COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 05.05.1998 
COM(1998) 301 final 
97/0106 (SYN) 
Re-examined proposal for a 
COUNCIL DECISION 
concerning a multiannual programme for the promotion of renewable energy sources in 
the Community - ALIENER H 
(presented by the Commission pursuant to Article 189 c (d) 
of the EC Treaty) 

EXPLANATORY MEMORANDUM 
On 12 March 1997 the Commission adopted a proposal for a Council Decision 
concerning a multiannual programme for the promotion of renewable energy sources in 
the Community (Altener II). The proposal is based on Article 130(s) of the Treaty 
which provides for the co-operation procedure with the European Parliament. On 6 
November 1997 the Parliament gave its opinion on the first reading. A Common 
Position was reached by the Council on 19 January 1998. On 30 April 1998 the 
Parliament gave its opinion on the second reading of the above Common Position. Ten 
amendments were voted and accepted. 
The principal preoccupations of the Parliament matched those of the Commission. Of 
the ten amendments proposed, the Commission accepted three in their entirety and 
three were accepted in principle considering the concepts already included in the text 
or in the White Paper. 
One amendment concerns only a linguistic version. 
Three amendments have not been accepted by the Commission for the following 
reasons: 
- amendment n° 3 
The question of taking account of indirect costs in tariff calculation falls within the 
scope not of this programme but rather of the proposals on a Community strategy for 
Renewables which the Commission will be presenting separately to Parliament and 
Council. 
- amendment n° 8 
The amount of financing will be decided in accordance with the normal budgetary 
procedure, during which the budgetary authorities take all relevant aspects into 
account, including questions concerning Renewables as well as greenhouse gases. 
- amendment n° 10 
The Comitology rules are laid down formally and this text should not provide 
otherwise. 
The Council is requested to adopt the decision on the basis of the attached re­
examined proposal. 
2 
COMMON POSITION ADOPTED BY 
THE COUNCIL RE-EXAMINED PROPOSAL FOR A 
COUNCIL DECISION 
concerning a multiannual programme for the concerning a multiannual programme for the 
promotion of renewable promotion of renewable 
energy sources in the Community (Altener II) energy sources in the Community (Altener II) 
THE COUNCIL OF THE EUROPEAN 
UNION, THE COUNCIL OF THE EUROPEAN 
UNION, 
Having regard to the Treaty establishing the 
European Community, and in particular 
Article 130s(l) thereof, Having regard to the Treaty establishing the 
European Community, and in particular 
Article 130s(l) thereof; 
Having regard to the proposal from the 
Commission (i) Having regard to the proposal from the 
Commission(1), 
Having regard to the Opinion of the 
Economic and Social Committee(2), Having regard to the Opinion of the 
Economic and Social Committee(2), 
Having regard to the Opinion of the 
Committee of the Regions(3), Having regard to the Opinion of the 
Committee of the Regions(3), 
Acting in accordance with the procedure laid Acting in accordance with the procedure laid 
down in Article 189c of the Treaty(4), down in Article 189c of the Treaty(4), 
OJC 192, 24.6.1997, p. 16. 
OJ C 19, 21.1.1998, p.34 
OJ C 379, 15.12.1997, p. 63. 
Opinion of the European Parliament of 6 November 1997 (not yet published in the 
Official Journal), Council Common Position of 19 January 1998 and Decision of 
the European Parliament of (not yet published in the Official Journal). 
