Communication from the Commission - ENERGY FOR THE FUTURE: RENEWABLE SOURCES OF ENERGY - Green paper for a Community Strategy
Date: 1996-11-20
Institutions: European Commission
Subjects: EU policy, energy policy, energy technology, renewable energy, renewable resources

COMMISSION  OF THE EUROPEAN COMMUNITIES 

Brussels, 20.11.1996 
COM(96) 576  final 

Communication  from  the  Commission 

ENERGY FOR THE FUTURE: 

RENEWABLE SOURCES OF ENERGY 

Green  Paper  for  a  Community  Strategy 

List of contents 

Executive  summary. 

Background. 

The current situation for renewable energy sources; the potential for renewables in the 
European Union is unevenly  and insufficiently  exploited. 

Forecasts  for  the  market  penetration  of  renewable  energy  sources; renewables  can 
make a major  contribution to EU final  energy  consumption. 

The advantages of  renewable  sources of energy; renewables  contribute to  achieving 
energy policy  objectives, employment  and regional  development. 

The  problems  to  be  faced;  a  series  of  obstacles  hinder  a  more  widespread  use  of 
renewables. 

1. 

2. 

3. 

4. 

5. 

6. 

The way forward;  A  strategy  for  renewable  sources of energy. 

6.1.  An  ambitious  objective 

for 

increasing 

the  contribution  made  by 

renewables. 

6.2. 

Strengthening  the cooperation  between Member States. 

6.3.  Reinforcing  Community policies. 

6.3.1.  Renewable energy  sources in the internal market  framework. 

6.3.2.  Specific 

financial 

support 

for 

actions 

for 

the  promotion 

of 

renewables 

6.3.3.  Research, development  and demonstration. 

6.3.4.  Regional Policy. 

6.3.5.  Agriculture  and Forestry  Policy. 

6.3.6.  Actions in the field  of External  Relations Policy. 

6.4.  Assessment and monitoring. 

7. 

Next steps. 

Executive  Summary 

The European Union's current energy  situation calls for  effective  management of all available 
resources  in  order  to  attain  Community  objectives.  A well  balanced  fuel  mix,  in which  all 
appropriate energy  sources play their proper role, is essential to support sustainable economic 
growth.  Renewable  sources of energy  are currently unevenly  and  insufficiently  exploited  in 
the European Union.  Although the potential is significant, renewable sources of energy make 
a disappointingly  small contribution of less than 6% to the Union's overall gross inland energy 
consumption. European Union energy consumption is predicted to grow steadily in the  future. 
Even  a  significant  increase  in  the  use  of  renewable  energy  sources,  as  pleaded  for  in  this 
Green  Paper,  will  not  be  enough  to  satisfy  the  expected  demand. 
If,  therefore,  the 
Community  does not  succeed in attaining a significantly  higher share of renewable  energy  in 
its  energy  balance,  it  will  become  increasingly  difficult  to  comply  with  the  international 
commitments  concerning  environmental  protection.  Secondly,  failure  to  increase  the  share 
of  renewable  energy  sources will  have negative  effects  on other  important  policy  objectives, 
in particular  security  of  supply,  economic  and  social  cohesion,  and  - at  least  in the  medium 
to  long  term  -  economic  competitiveness. 

The  present  Green  Paper  constitutes  the  first  phase  of  a  two-step  approach  to  develop  a 
strategy  aimed  at  ensuring  a greater  use of  renewable  sources  of energy.  The  establishment 
of  a  Strategy  for  Renewable  Energy  Sources was foreseen  in the  Commission's White  Paper 
"An Energy  Policy  for  the European  Union"  and specifically  included  in the indicative  work 
programme  attached  to  that  document.  The  present  Green  Paper  describes  the  current 
situation,  the  advantages  of  an  increased use of renewables  vis-a-vis  Community  objectives, 
and  sets  out  the  basic  elements  of  a  policy  strategy  to  be  implemented  at  both  Community 
and  Member  State  levels.  The  Green  Paper  reinforces  the  strategic  aim  of  promoting 
renewable  energy  sources as an integral  part of energy policy  and  a number  of other  policies 
and  sets the  objective  of  doubling  the contribution  made by renewable  energy  sources to  the 
European  Union's  energy  balance  by  2010. 

The  level  of  exploitation  of  renewable  energy  sources  varies  significantly  between  the 
Member  States.  These  variations  are  due  to  different  geographical  and  climatic  conditions 
in  the  Community  as  well  as  differences  in  the  policies  which  have  been  put  in  place  in 
support of renewable sources of energy. Technological development in the field of renewables 
has,  in  recent  years,  been  significant  and  many  of  the  technologies  either  are,  or  are 
becoming,  economically  viable,  in  particular  in  certain  regions  of  the  Community  and 
compared  to  the  economies  of  other  decentralised  energy  applications. Nevertheless,  due  to 
market  failures  and  other  obstacles,  renewable  energy  technologies  still  have  difficulties  in 
"taking  off  in  marketing  terms. 

Renewable  sources  of  energy  should  be  actively  promoted  for  a  number  of  reasons. 
Development  of  renewables  goes  hand  in  hand  with  the  objective  of  protecting  the 
environment  and  reduce  C02  emissions  from  the  energy  sector.  Renewable  energy  sources 
are  indigenous  sources  of  energy  and  can  therefore  contribute  to  reducing  dependency  of 

energy  imports.  Development  of  renewable  energy  sources  can  actively  contribute  to 
employment  creation,  and  deployment  of  renewables  is  an  important  aspect  of  regional 
development  with  the  objective  of  achieving  greater  social  and  economic  cohesion  between 
the  regions  of  the  Community.  Moreover,  the  expected  growth  in  energy  consumption  in 
many  third  countries,  in  particular  Asia  and  Africa,  and  which  to  a  large  extent  can  be 
satisfied using renewable energy, offers hugely interesting business opportunities for EU based 
industries  which  in  many  areas are  world  leaders  as regards  renewable  energy  technologies. 
Finally, the general  public  favours  development  of renewables  more that any  other  source of 
energy  mostly  for  environmental  reasons. 

Under  the  prevailing  economic  conditions,  a  serious  obstacle  for  a  greater  use  of  certain 
renewables,  has been the cost associated with their exploitation.  Although  the cost curve  for 
most  renewables  is  dropping  rapidly,  the  use  of  renewables  is  in  many  cases  hampered  by 
higher  capital cost than those related  to conventional fuel  cycles. This is particularly  the case 
due to the  fact  that  fuel  and  energy  prices currently  do not reflect  the full  cost, including  the 
external  cost  implied  for  the  society  for  the  environmental  damage  caused  by  the  use  of 
conventional  and  fossil  fuels.  Secondly,  a  significant  obstacle  is  that  renewable  energy, 
technologies,  as  is  the  case  for  many  other  innovative  technologies,  suffer  from  lack  of 
confidence  from  investors,  governments  and  users,  low  levels  of  knowledge  about  their 
technical  and  economic  potential  and  a  general  resistance  to  change  and  new  ideas. 

To  counteract  these  obstacles,  it  is,  in  this  Green  Paper,  proposed  to  implement  a  policy 
strategy  consisting  of  four  distinct  elements. 

Firstly  a clear  ambitious, and yet  realistic, increase  in the  contributions  of renewables  to  the 
Community  energy  balance  should  be  aimed  for  at Community  level.  If we were  to  double 
the  contribution  by  2010  compared  to  the  current  level,  this  would  mean  achieving  a 
contribution  by  renewables  to  the  gross  inland  energy  consumption  close  to  12%.  An 
ambitious  objective  provides the  necessary means for  focusing  the minds of decision  makers 
at  all  levels  and  enables  a  continuous  monitoring  of  progress  with  a  view  to  rectifying  or 
adjusting  policies. 

Secondly  it is proposed  to  strengthen  Member  State co-operation  on renewables.  To  achieve 
the  target; strong  policies  will  have  to  be  implemented  at  national  level  and  it  is  necessary 
to  have  a mechanism  for  coordinating  efforts  at  Community  level. The  Commission's  recent 
proposal for energy policy co-operation  around agreed energy policy objectives, one of which 
is  effective  promotion  of  renewables,  is an  important  instrument  in this  respect. 

Thirdly  it is suggested that  the  Community  reinforces  its policies affecting  development  of 
renewable  sources  of  energy.  The  provisions  of  the  Treaties  and  the  internal  market 
requirements  offer  substantial  opportunities  for  the  promotion  of  renewable  energy  sources. 
Moreover,  given  the  fact  that  cost  currently  constitutes  the  largest  barrier  to  a  more 
widespread use of renewables the policy  instruments must address in particular this  problem. 
Internalisation  of  external  cost  is  a  key  concept  in  this  respect,  to  which  the  Commission 

remains committed. Accompanying measures, including continued and strengthened policies 
and support for  Community RD&D, training actions, awareness building, pilot schemes etc. 
must be continued  and  reinforced. 

As policies in other areas than energy, including external affairs, agriculture, regional policy, 
fiscal policy  etc.,  also have a  major  impact on the conditions  under  which renewables  are 
developed,  it is fundamental  to the strategy that these policies facilitate  the development of 
renewable  energy  sources.  It  is also important that the coordination  between the  decision 
makers in the various fields  is improved. 

The  fourth  element  of  the  strategy  is  a  proposal  for  a  strengthening  assessment  and 
monitoring of the progress towards achieving our objectives for the penetration of renewables. 

The  aim  of this  Green  Paper, as the first step in a two-step approach,  is to  stimulate wide 
consultations and discussion with all interested parties and the Community Institutions. This 
document sets out a broad framework,  but does not make detailed proposals. On the basis of 
the  conclusions  that  the  Commission  will  draw  from  the  wide  debate,  a  more  detailed 
Community  Strategy  with an Action Plan will be established by mid-1997. 

1. 

Background 

Introduction 

In  energy  policy,  there  are  no  simple  solutions, no  one  energy  source  that  will  solve  all 
problems, that will be limitless, pollution-free  and cheap. 

Energy policy since the first oil crisis in the  1970's has built up incrementally, one step after 
another.  Energy policy priorities have evolved.  In  1973, the issue was energy  security and 
safeguarding  our  economies from  external  energy  developments beyond  our  control.  Better 
energy  planning  techniques  were  developed  and  comprehensive  energy  policies  and 
programmes, combining a variety of instruments, were set up. The second oil shock in the late 
1970's was a reminder of the need to stay vigilant in terms of energy  security. 

In the  1980's environmental  issues rose to the fore.  Concerns over acid  rain  or  greenhouse 
gases reached their peak at the UN Rio Conference  in  1992.  With energy prices (primarily 
oil) dropping  in real  terms environmental  concerns raised new issues.  It became  generally 
accepted  that the  present  energy  system, from  extraction  through  to  use,  is responsible  for 
much of our man-made climate change problems, and that energy consumption can result in 
irreparable damage to the global environment. How to re-orient our energy  systems without 
facing  a potential  new collapse of our economies became and remains a major  challenge. 

With the economic recession setting in at the end of the  1980's, the energy sector became an 
important element in the Community's strategy to establish an internal market as a response 
to  increased competition  and globalisation of markets. Although the internal  energy  market 
process  has  been  a  long  and  difficult  one,  important  progress  has  by  now  been  achieved. 
Agreement has been reached  in the Council of Ministers on the first phase of  liberalisation 
of the electricity sector and negotiations on liberalisation in the gas sector are well under way. 
This will lead to significant  changes to the way in which large parts of the European energy 
system is functioning.  It will gradually bring market forces into play in sectors which for too 
long have been under government control and based on monopolies and central planning. The 
energy  sector  will  nevertheless  keep  its  specific  characteristics.  As  a  sector  of  strategic 
importance to the overall well-being of the economy, the necessary element of public service 
will be preserved. But winds of change are blowing. 

The  European  Union  does  not  have  an  over  abundance  of  cheap,  clean  and  reliable 
conventional  energy resources. Dependence on imports is considerable. This does not mean 
that the Community is energy resource poor.  The Union has reasonable supplies of oil, coal, 
natural  gas, nuclear  and  considerable potential  for  renewables.  They  all  have  their  strong 
points and their weaknesses.  But it is certain that the resources have to be managed well in 
order to support all Community  objectives. 

Renewable energies are non-depletable forms of energy, including, in particular, hydropower, 
wind  and  solar  energy  (both  thermal  and  photovoltaic),  biomass  and  geothermal  energy. 
Municipal  and  other  organic  waste  although  depletable,  is  normally  also  classified  as 
renewable  sources  of  energy.  The  list  of  renewables  furthermore  includes  a  number  of 
technologies  which  are  still  at  an  experimental  stage  or  which  have  still  to  prove  their 
economic viability,  such as wave, tidal energy and hot dry rock. 

Hydroelectric energy is one of the traditional forms of renewable energy and has already been 
exploited for a long period. Large scale hydro has in the past been generally more economic 
than small scale. Available large hydro resources have thus been widely exploited. Small scale 
hydro  power  resources  (less  than  10 MW per  site)  are,  however,  still  available  in  many 
regions of the Community. 

Wind energy is harnessed by modern-day wind turbines to generate electricity. Turbines can 
be deployed singly, in small clusters or in larger groups known as wind farms. In recent years 
the economic viability of wind turbines has increased markedly. Another development, which 
could become important,  is the move towards developing wind farms  located  off-shore. 

Solar energy derives directly from the sun's light and heat. It can be captured in the form and 
fabric  of  a  building  or  by  solar  collectors,  or  converted  directly  into  electricity  using 
photovoltaic (PV) cells. 

Biomass comprises material either  specifically  cultivated  as energy  crops or derived  from 
agriculture and forestry  operations and can be used to produce solid, liquid or gaseous fuels. 
Waste from the agricultural sector can be treated thermally or biologically to produce energy. 
Treatment  of municipal  waste has to respect the overall waste strategy which gives priority 
to prevention  of waste and recycling.  The residual municipal  waste can - depending  on the 
waste stream composition  and other  circumstahces -be considered as a source of renewable 
energy. 

Geothermal  energy  involves  tapping  the  heat  below  the  earth's  surface  through  boreholes 
driven into a hot aquifer or injecting cold water through hot dry rock. The hot water produced 
is  brought  to  the  surface.  There  are  both  high  enthalpy  and  low  enthalpy  sites  in  the 
Community. 

The policy  context related to renewables. 

Promotion of renewable sources of energy has for a considerable period of time been a central 
objective  for  Community  energy  policy.  The  Council  Resolution  of  16  September  1986 
concerning  new  energy  policy  objectives  for  1995  and  convergence  of  the  policies  of  the 
Member States1, clearly places promotion of renewables among the sectoral objectives to be 

O J C 2 41  of  25.9.  1986 p. 1. 

used as guidelines  for  examining  the  convergence  and  the cohesion  of  the Member  States' 
energy  policies. This central  objective  was confirmed  in the  Council's Recommendation  of 
9  June  19882  on  developing  the  exploitation  of  renewable  sources  of  energy.  With  the 
ALTENER programme3 the Council for the first time adopted a specific financial  instrument 
for  the promotion  of renewable sources of energy. In the annex to the ALTENER Decision 
the Council sets the objective that renewable energy sources should be increased to cover 8% 
of the total energy demand for EUR-12 by 20054. The European Parliament, for  its part has 
constantly underlined the role of renewables. Most recently the European Parliament5 strongly 
pleads for the establishment of a Community action plan for renewable sources of energy with 
the objective  of increasing the proportion of renewable energy  sources in the EU's primary 
energy mix to  15% by 20106. 

In the White Paper "An Energy Policy for the European Union"7 the Commission on the basis 
of  a  comprehensive  analysis  of  the  current  energy  situation presented  its  views  as regards 
Community  energy  policy  objectives  and  instruments  to  be  applied  to  achieve  these 
objectives. Three key energy policy objectives are identified;  i.e. improved competitiveness, 
security of supply and protection of the environment.  Promotion of renewable energy sources 
is,  among  other  policies, identified  as one important  element  in achieving  these  objectives. 
The Council Resolutions on the Commission's Green and White Papers8 on energy policy both 
emphasise the importance of renewables. 

It is also worth noting that several Member States at a national level have adopted  ambitious 
targets  for  the  contribution  of  renewables  to  their  energy  balances,  and  are  promoting 
renewable energy  sources through a variety of economic and political incentives. 
In fact, all Member States either have, or have in the past, adopted quantitative targets for the 
overall  contribution  of  renewable  energy  sources  to  their  energy  balances  or  for  the 
contributions  to  be  made  by  one  or  more  specific  renewable  energy  sources. 
In  the 
Netherlands the Government is aiming for an increase in the contributions to primary energy 

OJ L  160 of 28 June  1988, p. 46 

Council  Decision of  13 September  1993 concerning the promotion of renewable energy  sources 
in the Community, OJ L 235 of  18.9.1993, p.  41. 

Targets  in ALTENER are calculated  following  the direct physical  convention  employed  by the 
Statistical Office  (EUROSTAT).  This differs  from other targets calculated using the substitution 
principle: 220 TOE/GWh. 

Doc. P 216.788/fin,  Resolution  on a Community  action  plan for renewable  energy sources. 

See footnote n*4. 

COM (95)682  of  13 December  1995 

8 

In  Denmark  the  quantitative  target  of  12%  of  energy 
consumption  to  10%  by  2010. 
consumption  is  aimed  for  by  2005  and  -  in  the  longer  perspective  -  a  35% contribution  by 
In  Spain  and  Greece  overall  targets  for  a  contribution  of  HOOktoe  by  2020  and 
2030. 
1800ktoe  by  2005,  respectively,  have  been  established. 
In  France  the  Government  has 
established  specific  sectoral  objectives,  including  the  construction  of  1500  stand-alone 
photovoltaic  systems  by  2005  and  a  5%  contribution  from  renewable  sources  to  transport 
fuels,  also  by  2005.  Italy,  Ireland  and  the  UK  have  adopted  targets  of  675MW  renewable 
electricity capacity by 2000, 241MW by  1999 and  1500MW by 2000, respectively.  Germany 
in  1990 adopted  the target of  100MW additional  wind  energy  capacity  over  a 5 year  period. 
Having  achieved  the  target  during  the  first  year  of  this  programme  the  target  was  further 
increased  to  250MW  which  was  successfully  achieved  in  1995. 

These targets are supported  by various national policies ranging  from  capital  subsidies, fixed 
buy-back  rates  (such  as  the  German  stromeinspeisungsgesetz),  fiscal  incentives,  support  for 
third  party  financing,  surcharge  arrangements  (such  as  the  UK  non-fossil  fuels  obligation 
(NFFO)  and  public  support  for  RD&D.  Some Member  States  also encourage  utilities to  set 
up  a new  renewable  energy  capacity  through  voluntary  agreements  with  utilities  or  through 
legislative  requirements  for  distributors  to  buy  a  certain  amount  of  their  requirements  from 
renewable  energy  sources.  Schemes for  export  supports have also been established.  It is not 
possible in the framework  of this Green Paper to provide a complete picture of all the  efforts 
undertaken  at  national  level  in  support  of  renewable  energy  sources.  The  level  of 
commitment  varies, however,  considerably  from  one Member  State to  another.  While  some 
have  completely  integrated  favourable  policies  towards renewable  sources  into  their  general 
energy  policy  and planning  framework,  others have not adopted the use of renewable  energy 
sources  into their  strategies  for  meeting  global  environmental  targets. It  is important  to  note 
that  with  such  a  variety  of  different  national  schemes  and  incentives,  which  furthermore 
constantly  change  as  a  result  of  new  policy  priorities,  the  level  of  transparency  and 
predictability  is  insufficient  for  the  renewable'energy  industry  to  fully  benefit  from  public 
policy  incentives  and  to  establish  long-term  stable  business prospects  within  the  EU. 

Other industrialised countries, in particular the US and Japan, have also set up comprehensive 
policies  for  the promotion  of renewable  energy  sources.  In the US, where renewable  energy 
sources,  primarily  hydro-electricity,  amount  to  5.3%  of  total  energy  demand,  promotion  of 
renewable" energy  began  early  and  was  in  particular  stimulated  through  the  Public  Utilities 
Regulatory  Policy  Act  (PURPA)  of  1978,  which  obliges  utilities  to  purchase  power  from 
independent  producers  at  avoided  cost  levels.  More  recently,  the  1993  Climate  Change 
Action  Plan  included  a  number  of  measures  related  to  renewable  energy  sources,  with 
particular  emphasis  on  commercialisation  programmes  for  -wind  power,  photovoltaics, 
biomass,  geothermal  energy  and  on  environmentally  sound  upgrading  of  existing  hydro 
electric  projects.  Biofuels  for  the  transport  sector  is  also  the  subject  of  significant 
Government  interest.  Furthermore,  generation  procurement  regulation  is  an  area  which  is 
currently  undergoing rapid change in the US .electricity supply  industry.  Integrated  Resource 
Planning (IRP) requires utilities to look at all alternatives for energy supply, including demand 
side  measures  and  renewable  energy  sources.  At  State  level,  there  are  however,  significant 

variations in the commitments taken, with, in particular, California in a leading role.  As one 
example, a distribution surcharge-funded renewable programme was included in the electricity 
restructuring bill proposed earlier this year in  California. 

