Re-examined proposal for a Council Decision concerning a multiannual programme for the promotion of renewable energy sources in the Community - Altener II
Date: 1998-05-05
Institutions: European Commission
Subjects: EU programme, energy policy, environmental protection, renewable energy

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 05.05.1998 

COM(1998) 301 final 

97/0106 (SYN) 

Re-examined proposal for a 

COUNCIL DECISION 

concerning a multiannual programme for the promotion of renewable energy sources in 
the Community - ALIENER H 

(presented by the Commission pursuant to Article  189 c (d) 
of the EC Treaty) 

EXPLANATORY MEMORANDUM 

On  12  March  1997  the  Commission  adopted  a  proposal  for  a  Council  Decision 
concerning a multiannual programme for the promotion of renewable energy sources in 
the  Community  (Altener  II).  The  proposal  is  based  on  Article  130(s)  of  the  Treaty 
which provides  for  the  co-operation  procedure  with  the  European  Parliament.  On 6 
November  1997  the  Parliament  gave  its  opinion  on  the  first  reading.  A  Common 
Position  was  reached  by  the  Council  on  19  January  1998.  On  30  April  1998  the 
Parliament gave its opinion on the second reading of the above Common Position. Ten 
amendments were voted and accepted. 

The principal preoccupations of the Parliament  matched those of the Commission.  Of 
the  ten  amendments proposed,  the  Commission  accepted  three  in their  entirety and 
three were  accepted in principle considering the concepts already included in the text 
or in the White Paper. 

One amendment concerns only a linguistic version. 

Three  amendments  have  not  been  accepted  by  the  Commission  for  the  following 
reasons: 

- amendment n° 3 
The  question  of taking  account  of  indirect  costs  in tariff  calculation  falls  within the 
scope not of this programme but rather of the proposals on a Community strategy for 
Renewables  which  the  Commission  will  be  presenting  separately  to  Parliament  and 
Council. 

- amendment n° 8 
The  amount  of financing will  be  decided  in  accordance  with  the  normal  budgetary 
procedure,  during  which  the  budgetary  authorities  take  all  relevant  aspects  into 
account, including questions concerning Renewables as well as greenhouse gases. 

- amendment n° 10 
The  Comitology  rules  are  laid  down  formally  and  this  text  should  not  provide 
otherwise. 

The  Council  is  requested  to  adopt  the  decision  on  the  basis  of  the  attached  re 
examined proposal. 

2 

COMMON  POSITION  ADOPTED BY 

RE-EXAMINED PROPOSAL FOR A 

THE COUNCIL 

COUNCIL DECISION 

concerning a multiannual programme for the 

concerning a multiannual programme for the 

promotion  of renewable 

promotion of renewable 

energy sources in the Community (Altener II) 

energy sources in the Community (Altener II) 

THE COUNCIL OF THE EUROPEAN 

THE COUNCIL OF THE EUROPEAN 

UNION, 

UNION, 

Having regard to the Treaty establishing the 

Having regard to the Treaty establishing the 

European Community, and in particular 

European Community, and in particular 

Article  130s(l) thereof, 

Article  130s(l) thereof; 

Having regard to the proposal from the 

Commission (i) 

Having regard to the proposal from the 
Commission(1), 

Having regard to the Opinion of the 

Having regard to the Opinion of the 

Economic and Social Committee(2), 

Economic and Social Committee(2), 

Having regard to the Opinion of the 
Committee of the Regions(3), 

Having regard to the Opinion of the 
Committee of the Regions(3), 

Acting in accordance with the procedure laid  Acting in accordance with the procedure laid 
down in Article  189c of the Treaty(4), 

down in Article  189c of the Treaty(4), 

OJC  192,  24.6.1997,  p.  16. 
OJ C  19,  21.1.1998,  p.34 
OJ C 379,  15.12.1997,  p.  63. 
Opinion of  the  European Parliament  of  6  November  1997  (not yet  published  in the 
Official  Journal),  Council  Common  Position  of  19  January  1998  and  Decision  of 
the  European Parliament  of  (not yet published in the Official Journal). 

'I 

( 1 )  Whereas Article  13Or of the Treaty 

( I )  Whereas Article  13 Or of the Treaty 

provides that  one of the objectives  of 

provides that one of the objectives  of 

Community  action  is to ensure prudent 

Community  action  is to ensure prudent 

and rational  utilization  of 

and rational  utilization  of 

natural  resources; 

natural  resources; 

(2)  Whereas  Article  129 of the Treaty 

(2)  Whereas Article  129 of the Treaty 

provides that  health  protection 

provides that health  protection 

requirements shall  form  a constituent 

requirements  shall form a constituent 

part of the Community's other policies; 

part of the Community's other policies; 

whereas the Altener  programme 

whereas the Altener  programme 

contributes to  health  protection; 

contributes to health protection; 

(3)  Whereas at its meeting on 

(3)  Whereas at its meeting on 

29 October  1990 the Council 

29 October  1990 the Council 

announced  its objective  of stabilizing 

announced  its objective of stabilizing 

total  C02  emissions  by 2000  at the 

total  C02  emissions by 2000  at the 

1990 level  in the Community  as 

1990 level  in the Community as 

a whole; 

a whole; 