'I 
( 1 ) Whereas Article 13Or of the Treaty 
provides that one of the objectives of 
Community action is to ensure prudent 
and rational utilization of 
natural resources; ( I ) Whereas Article 13 Or of the Treaty 
provides that one of the objectives of 
Community action is to ensure prudent 
and rational utilization of 
natural resources; 
(2) Whereas Article 129 of the Treaty 
provides that health protection 
requirements shall form a constituent 
part of the Community's other policies; 
whereas the Altener programme 
contributes to health protection; (2) Whereas Article 129 of the Treaty 
provides that health protection 
requirements shall form a constituent 
part of the Community's other policies; 
whereas the Altener programme 
contributes to health protection; 
(3) Whereas at its meeting on 
29 October 1990 the Council 
announced its objective of stabilizing 
total C02 emissions by 2000 at the 
1990 level in the Community as 
a whole; (3) Whereas at its meeting on 
29 October 1990 the Council 
announced its objective of stabilizing 
total C02 emissions by 2000 at the 
1990 level in the Community as 
a whole; 
(4) Whereas a mechanism for monitoring 
C02 and other greenhouse gas 
emissions in the Community was 
established by Decision 93/389/EEC (5); 
(5) Whereas C02 emissions from energy 
consumption in the Community are 
likely to increase by about 3% between 
1995 and 2000, assuming normal 
economic growth; whereas it is, (4) Whereas a mechanism for monitoring 
C02 and other greenhouse gas 
emissions in the Community was 
established by Decision 93/389/EEC (5); 
(5) Whereas C02 emissions from energy 
consumption in the Community are 
likely to increase by about 3% between 
1995 and 2000, assuming normal 
economic growth; whereas it is, 
H OJ L 167, 9.7.1993, p. 31 
Vj 
therefore, essential to adopt additional 
measures; therefore, essential to adopt additional 
measures; 
(6) Whereas at its meeting on 25 and 
26 June 1996 the Council noted that in 
the framework of the negotiations on a 
protocol concerning the Berlin 
Mandate, the Second Assessment 
Report of the Intergovernmental Panel 
on Climate Change (SAR IPCC) had 
concluded that the balance of evidence 
suggested that there was a discernible 
human influence on global climate 
change and had stressed the need for 
urgent action at the widest possible 
level, noted that significant "no-regrets" 
opportunities were available and 
requested the Commission to identify 
the measures that had to be taken at 
Community level; (6) Whereas at its meeting on 25 and 
26 June 1996 the Council noted that in 
the framework of the negotiations on a 
protocol concerning the Berlin 
Mandate, the Second Assessment 
Report of the Intergovernmental Panel 
on Climate Change (SAR IPCC) had 
concluded that the balance of evidence 
suggested that there was a discernible 
human influence on global climate 
change and had stressed the need for 
urgent action at the widest possible 
level, noted that significant "no-regrets" 
opportunities were available and 
requested the Commission to identify 
the measures that had to be taken at 
Community level; 
(7) Whereas with the Green Paper of 
11 January 1995 and the White Paper 
of 13 December 1995 the Commission 
communicated to the European 
Parliament and the Council its views on 
the future of energy policy in the 
Community and on the role that 
renewable energy sources should play; (7) Whereas with the Green Paper of 
11 January 1995 and the White Paper 
of 13 December 1995 the Commission 
communicated to the European 
Parliament and the Council its views on 
the future of energy policy in the 
Community and on the role that 
renewable energy sources should play; 
r 
(8) Whereas in its Resolution of (8) Whereas in its Resolution of 
4 July 1996 "" the European Parliament 4 July 1996 ((,) the European Parliament 
called upon the Commission to called upon the Commission to 
implement a Community action plan to implement a Community action plan to 
promote renewable energy sources; promote renewable energy sources; 
(9) Whereas with the Green Paper of 20 
November 1996 entitled "Energy for 
the Future: Renewable Sources of 
Energy" the Commission started a 
process for the development and further 
implementation of a Community 
Strategy and an Action Plan on 
Renewable Energy Sources (RES); (9) Whereas with the Green Paper of 20 
November 1996 entitled "Energy for 
the Future: Renewable Sources of 
Energy" the Commission started a 
process for the development and further 
implementation of a Community 
Strategy and an Action Plan on 
Renewable Energy Sources (RES); 
(10) Whereas in its Resolution of 14 
November 1996 (7) on the Commission 
White Paper entitled "An Energy Policy 
for the European Union" the European 
Parliament called upon the Commission 
to establish a financial programme 
aimed at promoting sustainable energy; 
whereas, in its Resolution of 
15 May 1997 (8) on the Green Paper 
entitled "Energy for the Future: 
Renewable Sources of Energy" it (10) Whereas in its Resolution of 14 
November 1996 <7) on the Commission 
White Paper entitled "An Energy Policy 
for the European Union" the European 
Parliament called upon the Commission 
to establish a financial programme 
aimed at promoting sustainable energy; 
whereas, in its Resolution of 
15 May 1997 (8) on the Green Paper 
entitled "Energy for the Future: 
Renewable Sources of Energy" it 
(6) 
(7) 
(8) OJ C 211, 22. 7.1996, p. 27. 