Japan  has,  in  spite  of  the  limited  technical  potential  for  renewable  energy  sources,  set an 
ambitious target of more than doubling the contribution from renewable energy sources from 
the current level of  1.2%  (1994) to 3% of total energy demand by 2010.  R&D is supported 
In  addition  a  range  of financial 
in  the  framework  of  the  New  Sunshine  Programme. 
incentives, including subsidies, tax credits and low interest loans are provided.  Japan has in 
particular concentrated  on the development of photovoltaic applications, the main  objective 
being to stimulate market expansion and thereby benefit from large scale production.  To that 
end a 70,000 roof-top programme has been set up.  In addition, the Japanese Government has 
actively stimulated industry to set up manufacturing operations of PV cells in nearby countries 
with low wage cost, which, together with a significant  R&D effort,  has made Japan a world 
leader in this technology. 

As far  as the European Community is concerned, a strategy for renewable energy  sources is 
required  for  a number  of reasons. First and foremost  it is clear that without  a coherent and 
transparent policy  strategy and without an ambitious objective  for renewables, these sources 
of energy will not make major  inroads into the Community energy balance. Without a clear 
and  comprehensive  strategy  accompanied  by  legally  binding  measures, their  development, 
which is highly desirable for  the reasons detailed below, risks being weakened  and delayed. 
This argument is further  substantiated in chapter 3 of this Green Paper which presents a series 
of energy scenarios and their impact with respect to renewable energy sources.  A long-term 
stable framework  for the development of renewable sources of energy, covering the political, 
legislative, administrative, economic and marketing  aspects of renewables  is in fact  the top 
priority  for  the economic  operators  involved  in development  of renewables.  Furthermore, 
as the internal market develops, a Community-wide strategy for renewable energy sources is 
required to avoid imbalances between the Member States or distortion of the energy markets. 

Remarkable  technological  progress  related  to  renewable  energy  technologies  have  been 
achieved over recent years. The cost curves are rapidly dropping and many renewables have 
reached  the point  of  economic  viability  or  are coming  close to  it  under  certain  conditions. 
Europe is to a large extent the world leader in this area.  A strong competitive position in the 
global  market  place  can  only  be  maintained  and  further  improved  as  a  function  of  a 
significant  and growing home market. A clearly defined  strategy will preserve and strengthen 
the position of the European Union  industry  in this respect. 

This  was  the  main  message  from  the  round-table  with  different  market  actors  at  the  Milan 
Conference  "Renewable  Energy  Sources  in the  Internal  European  Market" on  17 -  19 June  1996. 

10 

A  policy  for  the  promotion  of  renewables  will  require  across  the  board  initiatives 
encompassing  a  wide  range  of  policies  covering  agriculture,  external  affairs,  research  and 
technological  development,  including  demonstration, fiscality, regional  and  environmental 
policies.  A key  objective  of  a strategy  for  renewable  energy  is to  ensure that  the  need to 
promote  these  energy  sources  is  recognised  in  new  policy  initiatives  as  well  as  in 
implementation of existing policies in all of these areas.  In fact, a generally accepted strategy 
is  required  to  ensure  the  necessary  coordination  and  consistency  in  implementing  these 
policies at Community, national  and local level. 

This Green Paper is the first major step in the establishment of such a strategy. It sets out the 
objectives  related  to  renewable  sources  of  energy,  it  identifies  the  key  obstacles  for  more 
widespread use of renewables and it outlines the Commission's intentions as regards how to 
overcome  these  obstacles  in  order  to  significantly  increase the  share  of  renewables.  The 
present  Green  Paper  contains,  in  particular  the  political  philosophy  related  to  renewable 
energy  sources  and  it  outlines  the  areas  in which  further  action  could  be  undertaken.  The 
Communication should primarily  serve as a discussion document on the basis of which, and 
as a second  step, a  fully  developed  strategy with  an action plan for  increasing the  share of 
renewable energy sources in the energy balance of the Community will be developed by mid-
1997. 

11 

2. 

The current situation for renewable energy sources:  The potential for renewables  in the 
European  Union  is  unevenly  and  insufficiently  exploited. 

The  need  for  a  Community  strategy  arises  from  the  fact  that  overall,  renewable  sources  of 
energy  still make  only  a limited  contribution  to  the Community's  energy  balance.  There  are 
signs, however, that this is changing.  The resource base is better understood, the technologies 
are  improving  steadily,  attitudes  towards  their  use  is  changing  and  the  renewable  energy 
manufacturing  and  service  industries  are  maturing.  But  renewables  still  have  difficulties  in 
"taking  off,"  in  marketing  terms. 

Table  1 shows the  share of renewable  energy  sources in gross inland  energy  consumption  in 
the European Union and in the Member  States.  The table is compiled  in accordance  with the 
definition  of  renewable  energy  sources  given  above,  i.e.  including  large  scale  hydro-power 
and  energy  from  waste. 

Table  1.  Share  of  Renewable  Energy  Sources  in  Gross Inland  Consumption. 

I 

" 

- 

" 

Austria 
Belgium 
Denmark 
Finland 
France 
Germany 
Greece 
Ireland 
Italy 
Luxembourg 
Netherlands 
Portugal 
Spain 
Sweden 
United  Kingdom 
European  Union 

1 

" 

~ 

~ 

1990 
22.1 
1.0 
6.3 
18.9 
6A 
1.7 
7.1 
1.6 
5.3 
1.3 
1.3 
17.6 
6.7 
24.7 
0J 
5.0 

1994 
24.1 
0.8 
7.0 
19.3 
12 
1.9 
7.2 
2.2 
6.4 
1.3 
1.4 
17.5 
6.2 
24.0 
06 
5.4 

Source:  Eurostat 

The  table  shows  the  contributions  made  in  1990  and  1994,  and  displays  a  relative  stability 
around  5% for the European Union. The table also highlights considerable variations between 
the  situation  in  the  various  Member  States.  Annex  1  shows  the  current  breakdown  by 
renewable energy  source and by Member  State.  The current market penetration of renewables 
corresponds to a contribution by these sources of approximately  65Mtoe.  This reflects  a mere 
16% of the  technical  potential  for  renewables which  is estimated  at approximately  400Mtoe. 

12 

The  unexploited  technical  potential  is  particularly  significant  with  respect  to  biomass, 
including  energy  crops,  wind  and  solar  energy. 

The  large  differences  between  the  Member  States  can  be  partly  explained,  obviously,  by 
different  geographical  and  climate  conditions.  Some  Member  States  have  large  hydro 
resources,  some  none  at  all  and  some  Member  States  have  large  quantities  of  biomass,  e.g. 
from  forestry  operations, and  some have  significant  potential  for  developing  wind  energy  in 
the form  of non  built-up  areas with favourable  wind conditions.  Such  factors, however,  can 
only partly  explain the statistical differences  apparent  in table  1.  The industrial  structure and 
more  particularly  the  energy  policies  pursued  at  a national  level  also  play  a  very  important 
role.  As one  example  of the results of positive policy  incentives  for  renewables, 70% of  the 
total  installed  wind  energy  capacity  in the  EU  is located  in  Germany  and  Denmark. 

Large  scale  hydro  dominates  the  the  present  renewable  energy  mix.  It  is  a  proven  mature 
technology  which  is  cost  competitive.  There  is  no  significant  scope  for  for  further  cost 
reductions  of  large  hydro.  Small  hydro  plants,  i.e.  plants  smaller  than  10MW,  in  1995 
accounted  for  about  3% of the EU  hydro  capacity.  Capital  cost are very  site  specific  and  are 
generally  higher  per  unit  of  electricity  produced  than  for  large  hydro  installations. 
It  is 
however  expected  that  new  construction  techniques  and  control  systems will  reduce  capital 
cost  and  increase  the  number  of  accessible  sites . 

Biomass comprises residues from  forestry  and agriculture, energy  crops  and biofuels.  Forest 
residues  are  currently  the  most  important  element,  comprising  in  particular  wood  chips. 
Biomass residues are  mainly  used as a fuel  in heating  installations and  electricity  generation 
from  forest  residues  is  almost  exclusively  limited  to  large  scale  industrial  installations. 
Overall, biomass costs have been reduced considerably, as will be further  illustrated in section 
can  be  achieved  on  the  basis  of 
4.3.,  and  it  is  expected  that  further  cost  reductions 
improvements  in biomass conversion  technology. As regards energy  crops there is not yet  an 
established  market,  primarily  because of the relatively  high cost of the crop compared to the 
relatively  low  conversion  efficencies.  There  is,  nevertheless,  good  scope  for  increasing  the 
crop  yield  which,  combined  with  improvements  of  biomass  gasification  systems,  could 
significantly  improve  the  market  prospects  for  energy  crops.  Biofuels,  mainly  rape  seed  oil 
and  bio-etJianol,  have  a  small  market  in  certain  Member  States,  in  particular  in  France  and 
to  some  extent  in  Germany,  Austria  and  Italy.  The  market  is  created  by  tax  incentives,  as 
biofuels  are currently  not  competitive  compared  to petrol  and  diesel. Markets  are,  however, 
expected  to  grow  moderately  as  a  consequence  of  cost  reductions  expected  from  new 
production  methods  and  the  production  of  biofuels  from  low  cost cellulose  feedstocks. 

Wind  energy  is,  in  some  Member  States,  currently  the  fastest  growing  energy  source  for 
electricity  production.  Wind  turbine  cost  have  dropped  30%  since  1990,  and  although  unit 
cost are very dependent  on site wind  speeds, wind energy  is one of the most  cost-competitive 
renewable  energy  sources  with  cost  as  low  as  ECU  0.05/kWh.  Further  technological 
development,  such  as  larger  turbines,  lightweight  towers  and  variable  speed  generators, 
together  with  the  development  of high potential  off-shore  sites, will  further  drive down  cost, 

13 

and is likely to result  in a significantly  higher exploitation of the EU's wind energy  potential. 

Solar  thermal  thermal  heating  technology  is  almost  fully  developed.  There  is  nevertheless 
scope  for  further  cost  reductions  resulting  mainly  from  larger  scale  production  and  better 
production  and marketing  techniques. Developments  in some Medittteranean third  countries, 
notably  Israel, show that cost reductions are possible. At present solar thermal  heating  is cost 
competitive  compared  to electric water heating, in particular  in the southern parts of the EU. 
Solar photovoltaic  is the most prestigious renewable energy technology  and is, as far  as "high 
tech" is  concerned  comparable  to the best of  information  technology.  Costs have,  as will  be 
further  illustrated  in  section  4.3., fallen  dramatically  with  a 25% cost decrease  over  the  past 
5 years, but  are  still  significantly  higher  than  for  electricity  generated  on conventional  fuels. 
Cell efficiency  is, however  expected to continue to increase, and further  RD&D, in particular 
commercialisation  of  thin  film  solar  cells, 
could  mean  that  photovoltaic  electricity 
productuion  could  become  competitive  in the  medium  to  long  term. 

Energy  from  waste  represents  a  significant  energy  resource.  Improvements  in  re-use  and 
recycling  is  expected  to  reduce  future  waste  disposal  volumes 

Geothermal  energy  a  very  small  part  of  the  renewable  energy  production  in  the  EU.  It  is 
constrained  by  capital  cost  of the  prospecting  and  installation,  but  there  are, on  the  basis  of 
several  successful  RD&D projects,  prospects  for  new techniques  to  overcome  some  of  these 
constraints.  Tidal  and  wave  energy  represent  a considerable  potential  and  are  the  subject  of 
some  research  activity.  These  sources  are however  unlikely  to  be  significantly  developed  in 
the  near  term  future. 

Attempts  have  been  made  to  categorise  renewable  technologies  according  to  their  potential 
economic  contribution  and the timing  of that contribution.  This  is a useful  exercise,  in  order 
to  establish  the  most  appropriate  support  measures  required  for  further  development.  Many 
renewable  technologies  need  little or no further  R&D efforts  to become competitive.  As will 
be  further  detailed  in  this  Green  Paper,  the  key  to  a  higher  market  penertration  for  these 
techologies, is to overcome market barriers and market imperfections.  For these technologies, 
which notably  include passive solar, biomass, waste, small hydro and on-shore wind turbines, 
conventional  geothermal,  the  principal  political  incentives  needed  are  market  enabling 
measures. Photovoltaics,  offshore  wind  farms  and  energy  crops  require  further  RD&D,  with 
particular  emphasis on the demonstation phase while more basic research is required  for tidal, 
wave  and  hot  dry  rock  geothermal  energies. 

14 

3. 

Forecasts for market penetration of  renewable energy sources; Renewables can make a 
major contribution  to EU final energy consumption. 

The most recent  long-term  energy  forecast  established  by the services  of the  Commission, 
"European Energy to 2020"10 presents a scenario-based approach reflecting the uncertainty and 
sense  of  transition  that  pervades  the  energy  sector  today.  Four  different  scenarios  are 
developed  to  produce  a  range  of  energy  futures  that  could  apply  over  the  next  25  years. 
"European Energy to 2020" contains a powerful  illustration of the need for action as regards 
the  specific  promotion  as  regards  renewable  energy  sources.  Depending  on  the  policy 
assumptions the contributions by renewable sources of energy by 2020 could be as much as 
13.7% or as little as 9.5%n. 

The  "Conventional  Wisdom"  scenario  denotes  the  "Business  as  usual"  world  in  which 
economic  growth  gradually  weakens  as  demographic  changes  means  slower  growth  in the 
labour force.  Under this scenario many of the world's social and economic problems remain. 
Energy  policy  under this  scenario remains  fragmented  as a result of  unresolved  conflicting 
objectives  and  the  environmental  approach  stays limited.  Energy prices  increase  smoothly 
and the price of crude oil reaches 31US$/bbl in 2020, in real terms.  Energy demand proceeds 
with  the  continuation  of  current  action  taking  some  concern  on  increasing  efficiency,  but 
nevertheless increases by close to  1% per annum.  Under this scenario the renewable energy 
penetration remains by and large weak and leads to a market share of renewables by 2010 of 
7.7%. 

Under  the  "Battlefield"  scenario,  the  world  reverts  to  isolationism,  power  blocks  and 
protectionism  making  economic  integration  very  difficult.  Globalisation  is  seen  as  too 
ambitious and the geopolitical system fragments into blocks with tension and friction between 
and within the block.  Energy policies under this scenario aim at reducing import dependency, 
precautionary principles prevail on C02 concerns and internalisation of cost is only achieved 
in the transport sector.  The "Battlefield"  scenario postulates slow growth, in particular  after 
2000 and a sharp increase in oil prices, precipitated by an oil price shock, plunges the world 
economy into a deep recession by 2005.  This is followed by economic stagnation from 2010 
to 2020. 

Renewable  energy  sources  fare  generally  worse  under  this  scenario  than  under  the 
"Conventional  Wisdom"  scenario.  Not  even the increasing  oil prices  by  2005  can  assist a 
positive  development  for  renewable  sources  of  energy,  in  particular  due  to  the  economic 
recession which follows.  Renewable energy sources by 2010, under the "Battlefield" scenario, 

10 

11 

European  Energy  to  2020,  A  Scenario  Approach,  European  Commission  1996. 

Renewable  energy market penetration figures  and statistics  in general suffer from  the  weakness 
that  various  statistical  conventions  concerning,  in particular,  the  conversion  criteria  used. 
Depending  on the convention  used,  very different  results  can be obtained.  This Green  Paper 
consistently  applies  the  Eurostat  convention,  i.e. the physical  conversion  principle. 

15 

make  a  limited  contribution  to  overall  gross inland  energy  consumption  of  a mere  7.4%. 

Under the "Hypermarket" scenario, the emphasis is on market forces, liberalism and free  trade 
and  in  which  global  economic  integration  is  self  reinforcing  and  continued.  Under  this 
scenario  it  is assumed that  liberalism  and privatisation  deliver  results, and  economic  growth 
is boosted  by the  competitive  market  environment.  Energy policies  are  driven  by  the  desire 
to  minimise  Government  control  and  maximise  efficient  operation  of  the markets.  External 
costs  are  not  internalised  and  overall  taxation  is  cut  steeply.  Not  surprisingly,  renewable 
energy  sources have major  difficulties  to arrive at increased market penetration.  By 2010 the 
"Hypermarket"  scenario  predicts  that  renewable  energy  sources  will  amount  to  123MToe, 
corresponding  to  slightly  more  than  7.5% of  gross inland  energy  consumption. 

Finally,  the  "Forum"  scenario  assumes  that  the  world  moves  to  consensus  and  cooperative 
international  structures  with  a  strong  role  for  public  intervention.  The  process  of  global 
integration  produces  new  imperatives  for  collective  public  action  and  a  higher  rate  of 
economic growth.  Furthermore, it is assumed that VAT and excise duties are harmonised  and 
that tax equality  across fuels  is obtained.  "Forum" is thus the ecological  driven  scenario  and 
energy  policies  are mostly  affected  by  concern for  the environment.  The  oil prices, due to 
weak  demand,  remain  stable  at  16US$/bbl  until  2020.  Nevertheless,  strong  penetration  of 
new  and  more  efficient  energy  technologies  is  expected,  mainly  driven  by  stricter 
environmental  standards and higher  environmental taxes.  "Forum" also assumes that  nuclear 
programmes  are re-invigorated  and that the contributions  from  nuclear  power to gross inland 
energy  consumption  will  be  more  than  doubled  by  2020  compared  to  the  "Conventional 
Wisdom"  scenario. 

In  the  short  and  medium  term,  renewable  energy  sources,  although  to  a  lesser  extent  than 
under  the  previously  described  scenarios,  still  fail  to  make  a  major  contribution  to  the  EU 
energy  fuel  mix.  By  2010  renewables  under  the  "Forum"  scenario  are  predicted  to  account 
for  approximately  9% of  gross inland  energy  consumption, although the increase is expected 
to continue through to 2020 where the contribution of renewable energy is predicted to exceed 
2020Mtoe  (i.e.  13.7%  of  growth  inland  energy  consumption),  which  is  more  than  the 
contributions  of  any  other  conventional  fuel,  considered  individually. 

Renewable energy  market penetrations  by 2010 of between  7.4-9% compared  to the  present 
close to 6% cannot but be considered disappointingly  low.  In fact,  it has to be concluded  that 
all scenarios developed under the 2020 exercise fail to deliver a significant  market penetration 
of  renewable  sources  by  2010.  Only  the  "Forum"  scenario  results  in  a  significant 
breakthrough,  but  in  this  case  this  comes  very  late  and  is  only  achieved  around  2020. 
However,  it  must  be  considered  that  the  2020  scenarios  only  to  a  limited  extent  include 
specific  measures  for  promotion  of  renewable  energy,  as they  were  established  primarily  to 
illustrate  the  consequences  for  the  energy  sector  as  a whole  of  various  assumptions  relating 
to  global  energy  markets  and  geopolitical  outlook. 

16 

With a view to  illustrating the potential  effects  of  specific  policy  initiatives  in the field of 
renewable energy sources, the Commission, in the framework  of the Altener programme, has 
initiated the TERES exercise12.  The TERES II study, which will be published shortly, builds 
on the  "Conventional  Wisdom" scenario developed  in the Commission's  "European Energy 
to  2020"  exercise  but  goes  further  by  adding  various  specific  renewable  energy  policy 
assumptions to  form  three  further  scenarios.  The basic underlying  assumptions as regards 
increasing overall energy demand and rising oil prices (to 31US$/bbl by 2020) are, however, 
identical to those in the 2020 study. 

The  first  of  these  three  additional  scenarios  is the  so-called  "Industrial  Policies" scenario, 
which  is  based  on  the  policy  proposals  put  forward  by  the  European  renewable  energy 
industry13.  These assumptions include: 

some specific  incentives for  renewable energy use, including subsidy and fixed buy-
back rates; 

increased R&D leading to a  10% cost reduction for renewable energy sources; 

land availability  for  energy crops for  energy crops guaranteed  at  12% set aside; and 

internalisation  of external  costs of conventional  fuels  for the biomass market. 