(4)  Whereas a mechanism  for  monitoring 

(4)  Whereas a mechanism for monitoring 

C02  and other greenhouse  gas 

C02  and other greenhouse gas 

emissions in the Community  was 

emissions in the Community  was 

established by Decision  93/389/EEC (5); 

established  by Decision  93/389/EEC  (5); 

(5)  Whereas C 02  emissions from  energy 

(5)  Whereas C02  emissions from energy 

consumption  in the Community are 

consumption  in the Community are 

likely to increase by about  3% between 

likely to increase by about 3% between 

1995  and 2000,  assuming normal 

1995 and 2000,  assuming normal 

economic  growth; whereas it is, 

economic growth; whereas it is, 

H 

OJ L 167,  9.7.1993,  p.  31 

Vj 

therefore,  essential  to adopt  additional 

therefore,  essential  to adopt  additional 

measures; 

measures; 

(6)  Whereas at its meeting on  25 and 

(6)  Whereas at its meeting on 25 and 

26 June  1996 the Council  noted  that in 

26 June  1996 the Council  noted that in 

the framework  of the negotiations  on a 

the framework  of the negotiations on a 

protocol  concerning  the Berlin 

protocol  concerning  the Berlin 

Mandate,  the  Second  Assessment 

Mandate,  the Second  Assessment 

Report  of the Intergovernmental  Panel 

Report  of the Intergovernmental Panel 

on Climate Change (SAR  IPCC) had 

on Climate Change (SAR  IPCC) had 

concluded  that the balance of evidence 

concluded  that the balance of evidence 

suggested  that there was a discernible 

suggested  that there was a discernible 

human influence  on global  climate 

human influence  on global  climate 

change and had stressed  the need  for 

change and had stressed the need for 

urgent action  at the widest  possible 

urgent action at the widest  possible 

level,  noted that  significant  "no-regrets" 

level,  noted that significant  "no-regrets" 

opportunities  were available and 

opportunities were available and 

requested  the Commission  to  identify 

requested the Commission to  identify 

the measures that had to be taken at 

the measures that  had to be taken at 

Community  level; 

Community  level; 

(7)  Whereas with the Green Paper of 

(7)  Whereas with the Green Paper of 

11 January  1995 and the White Paper 

11 January  1995 and the White Paper 

of  13 December  1995 the Commission 

of  13 December  1995 the Commission 

communicated  to the European 

communicated  to the European 

Parliament and the Council  its views on 

Parliament  and the Council  its views on 

the future of energy policy  in the 

the future of energy policy in the 

Community and on the role that 

Community and on the role that 

renewable energy  sources should play; 

renewable energy sources should play; 

r 

(8)  Whereas  in its Resolution  of 

(8)  Whereas  in its  Resolution  of 

4 July  1996 "" the  European  Parliament 

4 July  1996 ((,) the  European  Parliament 

called  upon  the Commission  to 

called  upon the Commission  to 

implement  a Community  action  plan to 

implement  a Community  action plan to 

promote  renewable  energy  sources; 

promote  renewable  energy sources; 

(9)  Whereas with the Green  Paper of 20 

(9)  Whereas with the Green  Paper of 20 

November  1996  entitled  "Energy  for 

November  1996 entitled  "Energy for 

the Future: Renewable  Sources  of 

the  Future:  Renewable  Sources  of 

Energy" the Commission  started a 

Energy" the Commission  started a 

process  for the development  and  further 

process  for the development  and further 

implementation  of a Community 

implementation  of a Community 

Strategy  and an Action  Plan on 

Strategy and an Action Plan on 

Renewable  Energy  Sources (RES); 

Renewable  Energy  Sources (RES); 

(10)  Whereas in its Resolution  of  14 

(10)  Whereas in its Resolution of  14 

November  1996  (7) on the  Commission 

November  1996 <7) on the Commission 

White Paper entitled  "An Energy  Policy 

White  Paper entitled  "An Energy  Policy 

for the European  Union" the European 

for the European  Union" the European 

Parliament  called  upon the Commission 

Parliament  called upon the Commission 

to establish  a financial  programme 

to establish  a financial  programme 

aimed at promoting  sustainable energy; 

aimed at promoting  sustainable energy; 

whereas,  in its Resolution  of 

whereas,  in its Resolution  of 

15 May  1997 (8) on the Green Paper 

15 May  1997 (8) on the Green Paper 

entitled  "Energy for the Future: 

entitled  "Energy for the Future: 

Renewable  Sources of Energy" it 

Renewable  Sources of Energy" it 

(6) 

(7) 

(8) 

OJ C 211, 22.  7.1996,  p.  27. 
OJC  362,  2.12.1996,  p.  279 
OJC  167,  2.6.1997,  p.  160 

G 

expressly  requests  the adoption  as  soon 

expressly  requests  the adoption  as soon 

as possible  of a strengthened  Altener  II 

as possible  of a strengthened  Altener  II 

programme, 

programme; 

(11)  Whereas  Article  8 of  Directive 

( I I)  Whereas  Article  8 of  Directive 

96/92/EC  of the  European  Parliament 

96/92/EC  of the  European  Parliament 

and  of the Council  of 

and  of the Council  of 

19 December  1996 concerning  common 

19 December  1996 concerning  common 

rules for  the  internal  market  in 

rules for  the internal  market  in 

electricity  (9) offers  Member  States  the 

electricity  (9) offers  Member  States  the 

possibility  of furthering  the  penetration 

possibility  of furthering  the  penetration 

of the  market  in electricity  produced 

of the  market  in electricity  produced 

from  renewable  sources  of energy  by 

from  renewable  sources  of energy by 

giving them  priority. 

giving them  priority. 