OJC 362, 2.12.1996, p. 279 
OJC 167, 2.6.1997, p. 160 
G 
expressly requests the adoption as soon 
as possible of a strengthened Altener II 
programme, expressly requests the adoption as soon 
as possible of a strengthened Altener II 
programme; 
(11) Whereas Article 8 of Directive 
96/92/EC of the European Parliament 
and of the Council of 
19 December 1996 concerning common 
rules for the internal market in 
electricity (9) offers Member States the 
possibility of furthering the penetration 
of the market in electricity produced 
from renewable sources of energy by 
giving them priority. (II) Whereas Article 8 of Directive 
96/92/EC of the European Parliament 
and of the Council of 
19 December 1996 concerning common 
rules for the internal market in 
electricity (9) offers Member States the 
possibility of furthering the penetration 
of the market in electricity produced 
from renewable sources of energy by 
giving them priority. 
( 12) Whereas Article 13 Oa of the Treaty 
provides that the Community shall 
develop and pursue its actions leading 
to the strengthening of its economic and 
social cohesion and that, in particular, it 
shall aim at reducing disparities 
between the levels of development of 
the various regions and the 
backwardness of the least-favoured 
regions; whereas those actions cover 
inter alia the energy sector; (12) Whereas Article 130a of the Treaty 
provides that the Community shall 
develop and pursue its actions leading 
to the strengthening of its economic and 
social cohesion and that, in particular, it 
shall aim at reducing disparities 
between the levels of development of 
the various regions and the 
backwardness of the least-favoured 
regions; whereas those actions cover 
inter alia the energy sector; 
(13) Whereas in Decision 93/500/EEC <10) (13) Whereas in Decision 93/500/EEC (l0) 
the Council adopted a Community the Council adopted a Community 
(9) 
<10) OJ L 27, 30.1.1997, p. 20. 
OJ L 235, 18.9.1993, p. 41 
> 
programme entitled "Altenei " for the 
promotion of renewable energy sources 
aimed at reducing CO.. emissions by 
increasing the market share of 
renewable energy sources and its 
contribution to overall primary energy 
production in the Community; whereas 
that programme ends on 
31 December 1997, programme entitled "Altener" for the 
promotion of renewable energy sources 
aimed at reducing C02 emissions by 
increasing the market share of 
renewable energy sources and its 
contribution to overall primary energy 
production in the Community; whereas 
that programme ends on 
31 December 1997; 
( 14) Whereas the Community has (14) Whereas the Community has 
recognized that the Altener programme recognized that the Altener programme 
represents an important element of the represents an important element of the 
Community strategy for reducing Community strategy for reducing 
CO2 emissions, ('(),> emissions. 
(15) Whereas Decision I 110/94/EC of the 
European Parliament and of the 
Council(11) established a fourth 
framework programme for research, 
technological development and 
demonstration projects; whereas policy 
in the field of renewable energy sources 
is an important instrument for the use 
and promotion of the new energy 
technologies that the framework 
programme will develop; whereas the 
Altener II programme is an instrument 
which complements that programme; (15) Whereas Decision 1110/94/EC of the 
European Parliament and of the 
Council(,,) established a fourth 
framework programme for research, 
technological development and 
demonstration projects; whereas policy 
in the field of renewable energy sources 
is an important instrument for the use 
and promotion of the new energy 
technologies that the framework 
programme will develop; whereas the 
Altener II programme is an instrument 
which complements that programme; 
(11) OJ L 126, 18.5.1994, p. 1. Decision as amended by Decision No 616/96/EC 
(OJ L 86, 4.4.1996, p. 69). 