The econometric modelling14 based on these policy assumptions lead to a predicted  forecast 
for  a  contribution  by renewable  energy  sources to gross inland  energy  consumption  at  of 
9.9%  by  2010.  Continuing the forecast  under  "Industrial Policies" assumptions shows that 
the  growth  will  be  significantly  slower  from  2010 to  2020  leading  to  a renewable  energy 
market  penetration  by  that  latter  date  at  11.4%.  An  interesting  conclusion  which  can  be 
drawn  from  this  is that  the  policies  proposed  by  the  renewable  energy  industry  to  a  large 
extent  - with  the  one exception  of wind  energy,  which due to rapid  technological  progress 
increases significantly  - are insufficient  to reach the targets established by the industry itself. 

The second scenario under TERES II is the "ExterNe Internalisation", which is based on the 
Commission's exercise  undertaken  under the same name, assumes that  all  external  costs of 
convention fuel  cycles are internalised.  Under this scenario all renewable energy sources are 

12 

13 

14 

TERES,  the  European  Renewable  Energy  Study  by  ESD,  London  and  the  European 
Commission  (1994)  and  TERES II  (to be published  by  the  Commission  in  1997). 

Including  most notably AEBIOM (European Biomass Association),  EEWC  (European  Energy 
from  Waste  Council),  ESHA  (European  Small  Hydro  Association),  ES1F  (European  Solar 
Industry  Federation)  and  EWEA  (European  Wind Energy  Association). 

The forecasts  made  under  TERES II  are  based  on  the  SA FIRE  market  penetration  model 
developed  under  the  Community's JOULE  II  programme. 

17 

characterised  by  moderate  growth  leading  to  a  slightly  higher  overall  contribution  to  gross 
inland  energy  consumption  than  predicted  under the  previous  scenario.  In  particular,  wind, 
geothermal  and  solar  thermal  technologies  will  benefit  under  this  scenario,  while  the  total 
renewable  energy  penetration  is predicted  to  amount  to  10.1%. 

The  last  scenario  developed  under  TERES  II  exercise  is  the  "Best  Practice  Policies"  which 
assumes  that  the  policies  that  have  been  most  effective  to  date  in  promoting  the  use  of 
renewable  energy  sources  are  applied  EU-wide.  These policies  primarily  include: 

Government  programmes  concentrated  on  moving  renewable  energy  technologies  to 
commercialisation  and  improved  systems  for  local  planning; 

increased  R&D  leading  to  a  20% cost  reduction; 

land  availability  for  energy  crops  increased  by  25% and  set  aside  subsidies  on  12% 
of  food  producing  land  guaranteed  until  2000; 

internalisation  of  external  costs  of  conventional  fuel  cycles  (similar  to  ExterNe). 

Under  the  "Best  Practice  Policies"  scenario  renewables  show  strong  growth  in  market 
penetration  compared  to  the  previous  scenarios,  in  particular  for  solar  photovoltaics  and 
biofuels.  Progress  is  especially  noticeable  in  the  electricity  markets.  Overall  renewable 
energy  sources  under  the  policy  assumptions  included  under  the  "Best  Practice  Policies" 
scenario amount to  12.5% of gross inland consumption by 2010.  Compared to the ecological 
scenario  of  the  "European  Energy  to  2020"  exercise  (Forum)  this  is  a  considerable'higher 
market  penetration  by  2010.  Extending  the  scenarios by  2020, however,  shows that the  two 
scenarios  converge  towards  this  date  with  the  Forum  predicting  a  market  penetration  of 
renewable  sources of  energy  amounting  to 220Mtoe corresponding to  13.7% of gross  inland 
energy  consumption  compared  to  13.9% under  the  "Best  Practices  Policies"  scenario.  This 
illustrates  that  the  policies  included  as assumptions  for  the  "Best Practice  Policies"  scenario 
are  more  effective  in  delivering  a  rapid  improvement  in  renewable  energy  penetration 
compared  to  "Forum" whereas in the latter scenario the growth  in penetration  continues  after 
2010,  while  the  "Best  Practice"  scenario  by  this  date  has  exploited  a  large  part  of  the 
commercially  available  potential  for  further  market  penetration. 

In conclusion, the various scenarios clearly illustrate that renewable energy  sources can make 
a significant  contribution  to the energy  supply of the European Union.  On the other hand the 
renewable  energy  component  of  the  energy  mix  is  very  sensitive  to  changing  policy 
assumptions.  Unless  specific  incentives  are  put  in  place,  it  is  unrealistic  to  expect  that  the 
large potential  for renewable energy will be exploited and that these sources will make a more 
significant  contribution  to  the  European  energy  balance.  This  is  clearly  shown  in  the 
"Conventional  Wisdom",  "Hypermarket"  and  "Battlefield"  scenarios.  Under  scenarios 
favouring  environmental  protection,  i.e. the European Energy to 2020's "Forum" scenario and 
the  "Industrial  Policies"  and  "ExterNe"  scenarios  of  TERES  II  renewable  sources  of  energy 

18 

begin to make a growing contribution to the energy  balance but remain below or - in the case 
of  ExterNe  - just  above  the  10%  mark.  Only  under  the  "Best  Practice  Policies"  scenario 
developed  under  TERES  II  will  renewable  energy  sources  develop  rapidly  and  reach  more 
than  12% of  gross  inland  energy  consumption  by  2010. 

Total  energy  consumption  is  likely  to  grow  significantly  in the  EU  between  now  and  2010. 
"European  Energy  to  2020"  suggests  and  additional  energy  demand,  depending  on  the 
geopolitical  scenario, of between  170Mtoe and 296Mtoe.  A market penetration for  renewable 
energy  source at  12%, corresponds to an additional energy production from  renewable energy 
sources  between  now  and  2010  of  approximately  127Mtoe. 

4. 

The  advantages  of  renewable  sources  of  energy:  Renewables  contribute  to  achieving 
Community energy policy objectives, environmental protection, employment and regional 
development. 

European  Union  energy  consumption,  as  shown  in  the  various  scenarios  detailed  in  the 
previous  chapter,  is  predicted  to  grow  steadily  in the  future.  Even  a  significant  increase  in 
the use of renewable  energy  sources,  will not be enough to  satisfy  the expected  demand.  If, 
therefore,  the  Community  does  not  succeed  in  attaining  a  significantly  higher  share  of 
renewable  energy  in  its energy  balance,  it will  become  increasingly  difficult  to  comply  with 
the  international  commitments  concerning  environmental  protection.  Secondly,  failure  to 
increase the  share  of renewable  energy  sources will  have negative effects  on other  important 
policy objectives,  in particular  security of supply, economic and social cohesion, and - at least 
in  the  medium  to  long  term  -  economic  competitiveness.  An  increased  use  of  renewable 
energy  sources,  as  a  result  of  a  comprehensive  strategy,  will  therefore  bring  a  number  of 
advantages for the energy sector and the economy as such.  This section provides an overview 
as to how development of renewables will contribute to achieving the Community's  objectives 
as  defined  in the  Treaty  and  in  derived  policies. 

4.1. 

Environmental  considerations. 

Most importantly,  developments in recent years have highlighted the environmental  problems 
directly  linked  to  the  use of  fossil  fuels,  in particular  the problems  related  to  C02  emissions 
and  climate  change.  Increased  use  of  nuclear  energy  offer  only  a  limited  contribution  to 
solving these problems, due to the fact  that only  few Member  States have chosen the  nuclear 
option.  The  current  overall  energy-mix  is incompatible  with the long-term  requirements  for 
sustainable  development.  A  significant  limitation  of  the  use  of  fossil  fuels  is  required  to 
ensure  that  the  Community  can  meet  its  C02  targets  contemplated  in  the  Climate  Change 
Convention.  This  is by  now widely  recognised,  not  only  by  Members  of  the United  Nations 
International  Panel  on Climate  Change (IPCC), but  also by other  international  organisations, 
such  as the  IEA  and the  World  Energy  Council  (WEC), national  governments,  and  perhaps 
most  importantly,  by  large  segments  of  the  energy  industry  itself. 

19 

Not  all  renewable  energy  technologies  are  totally  pollution  free,  but  generally  the  use  of 
renewable energy  sources has the clear advantage that no C02 is emitted15. Furthermore most 
renewable  sources  of  energy  do  not  result  in  of  S02  and  NOx  emissions.  Promotion  of 
renewables  could  also  help  the  EU  to  achieve  its  objectives  on  soil  protection  and  air  and 
water pollution.  A  coherent  strategy  should, however, be substantiated by  life-cycle  analysis 
in order to arrive at well documented  conclusions on environmental  benefits  arising from  the 
increased  use  of  the  various  individual  renewable  sources.  Even  in  the  absence  of  such 
sophisticated  analysis  it  is  clear,  as  demonstrated  in  the  previous  chapter,  that  renewables 
comply  with the  overall  strategy  for  sustainable development.  In particular  in relation  to  the 
Rio  Convention's  objective  to  stabilise  C02  emission  by  2000  at  the  1990  level,  a  higher 
market  share  of  renewable  energy  sources, together  with  other  policy  initiatives,  notably  in 
the field of energy  saving, is fundamental-for  a sustainable energy strategy. Furthermore,  the 
agreeement for future  significant reduction in CO2 and other greenhouse gas emissions  which 
will  result  from  the  current  negotiations  under  the  UN  FCCC  (post  Berlin  mandate)  will 
constitute  a  new  obligation  for  the  Community.  Increased  use  of renewables  will  contribute 
to  the  fulfilment  of  these  new  obligations. 

4.2. 

Security  of  supply. 

Renewables are by definition  non-depletable. As pointed out in the Commission's White Paper 
"An energy  policy  for  the European  Union", the situation as regards  security  of  supply  is by 
no  means  critical  at  present.  The  1992 Gulf  Crisis and  other  related  crisis  have  shown  that 
the  Community's  energy  system  is  robust  and  can  manage  small  crisis  and  conjunctural 
problems. This may, however, not be the case in the future  as dependency  grows. The  import 
dependency  of  the  European  Union  currently  stands  at  approximately  50%  but  could  well, 
according  to  most  forecast,  increase  to  as much  as  70% over  a period  of  25 years. 

In  this  situation  the  European  Union  cannot' neglect  the  development  of  its  indigenous 
resources.  Renewable  sources  of  energy  are  all  indigenous  and  further  exploitation  of  the 
potential  can  make  a  strong  contribution  to  improving  security  of  supply.  Moreover  it  is 
important  to  look  beyond  the  energy  needs  of  the  Community.  All  forecasts  show that  the 
energy  requirement  of  the  developing  world  will  significantly  increase  in  the  future,  in 
particular  in Asia.  This could  obviously  affect  global  energy  markets  and  supply  constraints 
and  price"  increases  cannot  be  ruled  out.  Renewable  energy  can  cut  back  some  of 
requirements  for  imported  fuels. 

15  Use of hydro power, wind and solar energy does not result in C02  or other gaseous emissions, and 
in  the  case  of  biomass,  there  are  no  net  emissions  of  C02  provided  the  carbon  consumed  is 
replaced  by new plants in a closed  cycle.  Waste incineration, however, does cause C02  and  other 
emissions, but in a controlled  incineration process, these can be minimised  if appropriate  emission 
abatement  technologies  are  applied.  Overall  the  objective,  as  set  out  in  the  Community  Waste 
Strategy,  is  to  reduce  the  amount  of  waste  produced  and  to  use  the  waste  in  the  most 
environmentally  benign  way,  including,  where  appropriate,  for  recycling  purposes. 

20 

4.3. 

Considerations related to competitiveness 

There are also sound reasons for promoting renewables vis-a-vis the third key energy policy 
objective, i.e. improving overall competitiveness of European industry. It is feasible to expect 
that most renewable sources of energy will be competitive compared to conventional sources 
of energy, in particular in the medium to long term. Figure  1  shows the declining cost curves 
for the various renewable technologies used in electricity production and a comparison with 
the cost of conventional technologies. 

The  trend  lines  indicated  in  figure  1  show  average  costs  per  sector  and  are  based  on 
commercial  and  demonstrated  technologies.  For  the  installation  data,  the  cost  of  design, 
manufacturing,  assembly  and  commissioning  are  taken  into  consideration  and  the  total  is 
divided by the installed capacity.  The production cost is based on the same principle, but the 
cost  is divided  by the  KWh produced  by the installation  on an annual  basis.  The  data on 
production costs are compared to those produced by the TERES II report. 

Some technologies,  in particular  biomass, small hydro  installations and wind,  are currently 
competitive  and  economically  viable  compared  to  other  decentralised  applications.  Solar 
photovoltaics, although characterised by rapidly declining costs remain much more dependent 
on  favourable  conditions.  As  far  as heat  production  is concerned,  solar  water  heaters  are 
currently  competitive  in  many  regions  of  the  Community.  There  is,  therefore,  for  the 
technologies which are already economically viable, a significant  element of market  failure. 
This, i.e. the importance of non-economic market barriers is further  explored  in chapter 4. 

However, and in spite of the rapidly improving economic viability of renewables, it is evident 
that the  cost related  to renewables currently,  for  some technologies, is the most  significant 
barrier to  development  of renewable  sources of energy.  This is particularly  the case when 
renewable energy  sources are competing  with large  centralised  power plants based on coal 
or nuclear fuels which are still by far the most common electricity method in the Community. 
Many renewable energy  sources will thus only be competitive in a situation where prices of 
conventional  fuels  will  reflect  the full  cost,  including  environmental externalities, or  when 
further  technological development and mass market penetration has brought down the prices. 

21 

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The Commission's  1993 White Paper on Growth,  Competitiveness and Employment16  argues 
that  clean  technologies  are  a key  to  future  economic  prosperity  and  that  the  current  general 
taxation  system  does  not  lead  to  an  optimal  resource  allocation.  In  this  light,  and  with  the 
prospect  of  a  future  internalisation  of  external  cost,  renewables  could  make  a  strong 
contribution to a sustainable and competitive European energy  system. Already  at the present 
point  in time,  it  is worth  noting,  however,  that  renewables,  as indigenous  resources, are  not 
affected  by price  fluctuations  on  imported  fuels  and  will  thus provide  a  stabilising effect  on 
energy  cost. 

Another important  aspect  is the potential growth of the European renewable energy  industry. 
In  most  technical  areas  the  European  industry  is  second  to  none  in its  ability  to provide  the 
equipment  and  technical  financial  and  planning  services  required  by  market  growth.  Some 
Member States have, however, already at this point in time benefited  significantly  from  export 
of  renewable  technologies  and  thereby  increased  their  overall  export  revenue.  By  way  of 
example  the  European  wind  turbine  industry  currently  supplies  approximately  75%  of  the 
global  demand  for  these  technologies.  Globally,  the  renewable  energy  market  potential  for 
further  expansion,  in particular  in developing countries, is impressive and has been  estimated 
at  more  than  ECU  1700  billion  by  2020.  This  offers  therefore 
interesting  business 
possibilities  for  expansion  of  the  European  renewable 
opportunities  for  exports  and 
technologies industry.  The Commission has already supported the foundation  of the European 
Renewable  Energy  Export  Council,  formally  established  earlier  this  year  and  is  looking  at 
other  ways  of  promoting  renewable  energy  technology  exports.  It  is clear  however,  that  in 
order to develop an export market  it is eseential that the EU industry is able to expand on  its 
home  markets. 

4.4. 

Regional  development,  social  and  economic  cohesion  and  employment. 

Development  of  renewables  can  also  bring'  positive  and  tangible  effects  on  regional 
development  and  employment.  Renewables  are, by  definition,  local  energies  and  production 
of  renewable  technologies  and  the  installation  of  renewable  energy  plants  are  -  in  many 
instances  - independent  of  the existence  of  infrastructure.  Furthermore  many  less  developed 
regions  have  a  good  renewable  energy  resource  potential.  Promotion  of  renewables  is 
therefore  a major  element  in  a  regional  policy  and  can  bring  employment  to  regions  which 
are  otherwise  deprived  of  industrial  development  as  well  as  supply  of  energy  resources 
necessary  for  development.  Studies  show  that  development,  operation  and  maintenance  of 
renewable  sources  of  energy  tends  to  be  much  more  labour  intensive  than  development  of 
technologies based on conventional  fuels. The impact on employment  from  renewable energy 
is, according to  some studies about five times higher than the employment  impacts of  further 
development  of  fossil  fuels.  Furthermore  the job  creation  in  this  sector  mostly  takes  place 
outside  of  urban  areas  where  unemployment  is often  high. 

16 

"Growth,  Competitiveness  and  Employment  - The Challenges  and  Ways forward  into the 21st 
Century", the European  Commission, 1993. 

23 

The  tourism  sector  offers  particularly  good  opportunities  for  increased  use  of  renewable 
sources of energy.  Regions with a tourism industry need,  in particular, to be  environmentally 
preserved  and  at  the  same  time  the  tourism  industry  -  most  notably  in  the  case  of  mass 
tourism  -  is  characterised  by  increased  energy  demand  specifically  at  peak  periods. 
Furthermore,  there  is  a  growth  in  tourism  in  isolated  areas  such  as  on  islands  and  in 
mountainous regions, where fuel  deliveries and grid connections are costly or environmentally 
unattractive.  Overall,  therefore,  increased  use  of  renewable  sources  of  energy  can  be  an 
interesting  alternative  to  conventional  energy  production  in  touristic  areas. 

The renewable energy industry consists  predominantly  of small and medium sized enterprises 
(SME's).  As  SME's  are  generally  recognised  as  being  a  major  source  of  new  job 
opportunities in the European Union the future  industrial development is highly dependant on 
a  continued  process  of  creating  fast  growing  firms  in  "new"  industries.  Accelerating  and 
strengthening  the  use  of  renewable  sources  of  energy  and  renewable  energy  technologies 
should  therefore  be  an  important  element  in  the  overall  Community  strategy  for  supporting 
SME's, entrepreneurial  initiatives, employment and growth for the benefit  of industry and the 
regions  of  the  Community. 

4.5. 

Public  opinion  and  consumer  choice. 

The  European  Union  regularly  carries  out  surveys  on  the  evolution  of  public  opinion  in  a 
broad  range  of areas. As far  as energy  is concerned,  Eurobarometer's17 conclusions  are  clear. 
Renewable sources of energy  are generally seen in a more positive light than any other energy 
sources. 

As energy  liberalisation and consumer choice become a fact  of life,  also in the energy  sector, 
this is likely to have some impact. If many customers have strong environmental  preferences, 
this  would  be  an  additional  force  in  the  creation  of  new  capacity  based  on  renewables. 
Consideration  needs  to  be  given  to  ways  of  stimulating  consumer  demand  for  renewables. 

5. 

The  problems  to  be  faced:  A  series  of  obstacles  hinder  a  more  widespread  use  of 
renewables 

There  is  "a  need  to  take  a  detached  look  at  the  obstacles  to  the  rapid  and  extensive 
development  of  renewable  energy  sources.  The  types  of  obstacles  are  of  a  very  different 
nature and must, as such, be clearly  defined  tp develop the policy  instruments which can help 
renewables  to  overcome  the  obstacles.  One  area  of  particular  concern  is  the  issue  of 
internalisation  of  external  cost.  Secondly  there  are  a  large  number  of  other  constraints, 
including  problems  related  to  financing,  regulation,  technical  issues,  lack  of  information, 
education  and  training  etc.  The  limited  market  penetration  of  renewable  sources  of  energy 

European  Commission,  Eurobarometer  39.1; European  Opinion  and  Energy  Matters,  September 
1993. 

24 

can  to  a  large  extent  be  attributed  to  the  lack  of  political  will  and  ability  to  remove  these 
barriers.  The  attempts  which  have  been  made are  often  fragmented  and  uncoordinated  and 
have,  in  most  cases, not  resulted  in  a significant  improvement  of  the  situation.  This  Green 
Paper serves the purpose of identifying  the obstacles in order to provide a basis, for  concerted 
action  for  the promotion  of  renewable  energy  sources. 

5.1. 

Cost  considerations. 

The  cost  for  fully  demonstrated  renewable  energy  technologies  are  rapidly  declining  as  a 
function  of  cumulative  volume  of  demand  and technological  progress.  Nevertheless,  a key 
obstacle  to  a higher  market  penetration  of  renewables  lies  in the  cost  related  to  deployment 
of  these  energy  sources.  Therefore  an  optimal  introduction  of  renewable  energy  sources  is 
dependent  on  internalising  of the costs of externalities.  Fuel cycle externalities  are the  costs 
imposed  on  society  and  the  environment  that  are  not  accounted  for  by  the  producers  and 
consumers  of  energy.  Studies18 show that  renewables  would  have  a  much  bigger  share  of 
the  market,  even  given  the  current  state  of  technologies  if,  for  example,  fossil  fuels,  were 
priced  in a way  to reflect  full  costs of externalities, notably  the cost related to  environmental 
protection. 

