98/352/EC: Council Decision of 18 May 1998 concerning a multiannual programme for the promotion of renewable energy sources in the Community (Altener II)
Date: 1998-05-18
Institutions: Council of the European Union
Subjects: EU financing, EU programme, energy policy, pollution control measures, renewable energy

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II

(Acts whose publication is not obligatory)

COUNCIL

COUNCIL DECISION

of 18 May 1998

concerning a multiannual programme for the promotion of renewable energy
sources in the Community (Altener II)

(98/352/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European
Community, and in particular Article 130s(1) thereof,

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

Having regard to the opinion of the Economic and Social
Committee (2),

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

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

(1) Whereas Article 130r of the Treaty provides that
one of the objectives of Community action is to
ensure prudent and rational utilisation of natural
resources;

(2) Whereas Article 129 of the Treaty provides that
health protection requirements
form a
constituent part of the Community’s other policies;
whereas the Altener programme contributes to
health protection;

shall

(3) Whereas at its meeting on 29 October 1990 the
Council announced its objective of stabilising total
emissions by 2000 at the 1990 level in the
CO2
Community as a whole;

(1) OJ C 192, 24. 6. 1997, p. 16.
(2) OJ C 19, 21.1.1998, p. 32.
(3) OJ C 379, 15. 12. 1997, p. 63.
(4) Opinion of

the European Parliament of 6 November 1997
(OJ C 358, 24. 11. 1997, p. 30), Council Common Position of
19 January 1998 (OJ C 62, 26. 2. 1998, p. 31 ) and Decision
of the European Parliament of 30 April 1998 (OJ C 152, 18.
5. 1998).

(4) Whereas a mechanism for monitoring CO
2

and
other greenhouse gas emissions in the Community
was established by Decision 93/389/EEC (5);

(5) Whereas CO2 emissions from energy consumption
in the Community are likely to increase by about
3% between 1995 and 2000, assuming normal
economic growth; whereas it is, therefore, essential
to adopt additional measures;

the Second Assessment Report of

(6) Whereas at its meeting on 25 and 26 June 1996
the Council noted that in the framework of the
negotiations on a protocol concerning the Berlin
Mandate,
the
Intergovernmental Panel on Climate Change (SAR
IPCC) had concluded that the balance of evidence
suggested that there was a discernible human influ-
ence on global climate change and had stressed the
need for urgent action at the widest possible level,
noted that
‘no-regrets' opportunities
were available and requested the Commission to
identify the measures that had to be taken at
Community level;

significant

(7) Whereas with the Green Paper of 11 January 1995
and the White Paper of 13 December 1995 the
Commission communicated to the European
Parliament and the Council its views on the future
of energy policy in the Community and on the role
that renewable energy sources should play;

(5) OJ L 167, 9. 7. 1993, p. 31.

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(8) Whereas in its resolution of 4 July 1996 (1) the
European Parliament called upon the Commission
to implement
a Community action plan to
promote renewable energy sources;

(9) Whereas with the Green Paper of 20 November
1996 entitled ‘Energy for the Future: Renewable
the Commission started a
Sources of Energy'
process for the development and further imple-
mentation of a Community Strategy and an Action
Plan on Renewable Energy Sources (RES);

(10) Whereas in its resolution of 14 November 1996 (2)
on the Commission White Paper entitled ‘An
Energy Policy for the European Union' the Euro-
pean Parliament called upon the Commission to
establish
at
promoting sustainable energy; whereas, in its res-
olution of 15 May 1997 (3) on the Green Paper
entitled ‘Energy for the Future: Renewable Sources
of Energy'
it expressly requests the adoption as
soon as possible of a strengthened Altener II
programme;

programme

financial

aimed

a

(14) Whereas the Community has recognised that the
Altener programme
an important
element of the Community strategy for reducing
CO
2

emissions;

represents

(15) Whereas Decision 1110/94/EC of the European
the Council (6) established a
Parliament and of
fourth framework programme for research, techno-
logical development and demonstration projects;
whereas policy in the field of renewable energy
sources is an important instrument for the use and
promotion of the new energy technologies that the
framework programme will develop; whereas the
Altener II programme is an instrument which
complements that programme;

(16) Whereas the Altener II programme does not alter
national projects or systems for the promotion of
renewable resources; whereas its objective is to add
a Community aspect that represents added value;