S 
(16) Whereas the Altener II programme 
does not alter national projects or 
systems for the promotion of renewable 
resources, whereas its objective is to 
add a Community aspect that represents 
added value. (16) Whereas the Altener II programme 
does not alter national projects or 
systems for the promotion of renewable 
resources; whereas its objective is to 
add a Community aspect that represents 
added value, 
( 17) Whereas, furthermore, the Fifth 
Framework Programme of Research, 
Technological Development and 
Demonstration should devote special 
attention to energy and whereas Altener 
II should again be an important 
additional instrument in this 
programme; (17) Whereas, furthermore, the Fifth 
Framework Programme of Research, 
Technological Development and 
Demonstration should devote special 
attention to energy and whereas Altener 
II should again be an important 
additional instrument in this 
programme; 
( 18) Whereas renewable energy sources are 
an important energy source for the 
European Union with considerable 
commercial potential; whereas their 
development should therefore be 
supported through a specific strategy 
and targeted actions to make them both 
viable and competitive and thus create a 
favourable environment for investment; (18) Whereas renewable energy sources are 
an important energy source for the 
European Union with considerable 
commercial potential; whereas their 
development should therefore be 
supported through a specific strategy 
and targeted actions to make them both 
viable and competitive and thus create a 
favourable environment for investment; 
( 19) Whereas the increased use of renewable 
sources of energy will have a positive 
effect both on the environment and on 
the security of energy supplies; whereas 
a high degree of international 
cooperation is desirable to achieve the (19) Whereas the increased use of renewable 
sources of energy will have a positive 
effect both on the environment and on 
the security of energy supplies; whereas 
only the free and large-scale 
development of renewable energy 
9> 
best results, sources wijl make it possible fully to 
exploit their economic and employment 
potential; whereas a high degree of 
international cooperation is desirable to 
achieve the best results; 
(20) Whereas a strengthened Altener II 
programme represents an essential 
instrument for developing the potential 
of renewable energy sources. (20) Whereas a strengthened AJtener II 
programme represents an essential 
instrument for developing the potential 
of renewable energy sources; whereas 
renewable energy sources should 
account for a reasonable percentage of 
the European internal energy market; 
(21 ) Whereas the aim of the targeted actions 
referred to in Article 2( i )(d) is to 
facilitate and accelerate investment in 
new operational capacity for the 
production of energy from renewable 
sources by providing financial support, 
in particular for small and medium sized 
enterprises (SMEs), in order to reduce 
the peripheral and service costs of 
renewable energy projects, and thus 
overcome the non-technical obstacles 
present; whereas those actions promote, 
inter alia, access to specialized advice, 
the analysis of market prospects, the 
choice of location of projects, 
application for construction and 
operation permits, initiatives taken by 
SMEs on investment in renewable (21) Whereas the aim of the targeted actions 
referred to in Article 2( 1 )(d) is to 
facilitate and accelerate investment in 
new operational capacity for the 
production of energy from renewable 
sources by providing financial support, 
in particular for small and medium sized 
enterprises (SMEs), in order to reduce 
the peripheral and service costs of 
renewable energy projects, and thus 
overcome the non-technical obstacles 
present; whereas those actions promote, 
inter alia, access to specialized advice, 
the analysis of market prospects, the 
choice of location of projects, 
application for construction and 
operation permits, initiatives taken by 
SMEis on investment in renewable 
sources of energy, the establishment of 
financing plans, the preparation of calls 
for tenders, the training of operators 
and plant commissioning; sources of energy, the establishment of 
financing plans, the preparation of calls 
for tenders, the training of operators 
and plant commissioning; 
(22) Whereas those targeted actions concern 
the implementation of projects carried 
out in the area of biomass, including 
energy crops, firewood, residues from 
forestry and agriculture, municipal 
waste which cannot be recycled, liquid 
biofuels and biogas, and in the areas of 
thermal and photovoltaic solar systems, 
passive and active solar systems in 
buildings, small scale (<10 MW) 
hydroelectric projects, wave energy, 
wind power and geothermal energy; (22) Whereas those targeted actions concern 
the implementation of projects carried 
out in the area of biomass, including 
energy crops, firewood, residues from 
forestry and agriculture, municipal 
waste which cannot be recycled, liquid 
biofuels and biogas, and in the areas of 
thermal and photovoltaic solar systems, 
passive and active solar systems in 
buildings, small scale (<10 MW) 
hydroelectric projects, wave energy, 
wind power and geothermal energy; 
(23) Whereas the development of renewable 
energy sources can help create a 
competitive energy system for the 
whole of Europe and develop a 
European renewable energy sources 
industry, with vast opportunities for the 
export of know-how and for investment 
in third countries involving Community 
participation; (23 ) Whereas the development of renewable 
energy sources can help create a 
competitive energy system for the 
whole of Europe and develop a 
European renewable energy sources 
industry, with vast opportunities for the 