( 12)  Whereas  Article  13 Oa of the  Treaty 

(12)  Whereas  Article  130a of the  Treaty 

provides that  the Community  shall 

provides  that  the Community  shall 

develop  and  pursue  its actions  leading 

develop  and  pursue  its actions  leading 

to the strengthening  of its economic  and 

to  the strengthening  of its economic  and 

social  cohesion  and  that,  in particular,  it 

social  cohesion  and  that,  in particular,  it 

shall  aim at  reducing  disparities 

shall  aim  at  reducing  disparities 

between  the  levels of development  of 

between  the  levels of development  of 

the various regions  and  the 

the  various  regions and  the 

backwardness  of the  least-favoured 

backwardness  of the  least-favoured 

regions; whereas  those  actions  cover 

regions; whereas  those  actions  cover 

inter alia the energy  sector; 

inter alia the energy  sector; 

(13)  Whereas in Decision  93/500/EEC  <10) 

(13)  Whereas  in Decision  93/500/EEC  (l0) 

the Council  adopted  a Community 

the Council  adopted  a  Community 

(9) 

<10) 

OJ L 27,  30.1.1997,  p.  20. 
OJ L 235,  18.9.1993,  p.  41 

> 

programme entitled  "Altenei " for the 

programme entitled  "Altener" for the 

promotion  of renewable energy sources 

promotion of renewable energy sources 

aimed at reducing CO.. emissions by 

aimed at reducing C02  emissions by 

increasing the market  share of 

increasing the market  share of 

renewable energy sources and its 

renewable energy sources and its 

contribution  to overall  primary energy 

contribution  to overall primary energy 

production  in the Community; whereas 

production  in the Community; whereas 

that programme ends on 

31 December  1997, 

that  programme ends on 

31 December  1997; 

( 14)  Whereas the Community has 

(14)  Whereas the Community has 

recognized  that the Altener  programme 

recognized  that  the Altener programme 

represents an important  element of the 

represents an important element of the 

Community strategy for  reducing 

Community strategy for reducing 

CO2 emissions, 

('(),> emissions. 

(15)  Whereas Decision  I  110/94/EC of the 

(15)  Whereas Decision  1110/94/EC of the 

European Parliament  and of the 
Council(11) established  a fourth 

European  Parliament  and of the 
Council(,,) established a fourth 

framework  programme for  research, 

framework  programme for research, 

technological development and 

technological  development and 

demonstration  projects; whereas policy 

demonstration  projects; whereas policy 

in the field of renewable energy sources 

in the field of renewable energy sources 

is an important  instrument  for the use 

is an important instrument for the use 

and promotion  of the new energy 

and promotion of the new energy 

technologies that the  framework 

technologies that the  framework 

programme will develop; whereas the 

programme will develop; whereas the 

Altener II programme is an instrument 

Altener  II programme is an instrument 

which complements that  programme; 

which complements that programme; 

(11)  OJ  L  126,  18.5.1994,  p.  1.  Decision  as  amended  by  Decision  No  616/96/EC 

(OJ  L  86,  4 . 4 . 1 9 9 6,  p.  69). 

S 

(16)  Whereas the Altener  II programme 

(16)  Whereas the Altener  II programme 

does not alter national  projects or 

does not alter national projects or 

systems for the promotion  of renewable 

systems for the promotion  of renewable 

resources, whereas its objective  is to 

resources; whereas its objective is to 

add a Community  aspect  that  represents 

add a Community aspect that  represents 

added value. 

added value, 

( 17)  Whereas, furthermore,  the  Fifth 

(17)  Whereas, furthermore,  the Fifth 

Framework  Programme of Research, 

Framework  Programme of Research, 

Technological  Development  and 

Technological  Development and 

Demonstration  should devote special 

Demonstration  should devote special 

attention to energy and whereas Altener 

attention to energy and whereas Altener 

II should again be an important 

II should again be an important 

additional  instrument  in this 

additional  instrument  in this 

programme; 

programme; 

( 18)  Whereas renewable energy sources are 

(18)  Whereas renewable energy sources are 

an important energy source for the 

an important  energy source for the 

European  Union with considerable 

European  Union with considerable 

commercial potential; whereas their 

commercial  potential; whereas their 

development  should therefore be 

development  should therefore be 

supported  through a specific  strategy 

supported  through a specific  strategy 

and targeted  actions to make them both 

and targeted  actions to make them both 

viable and competitive and thus create a 

viable and competitive and thus create a 

favourable environment for  investment; 

favourable  environment for investment; 

( 19)  Whereas the increased use of renewable 

(19)  Whereas the increased use of renewable 

sources of energy will have a positive 

sources of energy will have a positive 

effect  both on the environment and on 

effect  both on the environment and on 

the security of energy supplies; whereas 

the security of energy supplies; whereas 

a high degree of international 

only the free  and  large-scale 

cooperation  is desirable to achieve the 

development  of renewable energy 

9> 

best results, 

sources wijl make it possible fully to 

exploit their economic and employment 

potential; whereas a high degree of 

international  cooperation is desirable to 

achieve the best results; 