Generally,  there  are  significantly  lower  external  cost  related  to  energy  production  based  on 
renewables than there is to conventional energy. Therefore  development of renewables would 
benefit  significantly  if regulations were put in place to the effect  that energy prices in general 
would  reflect  the  full  cost  of  production,  e.g  by  way  of  a  general  energy  tax  initiative  with 
taxation  levels  reflecting  the  fuel  cycle  externalities.  This  would  thus  not  only  lead  to  a 
significant  reduction  of C02  emissions, as shown in the analysis related  to the  Commission's 
C02  strategy,  but  also  to  a  significantly  higher  contribution  from  renewable  sources  of 
energy, in particular due to a shortening of the pay back period vis-à-vis conventional sources. 

5.2. 

Technical  and  non-technical  Barriers 

As  indicated  in point  4.3  above,  renewables  are  in many  cases economically  viable  and  can 
effectively  compete  with  conventional  energy  technologies.  Due,  however,  to  a  number  of 
market failures  they  are still generally unable to make a wider impact.  These market  failures 
can only be corrected through the application of a variety  of policy  instruments.  This  section 
sets out  the  principle  market  barriers  leading  to  such market  imperfections. 

Projects in the field of energy, be it installation of new production capacity or the construction 
of  transportation  infrastructure,  are  generally  characterised  by  high  investments  cost  in 
absolute  terms.  Although  this  is  frequently  not  the  case  as  regards  renewable  energy 
technologies,  which  are  often  small  scale  projects,  these  are  often  faced  with  the  difficulty 
that  the  attitude  of  financiers  is  negative.  Furthermore,  capital  cost  for  instalment  are  often 

EXTERNE  :Study under the JOULE Programme on the Externalities of Energy. 

25 

high  compared  to  the  running  and  the  fuel  cost.  It  is  in  fact  often  not  sufficiently  well 
recognised  that  renewables  energy  technologies  have  low running  cost  due,  in particular,  to 
low or zero  fuel  costs.  There are signs that attitudes are changing, but projects  have to  meet 
fairly  strict criteria  before  funds  are sanctioned.  So, even though there is an awareness of the 
renewable  technologies  and  the business opportunities  related  to them,  problems  arise  when 
the  details  of  funding  proposals  are  examined.  Among  the  main  financial  barriers  common 
to most renewable  projects  are the  long pay-back  periods  at the current  price  level.  Without 
clear  indications  of  the  long  term  scenario,  equity  investors  and  financial  institutions  are 
unable  to  take  a  long-term  view  of  the  projects.  The  perceived  risks  (both  technical  and 
market  related)  by  financial  institutions,  investors, purchasers  of  equipment,  consumers  etc. 
are therefore  often  overestimated.  Combined  with  the  fact  that  the  scale of  many  renewable 
projects  is  often  too  small  for  many  financial  institutions,  many  otherwise  sound  and 
economically  viable  renewable  energy  projects  are  never  taken  beyond  the  post-planning 
stage. 

Information,  awareness  and  experience  related  to  renewables  is  not  evenly  distributed 
throughout  EU.  This  affects  a  large  number  of  groups  from  policy  makers  to  investors. 
Developers,  engineers,  technicians,  installers,  financiers,  investors,  planners,  utilities  and 
power  companies,  which  are  all  important  players  in  the  decision  making  affecting 
renewables,  generally  suffer  from  a  shortage  of  knowledge  of  the  opportunities  offered  by 
renewable  energy  technologies. 

National  power  production  companies,  and  in  particular  monopolies,  often  have  negative 
attitudes  towards  renewables,  mainly  based  on  a general  resistance  to  change.  A  centralised 
approach  to  energy  production  is  seen to  be  contradictory  to  the  development  of  renewable 
energy  sources. 

Connection  to  centralised  electricity  grids  poses  both  technical  and  economic  problems. 
Although  some have been  solved, many  grid connection  issues remain unresolved,  including 
wheeling  charges and  standard  contracts  for  utility  services  in provision  of  grid  connections. 
The  low  price  paid  to  autoproducers  of  electricity  in  certain  countries  results  in  low  returns 
to equity  investors. Recognition for  reduced transmission losses associated with  decentralised 
energy  generation  is often  not given by utilities either  in terms of grid  connection  facilitation 
or  price. 

A  problem  related  to  certain  grid-connected  renewables,  notably  wind  and  solar,  has  to  do 
with the supply variability  between day and night and between the seasons. This is  a problem 
which  needs  creative  solutions  to  be  overcome,  and  which  due  to  the  discontinuous  supply 
will  affect  the  market  price  compared  to electricity  produced  by  fossil  fuels,  hydropower  or 
nuclear.  There  are  however  solutions  available  to  deal  with  such  problems,  e.g  telematics 
applications  or  energy  storage  systems.  At  a  more  technical  level, 
interconnection 
requirements related to safety,  control, and equipment  specifications  may also prove a burden 
for  renewable  energy  source  developers. 

26 

In  the  transport  sector  biofuels,  as  is  the  case  for  any  new  fuel  type,  require  appropriate 
infrastructure  to  make  a  wider  impact.  However,  the  automotive  infrastructure  is  almost 
entirely geared towards hydrocarbon making it difficult  to market biofuels  such as biodiesel. 
The discussions recently  launched at Community level on cleaner car technology provides a 
good  opportunity  to  further  assess  how  to  overcome  the  market  obstacles  for  biofuels. 
Clearly, any measure will have to be evaluated in terms of its cost-effectiveness  in reducing 
CO2  emissions  and  will  have  to  take  into  account  the  implications  for  other  pollutant 
emissions. 

Technical  requirement  related  to  non-grid-connected  renewable  energy  sources  also  create 
obstacles.  Building  regulations,  for  example,  often  do  not  take  account  of  the  special 
requirements  of  installation  of  renewable  sources  of  energy.  Furthermore,  the  lack  of 
appropriate  standards  lead  to  resource  demanding  and  expensive  procedures  related  to 
installation of renewables.  Technical standards, for example on the performance of consumer 
products  such  as  solar,  thermal,  water  heating,  will  help  to provide  the  public  confidence 
which is essential  for  mass marketing.  Biomass fuels  are another  example  of  a renewable 
energy sources currently  lacking sufficient  standards. In some cases, the individual Member 
States require equipment to go through  specific national testing procedures before installation 
adding  significant  to  the  costs  and  time  required  for  industry  to  introduce  new  types  of 
technology  on the  market. The  lack  of  European-wide  harmonisation  of  such requirements 
often  create serious barriers to trade in  renewable technologies. 

Although several renewables energy sources have now become mature, innovative and highly 
efficient,  some technologies still have to be developed or fully demonstrated.  Some examples 
are the demonstration of biomass gasification  in combined cycles and wind turbines located 
at very low wind  speed sites  . 

As renewable energy projects  are often  located in areas close to the resources where energy 
projects  are  not  common,  projects  may  meet  resistance  from  the  local  residents  based  on 
environmental concerns. Although the environmental impact of most renewables is much less 
severe than that  arising from  conventional  fuel  cycles, local issues sometimes outweigh  the 
global environmental  benefits.  While recognising that wind turbines, specifically,  may have 
some  negative  environmental  impact  in  the  form  of  noise  and  visual  impact, 
technical 
solutions are being  developed  and the overall positive environmental  consequences  arrising 
from the avoided energy production based on fossil fuels  should be taken into account when 
these concerns are  addressed. 

The  current  non-transparent,  unstable  and  unpredictable  framework  for  development  and 
deployment  of  renewable  energy  sources  and  technologies  resulting  from  the  various  and 

19  The  technological  barriers  to  further  exploitation  of  renewable  energy  are  presented  in  several 
papers  produced  for  the  Thermie-conference  "Towards  a  wider  use  of  energy  technology;  pre-
competitive  actions  to  the  benefit  of the  market",  Brussels,  10-11  October  1996. 

27 

often  rapidly  changing  national  promotional  schemes,  must  be  considered  to  be  a  serious 
barrier  to further  market penetration.  It  is suggested that this  - as  is the case with  respect  to 
most  of  the  obstacles  detailed  in  this  chapter  -  can  only  be  overcome  by  the  creation  of  a 
stable  and  Community  wide  framework  for  renewable  energy  sources. 

6. 

The way  forward:  A  strategy  for  renewable  sources  of  energy. 

In the  development  of  any  policy  strategy, well  defined  objectives  are  important.  Without  a 
clear definition  of the direction and the speed of where one wishes to go, it becomes  virtually 
impossible  to  measure the  rate  of  success and to  adjust  the policy  measures  implied.  On  the 
other hand, objectives  must be realistic and reachable and they should, most importantly,  not 
be  used  as  an  excuse  for  non-action.  Objectives  which  are  not  accompanied  by  policies 
defined  to  achieve  them  are  worthless. 

An  ambitious,  but  achievable  objective  for  the  Community  could  help  focus  the  policy 
measures  needed,  and  provide  the  necessary  political  signal.  Different  options  for  such  an 
objective  are  possible,  including  a  significant  improvement  in  market  penetration  of 
renewables  achieved  by  doubling 
the  contribution  made  by  renewables  to  primary  energy 
consumption in the European Union by 2010. This would require the European Union and the 
Member-States  to take  important measures promoting  renewable  sources of energy  to  enable 
the increase of the contribution  made by them  by that date to a level of  12% of  gross  inland 
energy  consumption. 

It  is  clear  that  at  Community  level,  support  and  promotion  of  renewable  energy  sources  in 
a  number  of  policy  areas  is  a  prerequisite  to  wider  penetration,  However,  a  significant 
increase in use of  renewables  cannot be achieved  through  action  at Community  level, only. 
Industry,  users  and  the  Member  States  will  have to  play  an  important  role  and  to  take  their 
responsibility  for  implementing  effective  policies  at  national  level.  The  principle  of 
subsidiarity  provides  good  guidelines  in  this  respect.  Many  necessary  policy  measures  will 
have to be developed  at national  level.  National  programmes  for  technological  development 
will  have  to  be  strengthened,  education  and  training  activities  have  to  be  increased, 
information  campaigns  and  awareness building  at national  and regional  level will  have to  be 
further  developed,  etc. 

In  this  context  the  Commission  proposal  for  cooperation  around  agreed  energy  policy 
objectives  will  play  an  import  role.  As  increased  use  of  renewable  sources  of  energy  is 
specifically  mentioned  as  an  energy  policy  objective,  the  framework  to  be  put  in  place  can 
be used as a useful  mechanism for ensuring increased convergence of Member  States' policies 
in this  area. 

There are however, a number of policies which can be most effectively  applied at Community 
level.  The  Community  strategy  to  be  established  on  the  basis  of  this  Green  Paper  and  the 
conclusions to  be  drawn  from  the  wider  debate  on renewable  energy  sources,  should  set  out 
It  is  essential  that  the  strategy  is  accompanied  by  specific 
key  elements  in  this  respect. 

28 

measures  and  goes  beyond  the  loose  commitments  made  in  the  past.  This  preliminary 
discussion  document,  as  indicated,  does  not  contain  a  full  list  of  precisely  defined  actions. 
It identifies,  however,  the policies which are required  at an EU-wide  level, to ensure that  the 
Community  lives up to its obligations as regards sustainable development  and more  precisely 
development  and  deployment  of  renewable  sources  of  energy. 

6.1. 

An  ambitious  objective  for  increasing  the  contribution  made  bv  renewables. 

A  target  for  the  contribution  from  renewable  energy  sources  can  be  a  good  policy  tool  and 
can  provide  a  guideline  for  action.  Most  Member  States  have,  as  indicated  in  chapter  1, 
established  more  or  less specific  quantitative  targets  at national  level  and the  Community  of 
12 had  agreed  upon  a target  for  2005  of  8%  share of  renewables.  The  question  arises  as  to 
whether  a new Community  indicative target  should be set for  2010,  and  if  so at what  level. 

It  should  be  clear  that  a  Community  target,  would  not  mean  that  each  and  every  Member 
State  should  reach  a  certain  percentage  market  share  of  renewable  sources  of  energy,  but 
rather that the Community  as a whole  should  aim to realise a particular  market  share by  the 
date  2010.  The  natural  differences  between  the  Member  States  as  regards  their  use  of 
renewable  energy  sources  are  therefore  likely  to  remain,  although  a  specific  objective  for 
renewables  could  stimulate  all  Member  States  to  make  a  special  effort  towards  increased 
exploitation  of  the  available  potential.  In  that  sense,  an  objective  for  the  penetration  of 
renewable  energy  sources is different  from  the C02  targets to which the  Member  States  and 
the  Community  are  committed  in  the  framework  of  the  Climate  Change  Convention,  which 
commit  Member  States  individually.  Nonetheless,  an  objective  for  a  significant  increase  in 
the  use  of  renewable  energy  sources would  could  be  an  important  instrument  for  attaining 
the  C02  stabilisation  target,  alongside  other  measures  such  as energy  saving. 

The Commission is seeking views as to whether to set an indicative target for the  contribution 
by  renewable  sources  of  energy  to  the  gross  inland  energy  consumption  beyond  the  current 
target for the year  2005, on the assumption that an ambitious  but realistic objective  for  2010 
would provide a useful  stimulus for policy and would focus minds of decision-makers. Views 
on  other  means  of  giving  a  political  signal  and  impetus  to  action  for  the  promotion  of 
renewables would  also be welcome, together  with views on what benchmarks can be used to 
monitor  progress  made. 

As outlined  under  Chapter 4, the Commission believes that the advantages of renewables  for 
energy policy, enviromnental protection, employment and regional development and cohesion, 
are  such  as  to justify  an  important  pro-active  policy  effort  towards  achieving  a  significant 
increase  in  market  penetration  in  the  medium  term  perspective  of  the  next  15  years.  The 
question  arises  as  to  what  may  constitute  a  significant  increase,  what  are  the  kind  of 
measures that would  be necessary  and what are the resulting  implications, in relation  to  C02 
and  other  emissions  reduction,  security  of  supply,  enconomic  impacts,  employment. 
Consideration will also need to be given to the cost effectiveness  of different  measures taking 
and  also  to  what  may  be  the  predicted  technological 
into  account  opportunity  cost, 

29 

developments  in  this  fast  moving  field. 

When  considering  what  may  constitute  a  significant  result  of  a  concerted  policy  effort,  it  is 
important  to know how the situation on renewables may  evolve if no  specific  effort  is made. 
Under  three  of  the  four  scenarios  developed  under  the  "European  Energy  to  2020"  study 
("Conventional  Wisdom",  "Battlefield  "  and  "Hypermarket"  scenarios)  described  under 
Chapter  3,  under  which  no  effort  is  made  to  promote  renewables,  their  share  may  be 
expected  to  rise  by  1.5%  over  15 years  to  2010  (approx.  0.1% per  year)  . Under  the  fourth 
scenario  outlined  in  that  study  ("Forum")  which  is  much  more  oriented  towards  general 
environmental  policy  measures,  but  without  specific  renewables  promotion  measures,  the 
share of  renewables  may  be expected  to rise by  3% to  9% by  2010. 

In  the  scenarios  developed  under  the  Terres  II  study,  which  take  as  their  starting  point 
"Conventional  Wisdom"  but  assume  that  certain  policy  measures  assisting  the  development 
of renewables  are taken,  the prediction  for  the share  of renewables  are  more  encouraging.  If 
the  measures  proposed  by  the  European  renewable  energy  industry  are  taken  ("Industrial 
Policies " scenario) or those proposed under the Commission's model based on  internalisation 
of conventional  fuel  external  costs ("ExterNe  Internalisation"  scenario), the renewables  share 
is predicted to be around  10% at 2010 . If however, we take the third  scenario ("Best  Practice 
Policies")  which  proposes that the policies which have  been  found  most effective  to  date  for 
promoting  renewables  are  put  together  and applied  EU  wide, then  the renewables  share  can 
be predicted to rise to  12.5% by 2010. Taking yet another approach, by combining the  results 
of  a number  of  studies20  one  could predict that under  a minimum  effort  scenario, the  share 
of  renewables  by  2010 will  be  7%  , with  median  effort  9%  and  with  maximum  effort  16%. 

The Commission is in the process of examining the implications of all the different  measures 
that may  need to be taken under the different  scenarios, as part of the preparation  for  a  future 
Action  Plan  on  Renewables,  and  would  welcome  views  on  the  feasibility  desirability  and 
efficiency  of the measures described under  Chapter  3 and elsewhere in the document,  as part 
of  the  Green  Paper  consultation  process. 

For  the  reasons  outlined  in  Chapter  4, the  Commission  believes  that  at  this  critical  stage  in 
the  development  of  renewables,  a  significant  pro-active  policy  effort  is  required  to  achieve 
measurable results. Against the  background  already  described above, a doubling  of the  share 
of renewables by  2010, which would  mean  a contribution  of renewable  sources of  energy  in 
gross  inland  energy  consumption  of  about  at  12%,  could  be  an  ambitious,  but  realistic 
objective  . 

20 

21 

DGXII  synthesis of  the  PRIMES,  SAFIRE, TERRES,  ENERGY  2020  and  US  studies. 

It  is  important  to  note, that  penetration  of the  market  calculated  on the  basis of the 
Eurostat  convention,  in absolute  terms,  corresponds  to  a  15%penetration  calculated 
on the basis of the so-called substitution principle (220 toe/GWh).  The target proposed 
by  the  European  Parliament,  although  not  explicitly  stated  in  its  recent  resolution, 

30 

Since  the  current  share  of  renewables  of  approximately  6%  includes  large  scale  hydro,  for 
which the potential for further  exploitation in the European Union, for environmental  reasons, 
is  very  limited,  a  doubling  of  the  current  level  of  energy  output  from  renewables  would 
require  significant  increases  in the  use of  other  renewables. This  is clearly  illustrated  by  the 
scenarios  outlined  in  section  Chapter  3  of  this  Green  Paper,  which  showed  that  most 
ambitious  policy  measures  are  needed  to  increase  significantly  the  contribution  from 
renewable  sources  of  energy  by  2010. 

The  implications  of  this  are  analysed  under  the  TERES  II  study,  in  particular  with  respect 
to  parameters  including  C02  emissions,  security  of  supply  and  employment.  With  respect 
to C02  emissions, the "Best Practice Policy" scenario of  12.5 % share of renewables  predicts 
a reduction  in C02  emissions of  386 million tonnes per year by 2010, is calculated using the 
previously  presented  SAFIRE  model.  As regards  security  of  supply,  a  doubling  the  current 
market penetration  of renewables  would  lead to a reduction of approximately  20% in energy 
dependency  compared  to  the  present  situation.  With  respect  to  the  effects  on  employment, 
the  SAFIRE  model  predicts  employment  benefits  as  a  function  of  market  penetration  of 
renewable  energy  sources by taking  into  account  direct  employment  created  in  construction, 
installation,  operation  and  maintenance  of  renewable  technologies  minus  the  employment 
displaced in the conventional energy sector. This study indicated that a doubling of the current 
share  of  renewables  by  2010  would  have  a  net  positive  employment  effect  of  more  than 
500.000 jobs within the Community.  This figure  appears optimistic, but is worth noting,  and 
includes the net employment indirectly created in the sectors that supply the renewable  energy 
sector,  but  not  the  induced  effects  in the  economy  as  a whole  and  the  employment  created 
as a result of the  expected  strengthened  position  of the EU  industry  on  export markets.  It  is 
therefore  feasible  to  expect  that  net  employment  benefits  would  be  even  more  significant. 
It  is also worth  noting  that the bulk  of employment  creation  would  take place  in rural  areas. 

In addition to views on an objective for overall renewable energy penetration, the Commission 
is also interested  in views on the establishment of sub-objectives for  the individual  renewable 
sources, as well  as sub- objectives  concerning the contribution  to the various  sectors, such as 
electricity  and heat production.  When discussing objectives, care should be taken not to  limit 
flexibility  and  to  ensure  that  efficiency  is  maximised  by  using  the  most  cost  effective 
renewable  energy  sources available.  This is particularly  important  because, due to rapid  and 
largely  unpredictable  technological  development,  cost  curves  and  relative  profitability  are 
likely  to  shift.  Also  economic  conditions may  change  significantly  and  affect  the  possibility 
of  reaching  the  objectives.  Moreover,  the  Community  is in the  process  of  enlargement.  The 
applicant  countries  of  Central  and  Eastern  Europe  generally  do  not  have  a  well  developed 
renewables  sector  although  the  potential  is  considerable.  In  an  enlarged  Union  it  may 
therefore  be  more  difficult  to  achieve  the  Community  objectives. 

appears  to  be  based  on  the  15%  target  adopted  in  the  framework  of  the  Madrid 
Declaration, which is calculated on the basis of the substitution principle. 