export of know-how and for investment 
in third countries involving Community 
participation; 
(24) Whereas in implementing the (24) Whereas in implementing the 
programme, there should be close programme, there should be close 
cooperation with other Community cooperation with other Community 
actions and programmes also concerned actions and programmes also concerned 
)••) 
with promoting renewable energy 
sources; with promoting renewable energy 
sources; 
(2.5) Whereas in order to ensure that 
Community aid is used efficiently the 
Commission will ensure that projects 
are subject to thorough prior appraisal; 
whereas it will systematically monitor 
and evaluate the progress and results of 
supported projects; (25) Whereas in order to ensure that 
Community aid is used efficiently the 
Commission will ensure that projects 
are subject to thorough prior appraisal; 
whereas it will systematically monitor 
and evaluate the progress and results of 
supported projects; 
(26) Whereas a financial reference amount 
within the meaning of point 2 of the 
Declaration by the European 
Parliament, the Council and the 
Commission of 6 March 1995 is 
included in this Decision for the entire 
duration of the programme, without 
thereby affecting the powers of the 
budgetary authority as they are defined 
by the Treaty; (26) Deleted 
(27) Whereas it is politically and 
economically desirable to open the 
Altener II programme to the associated 
Central and Eastern European countries 
in accordance with the conclusions of 
the Copenhagen European Council of 
21 and 22 June 1993, and as outlined in 
the communication on that subject 
presented to the Council by the (27) Whereas it is politically and 
economically desirable to open the 
Altener II programme to the associated 
Central and Eastern European countries 
in accordance with the conclusions of 
the Copenhagen European Council of 
21 and 22 June 1993, and as outlined in 
the communication on that subject 
presented to the Council by the 
^ 
Commission in May 1994; whereas it 
should also be open to Cyprus, Commission in May 1994; whereas it 
should also be open to Cyprus, 
HAS ADOPTED THIS DECISION; HAS ADOPTED THIS DECISION: 
Article I Article I 
I A multiannual programme of measures 
and actions to promote the use of renewable 
energy sources in the Community, called 
Altener II, hereinafter referred to as "the 
programme", is hereby established I A multiannual programme of measures 
and actions to promote the use of renewable 
energy sources in the Community, called 
Altener II, hereinafter referred to as "the 
programme", is hereby established. 
The objectives of the programme shall be to: The objectives of the programme shall be to: 
(a) help create the necessary conditions for (a) help create the necessary conditions for 
the implementation of a Community the implementation of a Community 
action plan for renewable energy action plan for renewable energy 
sources, and in particular the legal, sources, and in particular the legal, 
socio-economic and administrative socio-economic and administrative 
conditions; conditions; 
(b) encourage private and public (b) encourage private and public 
investments in the production and use investments in the production and use 
of energy from renewable sources. of energy from renewable sources. 
These two specific objectives shall contribute 
to achieving the following overall Community 
objectives - complementing those of the 
Member States - and priorities: the limitation 
of CO2 emissions, increasing the share of 
renewable energy sources in the energy These two specific objectives shall contribute 
to achieving the following overall Community 
objectives complementing those of the 
Member States - and priorities: the limitation 
of C02 emissions, increasing the share of 
renewable energy sources in the energy 
•13 
balance, reduction in energy import 
dependence, security of energy supply, 
promotion of employment, economic 
development, economic and social cohesion 
and local and regional development, including 
the strengthening of the economic potential of 
remote and peripheral regions. balance, reduction in energy import 
dependence, security of energy supply, 
promotion of employment, economic 
development, economic and social cohesion 
end local and regional development, including 
the strengthening of the economic potential of 
remote and peripheral regions. 
2. Community financial support shall be 
granted under the programme for actions 
meeting the objectives set out in 
paragraph 1(a) and (b). 2. Community financial support shall be 
granted under the programme for actions 
meeting the objectives set out in 
paragraph 1(a) and (b). 
3. The financial reference amount for the 
implementation of the programme shall be 
ECU 22 million. The annual appropriations 
shall be authorized by the budget authority 
within the limits of the financial perspective. 3. The financial reference amount for the 
implementation of the programme shall be 
ECU 22 million. The annual appropriations 
shall be authorized by the budget authority 
within the limits of the financial perspective. 
Article 2 Article 2 
The following actions and measures relating The following actions and measures relating 
to renewable energy sources shall be financed to renewable energy sources shall be financed 
under the programme: under the programme: 
(a) studies and other actions, intended to 
implement and complement other 
measures by the Community and 
Member States taken to develop the 
potential of renewable energy sources. 
These involve in particular the 
development of sectoral and market (a) studies and other actions, intended to 
implement and complement other 
measures by the Community and 
Member States taken to develop the 
potential of renewable energy sources. 
