Communication from the Commission to the Council, the European Parliament, the Economic and Social Committee and the Committee of the Regions on the implementation of the Community Strategy and Action Plan on Renewable Energy Sources (1998 – 2000)
Date: 2001-02-16
Institutions: European Commission
Subjects: EU action, action programme, development policy, energy policy, renewable energy

COMMISSION OF THE EUROPEAN COMMUNITIES

Brussels, 16.02.2001
COM(2001) 69 final

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL, THE
EUROPEAN PARLIAMENT, THE ECONOMIC AND SOCIAL COMMITTEE AND
THE COMMITTEE OF THE REGIONS

on the implementation of the Community Strategy and Action Plan on Renewable
Energy Sources (1998 – 2000)

TABLE OF CONTENTS

1.

2.

3.

Introduction.............................................................................................................. 4

Reactions to the White Paper .................................................................................... 5

Current situation as regards the Community objectives............................................. 5

3.1.

The share of RES in the Community......................................................................... 6

3.1.1. Biomass.................................................................................................................... 7

3.1.2. Wind energy............................................................................................................. 9

3.1.3.

Photovoltaic solar energy (solar electricity) ............................................................ 10

3.1.4.

Solar thermal (solar heating)................................................................................... 10

3.1.5. Hydro ..................................................................................................................... 10

3.1.6. Geothermal............................................................................................................. 11

3.2.

3.3.

4.

4.1.

4.2.

4.3.

4.4.

4.5.

5.

5.1.

5.2.

5.3.

5.4.

5.5.

5.6.

5.7.

6.

6.1.

6.2.

6.3.

Renewable energy in Member States ...................................................................... 11

Co-operation between the Commission and Member States .................................... 12

Regulatory Measures .............................................................................................. 12

Electricity from renewable energy sources.............................................................. 12

Fiscal and Finance measures................................................................................... 13

New Bio-energy initiative for Transport, Heat and Electricity................................. 14

Improving building regulations............................................................................... 15

Standardisation....................................................................................................... 16

Integration into other Community Policies.............................................................. 17

Environment........................................................................................................... 17

Growth, Competitiveness and Employment ............................................................ 18

Competition and State Aid...................................................................................... 19

Research, Technological Development and Demonstration..................................... 20

Regional Policy ...................................................................................................... 20

Common Agricultural Policy and Rural Development ............................................ 21

External Relations .................................................................................................. 22

Support measures ................................................................................................... 23

The ALTENER Programme ................................................................................... 23

The AGORES database .......................................................................................... 24

Other support measures .......................................................................................... 24

2

7.

7.1.

7.2.

8.

The Campaign for Take-Off ................................................................................... 24

Challenging objectives for 2003 ............................................................................. 24

The Renewable Energy Partnership ........................................................................ 26

Conclusions and recommendations for the future.................................................... 28

TABLE 1 ............................................................................................................................. 30

Energy production from RES in EU-15 ................................................................................ 30

TABLE 2 ............................................................................................................................. 31

Energy production from RES in EU-15, by sector ................................................................ 31

GRAPH 3 ............................................................................................................................ 32

Differences in electricity generation in TWh, 1997/1998...................................................... 32

GRAPH 4 ............................................................................................................................ 33

Wind energy projections ...................................................................................................... 33

TABLE 5 ............................................................................................................................. 34

Wind energy installed capacity in MW................................................................................. 34

TABLE 6 ............................................................................................................................. 35

Impact of the objectives of theWhite Paper on net job creation............................................. 35

ANNEX I............................................................................................................................. 36

ACTION PLAN FOR RES 1998-2010................................................................................. 36

(Including action taken since the adoption of the White Paper)............................................. 36

ANNEX II ........................................................................................................................... 39

Current policies and targets in Member States and Norway .................................................. 39

ANNEX III .......................................................................................................................... 42

List of abbreviations............................................................................................................. 42

3

1.

INTRODUCTION

In November 1997 the European Commission adopted the Communication “Energy for the
Future: Renewable Sources of Energy” a White Paper for a Community Strategy and Action
Plan,1. The purpose of the White Paper on Renewable Energy Sources is to contribute, by
promoting renewable energy sources,
to the achievement of the overall energy policy
objectives: security of supply, environment and competitiveness, and to improve and
reinforce environment protection and sustainable development. In order to reach these goals
the White Paper proposes to double the contribution of renewable sources of energy (RES) to
the European Union’s gross inland energy consumption establishing an indicative Community
objective of 12% by 2010. The White Paper also contains a comprehensive Strategy and
Action Plan setting out the means to reach this objective.

In the White Paper the Commission undertook to produce every two years a Communication
to the European Parliament, the Council, the Economic and Social Committee and the
Committee of the Regions evaluating progress made in the Community and in Members
States. The Commission should,
if appropriate, recommend new guidelines and/or new
actions if sufficient progress in the penetration of RES does not appear to be made.

Progress on the penetration of RES has also to be analysed taking into account new
developments in the EU Climate Change Strategy and the EU commitments in the protocol of
Kyoto. EU objectives on reduction of GHG emissions by 8 % in 2008-2012, with respect to
the levels of 1990, will not be achieved unless further efforts are undertaken. First, on the
demand side to reduce the gross inland consumption. Second, on the supply side to use energy
sources which produce little or no GHG emissions, such as renewable energy sources.

As regards this issue, the Commission intends to open a large debate on the basis of the
recently adopted Green Paper on security of supply2. This Green Paper is the response to an
observable fact: Europe’s growing future energy dependence.The recent tripling in the price
of crude oil on the international market has served as a grim reminder of the crucial role of
energy in Europe's economy. Security of supply does not seek to maximise our autonomy in
energy or to minimise our dependence, but to reduce the risks connected to the latter. Energy
dependence is not in itself an easy problem to solve, however the concept of security of
supply which appears in the Treaty on European Union (Article 100) calls for an exercise of
reflection over the diversification of the various sources of supply (in products and by
geographical areas).

Ongoing discussions on sustainability at
level are of
paramount importance for the development of RES. The contribution of RES to sustainability
is largely accepted.

the Community and international

The present Communication contains the first progress report on the implementation of the
White Paper for a Community Strategy and Action Plan on Renewable Energy Sources. An
updated version of the Action Plan is provided in Annex I.

1 COM(97) 599 of 26.11.1997 Energy for the Future: Renewable Sources of Energy – White Paper for a

Community Strategy and Action Plan

2 COM(2000) 769 final of 29.11.2000 Green Paper Towards a European strategy for the security of energy

supply

4

2.

REACTIONS TO THE WHITE PAPER

On 8 June 1998 the Council adopted a Resolution on renewable sources of energy3. In this
Resolution the Council agreed that there is a need to promote a sustained and substantially
the Community and
increased use of renewable energy sources of energy throughout
welcomed the general thrust of the White Paper as a basis for actions at the Community and
national levels. The White Paper’s indicative objective of 12% by 2010 was considered as
providing useful guidance for increased efforts at Community and national level. The Council
confirmed the Community role as a complement to national measures and stressed the
importance of the ALTENER programme in developing and promoting support measures at
Community level. The Council also noted the important contribution expected from biomass
and that, consequently, Community policies on agriculture and waste management should
take this into account. The Council welcomed the Campaign for Take-Off and recognised its
favourable impact in raising interest among industry, investors and the public.

The European Parliament in its Resolution on the White Paper4 welcomed the White Paper
and Action Plan considering the objective of 12 % by 2010 as a minimum. The Parliament
considered statistical accounting under the substitution principle preferable and called the
Commission to quantify the favourable impacts of RES on the environment in terms of GHG
emissions and avoided external costs. The EP called on the Commission to introduce
legislative proposals in electricity but also in agriculture/biomass and building sectors.
According to the Parliament, The third countries policy and programmes of the EU should
aim to include RES as a priority. The EP also highlighted the importance of the ALTENER
programme, with a clear increase in funding. The EP welcomed the Campaign for Take-Off
and proposed new objectives to be added to as well as an "Awards" scheme in the framework
of the Campaign. Finally, the European Parliament asked for a Task Force on RES, the
incorporation of an energy chapter in the Treaty in any future review, and advocated a charter
on RES, “EURENEW”.

The Committee of the Regions5 welcomed the White Paper and highlighted the role to be
played by regions and cities in the implementation of the Strategy. It also stressed the
importance of the "100 communities for 100% of RES" action in the Campaign for Take-Off.
Finally the CoR asked the Commission to constitute a Task Force on RES and the creation of
an "European Agency for Renewable Energy". The Economic and Social Committee6 also
welcomed the White Paper and highlighted the outcomes for the manufacturing industry, the
building industry and agriculture. Industries, associations, agencies and non-governmental
organisations have also reacted positively to the White Paper.

3.

CURRENT SITUATION AS REGARDS THE COMMUNITY OBJECTIVES

The indicative objective proposed by the Commission was qualified as ambitious but realistic
by the Council who recommended Member States to take this objective into account and as

3 Council Resolution of 8 June 1998 on renewable sources of energy, OJ C 198, 24.6.1998, p. 1
4 Resolution of 17 June 1998 of the European Parliament on the Communication from the Commission:
Energy for the Future: Renewable Sources of Energy – White Paper for a Community Strategy and Action
Plan (A4-0199/98)

5 Opinion of the Committee of Regions of 16 July 1998 on the Commission White Paper: “Energy for the

future: renewable sources of energy” (CdR 57/98fin)

6 Opinion of the Economic and Social Committee of 29 April 1998 on the Communication from the

Commission on “Energy for the future: renewable sources of energy” (CES 633/98)

5

guidance. In statistical terms, progress at the Community level is not yet visible in the
consolidated statistics which cover the period 1989-1998. Moreover, the impact of new
Community (electricity from RES, Structural Funds, etc.), national (electricity, CO² tax, etc.)
or regional and local (building, urban planing, etc.) legislation would only be visible two or
three years into force. Nevertheless, trends in some sectors are already appearing that can lead
to preliminary conclusions.

3.1.

THE SHARE OF RES IN THE COMMUNITY

When the White Paper was published the most recent consolidated statistical data on RES
development in the EU then available concerned the year 1995. In this year the contribution to
the total gross inland consumption of the European Union amounted to 5,4% (5.3% in the
consolidated Eurostat data) and the evolution was confirmed at 5.8% in 1997, very close to
the 6% estimated for this specific year in the White Paper. For 1998, only provisional figures
are available showing at
least a 5.9% contribution of RES to the total gross inland
consumption. It should be noted that most Member States had little experience in collecting
renewable energy statistics in the early 90’s. See table 1.