(17) Whereas,

the

fifth

furthermore,

framework
programme of research, technological development
and demonstration should devote special attention
to energy and whereas Altener II should again be
in this
an important
programme;

instrument

additional

(11) Whereas Article 8 of Directive 96/92/EC of the
European Parliament and of the Council of 19
December 1996 concerning common rules for the
in electricity (4) offers Member
internal market
States the possibility of furthering the penetration
of the market in electricity produced from renew-
able sources of energy by giving them priority;

leading

to the

(12) Whereas Article 130a of the Treaty provides that
the Community shall develop and pursue its
its
actions
economic and social cohesion and that, in partic-
ular, it shall aim at reducing disparities between the
levels of development of the various regions and
the backwardness of
the least-favoured regions;
whereas those actions cover inter alia the energy
sector;

strengthening of

(13) Whereas in Decision 93/500/EEC (5) the Council
adopted a Community programme entitled ‘Alte-
ner' for the promotion of renewable energy sources
emissions by increasing the
aimed at reducing CO2
market share of renewable energy sources and its
contribution to overall primary energy production
in the Community; whereas that programme ends
on 31 December 1997;

(1) OJ C 211, 22. 7. 1996, p. 27.
(2) OJ C 362, 2. 12. 1996, p. 279.
(3) OJ C 167, 2. 6. 1997, p. 160.
(4) OJ L 27, 30. 1. 1997, p. 20.
(5) OJ L 235, 18. 9. 1993, p. 41.

(18) Whereas renewable energy sources are an impor-
tant energy source for the European Union with
considerable commercial potential; whereas their
development
supported
through a specific strategy and targeted actions to
make them both viable and competitive and thus
for investment;
create a favourable environment

therefore

should

be

(19) Whereas the increased use of renewable sources of
energy will have a positive effect both on the envir-
onment and on the security of energy supplies;
whereas the free and large-scale development of
renewable energy sources will make it possible fully
to exploit their economic and employment poten-
international
a high degree of
tial; whereas
cooperation is desirable to achieve the best results;

(20) Whereas a strengthened Altener II programme
represents an essential instrument for developing
the potential of renewable energy sources; whereas
renewable energy sources should account
for a
reasonable share of the European internal energy
market;

(21) Whereas the aim of the targeted actions referred to
is to facilitate and accelerate
in Article 2(1)(d)
investment
in new operational capacity for the
production of energy from renewable sources by

(6) OJ L 126, 18. 5. 1994, p. 1. Decision as amended by De-

cision No 616/96/EC (OJ L 86, 4. 4. 1996, p. 69).

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providing financial support, in particular for small
and medium sized enterprises (SMEs), in order to
reduce the peripheral and service costs of renew-
able energy projects, and thus overcome the non-
technical obstacles present; whereas those actions
promote, inter alia, access to specialised advice,
the analysis of market prospects, the choice of loca-
tion of projects, application for construction and
initiatives taken by SMEs on
operation permits,
the
investment
establishment of financing plans, the preparation of
calls for tenders, the training of operators and plant
commissioning;

in renewable sources of energy,

(22) Whereas those targeted actions concern the imple-
mentation of projects carried out in the area of
biomass, including energy crops, firewood, residues
from forestry and agriculture, municipal waste
which cannot be recycled,
liquid biofuels and
biogas, and in the areas of thermal and photovoltaic
solar systems, passive and active solar systems in
buildings, small scale (< 10 MW) hydroelectric
projects, wave energy, wind power and geothermal
energy;

(23) Whereas the development of

renewable energy
sources can help create a competitive energy
system for the whole of Europe and develop a
European renewable energy sources industry, with
vast opportunities for the export of know-how and
involving
for
Community participation;

in third countries

investment

(24) Whereas in implementing the programme, there
should be close cooperation with other Community
actions and programmes also concerned with
promoting renewable energy sources;

(25) Whereas in order to ensure that Community aid is
used efficiently the Commission will ensure that
projects are subject
to thorough prior appraisal;
whereas it will systematically monitor and evaluate
the progress and results of supported projects;

(26) Whereas a financial reference amount within the
meaning of point 2 of the Declaration by the Euro-
pean Parliament, the Council and the Commission
of 6 March 1995 (1) is included in this Decision for
the programme, without
the entire duration of
thereby affecting the powers of
the budgetary
authority as they are defined by the Treaty;

European Council of 21 and 22 June 1994, and as
outlined in the communication on that subject
presented to the Council by the Commission in
May 1994; whereas it should also be open to
Cyprus,

HAS ADOPTED THIS DECISION:

Article 1

1. A multiannual programme of measures and actions
to promote the use of renewable energy sources in the
Community, called Altener II, hereinafter referred to as
‘the programme', is hereby established.