31 

If  a  an  indicative  target  is  finally  proposed  in  the  Community  Strategy,  in  order  to  retain 
flexibility,  a  tri-annual  review  procedure  could  be  put  in  place,  which,  based  on  a  careful 
monitoring  and  assessment of the situation,  could  provide  for  the possibility  of  adjusting  the 
objectives  as  well  as  the  policies  designed  to  achieve  them.  It  should  in  any  case  be  clear 
that  any  eventual  proposals  for  targets  would  be  objectives  to  be  aimed  at  and  not  legally 
enforceable. 

Strengthening  cooperation  between  the  Member  States 

The  achievement  of  a  significant  increase  in  the  share  of  renewables  requires  the  full 
commitment  of  Member  States  at  national,  regional  and  local  level.  Indeed,  most  of  the 
concrete  measures  are  to  be  taken  by  Member  States  while  fully  respecting  the  principle  of 
subsidiarity. 
In  this  context,  the  Community  can  add  value  by  encouraging  cooperation 
between  Member  States in this field.  Effective  cooperation  at  Community  level  is  therefore 
necessary  to  help  ensuring  that  national  energy  policies  contribute  to  the  attainment  of  an 
ambitious  objective  for  the  penetration  of  renewables. 

In  its  Resolution  of  23 November  1995 on the  Green  Paper  "For  a European  Union  Energy 
Policy"22, the  Council  identified  the  promotion  of renewables  as a common  energy  objective 
both for  the purposes  of environmental protection  and of reducing  energy  dependence.  The 
Council  highlighted  the  need  for  an  improved  convergence  of  energy  policies  within  the 
European  Union  towards  this  goal. 

Furthermore,  in its Resolution of  7 May  1996 on the  White Paper  "An Energy  Policy  for  the 
European  Union""  ,  the  Council  invited  the  Commission  to  put  in  place  a  process  of 
cooperation  between  the  Community  and  the  Member  States  in  order  to  ensure  that 
Community  and  national  energy  policies  are  compatible  with  the  agreed  common  energy 
policies. 

In  line  with  the  above  Council  Resolutions,  the  Commission  adopted  on  4  October  1996  a 
proposal  for  a  Council  Decision  concerning  the  organisation  of  cooperation  around  agreed 
Community  energy  objectives24.  The  draft  decision  identifies  the  promotion  of  renewable 
energy  resources  as  one  of  the  agreed  common  energy  objectives  and  calls  for  supportive 
measures 'at  both  Community  and  national  level  with  the  aim  of  achieving  for  this  fuel  a 
significant  share  of  primary  energy  production  in  the  Community  by  2010. 

In  the  Commission's  view,  this  decision,  once  adopted  by  the  Council,  will  provide  an 
appropriate framework  for facilitating  an effective  cooperation between Member  States in the 

22  OJN°  C  327/3  of  7.12.1995. 

23  OJN*  C  ....of.... 

24  O J N 'C 

of 

32 

field  of  renewables,  in  particular  due  to  the  specific  measures  proposed  to  encourage  best 
practices  and  the  promotion  of  a  cooperative  approach  to  energy  analysis  and  exchange  of 
relevant experience.  As detailed above, the current level of market penetration  for  renewable 
energy  and  the  policies  applied  at  national  level  for  the  promotion  of  the  sources  are 
characterised  by  very  large  differences.  The  question  therefore  arises  as  to  whether  or  not 
there is a need to establish closer cooperation with Member  States on renewables with a view 
to  harmonising  national  initiatives  and,  if  so, what  should be the terms  of reference  for  such 
closer  cooperation  to  be  established  for  renewable  sources  of  energy. 

6.3 

Reinforcing  Community  policies. 

Community  policies  in  many  different  areas  have  implications  for  the  development  and  the 
deployment  of renewable  sources of energy. An effective  implementation  of the strategy  will 
thus  have  to  rely  on  policy  actions  in  many  areas  of  Community  competence  which  should 
all,  in  an  appropriate  way, take  into  account  the need  to promote  renewable  energy  sources. 
To ensure that this is done in a coherent and effective  manner, the coordination at  Community 
level and within the Commission must be improved.  As far  as the Commission is  concerned, 
internal  coordination  would  be  improved  by  the  establishment  of  an Inter-Service  Group  on 
Promotion  of  Renewables.  Improved  coordination  within  the  Commission  is  a  key  element 
of  the  European  Parliaments  recent  Resolution  on  renewable  sources  of  energy.  This  and 
other actions needs to be undertaken  in order to  ensure that all Community  policies take  into 
due  consideration  the  objective  of  increasing  the  role  of  renewables  and  to  ensure  that 
implementation  of  policies  are  undertaken  in  a coordinated  and  consistent  way. 

Outlined  below  is the  Commission's current thinking  on the various  elements  which  must  be 
covered  by  the  strategy  and  the  action  plan  to  be  developed. 

6.3.1 

Renewable  energy  sources  in  the  internal  market  framework. 

The  creation  of  an  internal  energy  market  is  a  key  priority  of  the  Community.  It  forms  of 
integral part of the Community's efforts  of creating a stronger and more competitive  industrial 
base to  face  up  to  the  globalisation  of  markets  and  fiercer  international  competition. 

The  long  and  difficult  negotiations  on  the  issue  of  creating  an  internal  electricity  market 
culminated  in  July  1996  with  the  adoption  of  a  Common  Position  on  a  directive  for 
the 
internal  electricity  market25.  The  main  trust  of the  directive  is to  facilitate  the  application  in 
the  electricity  sector  of the  fundamental  principles  important  to  economic  activity  enshrined 
in  the  Treaty,  i.e.  free  movement  of  goods,  free  provisions  of  services,  the  right  of 
establishment,  and  non-distorted  competition. 

25  OJL 

of 

33 

Renewable  sources  of  energy  play  a  role  as  a  fuel  in  the  electricity  sector.  The  potential  is 
far  from  used  to  its  full,  but  important  contributions  can  be  made  by  hydropower,  wind, 
biomass  and,  to  a  lesser  extent,  solar  photovoltaics.  As  the  internal  market  is  not  yet  fully 
operational,  it  is  difficult  to  anticipate  the  effect  that  the  internal  market  will  have  on  the 
exploitation  of  renewables.  Experience  from  countries  which  have  already  undertaken 
considerable market liberalisation,  such as the US, suggests, however, that renewable  sources 
of  energy  can  continue  to  play  an  important  role  and  can  be  further  developed,  provided 
appropriate  market-based  instruments  are  introduced. 

Clearly the provisions of the directive on construction of new capacity, which will ensure that 
new  capacity  is  installed  in  accordance  with  objective,  transparent  and  non-discriminatory 
criteria, will affect  positively renewable sources of energy.  This is reinforced  by the  directive 
in  listing  the  criteria  for  granting  authorizations,  makes  a  specific  reference  to 
which, 
protection of the environment and to the use of primary resources. Furthermore, the directive's 
provisions  on  transmission  explicitly  ensure  that  Member  States  may  require  the  system 
operator  to  give  priority  to  certain  installations,  including  generating  installations  using 
renewable  sources  of  energy.  The  Commission's  proposal  for  an  IRP  directive,  which  is 
currently  the  subject  of  negotiations  in  the  Council,  is an  important  means  for  boosting  the 
role of renewables in the Community. Experience from the US shows that Integrated  Resource 
Planning  (IRP)  is  of  principle  importance  to  the  electricity  generation  procurement  process. 
IRP  is  furthermore  a powerful  mechanism  to  attain  the  all  important  active  involvement  of 
utilities  in  the  process  of  promoting  renewable  energy  technologies. 

It is, given the current difficulties  encountered by many renewable energy operators, necessary 
to  closely  monitor  the  conditions  under  which  renewables  are given  access to  the  grid.  The 
Commission  will,  in  the  framework  of  its  general  monitoring  role  of  the  functioning  of  the 
internal  electricity  market,  pay  particular  attention  to  this  aspect  and  if  appropriate  propose 
measures which can ensure that renewables are hot discriminated against, and if necessary put 
forward  measures  aimed  at  promoting  the  wider  use  of  renewables.  As  indicated  in  the 
introduction,  the  creation  of  an internal  energy  market will bring  about  major  changes  in  the 
operation of the energy  markets.  This Green  Paper provides, therefore,  an ideal  opportunity 
to  stimulate the  debate  as to how this will  affect  the market  penetration  of renewable  energy 
sources.  The  Commission would,  in the framework  of the consultation process to take  place 
on  the  basis  of  the  Green  Paper,  particularly  welcome  views  on  how  renewable  energy 
sources can play their appropriate role in the internal  energy market.  The Commission at this 
stage has identified  a series of measures which may  be considered  in this context.  These are 
presented  and  discussed  in this  section. 

Renewable  energy  credits. 

Although,  as  competition  on  the  energy  markets  increases, regulatory  policy  measures  have 
to  be  phased  out  and  replaced  by  more  market  oriented  measures,  fiscal  instruments  are, 
certainly  in  the  short  and  medium  term,  unlikely  to  ensure  that  the  Community  can 
increase  contributions  by  renewables  by  2010.  Consideration  could  be  given 
significantly 

34 

to  the  idea  that  a  certain  percentage  of  a Member  State's  electricity  requirements  will  have 
to be met by renewables,  enforced  on each individual  retail  electric  supplier,  with  individual 
obligations tradeable  through  a system of  "renewable energy  credits".  Such  a system, which 
to a large extent would  resemble the system proposed for  tradeable C02  permits, could  serve 
a two-fold  purpose  if  introduced  at  an EU-wide  scale.  Firstly  it would  promote  renewables 
and secondly it would prevent market distortions arising from  similar measures introduced  by 
individual  Member  States.  A  renewable  energy  credit  system  could,  if  appropriate,  and  if 
judged  compatible  with  current  and  future  EU wide  electricity  taxation  schemes, be  coupled 
with an electricity  surcharge mechanism  similar to the UK non-fossil  fuels  obligation.  There 
are,  however,  a  number  of  unresolved  issues which  will  have  to  be  further  clarified  if  such 
a  system  was  to  be  introduced  at  EU  level.  These  concern,  in  particular,  the  practical  and 
administrative  aspects  and  the  questions  related  to  sanctions  to  be  imposed  in  case  of  non 
compliance  with  the  obligations. 

If  workable  solutions  to these matters  can be found,  a flexible market  based  implementation 
of a renewable energy credit system could play an important role in ensuring the achievement 
of policy  goals  related  to renewables  at least  cost.  As it  would  apply  to  all utilities  it  would 
be  competitively  neutral.  It  would  most  importantly  force  utilities  to  maximize  the  value  of 
the  required  renewables  in order  to minimize  the  impact  on their  competitive  position.  They 
would  use technological  applications  which have the greatest value  and they  would use their 
resources  and  creativity  to  lower  the  cost  of  renewables.  In  short,  the  positive  forces  of  the 
market  would  be  brought  to  work  in  the  field  of  renewables.  The  Commission  would  be 
interested  to  receive  views  on  the  desirability  and  feasibility  of  such  a  scheme. 

Internalisation  of  cost  and  fiscal  harmonisation. 

Fiscal  harmonisation  can  play  a major  role  in  ensuring  a  correct  functioning  of  the  internal 
market.  It  is furthermore  of  crucial  importance  for  a more  rapid  introduction  of  renewables. 
The  Commission  remains  committed  to  the  principle  of  internalisation  of  cost  as  set  out  in 
the White Paper on Growth, Competitiveness and Employment. Internalisation of external cost 
as  shown  in  chapter  3  of  this  Green  Paper,  is  of  prime  importance  given  the  current  cost 
constraints related  to renewables.  As pointed out above, and as shown in countless analysis, 
an  effective  policy  of  internalisation  of  external  cost,  most  notably  that  related  to 
environmental  degradation,  is  necessary  to  ensure  that  renewables  make  a  significant 
contribution  to  the  Community's  energy  balance. 

At  present,  the  Community  has put  in  place  a system  of  minimum  excise  duties  for  mineral 
oils.  There  are  however,  still  considerable  variations  between  the  levels  applied  in  the 
Member  States.  Furthermore  the  system only  applies  to  mineral  oils  and  not  to  other  energy 
sources.  In  the  absence  of  an  agreement  at  Council  level  on  a C02  energy  tax  covering  all 
energy  products,  the  Commission  is following  the  invitation  from  the  ECO-FIN  Council  of 
11  March  1996, 
in  the  process  of  finalising  a  new  proposal  designed  to  introduce  a  new 
system  for  taxation  of  all  energy  products. 

35 

As  far  as  energy  of  solar,  wind,  tidal,  geothermal  or  hydraulic  origin,  or  from  biomass 
conversion  are  concerned  the  Commission,  with  respect  to  this proposal,  intends  to  include 
a  provision  for  the  application  of  reduced  rates  of  duty  or  exemption.  This  will  be  an  key 
incentive  for  the  development  of  renewable  sources  of  energy  and  an  indispensable  part  of 
an  economic  strategy  aimed  at  strengthening  market  penetration  of  renewables. 

As  far  as  the  electricity  sector,  which  has  a  particularly  high  potential  for  utilisation  of 
renewable  sources,  is  concerned,  a  reformed  taxation  system  should  encourage  the  most 
polluting  parts  of  the  power  industry  to  contribute  to  technological  development  in  the 
electricity  generation  sector.  To  form  an  effective  incentive  to  develop  and  further  exploit 
renewables,  it  is  proposed  that  an  electricity  tax  should  exempt  renewable  energy  sources. 
As however  it is difficult  to distinguish at the point  of final consumption  between  electricity 
produced  by  renewables  and  electricity  generated  by  nuclear  or  fossil  fuels,  it  would  be 
important  to  put  in  place  a  system  whereby  the  renewable  electricity  producers  are  fiscally 
reimbursed. 

In  1992 the  Commission made a proposal 
for  reduced  rates of excise duties  on motor  fuels 
of  agricultural  and  forestry  origin.  If  adopted  this proposal  would  enable  Member  States  to 
encourage the use of biofuels  as automotive  fuels  by making  it possible for  them to  compete 
directly  with  conventional  fuels.  However,  this  proposal  failed  to  secure  agreement  at 
Council.  The  Commission  is now  considering  how  to  ensure that  progress  is made  on  this 
issue, bearing  in mind  the  new  proposals  on taxation  of  energy  products  generally,  which  it 
is preparing  at  present. 

The  Commission  recognises  that  overall  the  fiscal  aspects  related  to  the  promotion  of 
renewable  energy  sources  may  require  further  reflection  and  the  Commission  will,  in 
particular  in the  light of  developments relating to the adoption  of its proposals on taxation of 
energy products and on the basis of inter alia the reactions to this Green Paper further  develop 
its plans  in this  respect. 

State  aid 

Member  States  currently,  to  varying  degrees,  offer  financial  support  to  renewables  in  a 
number  of  ways.  In  addition  to  national  research  and  demonstration  programmes  these 
measures  cover  tax  incentives,  direct  subsidies, low  interest  financing,  development  aid  for 
small  and  medium  sized  enterprises  active  in  renewables,  lower  VAT-rates  for  electricity 
based on  renewables,  state guaranteed  low interest  loans, etc. Whenever  there  is an  element 
of  state  aid  involved,  the  Commission  has to  be  notified  and  authorization  for  the  measure 
has to be granted, provided  that one of the conditions for  the derogations of Article 92 of the 
EC  Treaty  is  fulfilled.  The  guiding  principle  for  the  Commission  in  assessing  aid  for 

26 

COM(92)36 

36 

renewable  energy  sources,  contained  in  the  Community  Guidelines  on  State  Aid  for 
Environmental  Protection  7, is that the beneficial effects  of such measures on the environment 
must outweigh the distortive effects  on competition.  State aid for Research and  Development 
in  the  field  of  renewable  energy  sources  is  subject  to  the  rules  set  out  in  the  Community 
Guidelines  for  State  aid  for  Research  and Development2.  On renewables, the Guidelines  on 
State  Aid  for  Environmental  Protection  stipulate  that  in  appropriate  cases  investment  aid  to 
renewables,  in  view  of  the  "especially  high  priority  in  the  Community"  given  to  the 
development  of  these  sources,  can  be  authorized  also  when  exceeding  the  general  levels 
which  are  contained  in the  guidelines. 

Community  guidelines  are intended  to ensure transparency  and  consistency  in the manner  in 
which  the  Treaty  provisions  on  State  aid  are  applied  by  the  Commission  in  relation  to  the 
range  of  instruments  used  by  the  Member  States  in  the  field  of  renewables. 

In recent years the  Commission has dealt with an increasing  number  of  state aid cases  in the 
field  of  renewables.  As  foreseen  in  the  White  Paper  "An  Energy  Policy  for  the  European 
Union"  the  Commission  will  during  the  process  of  revision  of  the  present  guidelines,  the 
Commission  will  consider  whether  appropriate  adaptations  are  needed  for  renewables  and 
their  contribution  to  energy  policy  objectives.  A  future  re-examination  of  the  Community 
guidelines for  environmental  protection should take into account the experience gained in this 
field. 

Furthermore,  the  Commission  has  dealt  with  cases  where  the  legislation  of  a  Member  State 
imposes on the  energy  distributor  a purchase  obligation  (linked  to  a fixed price  mechanism) 
for  electricity  produced  by  renewable  energy  sources.  A key  element  for  the  assessment  of 
such  cases  is  whether  the  price  mechanism  reflects  avoided  costs  as  referred  to  in  the 
Council's  recommendation  of  9  June  1988  on  developing  the  exploitation  of  renewable 
sources  of  energy. 

Standardisation. 

A separate issue related  to the  internal  market  is that  of  standardisation.  Standard  minimum 
requirements for renewable technologies are important to boost confidence  in the  performance 
of  these  technologies.  Standardisation  is  included  under  the  scope  of  the  ALTENER 
programme.  However,  the  actions  for  developing  standards  have  been  re-oriented  from  the 
original  intentions  of  creating  Community-wide  directives  to a strategy  to develop  standards 
through organisations such as CEN and CENELEC. The reasons behind this reorientation  was 
firstly  to  place  the  standards  on renewables  firmly  in the  general  standardisation  framework 
of  the  Community  and  secondly  the  experience  gained  in  developing  directives  on  energy 

27  O JC  72,  10.3.1994, page  3. 

28  OJC45  of  17.02.1996. 

37 

efficiency  standards, which have proved to a very cumbersome process. 

European-wide  standards  on  renewables  serve  the  double  purpose  of  facilitating  the 
introduction  of  new technologies  into  the internal  market  and to boost confidence  in these 
technologies. This second aspect is of particular importance in the field of renewable energies. 
There are standards under preparation concerning renewables. They concern in particular the 
development of solar thermal, solar photovoltaics, wind and biodiesel.  The Commission will 
speed up this work and establish comprehensive mandates for  CEN and CENELEC for  the 
most  commonly  marketed  renewable  technologies.  The  mandates  will  focus  on  technical 
reliance and economic performance  criteria. Establishment of strict standards for renewables 
will, in particular,  help  Small and Medium  Sized Enterprises (SME's) to market  renewable 
energy  technologies  and  is  thus  required  to  ensure that  these  energy  sources  can  be  fully 
integrated  into the internal energy market 

6.3.2. 

Specific  financial  support for  actions for the promotion of renewables. 

With a view to specifically promote renewable sources of energy the Council in 1993 adopted 
the ALTENER programme. This was the first time that the Council recognised the particular 
need to increase the efforts  at Community level to help renewables penetrate the market. The 
decision was made as an integral  part of the Community's C02 reduction  strategy and thus 
gave  a  clear  indication  of  the  role  renewable  energy  sources  play  in  combatting  climate 
change and emission of carbon dioxides. 

ALTENER is designed to fit into the gap between technical development/demonstration  and 
market  deployment.  It focuses  in particular  on the needs for  capacity  building,  information 
sharing,  training  and  standards  development.  The  ALTENER  programme  was  given  a 
relatively  modest  indicative  budget  of  40  million  ECU  for  the  period  1993  to  1997.  The 
programme  provides  different  levels  of  funding  for  its  various  elements, ranging  from  30 
percent to  100% for  studies and technical evaluations. 