The increase of RES-contribution to overall RES production from 1997 to 1998 results only
in a very modest increase of RES market share because of the total increase of energy
consumption. Current
the necessity of further
measures in demand management and energy efficiency in order to reduce the gross inland
consumption and to reduce GHG emissions without compromising economic growth.

trends in energy consumption highlight

The key figures concerning this period 1989-1998 show an increase of 32% on the total RES
primary energy production (increases of 2154% in wind and of 138% in solar) and an increase
of 29% on the total RES electricity generation7. The importance of RES in the various
Member States varies considerably depending on their energy policies, and in particular upon
specific measures taken to promote renewable energy sources at national and international
level. See table 2.

An increase of 5.4% in electricity generation took place between the 1997 and 1998 periods,
where hydro and wind provided the main contribution. Nevertheless, while the increase in
wind is due to new capacities installed, the increase in hydro is due to favourable hydrolicity
conditions (quantity of water). See graph 3.

The growth of RES contribution is very heterogeneous amongst the different MS and in
different sectors. For some technologies, more recent figures can be obtained from the sectors
concerned showing a positive and impressive evolution in some countries. Only wind, biogas
and MSW show differences at EU level. The installed capacity of wind energy, for instance,
has grown by around 70% from 4541 MW in 1997 to 7660 MW in August 19998. There are,
however, indications that not all RES technologies have developed at such a pace.

It has to be highlighted that the main improvements experienced in Member States correspond
to those sectors for which an appropriate policy has been implemented. For example,
supporting programmes have lead to increased market penetration of solar thermal energy in
Austria and Germany, in spite of having less potential than southern countries. The same is

7

1998 numbers to be considered provisional: in countries without updated numbers for this year, 1997 figures
have been used.
8 Source: EWEA

6

true for wind energy: while Denmark, Germany and Spain have experienced a real take-off,
other countries with even higher potential are not developing their wind markets.

3.1.1.

Biomass

Bioenergy is a very diverse type of energy with very different sources, processes and
feedstock. Energy from biomass and waste encompasses the production of heat, fuels and/or
electricity from agriculture,
its potential
contribution to security of supply, it has become an important element of energy, environment
and agriculture policy. The biomass sector has shown an increase of 13.5% in the EU-15
during the period 1995/1998, although some MS have achieved much greater increases 57%
(DE) and 94% (IT) in the same period of time.

industry and municipal wastes. Because of

Solid biofuels:

Three very important sources of energy from biomass are forest residues, wood industry
residues and short rotation energy crops. Traditional uses like fuel-wood for domestic heating
are continuing whilst new technologies are being developed to exploit the supply chain from
field (energy crops) or forest (trees) to the end-user. In 1998, wood used in households
represented 25.6 Mtoe and the wood used by industry was 8.7 Mtoe.

Liquid biofuels:

Liquid biofuels are used mainly as transport fuels. The two primary types are biodiesel and
bio-ethanol, processed from agricultural crops and other renewable feedstock. At present most
biodiesel in the EU is processed from oilseed rape and sunflower. Bioethanol is processed
mainly from wheat, sugar beet and sweet sorghum. There is an important potential in the EU
for increasing the use of biofuels for transport, including alcohols and ETBE, and vegetable
oils and esters for biodiesel. To exploit this potential, there is a need for improved framework
conditions in the agricultural sector and for a favourable fiscal treatment of RES as well as for
an innovative and dynamic marketing campaign.

The initial objective for liquid biofuels in the White Paper was 18 Mtoe, (including liquid
biofuels from non-energy crops such as wood residues, used vegetable oils and biogas used as
motor fuels). This target is equivalent to 5% of the final energy consumption by the transport
sector for 2010, in a base-line scenario. An intermediate target of 5 Mtoe by 2005 for liquid
biofuels used in the transport sector was set up in the Altener programme.

The total primary energy contribution from liquid biofuels in 1998 was 452 ktoe. Compared
with the total consumption of oil products in that year (excluding the small amount of
electricity used in this sector), this represents 0.15%.

The contribution from liquid biofuels to the total diesel used in the transport sector in EU in
1998 was 0.3%.

It must be highlighted that the very disappointing contribution of 452 ktoe coming from
biofuels in 1998 reflects the situation that specific policies are adopted in only four Member
States: France contributes with 58%, Germany with 21%, Italy with 18% and Austria with
3%. Low oil prices in the second half of the 90s have resulted in reduced interest of industry
and politics in liquid biofuels.

7

Biogas:

Energy is also recovered from landfill gas, and from the biogas produced through anaerobic
digestion of sewage, agricultural slurries and the organic components of industrial and urban
wastes.

The main ways of obtaining biogas are the following:

•

•

•

•

gas obtained from the anaerobic digestion of the organic fraction of municipal solid waste

anaerobic fermentation of manure from animals

sewage treatment with anaerobic digestion

capture of methane from landfill sites (normally named landfill gas)

The main technologies for the production of biogas are already available, although technology
advances could contribute to the optimisation of the fuel mix and processes concentrated on
the dry part of the waste. Where is the main barrier of this energy? Planning becomes more
difficult with energy of a dispersed nature, for which the fuel is a waste from another,
different industry. Setting up biogas plants, both farm scale and centralised co-digestion
plants, is a complex process which requires planning and co-operation to adapt to the local
context. Very different actors with very different skills and objectives like city planners,
farmer associations and utilities involved in a biogas project where energy objectives have to
be met alongside environmental objectives.

Heat & electricity from biogas can be considered as environmentally friendly and
economically feasible forms of CO2 neutral energy. Soil improvement can also result from the
biogas process when the liquid manure after treatment or the compost is used as a fertiliser.
Compost produced as part of the biogas process is a good quality fertiliser. Biogas plants can
become centres for the management of agricultural manure in rural areas. Also biogas plants
will play a role in the recycling of organic waste products from households in cities.

Thus, while the production of biogas under controlled conditions from organic residues will
increase, the collection and use of landfill gas to produce energy remains only a second
option. Landfill gas production is expected to become less important in the future, although
the emission of gases will continue for more than 10 years after closing the disposal sites.

Heat production, mainly from solid biomass,
the
competition of natural gas. Efforts are made to introduce in the market suitable solid fuels as
chips and pellets to facilitate their use and distribution for central heating in multi-dwellings,
etc.

is facing in some Member States,

Only 2% of the animal manure potential is used for biogas production in Europe. A big gap
exists between the available technologies and the existing market. Cross-fertilisation of the
different policies in the EU is needed, including information campaigns addressed to main
actors. The target set up in the White Paper of 15 Mtoe for biogas is only realistic if active
policies are established.

Landfill numbers from 1997 to 1998 present a growth of 20% in electricity production and
27% in heat production, while primary energy increased by 60%. The numbers of tons of
treated waste also provide a useful measure of progress in the biogas sector. Recent EU policy

8

on waste will create a stronger contribution of biogas in the biomass area and a possible
reduction of landfill before the year 2005.

Countries like Denmark and United Kingdom had established important biogas production
and landfill recovery policies. About eight MS present important growths of landfill energy
production9.

Conclusion:

It is vital for renewable energies in general, but even more important in the case of the
biomass sector, that those who are aware of successful new technologies should share their
experiences with others who are not. A big knowledge gap still exists in the EU between the
technology developers and the potential users of the new technologies, which are now
available in the biomass and waste area. Promotional campaigns in the biomass sector should
take into account the energy, environmental and economic aspects of the technologies, as well
as practical experiences and impacts on the local- often rural – economies. Local and regional
organisations and infrastructures are very important in the energy crops development.

Best practice results for the current regulation in MS and CAP need to be strongly
disseminated.

3.1.2. Wind energy

The take-off of wind energy has already happened. In the last 10 years wind energy capacity
has been multiplied by a factor of 24. This impressive take-off has been achieved by active
policies in mainly three Member States (see below). The capacity installed was 2.515 MW in
EU in 1995, and 6.458 MW in 1998 (9.645 MW in 1999, source industry association). This
sector shows a 55% growth per year with the European industry leading the world market.

The White Paper proposed 40 GW of installed wind capacity in 2010 as an indicative target;
taking into account
the spectacular growth presented by this technology. The industry
association has set up a new target: a 60 GW objective has been recently set for 2010. See
graph 4.

A main feature of wind technology, benefiting from an important contribution from the EC
RTD programme, has been the increasing average size of the generators: from an average size
of 190 kW per wind turbine in 1990 to 780 kW in 1999. The main efforts are currently
focused on offshore, bigger machines and grid-connection aspects.

Although the general evolution of the sector is positive, it is a result of the development of
very active policies in three MS (DK, DE, ES). As in other RES sectors, a very heterogeneous
situation exists in the EU regarding wind energy, with very different policies. As a result,
annual growth in EU countries with high wind potential varies between 54% to 6%. See
table 5.

There is a robust European wind industry, which represents 60% of the world market. The
costs of the wind turbines have diminished enormously, resulting in current wind electricity
prices, which can be as low as 0.08

/kWh10.

€

9 A new questionnaire has been prepared where landfill will be part of a biogas chapter with the rest of

digestible wastes. (REF Renewable and waste annual questionnaire, draft April 2000).

9

3.1.3.

Photovoltaic solar energy (solar electricity)

The photovoltaic industry experienced an annual growth of 29% in Europe. The sector has an
high potential and is very popular but barriers still exist. When electricity demand is 1 km
the extension of the grid is
from the grid, PV solar energy becomes competitive, but
subsidised in many areas of EU, inhibiting potential markets for PV. A similar situation exists
in islands, where 0.6
/kWh is normally the cost of both PV and electricity generated with
conventional fuel (including transport), but the existing schemes, copied from the mainland,
do not favour the penetration of PV.

€

Advances have occurred in the simplification of connection to the grid. Several MS have
recently established a policy pushing this technology. Big advances have taken place in
building integration, where system costs have been reduced by 40% in the last five years.
About 60% of the photovoltaic power installed in Europe is grid-connected. The nominal
installed capacity of demonstration projects has passed from 40 to nearly 100 MW over the
last 4 years in the EU, and the size of a typical demonstration project is now in the range of
0.5MW for grid-connected systems.

MS with active policies have attained higher expansion rates than the EU average. This is for
instance the case in NL, which exhibited a 62% increase of installed PV capacity in 1998
compared to 1997.

The 3GW objective for 2010 set up in the White Paper is realistic, and a higher number can
be achieved if simplification of administrative procedures is accompanied by a system cost
reduction down to 0.1
/kWh. The involvement of both utilities and municipalities is critical
for the take off of this technology.

€

3.1.4.

Solar thermal (solar heating)

The total installed area of solar thermal collectors in the EU was 9.019.000 m² in 1998.

A modest increase of 14% in the installed area of solar thermal collectors occurred from 1997
to 1998. Countries with active policies in solar thermal represent 75% of the European
capacity: about 28% of the total area is installed in DE, 26% in GR and 21% in Austria.

