be crucial to Community attempts to achieve a substantial increase in RES use. Altener II is due to begin on 1 January 1998 and run until 31 December 2002.

1.2. To ensure the effective market penetration of renewable energy sources in the Member States of the European Community, adequate funding of Altener II is imperative. In the Committee's view, however, the Commission's budget proposal - ECU 30 million for the first two years of the programme - is totally inadequate. If future RES funding needs are to be adequately met, renewable energy must take clear precedence over other energy sources in the Community budget.

1.3. As the Commission has already pointed out in its White Paper on Growth, Competitiveness and Employment, clean technologies will have a key role to play in the attainment of future prosperity. Against this background, the COR regrets the grossly inadequate provision of resources for Altener II.

1.4. In addition to the extension of Altener I actions, the Commission is proposing new measures to promote the market penetration of RES. Whilst the Committee welcomes this approach, it would point out that the proposed funding for Altener II - and consequently, to some extent, the proposed measures - will not be sufficient to make a lasting contribution to the market launch of RES.

2. Bases of a Community programme for the promotion of renewable energy sources

2.1. The Committee of the Regions endorses the political objectives underpinning the Commission proposal in respect of the Altener II programme. It accepts and emphasizes the advantages of renewable energy outlined in the Commission's explanatory memorandum, particularly as regards the environment, security of supply and improved competitiveness. It would also refer to its opinion on the Commission green paper concerning a Community strategy: 'Energy for the future: renewable sources of energy` ().

2.2. The COR would lay particular stress on the importance of renewables as a source of local and decentralized energy for the Community's urban areas and regions. Many of the less-developed regions possess substantial potential in renewable energy sources. This should make the promotion of RES an essential component of regional and structural policy. Altener II should therefore lay particular emphasis on the integration of local and regional projects, energy supply agencies and other RES networks and on the involvement of local and regional institutions.

2.3. On the eve of the 21st century, the COR feels it is essential to create fair market conditions for RES and to open up the vast market for renewables in Europe and throughout the world. This will make it necessary to break the current vicious circle which takes the form of small renewable energy markets - high costs and prices - poor demand - small markets. Only then will it be possible to exploit the enormous employment potential of renewable energy. Various estimates suggest that at least one million new jobs can be created through RES applications over the next 15 to 20 years, and this figure does not even take account of the export of equipment.

2.4. The COR supports the Altener II goal of eliminating existing barriers to trade and administrative obstacles. It agrees with the Commission that the majority of these obstacles are of a non-technical nature. Only when RES are no longer affected by these distortions of competition will large numbers of new consumers and investors be prepared to accept these new technologies. A virtuous circle will then operate, with continually-falling costs as a result of mass production and large-scale applications.

2.5. The COR supports Altener II's readiness to cooperate with the CEEC in view of their possible future membership of the European Union.

3. Specific assessment of the proposed measures and structure of Altener II

3.1. The Committee of the Regions essentially endorses the tripartite division of Altener II proposed by the Commission. In view of the experience gained from the successes of Altener I, the conclusions and recommendations of the expert committee, and the Altener Conference held from 25 to 27 November 1996 in Sitges, certain actions should be extended. The COR would, however, point out that the funding proposed for the measures referred to in Article 2(a) is inadequate in both relative and absolute terms.

3.2. The COR notes that the Commission proposals in respect of Altener II lack a clear market penetration strategy, with action continuing to be largely focussed on RES market research and analysis. By contrast, the COR calls for an effective market-launch strategy designed to overcome the many legal and administrative obstacles that exist. A crucial element in this connection will be the identification of target groups and the principal participants.

3.3. Local and regional authorities will play a decisive part in the market introduction of RES. Their role is, however, largely underestimated - a shortcoming which also characterizes the present Altener II proposal. These authorities are familiar with local conditions and the local energy supply situation. They are best able to assess local and regional RES potential and deal directly with RES consumers and users. Local and regional authorities have a role to play in making ordinary people aware of the importance of RES.

3.4. In extending Altener I actions and implementing the new measures put forward under Altener II, emphasis should be given to those proposals which increase the competitive prospects of RES. These include, in particular, measures aimed at the creation of a level playing field. A crucial element in this context will be action to promote the internalization of external costs, since this is the only way of ensuring the sustainable competitiveness of RES. Until this is achieved, it will not be possible to fully exploit the range of economic, social, environmental and labour market advantages they offer.

3.5. The COR believes that Altener II must promote market-launch and transposition strategies. Thus, the successful conditions associated with best-practice examples should be analysed with a view to their transfer to other Community regions. Such examples would include the promotion of wind power in Denmark and Germany, the biomass programmes in Scandinavia and individual Austrian regions, the development of solar power in Greece and Austria and the promotion of photovoltaic power by various local authorities in Germany and Greece. Strenuous efforts must be made to publicize and commercially exploit these successes in other countries and regions.

3.6. The COR believes that Altener II should develop and market RES strategies for all technologies and sectors. A package of incentives and support measures must be developed, promoted and applied to enhance RES market penetration. This would include, for example, the guaranteed reimbursement of electricity costs for RES, tax reductions and special interest rates, investment subsidies, and special concessions under building and planning law.

3.7. The integration of RES at an early stage of urban and land-use planning procedures will be particularly important. Reliance on RES in public buildings, for example, and provisions governing their use in new buildings will be of fundamental importance in this context. In this area, in particular, local and regional authorities and energy agencies will have a decisive role to play. Consequently, their activities must receive far greater support than to date.

3.8. Information and training policy have an equally important role to play in the Committee's view. RES must become an integral part of vocational training and further training in all the Member States. Similarly, school and university syllabuses must be expanded to cover RES.

3.9. Lastly, the population as a whole must be far better informed than at present of the opportunities, potential and advantages offered by RES. This information could best be supplied by local and regional bodies (particularly local and regional RES action groups and energy agencies).

3.10. The export of RES technologies is of quite special importance for the regional economy and the creation of new jobs. The Altener II programme almost totally neglects this aspect. The Committee of the Regions therefore calls for assistance for market and feasibility studies in potential export outlets as well as support for joint ventures, trade delegations and export guarantees. Under Altener II, the European Export Council for RES must also enjoy far greater support than at present.

3.11. The COR believes that Altener II also requires better coordination with other Community RES programmes, such as Thermie, APAS or SAVE. Many measures and projects initiated under these programmes are relevant to Altener II and could be updated or extended.

3.12. The COR considers it particularly important to establish strict selection criteria for the allocation of funds to eligible projects with a view to increasing efficiency.

Brussels, 18 September 1997.

The Chairman of the Committee of the Regions

Pasqual MARAGALL i MIRA

() OJ C 192, 24. 6. 1997, p. 16.

() COM(96) 576 final.