The objectives of the programme shall be to:

(a) help create the necessary conditions for the imple-
mentation of a Community action plan for renewable
energy sources, and in particular the legal, socio-
economic and administrative conditions;

(b) encourage private and public investments

in the
production and use of energy from renewable sources.

These two specific objectives shall contribute to achieving
the following overall Community objectives (cid:190) comple-
menting those of the Member States (cid:190) and priorities: the
limitation of CO2 emissions,
increasing the share of
renewable energy sources in the energy balance, reduction
in energy import dependence, security of energy supply,
promotion of
economic development,
economic and social cohesion and local and regional
development,
the
the
economic potential of remote and peripheral regions.

strengthening

employment,

including

of

2. Community financial support shall be granted under
the programme for actions meeting the objectives set out
in paragraph 1(a) and (b).

3.
The financial reference amount for the implementa-
tion of the programme shall be ECU 22 million. The
annual appropriations shall be authorised by the budget
authority within the limits of the financial perspective.

Article 2

(27) Whereas it is politically and economically desirable
to open the Altener II programme to the associated
central and eastern European countries in accord-
the Copenhagen
ance with the conclusions of

(1) OJ C 293, 8. 11. 1995, p. 4.

The following actions and measures relating to renewable
energy sources shall be financed under the programme:

(a) studies and other actions, intended to implement and
complement other measures by the Community and
Member States taken to develop the potential of
renewable energy sources. These involve in particular

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the development of sectoral and market strategies, the
development of norms and certification, facilitating
grouped procurement, analyses, based on projects,
comparing the environmental impact and the long-
term cost/benefit trends resulting from the use of
traditional forms of energy and the use of renewable
energy sources,
socio-
the analysis of
economic and administrative conditions,
including
analysis of the possible use of economic measures,
and/or tax incentives which are more favourable to
the market penetration of renewable energies,
the
preparation of appropriate legislation to promote an
environment
favourable to investment and better
methods which make it possible to evaluate the costs
and benefits that are not reflected in the market price;

the legal,

(b) pilot actions of interest to the Community aimed at
creating or extending structures and instruments for
the development of renewable energy sources in:

(cid:190) local and regional planning,

(cid:190) the tools for planning, design and evaluation,

(cid:190) new financial products and market instruments;

(c) measures intended to develop information, education
and training structures; measures to encourage the
exchange of experience and know-how aimed at
improving
international,
Community, national, regional and local activities;
establishment of a centralised system for collecting,
prioritising
and
circulating
know-how on renewable energy sources;

coordination

information

between

and

(d) targeted actions facilitating the market penetration of
renewable energy sources and relevant know-how, in
order to facilitate the transition from demonstration to
marketing, and encouraging investment, by advising
on the preparation and presentation of projects and
their implementation;

(e) monitoring and evaluation actions intended to:

(cid:190) monitor the implementation of the Community
strategy and action plan for the development of
renewable energy sources,

(cid:190) support

initiatives taken in implementing the
action plan, particularly with a view to promoting
better coordination and greater synergy between
actions, including all Community funded activities
and those funded by other bodies such as the
European Investment Bank,

and measures undertaken under

(cid:190) evaluate the impact and cost effectiveness of
actions
this
programme. This evaluation shall also take into
account
the environmental and social aspects,
including the effects on employment.

Article 3

1. All costs
relating to the actions and measures
referred to in Article 2(1)(a), (c) and (e) shall be borne by
the Community. Where a body other than the Commis-
sion proposes a measure covered by (c), the Community’s
financial contribution shall not exceed 50 % of the total
cost of the measure; the balance may be defrayed by
public or private sources or a combination of the two.