Solar water heating has an important market in the building sector, one of the fastest growing
sectors for energy consumption, which represents 40% of final EU energy consumption. The
energy demand for water and space heating in a building corresponds (both residential and
commercial) to 61% to 82% of the total consumption depending on uses. There is an an-
exploited European market for solar water heating in buildings, but also for the following uses
of solar thermal energy: swimming pools, drying in agriculture, and space heating and cooling
in buildings. Active promotion is needed together with distribution networks and market
innovation.

3.1.5. Hydro

Hydropower is a proven mature technology and its operation has been competitive with other
commercial energy sources for many years.

10 Average costs of kWh are : 0.04

€

/kWh for gas and 0.037

€
/kWh for coal. For nuclear and hydro average

costs are unlike to be used due to extreme differences between countries, plants or hydrolicity regimes.

10

In 1998, the total hydroelectricity production was 304 295 GWh with an installed capacity of
98 410 MWe. The production of hydroelectricity still represents 12% of the total electricity
production, by far the biggest RES electricity producer (86%). However the capacity is
progressing very slowly at 1,8% per year. The evolution of the production is very much
linked to the hydrolicity of the year (quantity of water) and consequently trend analysis is
inadequate.

A distinction has to be made between large hydro and small hydro (less than 10 MWe); large
hydroelectric installation being in general competitive and not needing particular support.
Consequently,
integrated in the RE
statistics.

large hydro is not part of ALTENER program but

In the EU, the existing technical and economic potential for large hydro power plants either
has been used, or is unavailable due to environmental constraints.

In contrast, there is still a good potential for the development of small hydroelectricity
especially for low head sites. In addition many existing Small Hydro Plants that are out of
operation can be refurbished with a relatively modest outlay.

In 1996, the installed capacity for Small Hydro sites was 9675 MW with an increase of 2.5%
compared to the previous year. The White Paper quotes that an additional installed capacity of
4500 MW of small hydro plants by 2010 would be a realistic contribution, which could be
achieved given a more favourable regulatory environment. For the small hydro industry non-
technical barriers remain the main factor which hinder its development.

The specific cost of installed kW is very site specific and depends on the head of the fall and
the installed capacity but can be around 1200 Euro/kW. The relialibility and the long lifetime
of the installation combined with low maintenance costs is well known. Howeever long
payback times affect the economic situation of the projects.

The EU hydro elecricity is leading the world market. Its businness is essentially outside
Europe.

3.1.6. Geothermal

In 1999, nearly 1 million dwellings are geothermally heated. Installed capacity for electricity
generation is about 1000 Mwe. New geothermal plants are developed, mainly, in southern
Germany and in Austria.

3.2.

Renewable energy in Member States

In the White Paper it was emphasised that, in order to reach the Community indicative
objective, Member States had to encourage the increase of RES according to their own
potential. Furthermore, as far as Community measures need to be complemented by national,
regional and local measures, Member States have a key role to play in taking the
responsibility to promote renewable energy through national strategies and programmes.

It has to be highlighted that, while the promotion and support to RES, both at Community and
Member States level, had already started when the White Paper was published, public support

11

to RES projects11 through national programmes has been clearly encouraged and fostered by
the White Paper. The White Paper is now a reference not only to Members States, including
regions and cities, but also at international level.

Moreover, a number of Member States have recently introduced national strategies for the
development of RES, as called for in the White Paper. Such strategies typically include
targets and multiannual Action plans addressing capacities of RES systems to be installed, as
well as administrative, legal and other promotional measures and activities. An overview of
national strategies and objectives in Member States is contained in Annex II.

3.3.

Co-operation between the Commission and Member States

To ensure more effective co-operation between Member States, called for in the White Paper,
a renewable energy working group made up of Member States and the Commission was set
up, on the initiative of the Commission. The working group has met in March 1998, May
1999 and October 2000 and it was agreed that it would be used as a forum to exchange
information on national policies and programmes and follow the implementation of the White
Paper Strategy and Action Plan. The group took the initiative to launch a survey on measures
and programmes related to RES in Member States in order to improve communication and co-
ordination. The group also invited its members to update the information on a regular basis.

4.

REGULATORY MEASURES

In the White Paper a number of priority actions in the regulatory sectors were identified
aimed at overcoming obstacles and redressing the balance in favour of renewable energy, in
order to reach the indicative objective of 12% penetration by 2010. New developments in key
policy fields have been the following12:

4.1.

Electricity from renewable energy sources

The Commission on 10 May 2000 adopted a proposal for a Directive on the promotion of
electricity from renewable energy sources in the internal electricity market13. This initiative of
the Commission is a response to the Energy Council’s invitation of 11 May 199914 to submit a
concrete proposal for a Community framework on access of electricity from renewable energy
sources to the internal market. The European Parliament
likewise in its resolutions on
electricity from renewable energy sources of 26 May 199815 and of 30 March 200016 called
for a Commission proposal in this area.

The strategic objective of the proposal was to create a framework for the medium-term
significant increase of electricity from renewable energy (hereafter “green electricity”)- in the
EU and to facilitate its access to the internal electricity market. The proposal aims to create
regulatory certainty for stakeholders, while at the same time respecting the principle of

11 On the basis of information received from Member States the annual expenditure for RES promotion in

Member States in the period between 1997-1999 is estimated to be at least 1,7 Bill.

12 See also the "Green Paper Towards a European strategy for

the security of energy supply"

COM(2000) 769 final of 29.11.2000

13 Proposal for a Directive of the European Parliament and of the Council on the promotion of electricity from

renewable energy sources in the internal electricity market COM(2000) 279 final.

14 Council conclusions of 11 May 2000, 8013/99
15 A4-0199/98
16 A5-0078/2000

12

€

.

subsidiarity by providing for a wide degree of autonomy to each Member State to allow their
particular circumstances to be taken into account. It is based on the following principles:

National Targets:

Member States are obliged to establish national targets for the future consumption of green
electricity. Indications for these targets are set out in an Annex to the proposal. If they are all
met, around 22 % of the EU’s electricity will be provided from renewable energy sources in
2010, compared to 14 % today.

The Commission will monitor the compliance of national targets with Community objectives
and will have an obligation to propose amendments to the national objectives if they are
inconsistent with the Community objectives.

Support Schemes:

The proposal abstains from proposing a harmonised Community-wide support scheme for
green electricity. This is in order to allow Member States to gain further experience with the
application of their national support schemes. The Commission will follow closely the
developments in Member States to gain further insights into the practical merits of each
support scheme.

However, the proposal obliges the Commission to make if necessary a proposal for such a
harmonised support system. This will be done on the basis of a Commission report assessing
the various support schemes in favour of electricity production from renewable as well as
from conventional energy sources. The report should give a clear picture of the different
public support measures in the electricity sector as a whole. This in turn will allow the
Commission to assess the type of support system needed to establish a level playing field
between renewable and conventional energy sources.

Technical issues:

The proposal tackles a number of technical issues, which are fundamental to the further
development of green electricity. It thus obliges Member States:

•

•

•

•

to introduce accurate and reliable certification of green electricity,

to assure priority access for green electricity to the electricity grid,

to check how administrative procedures applicable to the installation of generation plants
for green electricity could be streamlined and simplified,

to assure that the calculation of costs for connecting new producers of green electricity to
the electricity grid is transparent and non-discriminatory.

The proposal is currently discussed in the different institutions of the European Union and is
scheduled for the Council's meeting of Energy ministers in December 2000.

4.2.

Fiscal and Finance measures

Environmental taxes and charges can be an appropriate way of implementing the “polluter
pays” principle by including the environmental costs in the price of goods and services and by
this means internalising external costs. The White Paper emphasised that the environmental

13

benefits of renewable energy justify favourable financing conditions, e.g.
exemptions or reductions on products from RES.

through tax

Most Member States have in recent times introduced environmentally motivated taxes on
energy, or are seriously discussing the issue. These national tax schemes provide in most
cases for a favourable treatment of renewable energy.

In the White Paper reference was made to the 1997 Commission proposal for a Directive on
the taxation of energy products. This proposal enlarges the scope of the Community minimum
rate system beyond mineral oils to cover all energy products providing an internal market
framework within which Member States can use taxation as an instrument of environmental
policy. The draft directive provides for exemptions for renewable energy. The adoption of the
Directive would be of particular importance for biofuels since under the current Community
legislation de-taxation of biofuels is only possible in the framework of pilot projects17.

However, the discussions on the Commission proposal to harmonise the taxation of energy
products have proven to be difficult, unanimous agreement in the Council required in tax
issues could not be achieved so far.

Consequently, potential trade distortions stemming from different tax regimes throughout the
EC can still constitute a serious impediment to the introduction and/or operation of energy
taxes at the national level. Further progress towards a common basis for energy taxation in the
EC would therefore facilitate an appropriate use of tax instruments for the promotion of RES.

4.3.

New Bio-energy initiative for Transport, Heat and Electricity

The production of liquid biofuels for transportation uses is being developed in some Member
States without surpassing the pilot phase. Much efforts have to be done in this sub-sector
including a more stable production of
the
development of the use of liquid biofuels in fixed engines and the development of blended
fuels combined with efforts to increase the number of transport vehicles, that are certified for
the use of biofuels.

liquid biofuels in the agricultural sector,

The production of heat and electricity from biogas by a controlled anaerobic digestion
process, using biodegradable residues and wastes, can be developed following new ACP
regulations which provide the possibility to transform food-industry and farms residues, such
as manure, etc. in situ.

There is also scope for development following the new regulations on waste and landfill gas
under certain conditions regarding environmental protection. The Communication from the
Commission “EU Policies and Measures to Reduce Greenhouse Gas Emissions: Towards a
European Climate Change Programme (ECCP)”18 states that one of the proposed measures
in the area of waste is the promotion of the biological treatment of biodegradable waste.

As regards landfill gas the Community Strategy on Waste states that measures should be
taken to enhance prevention and recycling, so that the amount of waste, which is sent for
landfilling, will be reduced : land-filling of waste being the last option in the hierarchy of

17 Council Directive (EC) 92/81, OJ L 316, 31.10.1992, as modified by Directive (EC) 94/74, OJ L 365,

31.12.1994, p. 46);
18 COM(2000) 88 final

14

waste management. Accordingly, the Directive on the landfill of waste19, which came into
force on 16 July 1999 and must be transposed into national law by 16 July 2001, lays down
specific requirements on the construction, operation and after-care of landfills.

The overall objective of the Directive is to prevent or reduce as far as possible negative
effects on human health or the environment from the landfilling of waste. Negative effects
from landfilling arise mainly from uncontrolled emissions of landfill gas and leachate to the
surrounding environment. To minimise such emissions, the Directive provides as one of its
main objectives that Member States draw up strategies to reduce the amount of biodegradable
waste going to landfills; it also sets precise targets for the reduction of the amount of
biodegradable municipal waste going to landfills. To achieve these targets Member States will
have to increase in particular the recycling, the composting of biodegradable waste, the
production of biogas and other forms of recovery.

4.4.