These involve in particular the 
development of sectoral and market 
A v 
strategies, the development of norms 
and certification, facilitating grouped 
procurement, analyses, based on 
projects, comparing the environmental 
impact and the long-term cost/benefit 
trends resulting from the use oi^ 
traditional forms of energy and the use 
of renewable energy sources, the 
analysis of the legal, socio-economic 
and administrative conditions, including 
analysis of the possible use of economic 
measures, and/or tax incentives which 
are more favourable to the market 
penetration of renewable energies, the 
preparation of appropriate legislation to 
promote an environment favourable to 
investment and better methods which 
make it possible to evaluate the costs 
and benefits that are not reflected in the 
market price; strategies, the development of norms 
and certification, facilitating grouped 
procurement, analyses, based on 
projects, comparing the environmental 
impact and the long-term cost/benefit 
trends resulting from the use of 
traditional forms of energy and the use 
of renewable energy sources, the 
analysis of the legal, socio-economic 
and administrative conditions, including 
analysis of the possible use of economic 
measures, and/or tax incentives which 
are more favourable to the market 
penetration of renewable energies, the 
preparation of appropriate legislation to 
promote an environment favourable to 
investment and better methods which 
make it possible to evaluate the costs 
and benefits that are not reflected in the 
market price; 
(b) pilot actions of interest to the 
Community aimed at creating or 
extending structures and instruments 
for the development of renewable 
energy sources in: (b) pilot actions of interest to the 
Community aimed at creating or 
extending structures and instruments 
for the development of renewable 
energy sources in: 
local and regional planning, 
the tools for planning, design and 
evaluation; 
new financial products and market 
instruments; local and regional planning; 
the tools for planning, design and 
evaluation; 
new financial products and market 
instruments; 
A y 
(c) measures intended to develop 
information, education and training 
structures; measures to encourage the 
exchange of experience and know-how 
aimed at improving coordination 
between international. Community, 
national, regional and local activities, 
establishment of a centralized system 
for collecting, prioritizing and 
circulating information and know-how 
on renewable energy sources, (c) measures intended to develop 
information, education and training 
structures; measures to encourage the 
exchange of experience and know-how 
aimed at improving coordination 
between international. Community, 
national, regional and local activities; 
establishment of a centralized system 
for collecting, prioritizing and 
circulating information and know-how 
on renewable energy sources; 
(d) targeted actions facilitating the market 
penetration of renewable energy 
sources and relevant know-how, in 
order to facilitate the transition from 
demonstration to marketing, and 
encouraging investment, by advising on 
the preparation and presentation of 
projects and their implementation; (d) targeted actions facilitating the market 
penetration of renewable energy 
sources and relevant know-how, in 
order to facilitate the transition from 
demonstration to marketing, and 
encouraging investment, by advising on 
the preparation and presentation of 
projects and their implementation; 
(e) monitoring and evaluation actions 
intended to: (e) monitoring and evaluation actions 
intended to: 
monitor the implementation of the 
Community strategy and action plan 
for the development of renewable 
energy sources; monitor the implementation of the 
Community strategy and action plan 
for the development of renewable 
energy sources; 
support initiatives taken in 
implementing the Action Plan, support initiatives taken in 
implementing the Action Plan, 
/ IC 
particularly with a view to 
promoting better coordination and 
greater synergy between actions, 
including all Community funded 
activities and those funded by other 
bodies such as the European 
Investment Bank, particularly with a view to 
promoting better coordination and 
greater synergy between actions, 
including all Community funded 
activities and those funded by other 
bodies such as the European 
Investment Bank, 
monitor the progress achieved by 
the Community and comment on 
that achieved by the Member States 
with regard to the development of 
renewable energy sources; monitor the progress achieved by 
the Community and comment on 
that achieved by the Member States 
with regard to the development of 
renewable energy sources. 
evaluate the impact and cost 
effectiveness of actions and 
measures undertaken under this 
programme This evaluation shall 
also take into account the 
environmental and social aspects, 
including the effects on 
employment. evaluate the impact and cost 
effectiveness of actions and 
measures undertaken under this 
programme. This evaluation shall 
also take into account the 
environmental and social aspects, 
including the effects on 
employment. 
Article 3 Article 3 
1. All costs relating to the actions and 
measures referred to in Article 2( I )(a), (c) 
and (e) shall be borne by the Community. 
Where a body other than the Commission 
proposes a measure covered by (c), the 
Community's financial contribution shall not 
exceed 50% of the total cost of the measure, I All costs relating to the actions and 
measures referred to in Article 2( 1 )(a), (c) 
and (e) shall be borne by the Community. 
Where a body other than the Commission 
proposes a measure covered by (c), the 
Community's financial contribution shall not 
exceed 50% of the total cost of the measure; 
0 4 
the balance may be defrayed by public or the balance may be defrayed by public or 
private sources or a combination of the two private sources or a combination of the two. 
