WRITTEN QUESTION E-1711/97 by Hiltrud Breyer (V) to the Council (22 May 1997)

Subject: Electricity Grid Feed Act

The letter of 26 October 1996 from Commissioner Van Miert to Germany's Federal Minister for Economic Affairs, Rexrodt, states that, in the field of wind power production, the Commission was assuming that 'in 1990 there had been a capacity of 20 MW and that the additional cost to all electricity supply companies in Germany had been between DM 500 000 and 1 million per annum'. If one accepts these figures, the additional costs arising from wind power are, at most, DM 0.0125-0.025/kWh. This calculation accords with German case law dealing with cartels and information provided by renewable energy associations. At the same time, however, this figure completely contradicts the alleged additional costs of up to DM 900 million in 2005 which have been asserted by the German energy industry and accepted by the Commission without verification (with an estimated installed wind power capacity of 4000 MW). If one carries out the calculation in the same way as the Commission, the additional costs in 2005 could not exceed DM 100-200 million for all German energy suppliers.

1. How does the Council explain this striking discrepancy in the additional cost figures and the fact that the information supplied by the renewable energy associations, which had on a number of occasions in 1996 forwarded detailed documentation to the Commission, was not taken into account in any way or even mentioned in the letter of 26 October 1996?

2. Why does the Council regard favourable payments for feeding electricity into the grid from renewable sources as aid, although even the Commission's Legal Service has strong doubts, taking the view that the classification of the Electricity Grid Feed Act under European law on state aid is problematic 'because there are no costs for the State and there is no fund financed by compulsory contributions'?

3. Does not an adverse assessment of the Electricity Grid Feed Act manifestly run counter to the objective of an environmentally benign energy supply as called for in the White Paper on 'An Energy Policy for the European Union' and, more strongly still, in the Green Paper on Renewable Sources of Energy (COM(96) 0576 final)?

Joint answer to Written Questions E-1707/97, E-1709/97, E-1711/97 and E-1713/97 (25 September 1997)

1. The Council agrees with the Honourable Member that renewable energy has an important role to play in the endeavours of the Community and the Member States to protect the environment. In its common position on the review of the European Community programme of policy and action in relation to the environment and sustainable development "Towards sustainability¨ ((OJ C 157, 24.5.1997, p. 12. )), the Council suggested priorities for the energy sector. Among these priorities are: to promote energy efficiency and the rational use of energy and to support the development and application of energy-saving technologies and practices including programmes and measures, awareness-raising and information measures, and to develop criteria for the screening of subsidy schemes in order to redress incentives which have an adverse effect.

Furthermore, the Council Resolution on renewable sources of energy agreed upon by Energy Ministers at the Council meeting on 27 May 1997 contains the position of the Council on various issues connected with renewables and, more specifically, questions raised in the Commission's Green Paper for a Community Strategy - Energy for the future: renewable sources of energy. The resolution lists a series of measures that could increase the consumption of renewable energy. These include actions and measures in the fields of research, development and demonstration; market conditions; consumer information and confidence; and coordination and monitoring. The resolution also notes that an active governmental policy, both at Member State and at Community level, is necessary to improve the competitiveness of renewables.

Thus, the Council is well aware of the efforts required to meet the indicative target to double the overall share of renewables by 2010.

2. It is not for the Council to express an opinion on legislative measures taken in one of the Member States of the European Community. Pursuant to article 93 of the EC Treaty, the Commission is endowed with the powers to keep under review all systems of aid existing in Member States in order to ascertain that they are compatible with the Common Market.

3. The Council has no knowledge of the letter referred to in the questions. Nor is the Council aware of an "internal note¨ of the Commission services mentioned in the questions of the Honourable Member.