Improving building regulations

As anticipated in the White Paper, total energy consumption in the domestic and services
sectors can be reduced by 50% in the European Union by 2010, and half of this could be
achieved by introducing passive and active solar technologies in buildings. Heating, cooling
and lighting constitute the lion’s share of the energy demand in this sector. Appropriate
legislation is slowly being introduced in Member States, mainly through local regulations,
both promoting the use of renewable energy sources and introducing energy efficiency
measures. Energy conservation measures are of paramount importance when planning to
introduce renewable energy sources in residential, professional and service buildings. This is
why energy efficiency measures are included in this chapter, together with typical renewable
energy initiatives.

In April 2000 the Commission presented an Action Plan to improve Energy Efficiency in the
European Community COM(2000)247.

In this Action Plan a wide range of measures aimed at energy efficiency in buildings was put
forward.

There is a close link between energy efficiency and the use of renewable energy sources in
buildings. In fact some advanced building projects have demonstrated both commercial and
residential buildings in cities do not require any external conventional source of energy (e.g.
electricity, gas or fuels) if best technologies in EE and RES are combined.

Both the Commission and Member States have implemented policies and programmes to
substantially improve the energy efficiency of end-use electrical equipment and to reduce the
energy consumption in existing and new buildings.

At Community level actions have been undertaken to introduce both minimum efficiency
requirements and mandatory energy labelling for domestic appliances and lighting equipment.
In particular, minimum efficiency requirements have been introduced for domestic
(Directive
refrigeration appliances,
96/57/EC)20, while labelling has been implemented under
the framework Directive

the single most consuming domestic appliances

19 Directive 99/31/EC, OJ L 182, 16.7.1999, p. 1-19, Corrigendum OJ L 282, 5.11.1999, p. 16
20 Directive 96/57/EC, OJ L 236, 18.9.1996, p. 36-43

15

92/75/EC21 for domestic refrigeration appliances, washing machines, dryers, washer-dryers,
dish washers and lamps.

Another important contribution to the reduction of energy consumption in buildings is
Directive 93/76/EEC22, which requires Member States to develop and implement measures in
six programme areas in the residential, tertiary and industrial sectors. This Directive aims at
encouraging new actions by Member States, in particular in the areas of energy certification
of buildings, thermal insulation of new buildings and billing of energy usage according to
consumption. However, implementation of this directive by MS has been rather unsatisfactory
and the Commission has started a number of infringement procedures regarding the
implementation and reporting of this directive.

In addition, a major voluntary programme for energy savings in lighting has been introduced
in the Community: The Green Light Programme. This programme calls on the use of day
lighting, among other measures to reduce energy consumption for lighting. If successful, this
programme could be extended to include the whole building’s electrical consumption,
including the need for heating, cooling and ventilation (HVAC systems). Here the interaction
between efficiency and renewable energy sources is very close.

Concerning the building sector as a whole, the Commission is currently implementing the
Action Plan contained in the Communication on “Competitiveness in the Construction
Industry” 23. This Action Plan includes a priority action to develop a European strategy for
the use and promotion of environmentally friendly construction materials, energy efficiency in
buildings and waste management, in order to contribute to sustainability. For this purpose a
working group on “sustainable construction” has been created. The working group involves
representatives from Member States, industry and the Commission services. After the first
meeting held in October 1999 three task groups have been established: TG1 on
“environmentally-friendly construction materials”, TG2 on “energy efficiency” and TG3
“construction and demolition waste”. A first report to the working group is expected to be
presented by October 2000.

Under the auspices of the European climate change Programme (see ch. 5.1 below), a number
of working groups have been established for the purpose of providing the Commission with
proposals intended to help meet EU Kyoto commitments. One of these groups, WG3, on
energy consumption, is designed to prepare proposals for the building sector, including
energy efficiency and renewables in buildings.

In addition, the Commission prepares currently a proposal for Community legislation on
improved energy efficiency and increased use of renewables in buildings, especially public
buildings.

4.5.

Standardisation

Community wide standardisation is important to facilitate the commercialisation and market
penetration of RES. Therefore, the Commission has taken initiatives on standards for solar
thermal, solar PV and wind equipment. Concerning biomass, the Commission has taken two
initiatives namely, three standards for biodiesel and seven standards for solid biomass.
Through the involvement of the European Standardisation Committee (CEN), these standards

21 Directive 92/75/EC, OJ L 297, 13.10.1992, p. 16-19
22 Directive 93/76/EEC, OJ L 237, 22.9.1993, p. 28-30
23 COM (97) 539 final – 4.11.1997

16

aim to reinforce traditional markets and to develop new competitive markets. Commission
mandates to CEN/CENELEC are contracted and financed under the ALTENER programme
and under the former 4th RTD FP for solid biomass standards. Results can be expected in
2000 for solar and wind standards, and from 2002 for biomass, (see Annex I).

5.

INTEGRATION INTO OTHER COMMUNITY POLICIES

5.1.

Environment

The Commission in its Working Paper on “The EU Climate Change Strategy: A Set of
Options” 24, preparatory to the Berlin “Klimakonferenz” (CoP-1) of March 1995,
contemplated the integration of renewable energies into the energy market as a major strategic
goal.

The Commission Communication of 14 May 199725 on “The Energy Dimension of Climate
Change” was part of the Community preparations for the Third Conference of the Parties
(CoP-3) under the UN FCCC (United Nations Framework Convention on Climate Change).
The Conference met in Kyoto through 2-11 December 1997 to negotiate the adoption of a
protocol whereby developed countries would agree on a legally binding timetable and
quantified reduction objectives to address their collective emissions of greenhouse gases
(GHG). The objective of the Communication was to identify policies and measures relevant to
that goal. It listed actions that could achieve GHG reductions in a cost-efficient manner within
the E.U., e.g. accelerating the promotion of renewable energy sources through Community
programmes, research, tax incentives and discussion with energy producers. As for the global
facet of Climate Change, it also proposed expanding the focus on energy projects, particularly
those relating to renewable energy sources, for international co-operation initiatives.

Shortly after the presentation of the White Paper on RES, the Kyoto Protocol on the reduction
of greenhouse gases was signed. The Community as a whole undertook to reduce greenhouse
gases by an annual average of 8% compared to the level in 1990 in the period between 2008-
2012.

Article 2 paragraph 1. (a). (iv) of the “Kyoto Protocol” (KP) –the legal text approved at
CoP-3- requires each Annex-I country to “implement and/or further elaborate policies and
measures in accordance with its national circumstances, such as: Research on, and
promotion, development and increased use of, new and renewable forms of energy”.

The Communication adopted on the 19th of May 1999 on “Preparing for Implementation of
the Kyoto Protocol”26 provided the European Commission’s input to the Cologne European
Council on the 4th and 5th of June. It takes a sector view of those policies and measures that
may contribute to curb GHG raising emission trends. This Communication stresses CO2
reduction potentials and sustainability aspects of the renewable energy sources (RES). Within
the context of the UN FCCC, electricity generation from RES is singled out as an important
element
in project-related flexibility mechanisms under the Kyoto Protocol. The future
development of RES has been incorporated within the 5th RTD Programme.

24 SEC 95/288/final – 1.3.1995
25 COM(97) 196 final – 14.5.1997
26 COM(99) 230 – 19.5.1999

17

The Commission has adopted on 8th March 2000 the “Green Paper on greenhouse gas
emissions trading within the European Union”27 and a Communication on “EU policies and
measures to reduce greenhouse gas emissions: Towards a European Climate Change
Programme (ECCP)”28.

The 6th Conference of the Parties (COP6) to the United Nations Framework Convention on
Climate Change in November should deliver decisions on the issues left unfinished in Kyoto.

The EU intends to start the political process on ratification of the Kyoto Protocol immediately
after COP6. This discussion will have several dimensions, but at least two are of major
importance:

• The burden sharing agreement that was agreed by the Council in 1998 will have to be
incorporated into a legal instrument. The –8% target for the EU as a whole has been shared
amongst Member States so as to allow for different economic development patterns. The
legal translation of the burden sharing agreement will allow the ratification of Kyoto
jointly by the Member States as well as by the EC.

• An implementation strategy will be needed to accompany the ratification instrument. It
will be necessary to spell out which policies and measures will have to be undertaken, and
how the so-called flexible mechanisms will be implemented within the EU and with other
Parties from industrialised as well as developing countries.

The Environment Council in its conclusions of October 199929 urged the Commission to put
forward in 2000 a list of priority actions on climate change and to prepare appropriate
proposals in due course. In this context, the Council stressed the need to take forward those
policies and measures already identified by Council in its conclusions of June 1998 30.

In response to these requests the Commission has brought forward the European Climate
Change Programme (ECCP). This programme will bring together all relevant stakeholders to
co-operate in the preparatory work of common and co-ordinated policies and measures to
reduce greenhouse gas emissions.

The programme is structured around 6 working groups and the development of renewable
energy sources plays a prominent role. A final report of the ECCP is scheduled for March
2001.

5.2.

Growth, Competitiveness and Employment

The development of endogenous energy resources such as renewable energy contributes to
improve sustainable growth, especially in rural areas, creating more business opportunities
and more jobs. RES technologies deployment in certain areas contributes both to produce
energy and to reduce pollution (i.e. depolluting waste treatment, RES integration in buildings,
etc.).

27 COM(2000) 87 – 8.3.2000
28 COM(2000) 88 – 8.3.2000
29 Council conclusions on a Community Strategy on Climate Change, doc. 11654/99, Luxembourg 12 October

1999

30 Council conclusions on a Community Strategy on Climate Change, doc. 9702/98, Brussels 19 June 1998

18

Concerning competitiveness, recent developments in oil and oil derivates prices enhance the
approximation of RES and fossile fuel prices as far as unit costs in more RES technology are
decreasing dramatically. Nevertheless, competitiveness analysis regarding energy prices
without taking into account energy external costs are unlikely to be favourable to RES. How
external costs are to be internalised or compensated in the future still is an open debate that
should lead to a better balanced competitiveness analysis in the energy sector31.

Europe is a world market
leader in RES technology. For instance, EU wind industry
represents the 60% of the world market. EU hydro and PV industries are well introduced in
growing markets as Latin America or Asia. EU biomass related industry is more focussed in
the domestic marker. EU industry development is due both to an increasing domestic demand
and new export possibilities favoured from cost reduction and good expertise. Calculating the
impact on RES development in domestic and export markets on employment has been a
hazardous exercise since real figures for a long period were not available. Actual data from
some industry sectors related with RES allows now more accurate estimates.