(20)  Whereas a strengthened  Altener II 

(20)  Whereas a strengthened  AJtener II 

programme represents an essential 

programme represents an essential 

instrument  for developing the potential 

instrument  for developing the potential 

of renewable energy sources. 

of renewable energy sources; whereas 

renewable energy sources should 

account  for a reasonable percentage of 

the European  internal energy market; 

(21 )  Whereas the aim of the targeted  actions 

(21)  Whereas the aim of the targeted actions 

referred  to in Article 2( i )(d) is to 

referred  to in Article 2( 1 )(d) is to 

facilitate  and accelerate investment in 

facilitate and accelerate investment in 

new operational  capacity for the 

new operational  capacity for the 

production  of energy from  renewable 

production  of energy from  renewable 

sources by providing financial  support, 

sources by providing financial  support, 

in particular for  small and medium sized 

in particular for small and medium sized 

enterprises (SMEs), in order to reduce 

enterprises (SMEs), in order to reduce 

the peripheral  and service costs of 

the peripheral and service costs of 

renewable energy projects,  and thus 

renewable energy projects, and thus 

overcome the non-technical  obstacles 

overcome the non-technical  obstacles 

present; whereas those actions promote, 

present; whereas those actions promote, 

inter alia, access to specialized advice, 

inter alia, access to specialized advice, 

the analysis of market  prospects, the 

the analysis of market prospects, the 

choice of location of projects, 

choice of location of projects, 

application  for construction  and 

application for construction and 

operation  permits, initiatives taken by 

operation permits, initiatives taken by 

SMEs on investment  in renewable 

SMEis on investment  in renewable 

sources of energy,  the establishment  of 

sources of energy,  the establishment  of 

financing  plans, the preparation  of calls 

financing  plans,  the preparation of calls 

for tenders,  the training of operators 

for tenders, the training of operators 

and plant  commissioning; 

and plant  commissioning; 

(22)  Whereas those targeted  actions  concern 

(22)  Whereas those targeted  actions concern 

the implementation  of projects carried 

the implementation  of projects carried 

out  in the area of biomass,  including 

out  in the area of biomass,  including 

energy crops,  firewood,  residues  from 

energy crops,  firewood,  residues from 

forestry  and agriculture,  municipal 

forestry  and agriculture,  municipal 

waste which cannot  be recycled,  liquid 

waste which cannot  be recycled,  liquid 

biofuels  and biogas,  and in the areas of 

biofuels  and biogas,  and in the areas of 

thermal and photovoltaic  solar systems, 

thermal  and photovoltaic  solar systems, 

passive and active solar systems in 

passive and active  solar systems in 

buildings, small  scale (<10  MW) 

buildings,  small  scale (<10 MW) 

hydroelectric  projects,  wave energy, 

hydroelectric  projects, wave energy, 

wind power and geothermal  energy; 

wind power and geothermal  energy; 

(23)  Whereas the development  of renewable 

(23 )  Whereas the development  of renewable 

energy sources can help create a 

energy sources can help create a 

competitive  energy system  for the 

competitive  energy system for the 

whole of Europe and develop a 

whole of Europe and develop a 

European renewable energy  sources 

European renewable energy  sources 

industry, with vast  opportunities for the 

industry,  with vast  opportunities for the 

export of know-how  and for  investment 

export  of know-how  and for  investment 

in third countries involving  Community 

in third countries involving  Community 

participation; 

participation; 

(24)  Whereas in implementing the 

(24)  Whereas in implementing the 

programme,  there should be close 

programme,  there should be close 

cooperation with other Community 

cooperation  with other Community 

actions and programmes also concerned 

actions and programmes also  concerned 

)

•

•) 

with  promoting  renewable  energy 

with  promoting  renewable energy 

sources; 

sources; 

(2.5)  Whereas in order to ensure that 

(25)  Whereas in order to ensure that 

Community  aid  is used  efficiently  the 

Community  aid is used efficiently  the 

Commission  will  ensure that  projects 

Commission  will  ensure that projects 

are subject  to  thorough  prior appraisal; 

are subject  to thorough  prior appraisal; 

whereas  it will  systematically  monitor 

whereas  it will  systematically  monitor 

and evaluate the progress and results  of 

and evaluate the progress and results of 

supported  projects; 

supported  projects; 

(26)  Whereas a financial reference  amount 

(26)  Deleted 

within the meaning of point  2 of the 

Declaration  by the  European 

Parliament,  the Council  and the 

Commission  of 6  March  1995  is 

included  in this Decision  for the entire 

duration of the programme,  without 

thereby affecting  the powers  of the 

budgetary authority as they  are defined 

by the Treaty; 

(27)  Whereas it is politically and 

(27)  Whereas it is politically and 

economically  desirable to open the 

economically  desirable to open the 

Altener II programme  to the  associated 

Altener II programme to the associated 

Central and Eastern European countries 

Central  and Eastern European countries 

in accordance  with the conclusions  of 

in accordance with the conclusions  of 

the Copenhagen  European  Council  of 

the Copenhagen  European Council  of 

21  and 22 June  1993,  and as outlined in 

21  and 22 June  1993, and as outlined in 

the communication  on that  subject 

the communication  on that subject 

presented  to  the Council  by the 

presented  to the Council  by the 

^ 

Commission  in May  1994; whereas it 

Commission  in May  1994; whereas it 

should also be open  to Cyprus, 

should  also be open to Cyprus, 

HAS  ADOPTED  THIS  DECISION; 

HAS ADOPTED THIS  DECISION: 

Article I 

Article I 

I  A multiannual programme of measures 

I  A multiannual  programme of measures 

and actions to promote the use of renewable 

and actions to promote the use of renewable 

energy sources in the Community,  called 

energy  sources in the Community,  called 

Altener II, hereinafter  referred  to as "the 

Altener  II, hereinafter  referred to as "the 

programme",  is hereby established 

programme",  is hereby established. 