During the period  from  1993 to now a total of 213 actions have been carried out under the 
ALTENER  framework.  An  independent  evaluation29  made  in  1996  concludes  that  the 
programme  has  been  an  important  means  for  focusing  attention  on  the  development  of 
renewable*  energy  sources,  in  particular  in  some  Member  States  which  do  not  have 
comprehensive  renewable  programmes.  ALTENER  has thus been  successful  in  supporting 
Member States actions and in promoting the concept of a Community target. The evaluation, 
however, also concludes that the programme is funded  at too low a level to meet Community 
objectives  for  renewable energy  development. 

In  a  separate  parallel  proposal  for  a  specific  programme  for  the  promotion  of  renewable 

29 

"Evaluation  of  the  ALTENER  programme  (1993  -  1997)  and  proposals  for  the  future"  report  to 
the  European  Commission  by  Andersson,  Del  Rio, Janssen  and  McKeogh,  Brussels  1996. 

38 

energy  sources (ALTENER  II), it is proposed that the Community  reinforces  its  promotional 
policy  and  ensures  that  these  actions  comply  with  the  requirements  of  an  internal  energy 
market.  As experience  shows that, even in cases where renewable technologies have  reached 
a  technically  mature  level,  there  is  still  an  insufficient  penetration  of  the  market,  there  is  a 
strong  case  for  the  Community  to  support  pilot  actions,  information  schemes,  training 
activities, etc. Moreover  there  seems to be a special case for  more  comprehensive  actions  in 
the  field  of awareness building to be implemented,  both on the supply and the demand  side. 

It  is proposed  that  ALTENER  II  includes  actions  supporting  the transitional  phase  between 
demonstration  and  commercialisation.  There  is a real  gap to  be filled  in this respect,  despite 
Member  States'  promotional  activities  and  in  spite  of  the  support  given  to  certain  regions 
under the framework  of the structural  funds.  Strengthened  actions under ALTENER  II  could 
help  create  a  competitive  market  for  the  renewables  industry  and  thereby  reduce  costs  and 
create  new jobs  in  the  sector.  Such  action  at  Community  level  would  be  targeted  at  certain 
well-defined  areas  such  as  photovoltaic  roofs,  solar  thermal  heating  for  sport,  tourism  and 
health  facilities,  active  and  passive  solar  architecture,  production  of  bio-methane  from 
municipal biodegradeable solid waste, stand-alone facilities, etc., with the Community  support 
as low as possible to  avoid  market  distortion and  calculated  to take into  account  the  avoided 
external cost.The degree of market penetration should be taken into account to ensure that any 
support  will  not  lead  to market  or trade  distortions. ALTENER  II  could  in this way  provide 
the means  for  establishing  a Community  wide market,  which, while taking  into  account  that 
renewables  are  local  resources,  is  required  in  order  to  render  the  European  industry  more 
competitive.  This  is  an  important  prerequisite  for  European  industry  to  be  able  to  compete 
globally  in  this  area. 
It  is  proposed  that  a  strengthened  ALTENER  II,  is  adopted  as  an 
important  tool  for  the  promotion  of  renewable  energy  sources. 

In addition  there  is a need  to examine  in more  detail  how  investments  in  renewables  can  be 
increased  using other  Community  financial  instruments, in particular  the possible sources  of 
finance  inherent  in the existing Community financial  mechanisms and beyond. It is proposed 
that  renewable  projects  should  to  a much  larger  extent  be  able to benefit  from  funding  from 
the  European  Investment  Bank  (EIB),  the  European  Bank  for  Reconstruction  and 
Development  (EBRD)  and  other  international  financial  institutions. 

6.3.3. 

Research.'development  and  demonstration. 

Research,  development  and  demonstration  is  a  policy  area  where  Community  support  can 
have a significant  impact and therefore Community efforts  need to be strengthened. With most 
renewable  technologies  being  innovative,  with the one exception  of  large  scale  hydropower, 
there  is  a  need  for  a  targeted  effort  to  improve  the  cost  effectiveness,  and  technical 
performance  and reliability  of renewables through  research, development  and  demonstration. 
The  JOULE-THERMIE programme,  which  covers  both traditional  R&D  and  demonstration 
in the  field  of non-nuclear  energy, intends to devote a significant  part  of  its budget,  i.e. 45% 
to  support  of  activities  aimed  at  developing  and  promoting  renewables.  The  JOULE-
THERMIE  programme  has  an  indicative  budget  of  1030  millions  ECU  for  the  four-year 

39 

period from  1995-1998. Following the  1995 JOULE call for proposals, 93 R&D projects were 
accepted  for  support  totalling  approximately  80 million  ECU  in the  renewable  sector.  The 
1996  THERMIE  call  for  proposals  resulted  in the  selection  of  41  demonstration  projects  in 
the  renewable  sector  with  a  support  of  35.3  million  ECU.  As regards  associated  measures, 
notably  dissemination of results, 48 projects were supported in  1996 in this sector with a total 
level  of  support  of  17.7 million  ECU. 

Under  the JOULE  and the THERMIE programmes the rate of  support which  can be  granted 
from  the  Community  budget  can  cover  a  maximum  of  50%  of  the  eligible  cost  of  R&D 
projects  and  40%  of  the  eligible  cost  of  demonstration  projects.  This  means  that  projects 
which  carry  a  considerable  amount  of  financial  and  technical  risk  can  be  implemented  with 
the  help  of  the  JOULE-THERMIE  programme. 

The RTD  activities  as regards  renewable raw material production  for  destinations  other  than 
human  or  animal  consumption  are  a  principle  objective  of  the  specific  FAIR  programme, 
covering  the  period  1995  to  1998.  The  research  efforts  concentrate  on  the  to  non-food 
applications  of  crops  and  the  recycling  of  agricultural  and  processing  residues  at  the  farm 
level.  The  total  budget  for  these  actions  account  to  52 million  ECU.  The  research  cover  a 
wide  range  of  crops  and  plants.  The  research  undertaken  so  far  indicates  that  non-food 
development of agricultural and forestry  biomass offer  interesting prospects for  a contribution 
to the development  of the rural  areas. Consideration  should be given to how this  programme 
should  be  followed  up. 

Within  the  existing  programmes  for  Community  non-nuclear  energy  research,  development 
and  demonstration  renewables  features  as  a  high  priority.  The  JOULE  and  THERMIE 
programmes  have thus offered  a major  contribution  to the maturing process of renewables  in 
the  Community.  The  same is true  for  some Member  States which, by  allocating  appropriate 
funding,  conduct a future-oriented  research and development policy. It is a course for  concern, 
however,  that  generally,  funding  for  energy  RD&D  is  stagnating  or  declining  in  both  the 
private  sector,  as  a  result  of  industrial  restructuring,  and  the  public  sector  as  a  result  of 
increasing fiscal constraints in government. Although all Member States support technological 
development of renewable  sources of energy, there are, however, very  large differences  in the 

30 

commitments  that  the  Member  States  are  prepared  to  take  in  this  field  .  It  is  therefore 
proposed that the Community programmes concerning technological development  in the field 
of  renewables  are  reinforced.  In  view  of  the  critical  phase  at  which  the  renewable  energy 
technologies  find  themselves  at  the  moment,  it  is,  as  part  of  the  strategy,  particularly 
important  to  establish  clear  objectives  for  the  5th  Framework  Programme. 

A renewable  energy  source, as used nowadays, is seldom sufficient  in its own right.  In  order 

30  Recent  data  from  the  IEA  demonstrate  that,  in  1995, the  share  of Government  funding  for  R&D 
in renewables  measured  as the share of overall  funding  for energy  R&D varies from  less than  1% 
(France)to  46%(Spain). In absolute  terms there  are  similar  large  variations;  IEA  Energy  Policies 
of  IEA  Countries,  1996  Review,  Paris  1996. 

40 

to guarantee the supply several sources need to be combined.  Telematics system and services 
can  play  an  important  role  in  optimising  the  supply  of  energy  extracted  from  renewable 
sources  by  automatically  and  continuously  monitoring  and  adjusting  the  production 
parameters.  Furthermore, telematics applications can support the optimisation of the energy 
consumption  and  adapt  production  to  the  consumption  pattern.  The  use  of  telematics 
applications and technologies may become a crucial  factor  in demonstrating the viability of 
the use of renewable  energy  sources.  Consideration should be given to how such telematic 
applications and services  can be supported in future  Community RTD actions in the area of 
Information  Society  Applications,  in  order  to  assist  the  promotion  of  renewable  energy 
technologies. 

In the current  economic  situation, there are significant  constrains on public spending in the 
Community  and in the Member  States. It is essential that the funding  which  is available is 
used  in  the  best  possible  way  and  that  support  to  R,D&D  activities  related  to  renewable 
energy  technologies  is  of  a  scale  that  guaranties  its  effectiveness.  The  Commission  will 
therefore  reconsider the funding  made for research in the various areas of energy, including 
the  current  break-down  of  funding  for  nuclear  and  non-nuclear  energy  research.  While 
recognising the research work which is essential for the development of technologically  less 
mature renewables, the Commission is convinced that the key to more market penetration of 
renewables  lies  at  the  tail-end  of  the technological  process, i.e.  in the  market  introduction 
phase.  The  Commission  will,  in  the  implementation  of  its  instruments  in  this  area,  pay 
particular  attention to this aspect. 

To  summarise,  the  key  questions  related  to  RD&D to  be  addressed  in  the  debate  on  this 
Green Paper  is the  setting of appropriate RD&D priorities  in the field of renewable energy 
sources, in particular with a view to ensuring the best possible renewable energy contribution 
to the Community  energy balance and with a view to contributing to a strengthening of the 
position of the European renewable  industry in the global market place. 

41 

6.3.4.  Regional  policy 

A balanced and sustainable economic development in all regions of the Community  is another 
main objective  for  the Community to which renewable energy  sources can  contribute.  Given 
the  importance  of  energy  to  the  overall  performance  of  the  economic  system,  energy  plays 
a  major  role  in  the  Community's  policy  in  the  field  of  regional  development.  Renewable 
energy  resources  are often  located  in remote and  scarcely populated  areas of the  Community 
and the promotion  of these energy  sources, especially  in peripheral  regions, islands and  rural 
areas,  is  particularly  attractive,  as  has  been  demonstrated  for  instance  with  the  programme 
VALOREN. 

In the  framework  of  the  structural  funds  of  the  Community  financial  support  for  renewable 
energies  for  assisted  areas  can  be  provided  to  less  favoured  regions  under  Objective  1,  in 
accordance  with  the  priorities  and  strategic  objectives  of  each  Member  state  concerned. 
Within  the  framework  of  the  structural  funds,  financial  support  for  exploiting  renewable 
energy  potential  has  been  granted  to  virtually  all  the  regions  concerned.  In  Portugal,  for 
instance, support is provided for the development of small scale hydro-electric  generators and 
wind turbines up to a total capacity of  170 MW, corresponding to approximately  1.7% of total 
electricity  consumption  in  Portugal. 

Given the  particular  benefits  arising  from  development  of  renewables  in  the  less  developed 
regions  of  the  Community  and  the  positive  impact  of  such  a  development  for  small  and 
medium-sized  enterprises  (SME's), the  Commission proposes to place  particular  importance 
on  these  aspects  in  the  implementation  of  the  general  policies  put  in  place  for  regional 
development  and  promotion  of  SME's.  Appropriate  support  would  also  need  to  be  given  to 
the creation  or reinforcement  of the role of regional  and  local structures charged  with  energy 
planning  and programming  functions.  The ALTENER programme has already  contributed  to 
the development  of renewables in the less developed regions and the JOULE-THERMIE  also 
places particular  importance  to this aspect,  as well  as to the role  of  SME's.  Furthermore,  the 
Commission  has  supported  regional  and  local  energy  management  schemes,  including  the 
creation  of  local  and  regional  energy  agencies,  in  the  framework  of  the  pilot  action  known 
as  "Energy  Programming  at  Regional  and  Local  Level".  In the  future  these  actions  will  be 
continued  under  the  SAVE  II  programme. 

The Commission will, on the basis of the reactions to the Green Paper,  further  consider  how 
to  address  the  specific  problems  facing  renewables  in  remote  areas,  and  in  areas  where 
development  of  renewable  energy  is  a  appropriate  way  of  fostering  economic  activity  and 
job  creation.  As  indicated  in  section  4.4  above,  SME's  play  a paricularly  important  role  as 
regards  renewable  sources  of  energy  and  the  Commission  will,  therefore,  pay  particular 
attention  to  the  specific  problems  faced  by  SME's  in  this  area.  Furthermore,  given  the 
important aspects related to renewables in the tourism industry, the Commission will consider 
ways  in  which  use  of  renewable  sources  of  energy  can  be  increased  in  regions  with  high 
touristic  activity  including  how promotion  of  passive  and  active  solar  systems  can  be  made 
in tourist  facilities  and  installations. 

42 

6.3.5. 

Agriculture and Forestry  Policy 

In the agriculture and forestry sectors, the production of  renewable energy sources represents 
a considerable potential for additional sources of income for the farmers and the reduction of 
C02  emissions  as  a  result  of  energy  crop  use.  Furthermore,  renewable  energy  sources 
represents additional employment possibilities in rural areas31. 

In spite of the fact that the instruments of the Common Agricultural Policy (CAP) primarily 
are  directed  towards  food  supply  security,  the  production  and  development  of  renewable 
energy is currently supported by a range of measure. Processing and marketing of agricultural 
products are promoted under Council Regulation (EEC) No 866/90, in the form of co-funding 
investment  projects  with  the  Member  States  concerned.  Although  this  scheme  typically 
concerns Annex II  products, the  oilseeds/biodiesel  chain has been  included.  Investments in 
heat production (for example biomass heating plants) are excluded from the scheme as "heat" 
is not classified under Annex II, and control problems could ensue. Investments in renewable 
energy projects may, furthermore, be made within the context of rural development policy (as 
described in the previous section)  and  a number of R&D activities in the agricultural sector 
are  included  and  actively  supported  under  the  Community\s  Framework  Programme  for 
RD&D, as described in section 6.3.3. 

Moreover,  the  "non-food"  set-aside  scheme maintains the  farmer's  right to compensation  if 
land which would otherwise be taken out of production is used to provide raw materials  for 
"non-food"  use, including  energy. The scheme is limited  by two factors.  On the one hand, 
the obligatory rate of set-aside is a function  of food  cereals supply and demand implies that 
this rate is subject to change.  On the other hand, by-products resulting from  the cultivation 
of certain oilseeds on set-aside land are limited by the Blair House Agreement to one million 
tonnes of soya bean meal equivalents for the feed/food  market annually. The harvest of 1995, 
based on an obligatory  set-aside rate of  12%, resulted in some 950,000 tonnes of these by 
products.  There is, however, no strategy for raw material production for energy.  As such we 
are faced  with the dilemma that the quantity of raw material production associated with,  for 
example, biofuels  is dependent on the market situation in the food sector. If there were to be 

31  Estimates from  the  Hearing  of  the  European  Parliament  of  6 May  1996 envisage  a fifteen 

fold 
increase  in job  potential,  under a fixed  cost scenario,  if electricity  were to be produced from  wood 
rather  than  oil  or gas.  This represents  a potential  of creating  up to  160,000 new jobs  in  the  EU 
even  if  biomass  were  to  represent  5%  of  total  energy production.  Furthermore,  the  European 
Parliament's  Committee  on Agriculture  and Rural  Development  recently,  in the framework  of the 
Commission's  White Paper  on Energy Policy,  unanimously  adopted  an Opinion  highlighting  the 
role of renewables,  and in particular  biomass, in energy policy.  The Committee  takes the view  that 
biomass  could  cover about  10 % of the energy  requirements  of the European  Union by 2010  and 
about  20  % by 2025. It points  out  the positive  characteristics  and  effects  of an  increased  use  of 
biomass, and notably  the positive  income effects for  the agricultural  sector  and illustrates  the  way 
in which  developments  in this area  can reduce  the needs for  subsidies  in the agricultural  sector. 

43 

a  tight  supply  situation  in  the  food  market,  the  set-aside  area  would  be  reduced  with  a 
consequent  reduction  of  the  quantities  of  raw  materials  for  biofuels.  The  biofuels  industry, 
however,  requires  long  term  raw  material  supply  security  in  order  to  satisfy  long  term 
investments. This clearly  highlights  the limitations of the  set-aside  scheme  as a basis  for  the 
supply  of  raw  materials  for  bioenergy 

Additional  obstacles  for  the  financial  support of the  sector include  the  limitations  set  by  the 
GATT rules if support of agricultural  or forestry  raw materials were to result in prices  below 
the  world  market  level.  Moreover,  the  level  of  premium  per  hectare  required  to  make 
biofuels  competitive  with  fossil  fuels  would  burden  the  agricultural  budget  significantly. 
Under current economic, technical and policy circumstances (eg fossil fuel  prices, détaxation, 
energy  and  environmental  legislation)  farmers'  incomes  would  have  to  be  supported  some 
30%  over  and  above  the  level  associated  with  the  general  oil  seeds  scheme  to  make  "non 
food"  oilseeds for  biofuels  competitive  with food/feed  oilseeds. This would  imply  additional 
budget  resources  amounting  to  some  billions  ECU  for  EU  as a whole. 

Finally,  at the  Blair  House  Agreement  limits  increased  production  of  biofuels  from  oilseeds 
grown on set-aside land,  as an increase of the one million  tonne by-product  limit  in terms  of 
soya bean  meal  equivalents  can  not  realistically  be  expected. 

In  spite  of the  specific  obstacles there  is scope  for  action  aimed  at promoting  renewables  in 
the  agricultural  sector.  Such  action  will  depend  on  the  specific  conditions  of  the  various 
energy  sectors. For  liquid  biofuels  the basic questions relate to the possibility  of  introducing 
a policy  for  raw material  supply  independent  of  set-aside. Within the  context  of  a  minimum 
guaranteed area for  energy crops, the question of compensating farmers for the loss of income 
resulting  from  growing  such  crops,  as  opposed  to  food  crops,  should  be  addressed. 
Furthermore,  it  should  be  considered  how  biofuels  could  be  competitive  with  fossil  fuels  if 
the  exemption  of  excise  duties  for  biofuels  were  to  remain  blocked  in  the  Council  and 
whether  or  not  a minimum  incorporation  of  biofuels  is required  in  certain  specific  markets. 

For  biomass, in  particular,  it  could  be  considered  if  amendment  of  support programmes,  for 
example  Council  Regulation  (EEC) No  866/90 is required  in order to  allow the eligibility  of 
heat production  from  biomass and if it is opportune to establish a specific  support scheme  for 
"non-food"  raw  materials  independent  of  the  set-aside  scheme. 

Leaving  aside  the  question  of  taxation,  agriculture  clearly  represents  a  key  area  for  the 
advancement  of  renewable  energy.  Obviously  international  commitments  such as the  GATT 
Agreement  in  general,  the Blair  House constraint  in particular  and  the  Rio  Convention  have 
to be taken into account. The Commission will, on the basis of the Green Paper, consider how 
the  importance  of  renewable  energy  in  agricultural  policy  and  rural  development  can  be 
further  reflected  in  agricultural  policies.  A key  question,  which  must  be  addressed,  is  how 
the  conflicting  aims  between  the  food  and  the  "non-food"  sectors  (energy)  can  be  better 
managed. 

44 

6.3.6. 

Actions  in the  field  of  external  relations  policy 

The external  dimension  of renewables  cannot be ignored.  In a global perspective  renewables 
play a much more prominent role as an energy source than in the Community, with more than 
20% of the worlds energy needs currently  being met by renewables. This, however,  is due to 
a significant use of traditional firewood  in many developing countries. It should, however, not 
distract  the  attention  from  the  fact  that  there  is  a  large  potential  for  exploitation  of  other 
renewable  sources  in  many  parts of the world.  In many  cases the  development  of  renewable 
sources of  energy  can  improve  quality  of life  to those millions of people which  live in  areas 
deprived  of  modern  conveniences  made  possible  by  the  availability  of  energy.  By  way  of 
example,  120 million people in China presently live without electricity.  The same is the  case 
for  20  millions  Russians. 

External relations are becoming  an increasingly important part of the European Union's brief. 
The Union  is present  in all corners of the world  and  is operating  a number  of  large  scale  co 
operation  and  assistance  programmes  in  Central  and  Eastern  Europe,  the  NIS,  Africa,  the 
Mediterranean  Basin, Latin-  and  South  America  and  Asia.  The  energy  component  of  these 
programmes  is  important  and  although  renewables  is not  in all  cases the top  may  not  be  the 
only  priority,  development  of  indigenous  and  renewable  sources  can  often  foster  economic 
and  social prosperity  and  cohesion. 