From a study carried out for the Commission32, and only considering the domestic market, the
impact of the White Paper objectives’ on employment can be calculated according to expected
individual penetration rates by sector. Table 6 summarises employment effects on the 15 MS
in net operation and maintenance (O&M), construction and installation (C&I) and total
employment
in conventional
energies.

the jobs displaced from employment

taking into account

The results suggest that around 530,000 jobs may be created between 1999-2010 across the
15 EU Member States within the renewable energy sector. In order to provide more accurate
information to decision-makers on job creation generated by RES investments, further work
should now concentrate on developing and expanding information directly related to the types
of technologies discussed in the White Paper.

5.3.

Competition and State Aid

The White Paper spoke about the guiding principles for the Commission in assessing aid for
RES laid down in the Community Guidelines on State Aid for Environmental Protection and
the Commission's intention to consider appropriate modifications in favour of RES during the
revision of these Guidelines. The Council in its Resolution on RES welcomed this approach.

The Commission is currently discussing drafts for revised guidelines together with Member
States. The revision aims at clearer, more comprehensive structure and at
increasingly
integrating environmental issues into energy and state aid policies.

The new guidelines should facilitate the operation of national state aid schemes for RES by
providing clear and favourable rules while at the same time ensuring compliance with the
state aid rules of the Treaty33.

31 External costs of energy production have been calculated and analysed in the framework of the project

32

EXTERNE lead by the DG Research
Impact of Renewable Energy Sources on job creation. The purpose of the study was to develop a
million of
methodology in order to calculate job creation in RES technologies by capacities installed and
investment. Estimates will be updated on a regular basis and job creation data included in the monitoring
scheme

€

33 See also the "Green Paper Towards a European strategy for

the security of energy supply"

COM(2000) 769 final of 29.11.2000

19

5.4.

Research, Technological Development and Demonstration

The White Paper spoke about the still great scope for RTD&D to improve technologies,
develop suitable materials for producing, storing, transporting and using energy, reduce cost
and gain user experience in demonstration projects. The 5th framework programme offers the
possibility to finance RTD efforts in the field of RES.

The fifth RTD Framework Programme (1998-2002)34 was launched in February 1999.
Activities focused on energy developments and applications are grouped into the sub-
programme ENERGIE within the thematic programme “Energy, environment and sustainable
development”35. One of the two key actions under ENERGIE deals with cleaner energy
systems, including renewable energies. Following the first Call for proposals launched in
March 1999, about 60% of selected projects were related to the development and market
deployment of renewable energy technologies. Community support granted was around
135
million, representing 67% of the available budget. Information on projects results is available
in the CORDIS database.

€

Calls in 2000 included specific target actions on RES reflecting strategic goals of the White
Paper: integration of RES in Communities, bio-energy, biogas, etc. For 2001 and 2002 new
target actions have been proposed in a revised work programme (see Annex I).

5.5.

Regional Policy

As pointed out in the White Paper, the reform of the Regional Policy under AGENDA 2000
presented a good opportunity to extend, consolidate and clarify the aid opportunities available
for RES and to increase the weight given to RES within the energy programmes.

In fact, the new basic regulation on the ERDF adopted in the framework of AGENDA 200036
now expressly states that the ERDF should foster the development of renewable energy
sources and the definition of the scope of the fund includes action in support of RES.

Part financing of programmes under the Structural Funds requires that account be taken also
of Community priorities. These priorities were defined by the Commission in a
Communication “The Structural Funds and their Co-ordination with the Cohesion Fund;
Guidelines for programmes in the period 2000-06”37. In the Guidelines, promotion of RES
was highlighted within the strategic priority “regional competitiveness” as favouring, among
others, the development of local resources and reducing import dependency. Reference was
made to the White Paper in which Member States where called on to guarantee that at least
12% of the global budget of the energy sub-programmes is used to support RES.

Currently Member States are preparing the operational programmes for the next programming
period of the Regional Fund. It will be of crucial importance that Member States make use of
the new opportunities in terms of RES promotion for which the basic Regulation has laid
down the foundation.

34 Decision No 182/1999/EC of the European Parliament and the Council of 22 December 1998 concerning the
Fifth Framework Programme of the European Community for research, technological development and
demonstration activities (1998-2002), OJ L 26, 1 February 1999, p. 1

35 ENERGIE has been allocated a budget of
36 Regulation (EC) No. 1783/1999 of the European Parliament and of the Council of 12 July 1999 on the

1, 042 million in the financial perspective.

€

European Regional Development Fund, OJ L 213, 13.8.1999, p. 1

37 COM (1999) 344 final

20

5.6.

Common Agricultural Policy and Rural Development

The White Paper emphasised that agriculture is a key sector if the goal to double the share of
RES from 6% to 12% is to be achieved, in view of the expected substantial contribution of
biomass.

The reform package introduced under AGENDA 2000 was therefore of crucial importance for
the White Paper Strategy as a whole. In fact, the result of AGENDA 2000 provides some
encouraging signals in the right direction.

Under the support regime for arable crops the compulsory set-aside rate was fixed at 10%
until 2006/2007 and Member states have the opportunity, in the framework of voluntary set-
aside regime, to fix a higher rate on their respective territory.

Since the production of energy crops is allowed on set-aside land and eligible for set-aside
payment, these rules will provide opportunities for developing energy crops and thus improve
the availability of raw material. However, the structure of set-aside payments give no specific
encouragement to grow energy crops and do not ensure the required long term commitment of
the agricultural sector in the energy crop growing sector.

On the other hand, Member States are allowed to pay national aid up to 50% of the costs
associated with establishing multiannual crops intended for biomass production on set-aside
land.38

As regards biogas exploitation,
the new Commission Regulation detailing the rules of
application of the above support regime for non-food production constitutes an important
improvement of the situation in that the production and use of biogas is now possible on the
farm itself.39

As regards the opportunities for RES within the rural development policy, the new Council
Regulation on support for rural development from the European Agricultural Guidance and
Guarantee Fund (EAGGF) and amending and repealing certain Regulations40 expressly
provides for encouragement of non-food production. Therefore, when establishing their
development plans, national competent authorities can decide to put emphasis on the non-
food sector. For instance, investments in agricultural holdings linked to the production of bio-
energy are eligible for support. In addition, support can be provided in the framework of
afforestation of agricultural land by granting support for planting costs in the case of fast
growing species.

In its Communication "Forestry Strategy"41 the Commission emphasised that the potential of
forests as a source of energy, either by short rotation plantation or by the use of forest
residues, should be favoured. Furthermore, the Commission in its Communication "Directions
toward sustainable agriculture"42 stressed the role of biomass for combating climate change

38 Council Regulation (EC) No. 1251/1999 of 17.5.1999 establishing a support system for producers of certain

arable crops, OJ L 160, 26.6.1999, p. 1

39 Commission Regulation No 2461/1999 laying down detailed rules for the application of Council Regulation
(EC) No 1251/1999 as regards the use of land set aside for the production of raw materials for the
manufacture within the Community of products not primarily intended for human or animal consumption,
OJ L 299, 20.11.1999
40 OJ L 160, 26.6.1999, p. 80
41 COM(98) 649 final
42 COM(1999) 22 final, 27.1.1999.

21

and made a reference in this context to the objectives of the White Paper on renewable
energy, thereby introducing the climate change considerations into the concept of sustainable
development. It was also underlined that increased biomass exploitation from forest residues
would at the same time constitute a means to prevent forest fires, often caused by non
removed residues. The above Communications also provide useful guidance for the selection
of projects to be supported in the field of biomass under Community programmes in the
framework of Rural Development.

From an operational point of view, the creation, on the initiative of the Commission, of an
"Advisory committee on Non-food and Textile crops", including a "Permanent Group on
renewable energy", constitutes a helpful tool. The Committee will facilitate a more effective
participation of the parties involved in the issue of agriculture and renewable energy, in
particular biomass.

In conclusion, it can be said that progress has been made in improving the conditions for
biomass under Agricultural policy and related fields. However, if the biomass objectives of
the White Paper are to be achieved and given the importance of the biomass sector within
RES, considerable additional efforts are necessary to further improve these conditions.

5.7.

External Relations

Enlargement policy is devoted to accession candidate countries, with specific measures and
funds. Enlargement policy emphasises the harmonisation of legislation, including Community
energy policy legislation. In addition, accession candidates can join Community programmes
on the basis of bilateral protocols.

Concerning Third Countries,
the Lomé Convention is being replaced by a Partnership
Agreement between the African, Caribbean and Pacific States and the European Community
and its Member States43. The EDF financial resources will be channelled through two
instruments: grants and risk capital and loans to the private sector. Poverty reduction is the
central objective of the new Partnership.

The need for fostering RES development in industrialised and developing countries has being
highlighted during the last G8s 68th Summit in Okinawa on the 23rd July 2000. The "G8
the
Communiqué Okinawa 2000" contains an Environmental chapter. Point 66 of
Communiqué is devoted to RES in the following terms: "Working together and with existing
institutions to encourage and facilitate investment in the development and use of sustainable
energy, underpinned by enabling domestic environments, will assist
in mitigating the
problems of climate change and air pollution. To this end, the increased use of renewable
energy sources in particular will
life, especially in developing
countries. We therefore call on all stakeholders to identify the barriers and solutions to
elevating the level of renewable energy supply and distribution in developing countries. We
invite stakeholders to join in a Task Force to prepare concrete recommendations for
consideration at our next Summit regarding sound ways to better encourage the use of
renewables in developing countries." The Commission participates in the Task Force.

improve the quality of

43 Proposal for a Council Decision concerning the conclusion of the Partnership Agreement between
theAfrican, Caribbean and Pacific States on the one part, and the European Commission and its Member
States, on the other part. COM(2000) 324 final, 23.5.2000

22

6.

SUPPORT MEASURES

During the 1980s non-technical EC support to RES was concentrated in accompanying
measures under RTD programmes, mainly, the JOULE and THERMIE programmes. At the
beginning of the 90s the Commission proposed the adoption of non-technical programmes in
order to foster RES and EE market penetration. In 1993 the Council adopted the Decision
concerning the first ALTENER to promote RES in the Community.

6.1.

The ALTENER Programme

The White Paper highlighted the crucial role of the ALTENER II programme and the
subsequent programme included in the Energy Framework Programme as a basic instrument
for the Action Plan.

The first five-year ALTENER programme ended on 31.12.97. In May 1998 the Council
adopted its successor ‘ALTENER II’44 which ran two years from 1998 to 1999. The stated
overall aim of ALTENER II is to make an essential contribution to the White Paper Strategy
and Action Plan, including the Campaign for Take-Off. It continues the approach of the
earlier ALTENER programme focussing on non-technical barriers (RES legislation, market
opportunities, environment benefits, employment, standards, training structures, planning,
monitoring, etc.) but in addition stresses targeted actions in order to reduce the gap between
innovative projects and large scale applications. Around 200 projects providing direct support
for the Action Plan including the Campaign for Take-Off were selected and approved under
the 1998/1999 project round.