The objectives of the programme  shall be to: 

The objectives of the programme shall be to: 

(a) 

help create the necessary  conditions for 

(a) 

help create the necessary conditions for 

the implementation  of a Community 

the implementation  of a Community 

action plan for renewable energy 

action  plan for renewable energy 

sources,  and in particular the legal, 

sources,  and in particular the legal, 

socio-economic  and administrative 

socio-economic  and  administrative 

conditions; 

conditions; 

(b) 

encourage  private and public 

(b) 

encourage private and public 

investments in the production  and use 

investments in the production and use 

of energy from  renewable sources. 

of energy from renewable sources. 

These two specific  objectives  shall  contribute 

These two  specific  objectives  shall  contribute 

to achieving the following  overall  Community 

to achieving the following  overall  Community 

objectives -  complementing  those of the 

objectives 

complementing  those of the 

Member States -  and priorities: the limitation 

Member States -  and priorities: the limitation 

of CO2 emissions,  increasing the share  of 

of C02  emissions,  increasing the share of 

renewable energy sources  in the energy 

renewable energy sources in the energy 

•13 

balance, reduction in energy import 

balance, reduction in energy import 

dependence, security of energy supply, 

dependence, security of energy supply, 

promotion of employment,  economic 

promotion of employment, economic 

development, economic and social cohesion 

development, economic and social cohesion 

and local and regional development,  including 

end local and regional development, including 

the strengthening of the economic potential of 

the strengthening of the economic potential of 

remote and peripheral regions. 

remote and peripheral regions. 

2.  Community financial support  shall be 

2.  Community financial  support shall be 

granted under the programme for actions 

granted under the programme for actions 

meeting the objectives  set out in 

meeting the objectives set out in 

paragraph  1(a) and (b). 

paragraph  1(a) and (b). 

3.  The financial  reference  amount for the 

3.  The financial reference  amount for the 

implementation of the programme shall be 

implementation  of the programme shall be 

ECU 22 million.  The annual  appropriations 

ECU 22 million.  The annual appropriations 

shall be authorized by the budget  authority 

shall be authorized  by the budget  authority 

within the limits of the financial  perspective. 

within the limits of the financial  perspective. 

Article 2 

Article 2 

The following actions and measures relating 

The following actions and measures relating 

to renewable energy sources shall be financed 

to renewable energy sources shall be  financed 

under the programme: 

under the programme: 

(a) 

studies and other actions, intended to 

(a) 

studies and other actions, intended to 

implement and complement  other 

implement  and complement other 

measures by the Community and 

measures by the Community and 

Member States taken to develop the 

Member States taken to develop the 

potential of renewable energy sources. 

potential of renewable energy sources. 

These involve in particular the 

These involve in particular the 

development  of sectoral and market 

development of sectoral and market 

A  v 

strategies,  the development  of  norms 

strategies,  the  development  of  norms 

and  certification,  facilitating  grouped 

and  certification,  facilitating  grouped 

procurement,  analyses,  based  on 

procurement,  analyses,  based  on 

projects,  comparing  the  environmental 

projects,  comparing  the  environmental 

impact  and  the  long-term  cost/benefit 

impact  and  the  long-term  cost/benefit 

trends  resulting  from  the  use  oi^ 

trends  resulting  from  the  use  of 

traditional  forms  of energy  and  the  use 

traditional  forms  of energy  and  the  use 

of renewable  energy  sources,  the 

of renewable  energy  sources,  the 

analysis of the  legal,  socio-economic 

analysis  of the legal,  socio-economic 

and  administrative  conditions,  including 

and  administrative  conditions,  including 

analysis  of the  possible  use of  economic 

analysis  of the  possible  use of  economic 

measures,  and/or  tax  incentives  which 

measures,  and/or  tax  incentives  which 

are  more  favourable  to  the  market 

are  more  favourable  to  the  market 

penetration  of renewable  energies,  the 

penetration  of  renewable  energies,  the 

preparation  of appropriate  legislation  to 

preparation  of appropriate  legislation  to 

promote  an  environment  favourable  to 

promote  an  environment  favourable  to 

investment  and  better  methods  which 

investment  and  better  methods  which 

make  it  possible  to  evaluate  the  costs 

make  it  possible  to  evaluate  the  costs 

and  benefits  that  are  not  reflected  in the 

and  benefits  that  are  not  reflected  in the 

market  price; 

market  price; 

(b) 

pilot  actions  of interest  to  the 

(b) 

pilot  actions  of interest  to  the 

Community  aimed  at  creating  or 

Community  aimed  at  creating  or 

extending  structures  and  instruments 

extending  structures  and  instruments 

for  the development  of  renewable 

for  the development  of  renewable 

energy  sources  in: 

energy  sources  in: 

local  and  regional  planning, 

local  and  regional  planning; 

the tools  for  planning,  design  and 

the  tools  for  planning,  design  and 

evaluation; 

evaluation; 

new  financial  products  and  market 

new  financial  products  and  market 

instruments; 

instruments; 