2. The level of funding under the programme 2. The level of funding under the programme 
for the actions and measures referred to in for the actions and measures referred to in 
Article 2( 1 )(b) shall not exceed 50% of their Article 2( 1 )(b) shall not exceed 50% of their 
total cost; the balance may be defrayed by total cost, the balance may be defrayed by 
public or private sources or a combination of public or private sources or a combination of 
the two. the two 
3 The level of funding under the programme 3 The level of funding under the programme 
for the actions and measures referred to in for the actions and measures referred to in 
Article 2( 1 ){d) shall be established annually Article 2( 1 )(d) shall be established annually 
for each of the targeted actions in accordance for each of the targeted actions in accordance 
with Article 4(2). with Article 4(2). 
Article 4 Article 4 
1. The Commission shall be responsible for 
the financial execution and implementation of 
the programme. It shall also ensure that 
actions under the programme are subject to 
prior appraisal, monitoring and subsequent 
evaluation which, on completion of the 
project, shall include assessment of impact, 
extent of implementation and whether the 
original objectives have been achieved The 
Commission shall ensure that the selected 
beneficiaries submit reports to -he 
Commission at least on a six-monthly basis 
or, in the case of projects lasting less than one 
year, at the halfway point and on completion. 1 The Commission shall be responsible for 
the financial execution and implementation of 
the programme It shall also ensure that 
actions under the programme are subject to 
prior appraisal, monitoring and subsequent 
evaluation which, on completion of the 
projecl, shall include assessment of impact, 
extent of implementation and whether the 
original objectives have been achieved. The 
Commission shall ensure that the selected 
beneficiaries submit reports to the 
Commission at least on a six-monthly basis 
or, in the case of projects lasting less than one 
year, at the halfway point and on completion. 
The Commission shall keep the committee The Commission shall keep the committee 
provided for in Article 5 informed of the provided for in Article 5 informed of the 
development of projects development of projects 
2. The conditions and guidelines to be 
applied for the support of the actions and 
measures referred to in Article 2( I ) shall be 
defined each year taking into account 2 The conditions and guidelines to be 
applied for the support of the actions and 
measures referred to in Article 2( I ) shall be 
defined each year takinu into account: 
(a) the priorities set out by the Community (a) the priorities set out by the Community 
and the Member States in their and the Member States in their 
programmes for the promotion of programmes for the promotion of 
renewable energy sources, renewable energy sources; 
(b) criteria relating to the cost effectiveness (b) criteria relating to the cost effectiveness 
and development potential of renewable 
energy sources and their impact on 
employment and the environment, in 
particular the reduction of C02 
emissions; and development potential of renewable 
energy sources and their impact on 
employment and the environment, in 
particular the reduction of CO2 
emissions; 
(c) for the actions referred to in Article 
2(1 )(d), the relative cost of the 
assistance, the long-term commercial 
viability, the new production capacity 
expected to arise and the extent of 
transregional and/or transnational 
benefits; (c) for the actions referred to in Article 
2( 1 )(d), the relative cost of the 
assistance, the long-term commercial 
viability, the new production capacity 
expected to arise and the extent of 
transregional and/or transnational 
benefits; 
(d) the principles established in Article 92 (d) the principles established in Article 92 
of the Treaty and the relevant of the Treaty and the relevant 
13 
Community guidelines on Slate aid for 
environmental protection Community guidelines on State aid for 
environmental protection 
The committee provided loi in Article 5 shall The committee provided for in Article 5 shall 
assist the Commission in defining these assist the Commission in defining these 
conditions and miidclincs conditions and guidelines 
Article 5 Article •> 
The Commission shall be assisted by a Tin- Commission shall be assisted by a 
committee composed of representatives of the committee composed of representatives of the 
Member States and chaired by the Member States and chaired by the 
representative of the Commission representative of the Commission 
The representative of the Commission shall 
submit to the committee a draft of the 
measures to be taken The committee shall 
deliver its opinion on the draft, within a 
time-limit which the chairman may lay down 
according to the urgency of the matter The 
opinion shall be delivered by the majority laid 
down in Article 148(2) of the Treaty in the 
case of decisions which the Council is 
required to adopt on a proposal from the 
Commission The votes of the representatives 
of the Member States within the committee 
shall be weighted in the manner set out in that 
Article The chairman shall not vote The representative of the Commission shall 
submit to the committee a draft of the 
measures to be taken The committee shall 