In May 2000 the ALTENER II programme45 was extended until 2002 under the new Energy
Framework Programme46. Priority will be given to the continuation and reinforcement of the
support to the White Paper process, in particular the Campaign for Take-Off. The financial
€
77 (over the five years 1998-2002) will allow for a modest but
resources provided for M
useful
the effect of which will be optimised by a greater
specialisation/targeting of projects. Under the 2000 project round around 400 proposals were
received.

increase in activity,

ALTENER II allows in principle for co-operation with the Associated Countries of Central
and Eastern Europe and Cyprus, under the conditions for their pre-accession participation in
EU programmes to be stipulated in individual Council Decisions.

Community programmes oriented to overcome non-technical barriers and, in particular the
ALTENER programme, have played, and still have to play, a mayor role in supporting
projects and actions for preparing and fostering the implementation of the Community
Strategy for RES, including the preparation of legislation and subsequent implementation.
Their role has also been of paramount importance for catalysing national, regional and local
efforts across the EU.

44 Council Decision 98/352/EC of 18 May 1998 concerning a multiannual programme for the promotion of

renewable energy sources in the Community (ALTENER II) , OJ L 159, 3.6.98, p. 53

45 European Parliament and Council Decision of 23.2.2000 concerning a multiannual programme for the

promotion of renewable energy sources in the Community (ALTENER II), OJ L 79, 30.3.00, p. 43.

46 Council Decision of 14 December 1998 adopting a multiannual framework programme for actions in the
energy sector (1998-2002) and connected measures (1999/21/EC, Euratom), OJ L 7, 13.1.1999 p. 16-19

23

6.2.

The AGORES database

To facilitate the dissemination of relevant information on RES the virtual centre “AGORES”
was created and funded under the ALTENER II programme. AGORES constitutes the first
one-stop-shop to provide information on Community and national strategies, regulations and
programmes, to disseminate project results and to facilitate contacts between the main actors.
For this purpose AGORES provides also automatic links with public bodies, agencies,
industry associations, universities and any kind of organisation acting in the field of RES.

6.3.

Other support measures

Several accompanying measures in the framework of other Community programmes such as
5th RTD FP (see point 5.4) are focussing in the implementation of the White Paper and the
Campaign for Take-Off.

Such accompanying measures are normally funded jointly by the Commission and either
private or public sector organisations in the Member States. They typically include the
drafting and publication of brochures, Best Practice Stories, and other reports, as well as
conferences, seminars and workshops. In addition, the 5th RTD FP supports a number of
networks, which contribute their shared experience to stimulate RES markets and to
accelerate their growth, for example the OPET network and the Wave Energy Network.

7.

THE CAMPAIGN FOR TAKE-OFF

7.1.

Challenging objectives for 2003

In the White Paper, an outline for a Campaign for Take-Off was included, aiming to promote
and accelerate the implementation of large projects in the different RES sectors as well as to
send clear signals for the greater use of RES.

The Council welcomed the idea of the Campaign inviting the Commission to bring forward
more detailed proposals. The European Parliament, the Committee of Regions and the
Economic and Social Committee also welcomed the Campaign for Take-Off, proposing
additional objectives. In response to Community Institutions resolutions and as announced in
the White Paper, the Commission services published a working document which includes new
objectives for the Campaign and outlines details of its implementation47.

The Campaign will run from 2000 to 2003 and is focussed on quantitative objectives in
different key sectors of RES. In addition to the key energy sectors, a stated goal of the CTO as
presented in the White Paper is the identification of “100 communities” aiming at 100% of
RES supply. The “100 communities” action as initially proposed in the White Paper has
already aroused much interest across the EU. The “100 communities” action could also be a
benchmark for the implementation of decentralised energy supply. As part of this “100
communities” action, a number of pilot communities, regions, cities and islands are being
identified which can reasonably aim at 100% power supply from renewable energy sources.

The Commission’s role will be to establish the framework, to provide technical and financial
assistance, where appropriate, and to co-ordinate actions. Community funding, which could

47 Commission staff working paper – Energy for the future: Renewable Sources of Energy (Community

Strategy and Action Plan) – Campaign for Take-Off, SEC (1999) 504

24

be made available to promote RES within the different financial instruments (Structural
€
Funds, the 5th RTD FP and support programmes such as ALTENER) was estimated to be
987.5 million for the 1999-2003 period and according to financial perspectives48. The
Campaign promotional instruments are funded under the ALTENER programme.

The role of Member States will be crucial in this concerted action by promoting the aims of
the Campaign and co-ordinating actions at national level. Nevertheless, although the role of
the public sector is essential, the Campaign’s main promotional objective is to help and
support the private sector and to involve all interested parties in promoting renewable energy
sources.

Integration of Renewable Energy in 100 communities

Concerning the objectives of the Campaign, it can be confirmed that the specific objective of
"100 communities aimed at 100% of RES supply" will be certainly reached in 2003. RE
Partnerships, signed with such communities, are progressing rapidly and more than 100
eventual candidates have been identified.

Target actions on both integrated systems for the urban context and for regional areas will be
launched in 2001 under the 5th RTD-FP. Specific actions in the Framework of the ALTENER
programme have also been scheduled.

Campaign Key Sectors

Key sector objectives of the Campaign to be reached by 2003 were set at between 15% to
25% of the overall White Paper objectives for 2010. While conclusions, in terms of progress
towards 2010 objectives in Chapter 3, obviously apply for the Campaign objectives, the
intermediate objectives for 2003 provide a better short/medium term picture of the progress
made.

1.000.000 PV systems

This target is equivalent to an installed capacity of 1.000 MWp , only 650 MWp of which are
to be installed in the EU. The other 350 MWp are to be realised in Third Countries. The
installed capacity in the EU was more than 100 MWp in 1998.

New national programmes -Germany, Italy, etc.- can foster PV market penetration. In
addition, pioneering projects are taking place like the Hesse project in Germany (1 MW
installed in one building) or the HIP-HIP project (an EU consortium installing 3MWp under
the 5FP). Cities like Barcelona have included an obligation of installing PV systems in new
buildings and a 3-4 MWp is planned. A target action will be launched in the frame of 5th
RTD-FP on ECO- buildings where both PV and solar thermal are prioritised.

15 million m2 solar collectors

About 9 million square meters had been installed in Europe by 1998.

National and regional programmes are ongoing or planned in MS -Austria, France (islands),
Italy (Commune solarizzato) and Spain (Andalucia and cities) and appropriate legislation has

48 See SEC(1999)504, p 26, Table 2 "Public support scenario".

25

been adopted in some European cities. Nevertheless further promotional and market actions
are needed.

10,000 MW of wind turbine generators

9.645 MW were installed by 1999. The objective has therefore been achieved three years in
advance.

10,000 MWth of combined heat and power biomass installations

Not sufficient data available.

1,000,000 dwellings heated by biomass

Not sufficient data available.

1,000 MW of biogas installations

Landfill recovery together with sewage sludge, farm slurries and agro-food industry added up
to an installed capacity of about 700 MW in EU in the year 1998. Biogas production is
intended to grow, mainly, following new specific agricultural and waste regulations.

5 million tonnes of liquid biofuels

This objective is equivalent to 5 Mtoe. 0.45 Mtoe existed in 1998 in EU. In spite the low rate
of market penetration, liquid biofuels production can be expected to grow under the high oil
price and an improved agricultural legislation, mainly, on the use of land set-aside for the
production of raw materials.

In conclusion:

• wind objective has already been achieved;

•

•

solar PV and thermal are peaking in some restricted areas with appropriate regulatory and
promotional measures, mainly at regional and local level;

biomass objectives, which need a specific survey in order to complete statistical data,
have to be closely monitored. Biogas is clearly peaking. In space heating, biomass has to
compete with natural gas. Secondary biomass for combined heat and power depends on
the success of specific agricultural measures - forest residues, non-food, etc-;

• Promotional action is to be launched focussing on success stories, mainly,

in the

regulatory field by local public authorities.

7.2.

The Renewable Energy Partnership

Under the CTO investment opportunities have to be highlighted by promotional and public
relations activities. Therefore, a Renewable Energy Partnership scheme with public
authorities, energy agencies, industry and other key players has been created.

The lion’s share of the total investment necessary to realise the targets of the CTO and the
White Paper is expected to be contributed by the private sector and the balance will have to be
provided under public programmes and schemes, triggering the private investment, together

26

with the package of promotional actions forming an essential part of the CTO. Both the
promotional measures and the complementary public funding focus on key sectors (solar,
wind and biomass and integration of RES in 100 communities), in order to increase the
impact and visibility of the concerted efforts.

Actors involved in the Campaign for Take-Off become “Partners” at the Community level by
signing a Renewable Energy Partnership Declaration, describing the actions, programmes or
initiatives which form their contribution to the CTO. The RE Partnership is intended to
promote investments and to highlight the European dimension of both public and private
initiatives in the key sectors of the CTO. Potential partners are: national, regional and local
authorities, energy agencies, industry (including utilities, oil companies, and manufacturers),
and farmers associations, etc.

By July 2000, more than 30 RE Partnership Declarations have already been signed. This
includes regional programmes, oil and RES manufacturing industry, national agencies, and
cities with programmes in the “100 communities aiming at 100% of RES supply” action. This
action has been very successful which confirms, on one hand, the dynamism of European
cities and, on the other hand, the high potential for a greater use of RES in the urban context.

Renewable Energy Partnerships signed by July 2000

• National: 4 RE Partnership signed (ES, FR, FI, SW);

• Regional: 4 RE Partnership signed (ES, DE, EL);

• Local: 15 RE Partnership signed (SW, DE, DK, IT, ES, EL);

•

Industry: 5 RE Partnership signed (BE, ES, IT, FR);

• EU-Dissemination: 2 RE Partnership signed (DK, NL);

Of which:

•

100 communities aimed at 100 % of RES supply: 11 RE Partnership

A number of promotional instruments accompanying the RE Partnership have already been
launched :

• A logo identifying the Campaign has been created.

• The First CTO Awards will be granted to actors contributing to the CTO with their

initiatives.

• A RE Partnership Catalogue describing all the RE Partnerships is to be published on a

yearly basis.

• Videos.

• A Communication Plan for EU-wide promotional activities is in process.

Promotional instruments and activities are funded under the ALTENER programme.

27

8.

CONCLUSIONS AND RECOMMENDATIONS FOR THE FUTURE

Since the publication of the White paper, important policy developments have underlined the
key role of renewable energy in ensuring sustainable energy supplies for the Community,
reinforcing social and economic cohesion, developing European industry and contributing to
job creation. The signature of the Kyoto protocol, and the process of integrating the
environment into other Community policies, including energy, are the two major initiatives in
this respect. A renewable energy contribution to sustainability is broadly accepted at
international level.

Progress has been made in key policy fields highlighted in the White Paper and its Action
Plan, both at the Community and national level.