A y 

(c)  measures  intended  to  develop 

(c)  measures  intended  to  develop 

information,  education  and  training 

information,  education  and  training 

structures;  measures  to  encourage  the 

structures;  measures  to  encourage  the 

exchange  of experience  and  know-how 

exchange  of experience  and  know-how 

aimed  at  improving  coordination 

aimed  at  improving  coordination 

between  international.  Community, 

between  international.  Community, 

national,  regional  and  local  activities, 

national,  regional  and  local  activities; 

establishment  of a centralized  system 

establishment  of a centralized  system 

for  collecting,  prioritizing  and 

for  collecting,  prioritizing  and 

circulating  information  and  know-how 

circulating  information  and  know-how 

on  renewable  energy  sources, 

on  renewable  energy  sources; 

(d) 

targeted  actions  facilitating  the  market 

(d) 

targeted  actions  facilitating  the  market 

penetration  of renewable  energy 

penetration  of renewable  energy 

sources  and  relevant  know-how,  in 

sources  and  relevant  know-how,  in 

order  to  facilitate  the  transition  from 

order  to  facilitate  the transition  from 

demonstration  to  marketing,  and 

demonstration  to  marketing,  and 

encouraging  investment,  by advising  on 

encouraging  investment,  by advising  on 

the  preparation  and  presentation  of 

the preparation  and  presentation  of 

projects  and  their  implementation; 

projects  and  their  implementation; 

(e)  monitoring  and  evaluation  actions 

(e)  monitoring  and  evaluation  actions 

intended  to: 

intended  to: 

monitor  the  implementation  of the 

monitor  the implementation  of the 

Community  strategy  and  action  plan 

Community  strategy  and  action  plan 

for  the  development  of  renewable 

for  the  development  of  renewable 

energy  sources; 

energy  sources; 

support  initiatives  taken  in 

support  initiatives taken  in 

implementing  the  Action  Plan, 

implementing  the  Action  Plan, 

/ IC 

particularly  with  a view  to 

particularly  with  a view  to 

promoting  better  coordination  and 

promoting  better  coordination  and 

greater  synergy  between  actions, 

greater  synergy  between  actions, 

including  all  Community  funded 

including  all Community  funded 

activities  and  those  funded  by  other 

activities  and  those  funded  by  other 

bodies  such  as the  European 

bodies  such  as the  European 

Investment  Bank, 

Investment  Bank, 

monitor  the  progress  achieved  by 

monitor  the progress  achieved  by 

the Community  and  comment  on 

the  Community  and  comment  on 

that  achieved  by the  Member  States 

that  achieved  by the  Member  States 

with  regard  to  the development  of 

with  regard  to  the  development  of 

renewable  energy  sources; 

renewable  energy  sources. 

evaluate  the  impact  and  cost 

evaluate  the  impact  and  cost 

effectiveness  of actions  and 

effectiveness  of actions and 

measures  undertaken  under  this 

measures  undertaken  under  this 

programme  This evaluation  shall 

programme.  This evaluation  shall 

also take  into  account  the 

also  take  into account  the 

environmental  and  social  aspects, 

environmental  and  social  aspects, 

including  the effects  on 

including the effects  on 

employment. 

employment. 

Article 3 

Article 3 

1.  All costs  relating  to  the actions  and 

I  All costs  relating  to the actions  and 

measures referred  to  in  Article  2( I )(a),  (c) 

measures  referred  to  in Article 2( 1 )(a), (c) 

and (e)  shall be borne  by the  Community. 

and  (e)  shall  be borne  by the  Community. 

Where  a body  other  than  the  Commission 

Where  a body  other  than  the  Commission 

proposes  a measure  covered  by (c),  the 

proposes  a measure  covered  by (c),  the 

Community's  financial  contribution  shall  not 

Community's  financial  contribution  shall  not 

exceed  50% of the total  cost  of the  measure, 

exceed  50% of the total  cost  of the  measure; 

0 4 

the balance  may be defrayed  by  public  or 

the balance  may  be defrayed  by public  or 

private  sources  or  a combination  of the  two 

private  sources  or  a combination  of the two. 

2.  The  level  of funding  under  the  programme  2.  The  level  of funding  under  the  programme 

for  the actions  and  measures  referred  to  in 

for  the actions  and  measures  referred  to in 

Article 2( 1 )(b)  shall  not  exceed  50% of their 

Article  2( 1 )(b) shall  not  exceed  50% of their 

total  cost;  the balance  may  be defrayed  by 

total  cost,  the  balance  may  be defrayed  by 

public or  private  sources  or  a combination  of 

public  or  private  sources  or  a combination  of 

the two. 

the  two 

3  The  level  of funding  under  the  programme  3  The level  of funding  under  the  programme 

for  the actions  and  measures  referred  to  in 

for  the  actions  and  measures  referred  to in 

Article 2( 1 ){d)  shall  be established  annually 

Article  2( 1 )(d)  shall  be established  annually 

for  each of the  targeted  actions  in accordance 

for  each  of the targeted  actions in  accordance 

with  Article 4(2). 

with  Article 4(2). 