2.
The level of funding under the programme for the
actions and measures referred to in Article 2(1)(b) shall
not exceed 50 % of their total cost; the balance may be
defrayed by public or private sources or a combination of
the two.

3.
The level of funding under the programme for the
actions and measures referred to in Article 2(1)(d) shall be
established annually for each of the targeted actions in
accordance with Article 4(2).

Article 4

1.
The Commission shall be responsible for the finan-
cial execution and implementation of the programme. It
shall also ensure that actions under the programme are
to prior appraisal, monitoring and subsequent
subject
evaluation which, on completion of
the project, shall
include assessment of impact, extent of implementation
and whether the original objectives have been achieved.
The Commission shall ensure that the selected benefi-
ciaries submit reports to the Commission at least on a
six-monthly basis or, in the case of projects lasting less
than one year, at the halfway point and on completion.

The Commission shall keep the committee provided for
in Article 5 informed of the development of projects.

2.
The conditions and guidelines to be applied for the
support of the actions and measures referred to in Article
2(1) shall be defined each year taking into account:

(a)

the priorities set out by the Community and the
Member States in their programmes for the promotion
of renewable energy sources;

(cid:190) monitor the progress achieved by the Community
and comment on that achieved by the Member
States with regard to the development of renew-
able energy sources,

(b) criteria relating to the cost effectiveness and develop-
ment potential of renewable energy sources and their
impact on employment and the environment,
in
particular the reduction of CO2

emissions;

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(c) for the actions referred to in Article 2(1)(d), the relative
cost of the assistance, the long-term commercial via-
bility, the new production capacity expected to arise
and the extent of transregional and/or transnational
benefits;

(d) the principles established in Article 92 of the Treaty
and the relevant Community guidelines on State aid
for environmental protection.

The committee provided for in Article 5 shall assist the
Commission in defining these conditions and guidelines.

Article 5

The Commission shall be assisted by a committee
composed of representatives of the Member States and
chaired by the representative of the Commission.

The representative of the Commission shall submit to the
committee a draft of
the measures to be taken. The
committee shall deliver its opinion on the draft, within a
time-limit which the chairman may lay down according
to the urgency of the matter. The opinion shall be deliv-
ered by the majority laid down in Article 148(2) of the
is
Treaty in the case of decisions which the Council
required to adopt on a proposal from the Commission.
The votes of the representatives of the Member States
within the committee shall be weighted in the manner set
out in that Article. The chairman shall not vote.

if

these measures are not

The Commission shall adopt measures which shall apply
immediately. However,
in
accordance with the opinion of the committee, they shall
be communicated by the Commission to the Council
forthwith. In that event:
(a)

the Commission may defer application of the meas-
ures which it has decided for a period of not more
than one month from the date of such commun-
ication;

(b) the Council, acting by a qualified majority, may take a
different decision within the time limit referred to in
point (a).

measures taken to promote renewable energy sources at
the level of the Community and of the Member States,
with reference in particular to the objectives set out in
Article 1. That report shall be accompanied by proposals
for any amendments to the programme which may be
necessary in the light of those results.

2. On the expiry of the programme, the Commission
shall assess the results obtained from the application of
this Decision on the basis of a report by independent
experts and the consistency of national and Community
actions. It shall present a report thereon to the European
Parliament,
the Economic and Social
Committee and the Committee of the Regions.

the Council,

Article 7

The programme shall be open to participation by asso-
ciated central and eastern European countries (CEEC) in
accordance with the conditions, including financial provi-
sions, laid down in the additional protocols to the Asso-
ciation Agreements, or in the Association Agreements
themselves,
relating to participation in Community
programmes. The programme shall also be open to parti-
cipation by Cyprus on the basis of additional appro-
priations, under
the same rules as those applied to
EFTA/EEA countries, in accordance with procedures to
be agreed with that country.

Article 8

into

This Decision shall apply from 1 January 1998 until the
entry
framework
programme for measures in the energy sector and until 31
December 1999 at the latest.

the multiannual

force

of

Article 9

This Decision is addressed to the Member States.

Article 6

Done at Brussels, 18 May 1998.

the
1. During the second year of
to the European
Commission shall present a report
Parliament,
the Economic and Social
the Council,
Committee and the Committee of the Regions on the

the programme,

For the Council

The President

LORD SIMON of HIGHBURY