Encouraged by the White Paper, public authorities in Member States are developing or
reinforcing strategies, objectives and, in some cases, appropriate legislation with regard to
RES development. In the last three years, the White Paper has become a well-established
reference, and has catalysed the setting up of policies at local, regional and national level.

Community support instruments have begun to enhance cross-fertilisation between Member
legislation, measures, programmes and innovative pioneer
States on successful policies,
projects related to RES. Those instruments are the Campaign for Take-Off, the 5th RTD
Framework Programme, and the ALTENER programme.
In the Renewable Energy
Partnership scheme, the Community has been joined in this EU-wide promotional effort by
leading actors from industry, associations, NGOs and public authorities. Particularly
remarkable is the participation of cities and other communities.

Although these developments have already led to an increase of the share of RES in the
Community’s total energy supply, their impact cannot be fully assessed at this early stage of
the implementation of the Community Strategy.

RES market penetration is, on average, growing in the EU-15 but it is not yet sufficient. The
available statistics contain two main features: first, the undeniable take-off of wind energy
and, second, the expansion rates, higher that the EU average, reached by those MS with
proactive renewable energy policies. In addition, the deployment of RES in communities
(regions, islands and cities) is directly related to the presence of proactive local policies.

However, at this stage, it is far from sure that the indicative target of the White Paper of 12 %
RES contribution to the EY gross inland consumption will be achieved in 2010. In particular,
this objective will never be achieved if the gross energy consumption continues to increase in
line with the current trend and demand management and energy efficiency measures are not
implemented vigorously. The analysis in the Green Paper49 sets out to show, as objectively as
possible, that the European Union has very limited scope to influence the energy supply side.
It also sets out to show, without bias, that the major efforts required to promote renewables
will in fact have a limited impact in the face of the growth in demand. Efforts will have to
focus on orienting the demand for energy in a way which respects the EU's Kyoto
commitments and is mindful of security of supply.

49 See also the "Green Paper Towards a European strategy for

the security of energy supply"

COM(2000) 769 final of 29.11.2000

28

Though progress has been made, considerable further efforts will be necessary to achieve the
objectives of the White Paper, at the Community level and in the national policies of the
Member States.

Future Community and Member States efforts should concentrate on:

The definition of individual RES strategies and objectives by Member States, as called for in
the proposal for a Directive on electricity from RES. However, the definitions of these
objectives should address not only electricity, but also the heating, cooling and transport
sectors.

Member State responses to Community measures, mainly in the field of structural funds for
the period 2000-2006, should be proactive with respect to building new RES capacities in
Member States.

The biomass sector represents the largest potential in RES. Therefore, while the impact of
new regulations under the Common Agricultural Policy is not yet known, specific attention
needs to be attached to biomass and the framework conditions should be further improved.
For instance, production of energy crops should be more encouraged and energy taxation
revised to favour biofuels.

Concerning the building sector, which represents more than a third part of the overall EU
energy consumption, measures will therefore be proposed by the Commission in order to
improve and multiply at an EU-wide level experiences made in specific demonstration sites.

level,

At an international
the Community should show the way to sustainable and
environmentally friendly energy schemes for supporting and financing RES development
programmes. One building block in that context is the G8-RES-Task created after the last G8
summit in Okinawa.

Concerning support measures, the Community RES related programmes should address: the
consolidation of proactive measures in MS by the cross-fertilisation of good and successful
practices between MS,
the elaboration of
appropriate standards, codes and guidelines and the launching of targeted campaigns.

the inclusion of energy in urban planning,

In addition, the removal of legal and administrative barriers should be accompanied by
innovative market instruments at Community level. This relates particularly to the fiscal
sector. Since the nature of RES is to be decentralised and locally available, equal importance
must be given to both technology improvements and non-technical barriers. Community
support should be maintained and reinforced in key areas.

Progress between 1997-2000 shows a modest growing deployment of RES in global terms
and an impressive increase in some specific sectors and countries. Further, the Community
Institutions have confirmed that the objective of 12% of RES in the energy mix by 2010,
proposed in 1997 in the White Paper "Energy for the future: Renewable Energy Sources",
remains ambitious but realistic, provided that appropriate measures are taken and consolidated
at an EU-wide level. It is clear that considerable extra efforts are needed in order to achieve
this objective.

29

TABLE 1

Energy production from RES in EU-15

General index (%)

1995

1996

1997

1998*

target
2010

Primary production
of RES

Share of electricity
of RES origin

Gross inland
consumption of RES

Source: Eurostat

10.0

10.0

10.8

11.3

-

13.8

13.5

14

14.2

22.1

5.3

5.4

5.8

5.9

12.0

30

TABLE 2

Wind

Solar

Hydro

Geothermal

Biomass

Total RES primary
Energy Production
(ktoe):

Total RES electricity
generation (GWh)

Source : Eurostat

Energy production from RES in EU-15, by sector

1989

1996

1997

1998

Increase
89/98

46

146

417

294

631

318

1,037

2,154%

347

138%

21,859

24,814

25,452

26,262

2,215

2,747

2,815

2,992

39,979

47,777

52,552

54,175

64,242

76,051

81,768

84,813

20%

35%

36%

32%

273,290

321,436

334,642

352,805

29%

31

GRAPH 3

Differences in electricity generation in TWh, 1997/1998

15

10

5

0

Totalres

Hydro

Geothermal
Wind

MSW

CHP

Biogas

Total increase of 13 TWh

32

GRAPH 4

Wind energy projections

Capacity -
target 40
MW

New
capacity -
target 60
MW

Cumulative
capacity -
target 40
MW

Cumulative
capacity -
target 60
MW

Real data

60,000

50,000
W
M

40,000

30,000

20,000

10,000

0

0
9
9
1

2
9
9
1

4
9
9
1

6
9
9
1

8
9
9
1

0
0
0
2

2
0
0
2

4
0
0
2

6
0
0
2

8
0
0
2

0
1
0
2

33

TABLE 5

Wind energy installed capacity in MW

Country

Denmark

Germany

Spain

1995

1996

1997

1998

1999

637

835

1148

1448

1738

1132

1552

2081

2875

4442

113

249

512

834

1812

34

TABLE 6

Impact of the objectives of theWhite Paper on net job creation

Technology

Net O&M

Net C&I

Total

Bio-mass
Small hydro
Wind
Solar thermal
Solar PV

150,271
2,609
7,390
22,122
343

137,257
12,436
20,540
129,783
51,864

283,528
15,045
27,930
151,905
52,207

TOTAL

182,735

347,880

530,615

Note: Excluding large hydro and geothermal

35

ANNEX I

ACTION PLAN FOR RES 1998-2010
(Including action taken since the adoption of the White Paper)

ACTION PLAN
1. Objectives and Strategies
ENERGY FOR THE FUTURE: RENEWABLE SOURCES OF ENERGY - White
Paper for a Community Strategy and Action Plan

Status

COM(97)599 final 26/11/97

Commission staff working paper – Energy for the future: Renewable Sources of
Energy (Community Strategy and Action Plan) – Campaign for Take-Off
Member States setting individual objectives to 2005 and 2010 and establishing
strategies

SEC(99)504 14.04.99

See Annex II

Fair Access for RES to the Electricity Market

2. Internal Market Measures

Working Paper of the European Commission – Electricity from Renewable
Sources of Energy and the internal electricity market, SEC (1999), 470final

SEC(99) 470 final 13/04/99

Directive of the European Parliament and of the Council on the promotion of
electricity from renewable energy sources in the internal electricity market
Restructuring the Community Framework for the Taxation of Energy Products

Start-up subsidies for new production plants. SME’s and new job creation

Draft revised guidelines on State Aids for environmental protection
Development or/and harmonisation concerning “golden” or “green” funds

Promotion of biofuels in transport fuel

Promotion of biofuels in low-sulphur liquid fuels

Extend the scope of the SAVE Directive to passive and active solar systems in
buildings to take into account the energy gains for heating and cooling
Extend the scope of the Directive to building materials with a low intrinsic energy
content

3. Integration into other Community Policies

Environment:
Inclusion of Actions on Renewables in the overall strategy for combating climate
change

COM(2000)279 final
10/05/00
Proposal
Directive (COM/97/30)

for

a

revised

final

October 2000
See Proposal
COM(2000) 279
10/05/00
Directive 98/69/EEC,
OJ L 350, 28.12.1998
Directive 98/70/EEC,
OJ L 350, 28.12.1998
Proposal for Amendment of
Directive 93/76/EC (1998)
Proposal for Amendment of
Directive 89/106/EC (1998)

Communication
Commission COM(97)481

of

the

98/C 372/07 Proposal for a Council directive on the incineration of waste OJ
2.12.1998, C 372, p. 11

OJ 2.12.1998, C 372, p. 11

Council Directive 1999/31/EC of 26 April 1999 on the landfill of waste OJ of
16.7.1999, L 182, p. 1

1999/31/EC 26/04/99

Green Paper on greenhouse gas emissions trading within the European Union

Communication from the Commission to the Council and the European
Parliament on EU policies and measures to reduce greenhouse gas emissions:
Towards a European Climate Change Programme (ECCP)
Research and Technical Development:

Decision No 182/1999/EC of the European Parliament and the Council of 22
December 1998 concerning the Fifth Framework Programme of the European
Community for research, technological development and demonstration activities
(1998-2002), OJ L 26, 1 February 1999, p. 1

COM(2000)87 08/03/00

COM(2000)88 08/03/00

182/1999/EC 22/12/98

36

Regional Policy:

Regulation (EC) No. 1783/1999 of the European Parliament and of the Council
of 12 July 1999 on the European Regional Development Fund, OJ L 213,
13.8.1999, p. 1

1783/1999 12/07/99

Communication from the Commission “The Structural Funds and their Co-
ordination with the Cohesion Fund; Guidelines for programmes in the period
2000-06”
Agricultural Policy:

To be adopted

98/235/EC: Commission Decision of 11 March 1998 on the advisory committees
dealing with matters covered by the common agricultural policy OJ L 088 ,
24/03/1998 p. 0059 – 0071

98/235/EC 11/03/98

Communication from the Commission to the Council, the European Parliament,
the Economic and Social Committee and the Committee of the Regions on a
forestry strategy for the European Union - COM (1998) 649 of 18 November
1998

COM (1998)649 18/11/1998

Commission in its Communication “Directions towards sustainable agriculture
COM (1999) 22 of 27 January 1999

COM (1999) 22 27/01/99

Council Regulation (EC) No 1251/1999 of 17 May 1999 establishing a support
system for producers of certain arable crops OJ of 26.6.199, L 160, p.1

1251/1999 17/05/99

Council Regulation (EC) No 1257/1999 of 17 May 1999 on support for rural
development from the European Agricultural Guidance and Guarantee Fund
(EAGGF) and amending and repealing certain Regulations OJ of 26.6.199, L
160, p.80

Commission Regulation (EC) No 2461/1999 of 19 November 1999 laying down
detailed rules for the application of Council Regulation (EC) No 1251/1999 as
regards the use of land set aside for the production of raw materials OJ of
20.11.1999, L 299, p.16
External Relations:

Proposal for a Council Decision concerning the conclusion, on behalf of the
European Community, of the Partnership Agreement between the African,
Caribbean and Pacific States on the one part, and the European Community and
its Member States, on the other part
Enlargement:

Sufficient funding from TACIS and PHARE for RES in order to implement
Protocols opening EU support programmes ALTENER and SYNERGY to
associated countries. Appropriate agreements with Mediterranean area countries as
well as other areas. Collaboration in the implementation of the World Solar
Programme 1996-2005.