Article 4 

Article 4 

1.  The Commission  shall  be  responsible  for 

1  The  Commission  shall  be responsible  for 

the financial  execution  and  implementation  of 

the financial execution  and  implementation  of 

the  programme.  It  shall  also  ensure  that 

the  programme 

It  shall  also  ensure  that 

actions under  the  programme  are  subject  to 

actions  under  the  programme  are subject  to 

prior  appraisal,  monitoring  and  subsequent 

prior  appraisal,  monitoring  and  subsequent 

evaluation  which,  on  completion  of the 

evaluation  which,  on  completion  of the 

project,  shall  include  assessment  of  impact, 

projecl,  shall  include  assessment  of  impact, 

extent  of implementation  and  whether  the 

extent  of  implementation  and  whether  the 

original  objectives  have  been  achieved  The 

original  objectives  have been  achieved.  The 

Commission  shall  ensure  that  the  selected 

Commission  shall  ensure that  the  selected 

beneficiaries  submit  reports  to  -he 

beneficiaries  submit  reports  to  the 

Commission  at  least  on  a six-monthly  basis 

Commission  at  least  on  a six-monthly  basis 

or,  in the  case  of projects  lasting  less than  one 

or,  in the case  of projects  lasting  less than  one 

year,  at  the  halfway  point  and  on  completion. 

year,  at  the  halfway  point  and  on  completion. 

The Commission  shall  keep  the committee 

The Commission  shall  keep  the  committee 

provided  for  in  Article  5 informed  of the 

provided  for  in  Article  5 informed  of the 

development  of projects 

development  of  projects 

2.  The conditions  and  guidelines  to  be 

2  The conditions  and  guidelines  to  be 

applied  for  the  support  of the actions  and 

applied  for  the  support  of the actions  and 

measures  referred  to  in  Article  2( I ) shall  be 

measures  referred  to  in Article  2( I ) shall be 

defined  each  year  taking  into  account 

defined  each  year  takinu  into  account: 

(a) 

the  priorities  set  out  by the  Community 

(a) 

the  priorities  set  out  by the  Community 

and  the Member  States  in their 

and  the Member  States  in their 

programmes  for  the  promotion  of 

programmes  for  the promotion  of 

renewable  energy  sources, 

renewable  energy  sources; 

(b) 

criteria  relating  to  the cost  effectiveness 

(b) 

criteria  relating  to  the cost  effectiveness 

and  development  potential  of  renewable 

and  development  potential  of  renewable 

energy  sources  and  their  impact  on 

energy  sources  and  their  impact  on 

employment  and  the  environment,  in 

employment  and  the environment,  in 

particular  the  reduction  of  C02 

particular  the reduction  of CO2 

emissions; 

emissions; 

(c) 

for  the actions  referred  to  in  Article 

(c) 

for  the actions  referred  to in  Article 

2(1 )(d), the  relative cost  of the 

2( 1 )(d), the  relative cost  of the 

assistance,  the long-term  commercial 

assistance,  the long-term  commercial 

viability,  the  new  production  capacity 

viability,  the  new  production  capacity 

expected  to  arise and  the extent  of 

expected  to  arise and  the extent  of 

transregional  and/or  transnational 

transregional  and/or  transnational 

benefits; 

benefits; 

(d) 

the principles  established  in Article  92 

(d) 

the  principles  established  in Article  92 

of the Treaty  and  the  relevant 

of the Treaty  and  the  relevant 

13 

Community  guidelines on  Slate  aid  for 

Community  guidelines  on  State  aid  for 

environmental  protection 

environmental  protection 

The committee  provided  loi  in  Article  5 shall 

The  committee  provided  for  in Article  5 shall 

assist  the Commission  in defining  these 

assist  the Commission  in defining  these 

conditions  and  miidclincs 

conditions  and  guidelines 

Article 5 

Article  •> 

The Commission  shall  be assisted  by a 

Tin- Commission  shall  be assisted  by a 

committee  composed  of representatives  of the  committee  composed  of representatives  of the 

Member  States  and  chaired  by the 

Member  States  and  chaired  by the 

representative  of the  Commission 

representative  of the Commission 

The  representative  of the  Commission  shall 

The  representative  of the  Commission  shall 

submit  to  the committee  a draft  of  the 

submit  to  the  committee  a draft  of the 

measures  to  be taken  The  committee  shall 

measures  to  be taken  The committee  shall 

deliver  its opinion  on  the  draft,  within a 

dchvci  its opinion  on  the draft,  within a 

time-limit  which  the  chairman  may  lay  down 

time-limit  which  the chairman  may  lay  down 

according  to  the  urgency  of the  matter  The 

according  to  the  urgency  of the  matter  The 

opinion  shall  be delivered  by  the  majority  laid 

opinion  shall  be delivered  by the  majority  laid 

down  in Article  148(2) of the  Treaty  in  the 

down  in Article  148(2) of the Treaty  in the 

case of decisions  which  the Council  is 

case of decisions which  the Council  is 

required  to  adopt  on  a proposal  from  the 

required  to  adopt  on  a proposal  from  the 

Commission  The votes  of the  representatives 

Commission  The  votes  of the  representatives 

of the  Member  States  within  the  committee 

of the  Member  States  within  the  committee 

shall  be weighted  in the  manner  set  out  in that 

shall  be  weighted  in the manner  set  out  in that 

Article  The  chairman  shall  not  vote 

Article  The chairman  shall  not  vote 

The Commission  shall  adopt  measures  which 

The Commission  shall  adopt  measures  which 

shall  apply  immediately  However,  if these 

shall  apply  immediately.  However,  if these 

measures  are  not  in accordance  with  the 

measures  are  not  in accordance  with  the 

Zc 

opinion  of the committee,  they  shall  be 

opinion  of the committee,  they  shall  be 

communicated  by the  Commission  to  the 

communicated  by the Commission  to  the 

Council  forthwith 

In that  event 

Council  forthwith 

In that  event: 

