18. 8. 86 Official Journal of the European Communities No C 207/11 
Opinion on a Community orientation to develop new and renewable energy sources (') 
(86/C 207/05) 
On 7 February 1986 the Council decided to consult the Economic and Social Committee, under 
Article 198 of the Treaty establishing the European Economic Community, on a Community 
orientation to develop new and renewable energy sources. 
The Section for Energy and Nuclear Questions, which was responsible for preparing the 
Committee's work on the subject, adopted its opinion on 30 April 1986 in the light of the report by 
Mr Flum. 
At its 237th plenary session (meeting of 21 May 1986) the Economic and Social Committee adopted 
the following opinion unanimously. 
1. General Comments 
1.1. The Committee welcomes the continuation of the 
research and development programme (begun in 1974) and 
the demonstration programme for the introduction of new 
and renewable energy sources. The increasing orientation 
towards practical demonstration projects since 1979 makes 
it clear that the intention is not to promote these energy 
sources merely as a token gesture but to use them as a 
contribution to increasing the security of the European 
Community's energy supplies. 
To achieve this, it is necessary in particular: 
— to make the public more aware of the advantages for the 
ecosystem of technology based on new and renewable 
energy sources, 
— to adapt existing techniques to the needs of as broad a 
spectrum of users as possible, 
— to obviate unnecessary administrative and standardiz­
ation barriers, 
— to bring about large-scale exploitation of these energy 
sources. 
Bearing in mind the objectives of the Decision and in the 
light of the comparative cost estimates, the Committee 
considers that intensive research and large-scale use of 
alternative energy sources will help keep unit energy costs 
down. 
The Committee also feels that increased use of alternative 
energy sources will help reduce the cost of energy from 
conventional sources. 
1.2. The programme has a favourable impact in the 
economic sphere through substitution for the combustion 
of hydrocarbons, in the technological sphere through 
stimuli for innovation and in the social sphere through 
significant effects on employment and increases in real 
income. 
As the economy of the Community is dependent on both 
centralized and decentralized energy-distribution systems, 
everything possible should be done to avoid unnecessary 
conflicts between these two systems. 
1.3. In the Committee's view the data so far available on 
the exploitable potential of new and renewable energy 
sources are not very reliable. The methods used in existing 
attempts at quantification would seem to be questionable 
and tend towards underestimates. The Commission's 
f1) OJ No C 94, 22. 4. 1986, p. 2. suggestion that methods should be improved to create 
greater transparency in this sector is seen as a step in the 
right direction. 
The medium-term target of deriving 5 % of energy needs 
from new energy sources seems extremely cautious. A 
considerably higher proportion could be achieved if 
techniques already tested in laboratories were to be applied 
effectively for the provision of energy to private house­
holds, small businesses and industry. 
1.4. The exploitation of decentralized energy sources 
presupposes an extensive decentralized management 
structure. This can be provided especially by small 
industrial and craft firms and by technically trained 
workers. The Committee sees the mobilization of these 
human resources, their participation in consultative 
committees and in the execution of demonstration projects 
as an opportunity to create essential multiplier effects. This 
should increase the effectiveness of the programme. 
1.5. The Committee therefore not only welcomes the 
plan for development of new and renewable energy sources 
set out in the latest Commission communication to the 
Council on the subject, but also supports the draft 
resolution. In addition to the general comments above, the 
Committee would make the following comments on 
specific points in the communication. 
2. Comments on specific points in the communication 
2.1. The following comments do not detract from the 
positive overall assessment of the communication. They are 
intended to clarify the real utility of new and renewable 
energy sources for the regional and technological diversifi­
cation of the Community's future energy supplies. 
Part A, paragraph 3 
With the present level of technological development, which 
potential can be exploited depends more on the scale on 
which an energy source is used than on the refinement or 
further development of technology. This certainly applies 
not only to 'remote locations' but also to large areas of the 
Community. 
In many areas of the Community there is a wide range of 
available new energy sources, e.g. solar, wind, biomass and 
geothermal. 
No C 207/12 Official Journal of the European Communities 18. 8. 86 
Part B, paragraphs 10, 12 and 14 
Among other things it is assumed that new and renewable 
energy sources would have 'generally proportionately 
higher' investment costs and would be economic only in 
remote areas. 
It is not specified whether demonstration projects are being 
compared here with other demonstration projects or with 
existing technology. 
Cost comparisons should not be based on narrow business 
economics criteria. Otherwise one is liable to lose sight of 
the fact that in the case of renewable energy the entire input 
of resources circulates in the Community and gives rise to 
employment effects. In the case of oil-fired electricity 
generation up to 60 % of the resources go to third 
countries. 
This clearly demonstrates the economic benefit to the 
Community of using new and renewable sources of energy. 
Part C, paragraph 19 
Solar energy is associated with southern European regions 
and wind power with northern European regions. The 
validity of this division needs to be checked. In addition to 
geographical factors, seasonal effects in particular cause 
certain shifts. The Committee suggests that updated 
'energy maps' be produced for the enlarged Community. 
Part D, paragraphs 24 and 25 
It is suggested that experience to date with development 
and demonstration programmes be collated so that it can 
be drawn upon for the implementation of the further 
programmes and for the development of criteria for the 
monitoring of results. 
Part D, paragraphs 24 and 35 
It is probably in the Community's interest for purchase 
guarantees and rights to feed supplies into public electricity 
networks to be established. In principle it is sensible to 
establish Community criteria and standards for the 
selective introduction of new and renewable energy 
sources. However, one should confine oneself here to basic 
conditions, and dynamic development should not be 
hindered by excessive regulation of the details of appli­
cation. 
Done at Brussels, 21 May 1986. Paragraph 27 
A special effort needs to be made to promote the use of new 
and renewable energy sources at local and regional level. 
Specialized bodies should be set up to bring this about. 
Paragraph 28 
The use of new forms of energy is in some cases already 
economic, especially in the extensive island regions of the 
Mediterranean. The impulse for innovation in Africa 
should also not be underestimated. 
Elimination of the 'energy storage' handicap is probably an 
important precondition for better marketing of alternative 
energy sources. This should form a special focus of 
development. 
In structuring projects care should be taken to prevent the 
duplication of work at national and Community level. 
3. Other suggestions 
3.1. In addition to a large number of individual projects, 
consideration should be given to setting up and promoting 
centres in various Community regions with tasks in the 
areas of primary information, training, demonstration and 
adapting existing technology. 
The centres should aim at making a broad impact through 
small enterprises, craft firms and workers themselves. They 
could form a large network to promote coordination, 
operational effectiveness and dynamic development. 
3.2. If there is to be a medium-term and long-term 
improvement in the market prospects for technical 
installations for new and renewable energy sources: 
— utility must be proven, 
— difficulties in start-up financing must be overcome, 
— professional marketing plans must be developed, and 
— standardized products or product components must be 
designed and manufactured in large volumes with 
highly degressive costs. 
This approach requires financing methods through which 
demonstration projects of broad general utility receive 
practically 100 % assistance and market preparation and 
marketing projects are partially assisted. 
The Chairman 
of the Economic and Social Committee 
Gcrd MUHR