dchvci its opinion on the draft, within a 
time-limit which the chairman may lay down 
according to the urgency of the matter The 
opinion shall be delivered by the majority laid 
down in Article 148(2) of the Treaty in the 
case of decisions which the Council is 
required to adopt on a proposal from the 
Commission The votes of the representatives 
of the Member States within the committee 
shall be weighted in the manner set out in that 
Article The chairman shall not vote 
The Commission shall adopt measures which The Commission shall adopt measures which 
shall apply immediately However, if these shall apply immediately. However, if these 
measures are not in accordance with the measures are not in accordance with the 
Zc 
opinion of the committee, they shall be 
communicated by the Commission to the 
Council forthwith In that event opinion of the committee, they shall be 
communicated by the Commission to the 
Council forthwith In that event: 
(a) the Commission may defer application (a) the Commission may defer application 
of the measures which it has decided for of the measures which it has decided for 
a period of not more than one month a period of not more than one month 
from the date of such communication, from the date of such communication; 
(b) the Council, acting by a qualified (b) 
majority, may take a different decision 
within the time-limit referred to in point 
(a). the Council, acting by a qualified 
majority, may take a different decision 
within the time-limit referred to in point 
(a) 
Article 6 Article 6 
I During the second year of the 
programme, the Commission shall present a 
report to the European Parliament, the 
Council, the Economic and Social Committee 
and the Committee of the Regions on the 
measures taken to promote renewable energy 
sources at the level of the Community and of 
the Member States, with reference in 
particular to the objectives set out in 
Article 1. That report shall be accompanied 
by proposals for any amendments to the 
programme which may be necessary in the 
light of those results. I During the second year of the 
programme, the Commission shall present a 
report to the European Parliament, the 
Council, the Economic and Social Committee 
and the Committee of the Regions on the 
measures taken to promote renewable energy 
sources at the level of the Community and of 
the Member States, with reference in 
particular to the objectives set out in 
Article I That report shall be accompanied 
by proposals for any amendments to the 
programme which may be necessary in the 
light of those results. 
2. On the expiry of the programme, the 2 On the expiry of the programme, the 
Commission shall assess the results obtained Commission shall assess the results obtained 
2 1 
from the application of this Decision on the 
basis of a report by independent experts and 
the consistency of national and Community 
actions It shall present a report thereon to 
the European Parliament, the Council, the 
Economic and Social Committee and the 
Committee of the Regions from the application of this Decision on the 
basis of a report by independent experts and 
the consistency of national and Community 
actions It shall present a report thereon to 
the European Parliament, the Council, the 
Economic and Social Committee and the 
Committee of the Regions 
Article 7 Article 7 
The programme shall be open to participation 
by associated ("entrai and Eastern European 
countries (CEEC) in accordance with the 
conditions, including financial provisions, laid 
down in the additional protocols to the 
Association Agreements, or in the 
Association Agreements themselves, relating 
to participation in Community programmes 
The programme shall also be open to 
participation by Cyprus on the basis of 
additional appropriations, under the same 
rules as those applied to E1TA/EEA 
countries, in accordance with procedures to 
be agreed with that country The programme shall be open to participation 
by associated Central and Eastern European 
countries (CEEC) in accordance with the 
conditions, including financial provisions, laid 
down in the additional protocols to the 
Association Agreements, or in the 
Association Agreements themselves, relating 
to participation in Community programmes 
The programme shall also be open to 
participation by Cyprus on the basis of 
additional appropriations, under the same 
rules as those applied to EFTA/EEA 
countries, in accordance with procedures to 
be agreed with that country. 
Article 8 Article 8 
This Decision shall apply from 1 January 1998 This Decision shall apply from I January 1998 
until the entry into force of the multiannual until the entry into force of the multiannual 
framework programme for measures in the framework programme for measures in the 
energy sector and until 31 December 1999 at energy sector and until 31 December 1999 at 
the latest. the latest. 
2^ 
Article 9 Article 9 
This Decision is addressed to the Member This Decision is addressed to the Member 
States. States 
Done at Brussels, Done at Brussels, 
For the Council loi the Council 
The President The President 
I < 

ISSN 0254-1475 
COM(98) 301 final 
DOCUMENTS 
EN 12 14 10 01 
Catalogue number : CB-CO-98-300-EN-C 
ISBN 92-78-35943-2 
Office for Official Publications of the European Communities 
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