(a) 

the Commission  may  defer  application 

(a) 

the Commission  may defer  application 

of the  measures  which  it  has decided  for 

of the  measures  which  it  has decided  for 

a period  of not  more  than  one  month 

a period  of not  more  than  one  month 

from  the date  of such  communication, 

from  the date of such  communication; 

(b) 

the Council,  acting  by a qualified 

(b) 

the Council,  acting by a  qualified 

majority,  may take  a different  decision 

majority,  may take  a different  decision 

within  the time-limit  referred  to  in point 

within  the time-limit  referred  to  in point 

(a). 

Article 6 

(a) 

Article 6 

I  During the second  year  of the 

I  During  the second  year  of the 

programme,  the Commission  shall  present  a 

programme,  the Commission  shall  present  a 

report  to the European  Parliament,  the 

report  to  the  European  Parliament,  the 

Council, the  Economic  and  Social  Committee 

Council,  the  Economic  and  Social  Committee 

and  the Committee  of the  Regions  on  the 

and  the Committee  of the  Regions on  the 

measures taken  to  promote  renewable  energy 

measures  taken  to  promote  renewable  energy 

sources at the  level of the Community  and  of 

sources at  the level of the Community  and  of 

the Member  States,  with  reference  in 

the  Member  States, with  reference  in 

particular  to the objectives  set  out  in 

particular to  the objectives  set  out  in 

Article  1.  That  report  shall  be  accompanied 

Article  I  That  report  shall be  accompanied 

by proposals  for  any amendments  to  the 

by proposals  for  any amendments to  the 

programme  which  may be necessary  in the 

programme  which  may be necessary  in the 

light  of those  results. 

light  of those  results. 

2.  On the expiry  of the programme,  the 

2  On  the expiry  of the  programme,  the 

Commission  shall  assess the  results  obtained 

Commission  shall  assess the results  obtained 

2 1 

from  the  application  of this  Decision  on  the 

from  the application  of this  Decision  on  the 

basis of a report  by  independent  experts  and 

basis of a report  by independent  experts and 

the consistency  of  national  and  Community 

the consistency  of national  and  Community 

actions 

It  shall  present  a report  thereon  to 

actions 

It  shall  present  a report  thereon  to 

the  European  Parliament,  the  Council,  the 

the  European  Parliament,  the Council,  the 

Economic  and  Social  Committee  and  the 

Economic  and  Social  Committee  and  the 

Committee  of the  Regions 

Committee  of the  Regions 

Article  7 

Article 7 

The  programme  shall  be open  to  participation 

The programme  shall  be open  to  participation 

by associated  ("entrai  and  Eastern  European 

by associated  Central  and  Eastern  European 

countries  (CEEC)  in accordance  with  the 

countries  (CEEC)  in accordance  with  the 

conditions,  including  financial  provisions,  laid 

conditions,  including financial provisions,  laid 

down  in the  additional  protocols  to  the 

down  in the  additional  protocols  to  the 

Association  Agreements,  or  in the 

Association  Agreements,  or  in the 

Association  Agreements  themselves,  relating 

Association  Agreements  themselves,  relating 

to  participation  in Community  programmes 

to  participation  in Community  programmes 

The programme  shall  also  be open  to 

The  programme  shall  also be open  to 

participation  by Cyprus  on  the basis  of 

participation  by Cyprus  on the basis of 

additional  appropriations,  under  the  same 

additional  appropriations,  under  the  same 

rules as those  applied  to  E1TA/EEA 

rules  as those  applied  to  EFTA/EEA 

countries,  in accordance  with  procedures  to 

countries,  in accordance  with  procedures  to 

be agreed  with  that  country 

be agreed  with  that  country. 

Article 8 

Article 8 

This Decision  shall  apply  from  1  January  1998  This  Decision  shall  apply from  I January  1998 

until  the entry  into  force  of the  multiannual 

until  the entry  into  force  of the multiannual 

framework  programme  for  measures  in the 

framework  programme  for  measures in the 

energy  sector  and  until  31  December  1999 at 

energy  sector  and  until  31  December  1999 at 

the latest. 

the  latest. 

2^ 

Article 9 

Article 9 

This Decision  is addressed  to the Member 

This Decision  is addressed  to the Member 

States. 

States 

Done at Brussels, 

For the Council 

The President 

Done at  Brussels, 

loi  the Council 

The  President 

I  < 

ISSN 0254-1475 

COM(98) 301  final 

DOCUMENTS 

EN 

12  14  10  01 

Catalogue number  : CB-CO-98-300-EN-C 

ISBN 92-78-35943-2 

Office  for Official  Publications of  the European  Communities 

L-2985  Luxembourg 

z 1