The ALTENER programme:

5. Support measures

1257/1999 17/05/99

2461/1999 of 19/11/99

1251/1999 20/11/99

COM(2000)324 23/05/00

Specific Protocols
Communication

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) OJ L 159 , 03/06/1998 p. 0053 – 0057

98/352/EC:
Decision of 18 May 1998

Council

Decision No 646/2000/EC of the European Parliament and of the Council of 28
February 2000 adopting a multiannual programme for the promotion of
renewable energy sources in the Community (ALTENER) (1998 to 2002) OJ L
079 , 30/03/2000 p. 0001 – 0005

Decision No 646/2000/EC
of the European Parliament
and of the Council of 28
February 2000

37

The 5th RTD Framework Programme

Accompanying meaures

New targeted actions :
- Integration of RES in buildings;
- Decentralised and small scale centralised production of electricity from RES in
islands and isolated areas;
- Bio-energy for the production of electricity and heating/cooling;
- Integration of RES in communities;
- Electricity and heating from biomass in rural areas;
Consumer information campaigns. Targeted information action on the protection of
environment with simultaneous energy recovery
- Targeted information addressed to main stakeholders
Development of European standards and certifications
- Standards on solar thermal equipment
- Standards on solar PV equipment
- Standards on wind turbines
- Standards on biodiesel
- Standards on solid biomass
Better positioning for RES on the institutional banks and commercial finance
market by developing schemes facilitating investments in RES projects
Creation of a virtual centre “AGORES” for collection and dissemination of
information

6. Campaign for take-off - 2000-2003

Renewable Energy Partnership scheme
- national, regional, local authorities, industry, associations, etc.
- expectations: 50 RE Partnership per year

Campaign logo
Campaign Awards
Campaign Catalogue
Promotion:
- Cross-fertilisation of best ongoing policies/programmes in Member States;
- Integration of RES in cities (sustainable waste/biogas policy and solar energy

in buildings);

- Best practices on primary and secondary biomass specific sectors (liquid

biofuels, straw, olive residues, wood residues, etc.)

- Best practices in public use buildings (schools, hospitals, hotels, offices)

Scheme to monitor progress

7. Follow-up

Calls for proposals 2001-
2002

Calls for proposals

CEN and CENELEC
2000
2001
2001
2002
2002
Agreements and projects

AGORES launched in April
2000

Launched in 1999
30 RE Partnership
declarations signed by July
2000
Launched in 1999
First: October 2000
First: October 2000

CTO information
Campaign 2000-2003

Monitoring scheme under
development: September
2000

Improvement of data collection and Statistics
- Agreement between Community Statistical Office and MS to introduce a new

Into force for 2001 statistics

questionnaires on RES for official data collection

Inter-services co-ordination group

Creation of a Working Group on Renewable Energy Sources, with annual meetings
involving the Commission and the Member States

Regular reporting to the Union’s Institutions
- Communication to the European Parliament and to the Council

Meeting 16/7/98
Meeting 28/6/99
September 2000
Meeting 19/03/98
Meeting 19/05/99
October 2000
September 2000

38

ANNEX II

Current policies and targets in Member States and Norway

RES Policy

Targets/Policies

Austria

Elektrizitätswirtschafts
organisationsgesetz
(2000)

und
– ElWOG

Obligation on operators of distribution networks to ensure that by 2007
4% of electricity comes from RES-E (excluding all forms of hydro). In
addition, end-users or electricity traders located in Austria must ensure
that 8% of their supply comes from small-scale hydro installations (up
to 10 MW) located in Austria. Fulfilment of the 8% obligation must be
documented by means of specific certificates for small-scale hydro.

The Austrian cabinet has in September 2000 agreed on the principles
for a national climate change strategy that includes enhanced efforts to
promote RES.

Belgium

RES Policy Report for Belgium
on AGORES website

Flanders:

3% RES share of energy production by the end of 2004 and 5% by
2010. RES-E to account for 1% in 2001, 3% in 2004 and 5% in 2010.

Beleidsnota Energie 2000-2004
(Flanders)

Decree being passed by Flemish Government to establish a green
certificates system with quotas for electricity suppliers (from 2001)
together with the establishment of a Renewable Energy Fund.

Wallonia:

3% RES share of energy consumption in 2000 and 5% in 2010.

Preparations for decree to support RES-E, including implementation of
a green certificates system with quotas imposed on electricity suppliers
(from 2001).

Denmark

“Energy 21” Action Plan (1996)

Electricity Supply Act (1999)

Aim of 12-14% RES contribution to primary energy consumption by
2005 and long-term goal of 35% RES share of total primary energy
consumption by 2030.

Political agreement on reform of
electricity sector (1999)

Separate target of 20% RES-E share of electricity consumption by
2003. Introduction of annual RES-E quotas imposed on consumers and
preparation of green certificates system to be operational by 2003.

Finland

Action Plan for renewable Energy
Sources (1999)

Increase of RES contribution to energy demand with 50% (3Mtoe) by
2010 and a doubling by 2025. Increase of RES-E with 8.35 TWh
between 1995-2010 leading to a 31% share of electricity consumption
by 2010.

France

Le programme national de lutte
contre le changement climatique
(2000).

Plan
développpement local

bois-énergie

et

No overall RES target, but various sectoral strategies and targets:

EOLE 2005 programme: 250-500 MW wind capacity by 2005.
Proposal for 3000 MW wind capacity by 2010 as part of climate
change strategy. In addition, development of wood energy, solar,
geothermal and a special programme for the DOM/TOM and Corsica.

39

Germany

Erneuerbare
(2000)

Energien Gesetz

At least a doubling of the RES share of total energy consumption by
2010. A substantial increase in contribution of RES-E in order to
achieve the doubling of all RES.

A sectoral target for photovoltaic of 300 MW additional installed
capacity under the “100.000 solar roofs programme” (1999-2004).

Greece

Action Plan “Energy 2001”

Increase of RES share in national energy balance from 5.4% in 1996 to
8.2 – 8.5% in 2010, mainly via wind and biomass.

RES Policy Report for Greece on
AGORES website

Electricity utilities 10-year Development Plan (1994-2003): 306 MW
installed capacity of large hydro, 17 MW small hydro and 37 MW
wind parks in operation by 2003.

Ireland

Green
Paper
energy (1999).

on

sustainable

500 MWe target for installed electricity capacity for the period 2000-
2005 (increase in RES-E production from 6% in 1998 to 12.4% in
2005 – a 3,75% RES share in total primary energy requirement).

The Alternative Energy Requirement (AER), a competitive central
bidding system, is the principal support mechanism for RES-E.

Italy

the
Italian White Paper
valorisation of Renewable Energy
Sources (1999).

for

RES production forecast suggesting an increase from 11,7 Mtoe in
1997 to 20,3 Mtoe by 2008 – 2012. Installed capacity for RES-E
forecasted to increase from 17104 MWe (1997) to 24700 (2008-2012).

Law Decree of 11 November
1999 concerning RES-E

From 2002 an obligation on large producers or importers of electricity
generated by fossil fuels to generate or purchase a quota of 2% RES-E
(by new RES-E plants). A system of green certificates is planned in
conjunction with the obligation.

Luxembourg

Stratégie nationale de réduction
des émissions de gaz à effet de
serre (2000)

Netherlands

Renewable Energy – Advancing
Power”: Action Programme for
1997 – 2000 (1997)

1999 Energy Report

Portugal

“Programa Energia”

RES Policy Report for Portugal
on AGORES website

10% of total electricity consumption should be covered by RES-E in
2010.

5% RES share of total energy demand in 2010 and 10% by 2020.

1000 MW wind capacity on onshore locations by 2000, but no separate
policy target for RES-E.

The government has made an agreement with utilities stipulating that
energy distributors must sell 1700 GWh RES-E by end of 2000. A
green label system in operation since 1998 as a forerunner to green
certificates. A voluntary system of tradable green certificates for
renewable electricity, gas and heat is in preparation and scheduled to
become operational in 2001.

No overall RES targets, but
some specific technology targets
established under financial support schemes (e.g. 180 MW RES-E by
the end of 1999 within the ENERGIA Programme).

Some elements of ENERGIA will continue in new support programme.

Spain

Plan de Fomento de las Energías
Renovables/Programa de Energías
Renovables (1999)

Comprehensive plan for development of RES setting as overall target
that 12% of energy demand should be covered by RES in 2010.

Specific RES-E target aiming at 29,4% RES-E share of total electricity
generation by 2010.

40

Sweden

Bill on a Sustainable Energy
Supply (1997)

Additional 1.5 TWh electricity from RES by end of 2002 from 3
sources:

134

Regeringens
1999/2000:
förutsättninger
frän
(2000).

förnybara

proposition
“Ekonomiske
för elproduktion
energikällor”

- CHP based on bio-fuels: 0.75 TWh

- Wind power: 0.5 TWh

- Small scale hydropower: 0.25 TWh

Government proposal for a green certificates trading system combined
with quotas for RES-E to come into force 1 January 2003.

UK

New and Renewable Energy –
Prospects for the 21st Century –
Conclusions in Response to the
Public Consultation, DTI.

Government proposal for 5% RES-E by 2003 and 10% by 2010 to be
achieved by means of a Renewables Obligation imposed upon licensed
electricity suppliers.

Development of a green certificates trading system as a means to fulfil
the Renewable Obligation.

Norway

Stortingsmelding nr. 29 1998-99
(1999)

4 TWh additional waterborne heat per year based on RES, heat pumps
and surplus heat by 2010. 3 TWh wind power production per year by
2010.

41

ANNEX III

List of abbreviations

RES : Renewable Energy Sources

GHG : Green House Gases

ETBE : Ethyl Tertio Buthyl Ether

CAP : Common Agricultural Policy

PV : Photo Voltaic

ACP : African Caribbean Pacific

EE : Energy Efficiency

FP : Framework Programme

COP : Conference of the Parties

RTD & D : Research Technology and Development and Demonstration

ERDF : European Regional Development Fund

EDF : European Development Fund

OPET : Organisation Promotion of Energy and Technology

CTO : Campaign for Take Off

MSW : Municipal Solid Waste

CHP : Combined Heat and Power

42