The Community's  SYNERGY  programme, covering  energy  cooperation  with  third  countries 
has promotion of renewables among its priorities  in certain regions.  The programme  has, by 

way  of example, provided  support to the renewable  energy  centre in Elblang,  Poland,  aimed 
at promoting renewable energy sources in the entire Baltic region.  The Commission has also 
participated  in the so-called World  Solar Summit Process initiated in  1993 under the  auspices 
of UNESCO.  This process culminated  in a solar summit in Harare on  16-17 September  1996. 
The  summit  adopted  a  political  declaration  and  launched  a  world  solar  programme  for  the 
period  1996-2005 where strategic projects  of general  interest, notably  education and training, 
and  other  high  priority  projects  should  be  implemented. 

The energy  sector is of major  importance for the overall economic development of the Central 
and  Eastern  European  countries  as well  as the New  Independent  States  and  Mongolia.  This 
is reflected  by the share of the energy sector in the PHARE and TACIS programmes  assisting 
these  countries  in  their  reform  process.  Promotion  of  renewable  energy  has  not  been 
prominent till now, given that the partner countries have not given renewable energies priority 
in  view  of  the  available  supplies  of  fossil  fuels,  and  the  difficulties  encountered  in  the 
restructuring  of  the  energy  sector  as a whole. 

In pursuit  of the  Europe  agreements  and  the partnership and  Cooperation  Agreements  which 
expresses the importance  of  sustainable development  and  its integration  into  policies for  e.g. 
energy, the  Commission will  stress the importance  of renewable  energies  in  its contacts with 
the  partner  countries.  Some  small  projects  for  renewable  energies  already  have  been 

45 

supported,  and  it  has  been  proposed  to  support  a  major  renewable  energy  project  in  the 
framework of the PHARE Multicountry programme for  1997. Certain countries, including the 
Baltic States, Bulgaria and FYROM, have also introduced specific demands for assistance in 
the framework of their national programmes. 

In view of the fact that certain regions of Central and Eastern Europe are well endowed with 
renewable  sources,  and  in  view  of  the  fact  that  renewables  especially  in  rural  areas  can 
strengthen  the  regional  development,  the  Commission  recognises  the  need  that  renewable 
sources of energy require increased attention. 

As  a  consequence  of  the  increasing  political  priorities  for  establishing  a  framework  for 
improved  cooperation  between  the EU and the  non-EU  mediterranean  countries,  including 
cooperation  in  the  field  of  energy,  there  is  also  a  case  for  examining  in  more  detail  the 
contributions  that  renewables  could  make  to  the  energy  needs  of  this  region.  Generally 
renewable  sources  are  plenty  and  the potential,  in  particular  for  solar  and  wind  energy  is 
currently  not  exploited  to  its  maximum. 
In  the  framework  of  the  continuing  Euro-
Mediterranean energy cooperation the appropriate cooperation and assistance instruments, such 
as the MEDA programme and the Euro-Mediterranean  Forum must, as a matter of priority, 
address the scope for  further  cooperation on renewables in the Mediterranean region. 

In developing countries in particular renewables can play a key role in accelerating economic 
and sustainable growth.  Renewable energy technologies are particularly well suited in remote 
areas of  developing  countries which  are often  not connected  to the grid.  Furthermore, the 
meteorological conditions in many developing countries favour renewable sources of energy, 
in particular  solar energy applications. 

Increased energy consumption in the developing countries will be a major  factor  accounting 
for the deterioration of the global atmospheric Conditions.  Although at present high income 
countries are still the major  energy users, by the middle of the next century  the developing 
countries,  as  defined  today,  will  account  for  the  largest  share  of  the  world's  commercial 
energy use.  In many developing countries it will be difficult  to meet environmental objectives 
by retrofitting pollution controlled technologies onto energy technologies originally designed 
without consideration for environmental problems.  The use of renewable energy technologies 
can be helpful  in such circumstances because they offer  a high degree of inherent cleanliness, 
without the need for  ancillary pollution control equipment. 

It  must  therefore  be  ensured  that  sufficient  emphasis  is  given  to  renewables  in  the 
implementation  of  the Community's programmes  in this area.  Use can be made of  all the 
various existing cooperation  instruments, including in particular the instruments of  financial 
and  technical  assistance,  instruments  of  economic  cooperation,  including  investment, 
promotion  and cooperation between European and  local firms, and instruments of  scientific 
and technological  cooperation. 

46 

Furthermore  the  demand  for  renewable  energy  technologies  will  primarily  increase  in 
developing countries markets. In particular electricity markets are expected to become  fiercely 
competitive "buyers markets", where the risk of becoming marginalised will be great for  many 
industrialised  country  vendors,  if  appropriate  technologies  are  not  developed  and  marketed 
competitively.  Renewables  represent  a  vast  potential  for  economic  cooperation  of  mutual 
interest  to  the  EU  and  to  third  countries.  The  EU  can  gain  direct  and  indirect  commercial 
benefits  and  the  third  countries  can  benefit  from  accelerated  sustainable  development.  The 
Climate  Change  Convention  provides  for  joint  implementation  of  measures  between 
contracting  parties  for  the attainment  of emission targets.  A  better  use of  this  facility  could 
contribute  to  increased  transfer  of  renewable  technologies  to  developing  countries  and  thus 
provide  new  export  opportunities  for  the  EU  industry. 

A clearly  defined  and ambitious renewable  energy  strategy  will  therefore  also in this  respect 
be  indispensable  and  allow  the  EU  industry  to  compete  successfully  in  the  global  market 
place. 

Given  the  important  role  that  renewable  energy  sources  can  play  in the  external  policies  of 
the Community, the Commission will, on the basis of the debate on this Green Paper,  further 
reflect  on  ways  in  which  the  Community  can  ensure  that  the  potential  for  developing 
renewable  energy  in  third  countries  is  sufficiently  well  emphasised  within  the  existing  and 
future  Community  cooperation  instruments. 

6.4. 

Assessment and  Monitoring 

The  Community's  statistical  authorities  (Eurostat)  has  established  a  system  for  regular 
collection  of  statistics  in  the  EU  on  which  the  quantitative  objective  contained  in  the 
ALTENER  programme  can  be  evaluated.  This  system  is  based  on  a  methodology  for  the 
collection  of  data  and  its  incorporation  into  the  energy  balances.  These  essential  activities 
must  be  continued  With  a  view  to  monitoring  the  progress  towards  the  objectives  of  a 
Community  strategy. 

The  statistical  information  related  to  some forms  of  renewable  energy  is based  on  estimates 
while others can be measured to the last kilowatt-hour.  Residential solar and ambient  energies 
are  examples  of  renewable  energy  where  statistics  currently  have  to  be  on  estimates. 
However,  as  the  statistics  is produced  consistently,  quantitative  monitoring  is  possible.  The 
quality  of  statistics  can,  nevertheless, be  improved  with  field  studies  and  surveys. 

There  is,  furthermore,  a  case  for  improving  the  coordination  and  data  collection  as  regards 
the actions on renewables undertaken within the various programmes of the Community.  One 
proposal  is  that.the  Commission  explores  the  possibility  of  creating  a  database  which  can 
register all Community  support given to renewables. The database could  also, on the basis of 
a  notification  system  to  be  put  in  place,  register  the  actions  undertaken  at  national  level  in 
addition  to  the  notifications  made  to  the  Commission  under  the  state  aid  rules.  In  this  way 
policies  affecting  renewables  and  progress towards  increasing  the  share  of  renewables  could 

47 

be monitored reliably  and  effectively. 

7. 

Next steps. 

This Green Paper is the first step in the establishment of a strategy for renewable sources of 
energy. It is intended  to open up a debate on what are the most urgent and most  important 
measures that could be undertaken at Community and Member State level and on the nature 
of these specific actions.  The Commission therefore invites all interested parties to contribute 
to the process by forwarding  their reactions to this Green Paper and the questions raised in 
it to the Commission by the end of March  1997.  On the basis of this and the consultations 
with  Member  States,  other  Community  Institutions  and  interested  parties, the  Commission 
intends to publish a White Paper on a Community Strategy for Renewable Sources of Energy 
accompanied  by an action plan by mid-1997. 

** 

48 

Main indicators  in Renewable Energy in the European  Union 

Annex 1 

EUR 12 

EUR 12 

EUR 15 

EUR 15 

1991 

3.7 

1994 

3.9 

1991 

5.2* 

1994 

5.4 

57303 

57932 

87303 

88331 

645.5 

1626.7 

652.5 

1671.7 

Share of RES in 
Total  Inland 
Consumption (%) 

Capacity All Hydro 
(MWe) 

Capacity  Wind 
(MWe) 

Capacity  PV  (kWp) 

8726 

530 

29143 

509 

n.a. 

n.a. 

n.a. 

n.a. 

Capacity  Geoth. 
Elect (MWe) 

Elect.  Production 
All  RES  (GWh) 

of which (%): 

Hydro 

Wind 

PV 

Geothermal 

Biomass 

Biofuels  Production 
(ktoe) 

Source Eurostat 
*  1992 

174364 

205613 

290513 

324232 

92.8 

0.6 

0.0 

1.8 

4.8 

n.a. 

91.5 

1.6 • 

0.0 

1.6 

5.3 

257.6 

91.7 

0.4 

n.a. 

n.a. 

6.8 

n.a. 

91.1 

1.1 

n.a. 

n.a. 

6.8 

n.a. 

49 

RENEWABLE  ENERGY  PRODUCTION  IN  AUSTRIA 

o 

Year 

Renewable  Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 
(kWp) 

A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 
A 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltaic» 
Geoth.electr 
Geoth.heat 
MSW 
Wood in h/hoids 
District heating 
Wood in industry 
Power stations 
Biofuels 
Landfill gas 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat productten 

Electrical 
Installed 
capacity 
fMWe* 
11274.0 

Thermal 
Installed 
capacity 
(MWtM 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
CTJ) 

, 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
(GWh) 

RES primary 
energy 
production 

RES primary 
energy 
production 
fktoeW 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe^ 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total 
electricity 
generation 
(GWM 

35706 

128542 

' 

0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
130154 
258696 

2871.0 

38577.0 

_, 

0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 

3070.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
3108.5 
6179 

_  . 

0.0 
0.0 
0.0 

0.0 

0.0 

8610 

26062 

54645 

Figures for  specific energy sources are not available 

(Source: Eurostat) 

RENEWABLE ENERGY PRODUCTION IN BELGIUM 

^ 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m1) 

PVC 
capacity 
(kWp) 

Electrical 
installed 
capacity 
(MWel 

Thermal 
Installed 
capacity 
CMWtM 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
CTJ) 

Autoconsumptlon 
(TJ) 

RES 
electricity 
generation 
fGWh) 

RES primary 
energy 
production 
im 

RES primary 
energy 
production 
(Mot) 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total 
electricity 
generation 
/GWh) 

112.7 
4.7 
45.0 
63.0 
5.2 

0.0 

36.4 

48 

B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 
B 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltaic» 
Geoth.electr 
Geoth.heat 
MSW 
Wood in h/holds 
District heating 
Wood In Industry 
Power stations 
Biofuels 
Landfill gas 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

8.3 

1608200 

7865 

0.0 

5307.1 
7384.0 
0.0 
0.0 
2461.3 
296.5 
24.0 
92.5 
0.0 
311.9 
15580.8 

40.0 
0.0 
37.2 

343.1 
11.8 
143.5 
187.8 
8.6 

0.1 
0.0 

455.0 

58.8 

2.0 
1.8 

0.0 
517.6 

869.4 

1235 
42 
517 
676 
31 
37 
0 
0 
53 
5307 
7384 
0 
0 
2461 
297 
24 
93 
0. 
312 
15581 
17234 

29.5 
1.0 
12.3 
16.1 
0.7 
0.9 
0.0 
0.0 
1.3 
128.8 
176.4 
0.0 
0.0 
58.8 
7.1 
0.6 
2.2 
0.0 
7.4 
372.1 
411.8 

36.6 

53.3 
181.4 
7384.0 
0.0 
0.0 
2171.1 

0.0 
77.7 

274.7 
10088.9 

10178.8 

(Source: Eurostat) 

7384.0 

0.0 
0.0 
0.0 
0.0 
0.0 
0.9 
0.0 
0.0 
1.3 
4.3 
176.4 
0.0 
0.0 
51.9 
0.0 
0.0 
1.9 
0.0 
8.6 
241.0 
0.0 
0.0 
243.1 

10885 

50294 

72236 

RENEWABLE ENERGY PRODUCTION IN DENMARK 

G 

Thermal 
Installed 
capacity 
<MWtM 
* 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
(TJ) 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
(GWIrt 

RES primary 
energy 
production 
fTJÏ 

RES primary 
energy 
production 
flctoel 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total 
electricity 
generation 
fGWM 

7.0 
693.0 

19060.0 
15414.0 
8032.0 
4247.0 
2179.0 
0.0 
163.0 
641.0 
557.0 
30.0 
50323.0 

62.0 
184.0 
109.0 
2.0 

32.6 
16.8 
15.8 
0.0 
1137.0 

0.0 
0.0 

525.0 

. 

189.0 

13.0 
38.0 
27.0 
0.0 
792.0 

1934.6 

117 
60 
57 
0 
4093 
185 
0 
0 
45 
19060 
15414 
8032 
4247 
2179 
0 
101 
641 
.  557 
30 
50261 
54702 

2.8 
1.4 
1.4 
0.0 
97.8 
4.4 
0.0 
0.0 
1.1 
455.2 
368.1 
191.8 
101.4 
52.0 
0.0 
2.4 
15.3 
13.3 
0.7 
1200.4 
1306.5 

185.0 

-
45.0 
13687.0 
15414.0 
7079.0 
4247.0 
1088.0 

58.0 
322.0 
357.0 
28.0 
42278.0 

42508.0 

100.0 

15414.0 

0.0 
0.0 
0.0 
0.0 
0.0 
4.4 
0.0 
0.0 
1.1 
326.9 
368.1 
169.1 
101.4 
26.0 
0.0 
1.3 
7.7 
8.5 
0.7 
1009.7 
0.0 
0.0 
1015.2 

14832 

20136 

40096 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m1) 

PVC 
capacity 
(kWp) 

Electrical 
Installed 
capacity 
fMWeï 

1994 
1994 
1994 
1994 
1994 
1994 
19,94 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltaic* 
Geoth.electr 
Geoth.heat 
MSW 
Wood in h/holds 
District heating 
Wood In Industry 
Power stations 
Biofuels  . 
Landfill gas 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

124.0 

0 

6.3 
4.4 
3.9 
0.0 
532.0 

0.0 

72.0 

3.5 
6.9 
8.9 
0.0 

• 

Dk 
Dk 
Dk 
Dk 
Ok 
Dk 
Dk 
Dk 
Dk 
Dk 
Dk 
Dk 
Dk 
Dk 
Dk 
Dk  -
Dk 
Dk 
Dk 
Dk 
Dk 
Dk 
Dk 

(Source: Eurostat) 

RENEWABLE ENERGY PRODUCTION IN GERMANY 

Year 

Renewable Energy 
Source 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltalcs 
Geoth.electr 
Geoth.heat 
MSW 
Wood In h/holds 
District heating 
Wood in Industry 
Power stations 
Biofuels 
Landfill gas 
Sewage sludge 
Farm shinies 
A-f Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat pjwjuction 

D 
D 
D 
D 
D 
D 
D 
D 
D 
D 
0 
D 
D 
D 
D 
D 
D 
D 
D 
D 
D 
D 
D 

Collectors 
surface 
(1000m1) 

PVC 
capacity 

(KWp) 

Electrical 
Installed 
capacity 
fMWe> 

Thermal 
Installed 
capacity 
CMWth) 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
CTJ) 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
(GWM 

RES primary 
energy 
production 
CTJ) 

RES primary 
energy 
production 
fktoel 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total 
electricity 
generation 
(GWh) 

1148.4 

10446 

4310.0 
417.0 
934.0 
2959.0 
643.0 

0.0 

499.0 

79.0 

6.9 

20.0 
1400.0 

• 

43393.0 
91612.0 

10658.0 
22335.0 
1120.0 

13669.0 
95.Q. 
172.3 
181934.3 

28000 

. 

19599.3 
1611.6 
5335.9 
12651.8 
1428.0 

4.3 
0.0 

2611.7 
» 

414.8 

523.9 
45.3 
6.1 
13.4 
3615.2 

24640.7 

70557 
5802 
19209 
45546 
5141 
1510 
15 
0 
'  360 
44616 
91612 
0 
10658 
22335 
1120 
0 
13669 
95 
172 
183157 
261861 
, 

1685.2 
138.6 
458.8 
1087.8 
122.8 
36.1 
0.4 
0.0 
8.6 
1065.6 
2188.0 
0.0 
254.5 
533.4 
26.7 
0.0 
328.5 
2.3 
4.1 
4374.4 
6254.1 

1510.0 

360.0 
17056.0 
91612.0 
0.0 
10658.0 
6040.0 

56.0 
3149.0 

42.6 
128613.6 

130483.6 

0.0 
0.0 
0.0 
0.0 
0.0 
36.1 
0.0 
0.0 
8.6 
407.4 
2188.0 
0.0 
254.5 
144.3 
0.0 
1.3 
75.2 
0.0 
1.0 
3071.7 
0.0 
0.0 
3116.4 

1007.0 

91612.0 

141094 

333991 

52S229 

(Source: Eurostat) 

RENEWABLE ENERGY PRODUCTION IN GREECE 

Year 

Renewable Energy 

Source 

Collectors 

PVC 

surface 

capacity 

(1000m*) 

(KWp) 

Electrical 

Thermal 

Installed 

capacity 

fMWei 

Installed 

capacity 

(MWthl 

Fuel 

consumption 

(tonnes) 

Fuel 

RES 

RES  primary 

R ES  primary 

consumption 

Autoconsumption 

electricity 

energy 

energy 

/Heat Input 

(TJ) 

generation 

production 

production 

fTJl 

(GWh) 

CTJ) 

(ktoe) 

RES  heat 

RES  heat 

RES  heat  for 

Total  primary 

Total  Inland 

production 

production 

domestic 

production 

consumption 

(TJ) 

(ktoe) 

use  (TJ) 

(ktoe) 

(ktoe) 

Total 

electricity 

gener» tlon 

fGWhî 

1900.0 

235 

2525.7 
2.7 
39.0 
2484.0 
26.9 

2.0 

0.0 

0.5 

Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 
Gr 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro-1 MW 
Hydro 1-10 MW 
Hydro  1 0 + MW 
Wind 
Solar  pannels 
Photovoltalcs 
Geoth.electr 
Geoth.heat 
MSW 
Wood  In h/holds 
District  heating 
Wood  in  Industry 
Power  stations 
Biofuels 
Landfill gas 
Sewage  sludge 
Farm  slurries 
A -F  Industry 
Total  biomass 
Total primary  energy 
Total electricity gener. 
Total heat production 

27.2 

1.4 

2.1 

293418 
4500 
0 

0.0 
53510.0 
0.0 
4912.0 
68.0 
0.0 

0.0 
1.4 
30.1 
58521.5 

2605.3 
7.5 
96.6 
2501.2 
37.4 

0.2 
O.'O 

0.0 

1.4 

0.0 
0.0 
0.0 
0.0 
1.4 

2844.3 

9379 
27 
348 
9004 
135 
4104 
1 
0 
173 
0 
53510 
0 
4912 
68 
0 
0 
0 
1 
30 
58522 
72313 

224.0 
0.6 
8.3 
215.1 
3.2 
98.0 
0.0 
0.0 
4.1 
0.0 
1278.0 
0.0 
117.3 
1.6 
0.0 
0.0 
0.0 
0.0 
0.7 
1397.7 
1727.1 

4104.0 

173.4 
0.0 
53510.0 
0.0 
4912.0 
31.7 

0.0 
0.0 
1.4 
0.0 
58455.1 

62732.5 

O.C 
0.0 
0.0 
0.0 
0.0 
98.0 
0.0 
0.0 
4.1 
0.0 
1278.0 
0:0 
1.17.3 
0.8 
0.0 
0.0 
0.0 
0.0 
0.0 
1396.1 
0.0 
0.0 
1498.3 

4104.0 

53510.0 

9669 

24129 

r 

40623 

(Source: Eurostat) 

RENEWABLE ENERGY PRODUCTION IN SPAIN 

Thermal 
Installed 
capacity 
fMWtM 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
CTJ\ 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
iGWM 

RES primary 
energy 
production 
CTJ) 

RES primary 
energy 
production 
fktoe> 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total 
electricity 
generation 
(GWM 

652800 
7008060 

3351787 
2101980 

t 

4849.0 
88024.0 
0.0 
42100.0 
26379.2 
0.0 
389.6 
0.0 
34.3 
518.1 
162294.2 

24351.1 
649.4 
2745.5 
20956.2 
175.2 

2.0 
0.0 

230.0 
» 

489.8 

34.3 
0.0 
0.0 
0.0 
754.1 

25282.4 

87664 
2338 
9884 
75442 
631 
1005 
7 
0 
273 
4849 
88024 
0 
42100 
26379 
0 
390 
0 
34 
518 
162294 
251874 

2093.7 
55.8 
236.1 
1801.8 
15.1 
24.0 
0.2 
0.0 
6.5 
115.8 
2102.3 
0.0 
1005.5 
630.0 
0.0 
9.3 
0.0 
0.8 
12.4 
3876.1 
6015.6 

1005.0 

160.2 
68024.0 
0.0 
42100.0 

0.0 
0.0 
34.3 
518.1 
130836.6 

131841.6 

0.0 
0.0 
•0.0 
0.0 
0.0 
24.0 
0.0 
0.0 
0.0 
3.8 
2102.3 
0.0 
1005.5 
0.0 
0.0 
0.0 
0.0 
0.8 
12.4 
3124.8 
0.0 
0.0 
3148.8 

88024.0 

32234 

97400 

161600 

• 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 
(kWp) 

309.3 

1204 

E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 
E 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltales 
Geoth.electr 
Geoth.heat 
MSW 
Wood in h/holds 
District heating 
Wood In Industry 
Power stations 
Biofuels 
Landfill gas 
Sewage aludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

Electrical 
Installed 
capacity 
fMWeï 
12636.0 
191.0 
1051.0 
11394.0 
74.9 

0.0 

40.3 

182.6 

1 

(Source: Eurostat) 

RENEWABLE ENERGY PRODUCTION IN FRANCE 

Electrical 
Installed 
capacity 
(MWe) 
20773.0 
433.0 
1510.0 
18830.0 
3.4 

4.7 

185.0 

216.0 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 
(kWp) 

374.0 

42 

F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 
F 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro ail 
Hydro -1 MW 
Hydro 1-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltalcs 
Geoth.electr 
Geoth.heat 
MSW 
Wood In h/holds 
District heating 
Wood in Industry 
Power stations 
Biofuels 
Landfill gas 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

Thermal 
Installed 
capacity 
(MWtht 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
CTJ) 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
fGWM 

27825 

102607 

0.0 

33670.0 
299411.0 
378.0 
59500.0 
4952.0 
4104.3 
888.0 
412.0 
0.0 
0.0 
399211.0 

79036.0 
1872.0 
6457.0 
70707.0 
9.0 

0.0 
0.0 

551.0 

692.0 

119.0 
22.0 
0.0 
0.0 
1384.0 

80429.0 

RES primary 
energy 
production 
CTJ) 
284530 
6739 
23245 
254545 
32 
587 
0 
0 
5070 
33670 
299411 
378 
59500 
4952 
4104 
888 
412 
0 
0 
399211 
693534 

RES primary 
energy 
production 
fktoel 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total 
electricity 
generation 
fGWM 

487.0 

299411.0 

6795.5 
161.0 
555.2 
6079.4 
0.8 
14.0 
0.0 
0.0 
121.1 
804.2 
7151.0 
9.0 
1421.1 
118.3 
98.0 
21.2 
9.8 
0.0 
0.0 
9534.5 
16564.0 

587.0 

4500.0 
19573.0 
299411.0 
321.3 
59500.0 
1560.0 

400.0 
0.0 
0.0 
0.0 
380765.3 

385852.3 

0.0 
0.0 
0.0 
0.0 
0.0 
14.0 
0.0 
0.0 
107.5 
467.5 
7151.0 
7.7 
1421.1 
37.3 
0.0 
9.6 
0.0 
0.0 
0.0 
9094.0 
0.0 
0.0 
9215.5 

120680 

228535 

476337 

I 

(Source: Eurostat) 

RENEWABLE ENERGY PRODUCTION IN IRELAND 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 
(kWp) 

Electrical 
Installed 
capacity 
CMWel 

Thermal 
Installed 
capacity 
fMWtM 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
fTJ) 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
fGWM 

RES primary 
energy 
production 
CTJ) 

RES primary 
energy 
production 
(ktoe) 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total 
electricity 
generation 
(GWM 

2.5 

56 

230.0 
5.6 
23.0 
200.0 
6.5 

0.0 

0.0 

0.0 

Irl 
Irl 
Irl 
Irl 
in 
Irl 
Irl 
Irl 
Irl 
Irl 
Irl 
Irl 
in 
Irl 
Irl 
Irl 
Irl 
Irl 
Irl 
Irl 
Irl 
Irl 
Irl 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10  MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltalcs 
Geoth.electr 
Geoth.heat 
MSW 
Wood In h/hoWs 
District heating 
Wood In industry 
Power stations 
Biofuels 
Landfill gas 
Sewage sludge 
Farm alurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

0.3 

102 

0.0 

0.0 
1735.0 
0.0 
4963.0 
0.0 
0.0 
0.0 
0.0 
0.0 
103.7 
6801.7 

23.0 

851.0 
22.0 
65.0 
742.0 
18.0 

0.0 
0.0 

0.0 

. 

0.0 

0.0 
0.0 
0.0 
0.0 
0.0 

869.0 

3064 
79 
234 
2671 
65 
4 
0 
0 
2 
0 
1735 
0 
4963 
0 
0 
0 
0 
0 
104 
6802 
9936 

73.2 
1.9 
5.6 
63.8 
1.5 
0.1 
0.0 
0.0 
0.1 
0.0 
41.4 
0.0 
118.5 
0.0 
0.0 
0.0 
0.0 
0.0 
2.5 
162.4 
237.3 

4.2 

2.1 
0.0 
1735.0 
0.0 
4963.0 

0.0 
0.0 
0.0 
80.6 
6778.6 

6784.9 

0.0 
0.0 
0.0 
0.0 
0.0 
0.1 
0.0 
0.0 
0.1 
0.0 
41.4 
0.0 
118.5 
0.0 
0.0 
0.0 
0.0 
0.0 
1.9 
161.9 
0.0 
0.0 
162.0 

4.2 

1735.0 

3628 

10968 

17105 

(Source: Eurostat) 

RENEWABLE ENERGY PRODUCTION IN ITALY 

5 

1 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 

(KWp) 

Thermal 
Installed 
capacity 
CMWtM 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
CTJ) 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
(GWM 

It 
It 
It 
It 
It 
It 
It 
It 
It 
it 
It 
It 
It 
It 
It 
It 
It 
It 
It 
It 
It 
It 
It 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltales 
Geoth.electr 
Geoth.heat 
MSW 
Wood In h/holds 
District heating 
Wood In Industry 
Power stations 
Biofuels 
Landfill gas 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

Electrical 
Installed 
capacity 
(MWeV 
12864.0 
371.0 
1585.0 
10908.0 
21.0 

160.0 

14690 

496.0 

74.0 

682.0 

104.0 

9.0 

0 

7.2 
1.2 

• 

44665.0 
1633.0 
7184.0 
35847.0 
6.3 

11.1 
3417.0 

189.0 

, 
60.4 

24.3 
2.4 
6.3 
2.5 
284.9 

48378.0 

0.0 

87866.0 

11100.0 
94300.0 
0.0 
39600.0 
2840.0 
5265.0 
293.0 
30.0 
75.0 
30.0 
153533.0 

RES primary 
energy 
production 
CTJ) 
160794 
5879 
25862 
129049 
23 
300 
40 
87868 
8916 
11100 
94300 
0 
39600 
2840 
5265 
293 
30 
75 
30 
153533 
411472 

RES primary 
energy 
production 
(ktoel 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heatfor|Total primary 

domestic 
use (TJ) 

production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total  ^ 

electricity 
génération 
(GWh) 

200.0 

94300.0 

3840.3 
140.4 
617.7 
3082.1 
0.5 
7.2 
1.0 
2098.5 
212.9 
265.1 
2252.2 
0.0 
945.8 
67.8 
125.7 
7.0 
0.7 
1.8 
0.7 
3866.9 
9827.4 

300 

8916.0 
1540.0 
9430Û.0 
0.0 
39600.0 
1227.0 

.  0.0 
0.0 
0.0 
0.0 
136667.0 

145883.0 

0.0 
0.0 
0.0 
0.0 
0.0 
7.2 
.0.0 
0.0 
212.9 
36.8 
2252.2 
0.0 
945.8 
29.3 
0.0 
0.0 
0.0 
0.0 
0.0 
3264.1 
0.0 
0.0 
3484.2 

31240 

154104 

i 

231498 

(Source: Eurostat) 

RENEWABLE ENERGY  PRODUCTION IN LUXEMBOURG 

iy 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 
(KWP) 

Electrical 
Installed 
capacity 
(MWeï 

Thermal 
Installed 
capacity 
(MWthï 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
CTJ) 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
(GWM 

RES primary 
energy 
production 
CTJ) 

RES primary 
energy 
production 
(ktoeï 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

| 

Total 
electricity 
generation 
(GWM 

0.3 

7 

27.4 
0.6 
26.8 
0.0 
0.0 

0.0 

9.5 

0.0 

0.0 

L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 
L 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10  MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltaics 
Geoth.electr  ' 
Geoth.heat 
MSW 
Wood in h/holda 
District heating 
Wood In Industry 
Power stations 
Biofuels 
Landfill gas 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

131676 
64884 

0.0 

0.0 

0.0 

1017.0 
644.6 
0.0 
0.0 
0.0 
0.0 
0.0 
34.3 
0.0 
0.0 
1695.9 

16.5 

310 
11 
299 
0 
0 
0 
0 
0 
0 
1017 
645 
0 
0 
0 
0 
•  0 
34 
0 
0 
1696 
2006 

86.1 
3.1 
83.0 
0.0 
0.0 

0.0 
0.0 

S0-.2 

0.0 

0.0 
0.0 
0.0 
0.0 
50.2 

136.3 
/ 

7.4 
0.3 
7.1 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
24.3 
15.4 
0.0 
0.0 
0.0 
0.0 
0.0 
0.8 
0.0 
0.0 
40.5 
47.9 

0.4 

0.0 
0.0 
644.6 
0.0 
0.0 
0.0 

0.0 
1.4 
0.0 
0.0 
646.0 

646.4 

0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
15.4 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
15.4 
0.0 
0.0 
15.4 

0.4 

644.6 

51 

3755 

1190 

(Source:  Eurostat) 

RENEWABLE ENERGY PRODUCTION IN THE NETHERLANDS 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 
(kWp) 

Electrical 
installed 
capacity 
(MWri 

Thermal 
Installed 
capacity 
(MWtM 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
CTJ) 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
(GWM 

RES primary 
energy 
production 
CTJ) 

RES primary 
energy 
production 
(ktoeï 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total 
electricity 
generation 
(GWhl 

142.1 

1999 

37.0 
0.2 
36.8 
0.0 
157.0 

0.0 

189.0 

0.0 

2580000 

0.0 

0.0 

NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 
NL 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro-1 MW 
Hydro 1-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltaics 
Geoth.electr 
Geoth.heat-
MSW 
Wood In h/holds 
District heating 
Wood In industry 
Power stations 
Biofuels 
Landfill gas 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat moductton 

0.0 

19786.0 
13400.0 
0.0 
1400.0 
0.0 
0.0 
2036.0 
1908.0 
0.0 
544.0 
39074.0 

629.0 
511.0 

509.0 

100.0 
1.0 
99.0 
0.0 
238.0 

2.3 
0.0 

1208.0 

0.0 

120.0 
104.0 
0.0 
1.5 
1433.5 

1773.8 

360 
4 
356 
0 
857 
118 
8 
0 
0 
19786 
13400 
0 
1400 
0 
0 
2036 
1908 
0 
544 
39074 
40417 

8.6 
0.1 
8.5 
0.0 
20.5 
2.8 
0.2 
0.0 
0.0 
472.6 
320.0 
0.0 
33.4 
0.0 
0.0 
48.6 
45.6 
0.0 
13.0 
933.2 
965.3 

118.0 

0.0 
1288.0 
13400.0 
0.0 
1400.0 

143.0 
609.0 
0.0 
29.0 
17069.0 

17187.0 

(Source: Eurostat) 

51.0 

13400.0 

0.0 
0.0 
0.0 
0.0 
0.0 
2.8 
0.0 
0.0 
0.0 
30.8 
320.0 
0.0 
33.4 
0.0 
0.0 
3.4 
19.3 
0.0 
0.7 
407.7 
0.0 
0.0 
410.5 

| 

66262 

70741 

79677 

RENEWABLE ENERGY PRODUCTION IN PORTUGAL 

^ 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 
(kWp) 

Electrical 
Installed 
capacity 
(MWei 

Thermal 
Installed 
capacity 
(MWthl 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
CTJ) 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
(GWhl 

RES primary 
energy 
production 
(TJ1 

RES primary 
energy 
production 
(ktoel 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

ToUl 
electricity 
generation 
(GWh) 

194.0 

120 

3982.0 
29.3 
205.6 
3747.5 
8.3 

5.6 

0.0 

0.0 

p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 
p 

. 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltalcs 
Geoth.electr 
Geoth.heat 
MSW 
Wood In h/hokJs 
District heating 
Wood In Industry 
Power stations 
Biofuels 
LandfIHgaa 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

10704.7 
52.7 
528.1 
10124.9 
17.0 

0.5 
33.4 

0.0 

933.0 

0.0 
0.0 
0.0 
1.3 
933.0 

11689.9 

38537 
190 
1901 
36450 
61 
607 
'2 
185 
42 
0 
61340 
0 
24629 
7063 
0 
0 
0 
0 
113 
9334S 
132779 

920.4 
4.5 
45.4 
870.5 
1.5 
14.5 
0.0 
4.4 
1.0 
0.0 
1465.0 
0.0 
593.0 
168.7 
0.0 
0.0 
0.0 
0.0 
2.7 
2229.4 
3171.2 

607.0 

42.0 
0.0 
61340.0 
0.0 
3359.0 
0.0 

0.0 
0.0 
0.0 
92.0 
64791.0 

65440.0 

0.0 
0.0 
0.0 
0.0 
0.0 
14.5 
0.0 
0.0 
1.0 
0.0 
1465.0 
0.0 
80.2 
0.0 
0.0 
0.0 
0.0 
0.0 
2.2 
1547.4 
0.0 
0.0 
1562.9 

0.0 

406.7 

61340.0 

-

3259 

19024 

31380 

185.0 

0.0 
61340.0 
0.0 
24829.0 
7063.0 
0.0 
0.0 
0.0 
0.0 
113.0 
93345.0 

0 

(Source: Eurostat) 

RENEWABLE ENERGY PRODUCTION IN FINLAND 

0^ 
to 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 
(KWp) 

Electrical 
Installed 
capacity 
(MWe) 

Thermal 
Installed 
capacity 
(MWth) 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
CTJ) 

Autoconsumption 
TJ) 

RES 
electricity 
generation 
(GWh) 

RES primary 
energy 
production 
CTJ) 

RES primary 
energy 
production 
(ktoe) 

2736.0 
27.0 
278.0 
2431.0 
5.0 

FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 
FIN 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1904 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10  MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltalcs 
Geoth.electr 
Geoth.heat 
MSW 
Wood tn h/hoWs 
District heating 
Wood In Industry 
Power stations 
Biofuels 
LandfNgas 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

1017.8 
8.8 
91.2 
917.8 
0.6 
0.0 
0.0 
0.0 
0.6 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
4536.3 
5554.0 

42613 
367 
3820 
38426 
25 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
189934 
232547.2 

11837 
102.0 
1061.0 
10674.0 
7.0 

* 

6740.0 

18564.0 

, 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total 
electricity 
generation 
fGWM 

0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
-  0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 

0.0 
0.0 
0.0 

0.0 

0.0 

12721 

30356 

65546 

. 

* Figures for specific  energy sources are not available 

(Source: Eurostat) 

RENEWABLE ENERGY PRODUCTION IN SWEDEN 

Electrical 
Installed 
capacity 
(MWe) 
16448.0 

45.0 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 
(KWp) 

S 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 
s 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro aH 
Hydro -1 MW 
Hydro 1.-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltalcs 
Geoth.electr 
Geoth.heet 
MSW 
Wood In h/holds 
District heating 
Wood In industry 
Power stations 
Biofuels 
Landfill gas 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

. . .. 

Thermal 
Installed 
capacity 
(MWth) 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
(TJ) 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
(GWh) 

59039 

RES primary 
energy 
production 
(TJ) 
212540 

72 

, 

0.0 

1693.0 

60804.0 

259 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
0 
275775 
488575 

RES primary 
energy 
production 
(ktoe) 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

I 

Total 
electricity 
generation 
(GWh) 

5076.2 
0.0 
0.0 
0.0 
6.2 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
6586.5 
11668.8 

0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 
0.0 

0.0 
0.0 
0.0 

0.0 

0.0 

30813 

48550 

142850 

* Figures  for  specific  energy  sources are not available 

(Source:  Eurostat) 

RENEWABLE ENERGY PRODUCTION IN THE UNITED KINGDOM 

Year 

Renewable Energy 
Source 

Collectors 
surface 
(1000m*) 

PVC 
capacity 
(kWp) 

Electrical 
Installed 
capacity 
(MWe) 

Thermal 
Installed 
capacity 
(MWth) 

Fuel 
consumption 
(tonnes) 

Fuel 
consumption 
/Heat Input 
(TJ) 

Autoconsumption 
(TJ) 

RES 
electricity 
generation 
(GWh) 

RES primary 
energy 
production 
(TJ) 

RES primary 
energy 
production 
(ktoe) 

RES heat 
production 
(TJ) 

RES heat 
production 
(ktoe) 

RES heat for 
domestic 
use (TJ) 

Total primary 
production 
(ktoe) 

Total Inland 
consumption 
(ktoe) 

Total 
electricity 
generation 
(GWh) 

286.3 

0 

1463.8 
29.3 
0.0 
1434.3 
148.5 

0.0 

112.0 

2.2 
49.9 

0.0 

0.0 

91.4 

UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 
UK 

1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 
1994 

Hydro all 
Hydro -1 MW 
Hydro 1-10 MW 
Hydro 10+MW 
Wind 
Solar pannels 
Photovoltalcs 
Geoth.electr 
Geoth.heat 
MSW 
Wood In h/holda 
District heating 
Wood In Industry 
Power stations 
Biofuels 
Landfill gas 
Sewage sludge 
Farm slurries 
A-F Industry 
Total biomass 
Total primary energy 
Total electricity gener. 
Total heat production 

0.0 

14412.0 
7290.0 
0.0 
4166.0 
0.0 
0.0 
7400.0 
6820.0 
15.0 
0.0 
40103.0 

5076.0 
141.0 
0.0 
4935.0 
337.0 

0.0 
0.0 

716.5 

» 

0.0 

517.0 
360.8 
0.4 
0.0 
1594.7 

7007.3 

18274 
508 
0 
17766 
1213 
266 
0 
0 
35 
14412 
7290 
0 
4166 
0 
0 
7400 
6820 
15 
0 
40103 
59891 

436.4 
12.1 
0.0 
424.3 
29.0 
6.4 
0.0 
0.0 
0.8 
344.2 
174.1 
0.0 
99.5 
0.0 
0.0 
176.7 
162.9 
0.4 
0.0 
957.8 
1430.4 

J» 

266.0 

34.7 
1927.0 
7290.0 
0.0 
4166.0 
0.0 

792.0 
2181.0 
9.0 
0.0 
16365.0 

16665.7 

0.0 
0.0 
0.0 
0.0 
0.0 
6.4 
0.0 
0.0 
0.8 
46.0 
174.1 
0.0 
99.5 
0.0 
0.0 
18.9 
52.1 
0.2 
0.0 
390.9 
0.0 
0.0 
398.0 

152.0 

7290.0 

239134 

219612 

325046 

(Source: Eurostat) 

ISSN 0254-1475 

COM(96) 576 final 

DOCUMENTS 

EN 

12 

Catalogue  number  :  CB-CO-96-605-EN-C 

ISBN  92-78-11804-4 

Office  for  Official  Publications of the European  Communities 

L-2985  Luxembourg 

€Y